What Is Initial NFT Offering (INO)?
After ICO, IEO and IDO, Initial NFT Offering (INO) is a new cryptocurrency crowdfunding mechanism based on the same concept fundamentals that involve offering a set of limited NFTs for sale.
Companies and individuals have been using ICOs as a way to raise capital or participate in investment opportunities since 2013. From the genius of ICO, there comes the rise of other crypto fundraising mechanisms, namely STO (Security Token Offering), IEO and IDO.
NFTs are experiencing a massive adoption as lots of prominent musicians, artists, athletes, commercial brands and crypto enthusiasts are participating in the NFT market. INOs have risen in popularity with the NFT hype, something that benefits both content creators and investors.
INO involves offering a set of NFTs on launchpads or marketplaces for sale to public investors.
Some key benefits include:
Easy to Launch
Entry barriers of INOs are lower than launching fungible tokens. This enables projects with big and small ideas to be recognized by a wider range of audiences. They can raise the needed funds with cheaper listing costs and easier access to instant liquidity before the project is ready.
Community Building
NFTs promote a strong sense of community as owning one of a verifiably scarce NFT of a collection puts holders into a close circle. Ownership of a limited-edition NFT makes it easier to recognize each holder compared to owning a small percentage of a fungible token supply.
Holders Become Project Advocates
Each NFT can only be owned by one wallet address. NFTs contain built-in ownership verification that serves as proof of ownership. Each holder becomes an advocate of the project since most perceive NFT ownership as a ‘bragging right’, especially when used as PFPs (profile pictures).
Author:
Leon Lee is the founder and CEO of Only1, the first NFT-powered social platform built on Solana. Only1 helps creators monetize and allows fans to connect with the creators they love in a unique way, similar to a decentralized Patreon. Mixing social media, NFTs, DeFi, and the native token LIKE, Only1 offers a Web 3.0 solution to creator economy and fan engagement.
Leon was trained as a genetic engineer at Imperial College London and his first start-up was a college-funded biotech project. He later joined multiple startups, self-taught programming and also participated in ICOs earlier in 2017 which sparked his interest in the world of cryptocurrencies.
