Digital token issuance refers to the process of creating and distributing new digital tokens on a blockchain network. These tokens can represent various assets, such as a stake in a company or access to a specific service or product. The issuance of digital tokens typically involves the creation of a smart contract on a blockchain platform, which outlines the rules and specifications of the token.
Companies or individuals looking to raise funds or create a new digital asset can issue tokens through an Initial Coin Offering (ICO) or a Security Token Offering (STO). During the issuance process, investors can purchase these tokens using cryptocurrencies or fiat currencies in exchange for the newly created digital asset.
Digital token issuance allows for the democratization of investment opportunities, enabling a wider audience to participate in the funding of projects or businesses. However, it is essential for investors to conduct thorough research before investing in any digital token issuance to mitigate risks and ensure the legitimacy of the project.
