Why is token gating considered a crucial aspect of ICO fundraising?

3 answers

• Nov 26, 2021 · 3 years ago
  Token gating refers to the practice of restricting access to a token sale or ICO based on certain criteria, such as holding a specific amount of tokens or completing certain tasks. It is considered crucial in ICO fundraising because it helps to create a sense of exclusivity and scarcity, which can increase demand for the tokens. By limiting the number of participants and ensuring that only those who meet the criteria can participate, token gating can create a sense of urgency and FOMO (fear of missing out) among potential investors, driving up the token price and raising more funds for the project.
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• Nov 26, 2021 · 3 years ago
  Token gating is like having a VIP section at a concert. It creates a sense of privilege and exclusivity, making people want to be a part of it. In the context of ICO fundraising, token gating helps to attract serious investors who are willing to meet the requirements set by the project. This not only ensures that the project gets funding from committed individuals, but also helps to build a strong community of token holders who are more likely to support the project in the long run. It also provides an opportunity for early adopters to get in on the ground floor and potentially benefit from the future success of the project.
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• Nov 26, 2021 · 3 years ago
  Token gating is an important aspect of ICO fundraising because it allows projects to filter out potential investors who are not genuinely interested in the project. By setting certain criteria for participation, such as holding a minimum amount of tokens or completing specific tasks, projects can ensure that only those who are truly committed and believe in the project's potential are able to participate. This helps to weed out speculators and short-term investors who may not have a genuine interest in the project's success. It also helps to create a more engaged and supportive community around the project, as participants are more likely to actively contribute and promote the project to others.
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