utility tokens</strong></a>. The higher the stake in a pool is, the more likely it is to be <strong>chosen as a validator node</strong> for the following <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-block/">block./nThough ISPO has one major difference from other similar models, which require investors to buy, <strong>sell</strong>, or trade one token in order to purchase and stake project-specific tokens. The difference is that with the <strong>ISPO model users can utilize the ADA tokens they already own</strong>. Besides, users stake ADA tokens in the staking pool of the project in order to earn the project’s native tokens as a reward, instead of staking these tokens in the <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-proof-of-stake-pos/">Proof-of-Stake (PoS)</strong></a> ecosystem of Cardano.</p>\n<p>An ISPO is more secure for investors than <strong>other funding choices</strong>. It's less risky because users are just giving up their ADA rewards in exchange for project-specific rewards. Though the staked ADA is theirs, and it remains in their <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-non-custodial/">non-custodial wallets.</p>\n<p>In addition, in an ISPO, there is no lock-in period. Users not only have complete control over their assets, but they also have the freedom to use their ADA any way they want. This includes <strong>selling</strong>, trading, unstaking, using ADA to buy <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-non-fungible-token-nft/">NFTs, and everything else you can do with these tokens.</p>\n<h3>How Does an ISPO Work?</h3>\n<p>Generally, PoS consensus mechanism is used in the stake pools of Cardano. Therefore, <strong>transactions</strong> and the production of new blocks are verified by network <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-validator/">validators. These validators are stake pools or nodes that provide <strong>delegators (users) </strong>with the ability to stake their funds.</p>\n<p>The networks, with the assistance of the Ouroboros protocol, choose staking pools that have the biggest amount of stakes to distribute<strong> rewards to validators</strong>. Validator rewards in the form of ADA are shared among the delegators of the successful staking pool based on the amount of ADA staked by each user after each <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-epoch/">epoch (which lasts five days in Cardano).</p>\n<p>With the ISPO model, delegators stake their ADA in staking pools created by project developers. The staking pool with the largest stakes becomes a validator node in a block, eventually contributing to the Cardano network's consensus.</p>\n<p>Though users who stake their ADA tokens in these pools do not receive ADA rewards. They are compensated in the project's native token instead of ADA. The <strong>rewards</strong>, which would normally be distributed among the delegators, are delivered to the operator of the validator node.</p>","level":"medium","meta_title":"What is Initial Stake Pool Offering (ISPO)? Definition & Meaning | Crypto Wiki","meta_description":"Initial Stake Pool Offering (ISPO) meaning: Initial Stake Pool Offering (ISPO) - a cryptocurrency fundraising tool that is only available in the Cardano ecosystem.","meta_keywords":null,"language":"en","created_at":"2022-04-07T12:08:47.000000Z","updated_at":"2022-05-13T14:32:24.000000Z","preview_url":"https://www.bitdegree.org/crypto/learn/crypto-terms/what-is-initial-stake-pool-offering-ispo"},"currentChapter":"I","currentSection":"what-is-initial-nft-offering-ino","chapterTitle":"I","readingLevel":"easy"},"url":"/crypto/learn/crypto-terms/what-is-initial-nft-offering-ino","version":"cdd198d50cbe5c9c21c9329d7c096ffc"}" class="container-fluid d-flex crypto-book p-0"> Crypto Terms: Letter I
What is Initial NFT Offering (INO)?
Initial NFT Offering (INO) MEANING:
Initial NFT Offering (INO) -
a type of crowdfunding where projects list a set of non-fungible tokens (NFTs).
Let's find out Initial NFT Offering (INO) meaning, definition in crypto,
what is Initial NFT Offering (INO),
and all other detailed facts.
An Initial NFT Offering (INO) is a new way to raise funds for crypto projects by selling a set of non-fungible tokens (NFTs). It’s usually done through launchpads or other trading platforms.
Initial Coin Offering (ICO) introduced this type of crowdfunding in 2013. Its success prompted the creation of other crowdfunding solutions within the crypto sector such as the Initial Exchange Offering (IEO), Initial Dex Offering (IDO), and Security Token Offering (STO).
NFTs are slowly becoming appealing to the masses, therefore, it is also attracting many digital artists, basketball players, and other athletes. Even famous musicians such as Steve Aoki and Grimes have been participating in the market of NFTs. The appeal is that investors aren’t the only ones that benefit from NFTs. Content creators are well compensated as well.
As the popularity of NFTs grows, so do the opportunities related to them. And, as a result, initial NFT offerings are experiencing an increase in usage.
The main advantages of an initial NFT offering are:
- Low barrier of entry. Since it’s easy to launch an INO, many smaller projects can present their ideas to a bigger audience, while also raising the funds they need to continue the development of their project. The process of fundraising is facilitated by decreased listing fees as well as accessibility to instant liquidity even while the project is still in the works;
- Public recommendations. In general, NFT owners like to show off their holdings by using them as a profile picture that is visible to everyone;
- Strong sense of community. A lot of NFTs are considered to be collector’s items since they are a part of an exclusive collection. People who hold limited-edition NFTs are easily recognized and automatically put in a close circle.
