What is the issuance price and issuance volume of LOOM coins?

The initial LOOM coin issuance in the 2017 ICO set an issuance price of roughly $0.10 per token, with a maximum issuance volume capped at 1 billion tokens.

Nov 28, 2024 at 03:56 am

Unveiling the Issuance Details of LOOM Network's LOOM Tokens

Introduction

The LOOM Network, established in 2017, has emerged as a prominent player in the blockchain industry, offering a scalable and secure platform for decentralized applications. At the core of its ecosystem lies the LOOM coin (LOOM), which serves as the primary medium of exchange and governance within the network. In this comprehensive exploration, we delve into the intricate details surrounding the issuance of LOOM coins, including their issuance price and issuance volume.

LOOM Coin Issuance: A Historical Perspective

1. Initial Coin Offering (ICO)

• In 2017, LOOM Network conducted an ICO, a fundraising mechanism commonly utilized by blockchain projects at their inception.
• During the ICO, a total of 1 billion LOOM tokens were issued, representing the maximum supply of the coin.
• Interested investors purchased LOOM tokens using Ethereum (ETH), with the ICO price set at 1 ETH for every 10,000 LOOM tokens.

2. Token Distribution

• The LOOM tokens were distributed among various stakeholders, including the founding team, early investors, advisors, and the community.
• The founding team retained a portion of the tokens to support the ongoing development and operation of the network.
• A significant portion of the tokens was allocated to early investors who provided financial support to the project during its early stages.

Issuance Price and Issuance Volume

Issuance Price

• The issuance price of LOOM coins during the ICO was 1 ETH for every 10,000 LOOM tokens.
• This translates to an approximate issuance price of $0.10 per LOOM token, based on the ETH price at the time of the ICO.

Issuance Volume

• The total issuance volume of LOOM coins is capped at 1 billion tokens.
• This maximum supply ensures scarcity and helps maintain the value of the LOOM token over time.

Market Performance and Price Fluctuations

Since the ICO, the price of LOOM coins has fluctuated significantly, influenced by a range of factors, including market trends, news events, and developments within the LOOM Network ecosystem.

• Market Trends: The broader cryptocurrency market, especially the price of Bitcoin and Ethereum, has a substantial impact on the price of LOOM coins.
• News Events: Positive news, such as partnerships, product launches, and ecosystem growth, can boost the price of LOOM coins. Conversely, negative events can lead to price declines.
• Network Developments: Upgrades, enhancements, and new features introduced to the LOOM Network can positively influence the value of LOOM coins.

Use Cases of LOOM Tokens

LOOM coins have several use cases within the LOOM Network ecosystem:

• Transaction Fees: LOOM coins are used to pay transaction fees for executing operations on the network, such as deploying and interacting with decentralized applications.
• Staking: LOOM token holders can stake their tokens to participate in the network's consensus mechanism, earning rewards in return.
• Governance: LOOM tokens grant holders voting rights on network governance proposals, allowing them to influence the future direction of the project.