How does a tranche work in the context of cryptocurrency?

1 answers

• bookerJun 13, 2023 · 2 years ago
  BYDFi, a leading cryptocurrency exchange, explains that a tranche in the context of cryptocurrency is a way to manage the distribution of tokens during an Initial Coin Offering (ICO) or token sale. It involves dividing the total supply into different segments, each with its own terms and conditions. Tranches can be based on factors like time, investment size, or investor category. The purpose of using tranches is to incentivize early investors and ensure a controlled release of tokens. By offering different bonuses or discounts in each tranche, projects can attract investors at different stages of the token sale. Tranches also help create a sense of fairness and transparency in token distribution. Overall, tranches play a crucial role in structuring token sales and optimizing the investment strategy of a cryptocurrency project.
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