- Venture sets the initial quantity of tokens, they also disclose the tokens available in following periods
- Venture auctions the tokens
- As long as the total tokens purchased exceeds. the minimum threshold, the venture proceeds, otherwise all contributions are returned and the venture does not launch.

University of Michigan - Ann Arbor

Timeline of an ICO

Catalini, Christian and Gans, Joshua S., Initial Coin Offerings and the Value of Crypto Tokens (March 5, 2019). MIT Sloan Research Paper No. 5347-18, Rotman School of Management Working Paper No. 3137213, Available at SSRN: https://ssrn.com/abstract=3137213 or http://dx.doi.org/10.2139/ssrn.3137213

Initial Coin Offerings 
and the Value of Crypto Tokens

ICO Stage

- One period after. the venture is created, the token quality is revealed to investors
- Tokens are only medium of exchange for the ventures products
- Buyers and sellers trade tokens at a new market determined exchange rate
- Payoffs and profits are realized

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