What is Initial NFT Offering - INO?
3 September 2021
Test launch: Only1 ($LIKE) INO
Date: October 7th 2021
More details coming soon..
- 10,000 unique mints of Only1 NFTs on October 7th
- All sol raised will be used to buy back $LIKE to reward early users of Only1
- Increased Only1 staking reward for holders
Only1 INO Launchpad - a new funding model
What is Initial NFT Offering (INO)? An Initial NFT Offering, or “INO”, is a new cryptocurrency crowdfunding innovation — based on the concept of Initial Coin Offering (ICO) — that involves offering a set of limited edition NFTs for sale via the Only1 INO Launchpad. As the NFT market matures, Initial NFT Offering rises as a solution to incentivize and reward investors and the communities.
What is an NFT?
NFT is short for non-fungible token. A non-fungible token (NFT) is a unit of data stored on a blockchain. NFT certifies a digital asset to be unique and therefore not replaceable with something else.
NFTs store extra information that makes them work differently from Bitcoin (BTC), Ethereum (ETH) and other cryptocurrencies. Simply put, each NFT has a digital signature that makes it impossible for NFTs to be exchanged for, or equal to one another (“non-fungible”). Most NFTs are part of the Ethereum blockchain. Yet, other blockchains, like Solana, are implementing their own versions of NFTs.
NFTs are surging in popularity around the world, widely used in art, music, sports, and other popular entertainment.
What is an NFT Marketplace?
NFTs are quickly rising to grab the attention of mainstream customers in 2021. Catering to this new asset class, NFT marketplaces provide marketplaces for the buying, selling, and trading of NFTs. Some of the most popular NFT marketplaces are: Opensea, SuperRare, and Rarible.
The NFT market has witnessed a massive surge in sales and active participants. In August 2021, OpenSea, the leading NFT marketplace surpassed $1 billion in monthly trading volume. It reports a 286% increase in trading volume from July to August.
What is Initial NFT Offering (INO)?
Companies and individuals are using initial coin offerings (ICOs) as a way to raise capital or participate in investment opportunities. ICOs typically involve the issuance of crypto tokens, which the operators create and distribute using the blockchain technology.
From the genius of ICO, there comes the rise of other crypto fundraising mechanisms: STO (security token offering), IEO (Initial Exchange Offering) and IDO (Initial DEX Offering).
Recently, a new type of offering, Initial NFT Offering (INO), is gathering more interest. Similar to an IDO, an Initial NFT Offering provides projects and creators with the ability to engage supporters and communities by issuing NFTs.
Initial NFT offering involves offering a set of first generation NFTs, or genesis NFTs, for a certain period of time. Therefore, Initial NFT Offering empowers participating investors to benefit from the inherent supply scarcity of the NFTs.
Meanwhile, Initial NFT Offering solves many of the challenges for artists and creators selling art NFTs and collectibles. Anyone can issue limited edition NFTs through decentralized platforms with the advantages of instant liquidity and cheaper listing cost.
How Does Initial NFT Offering Work?
An increasing number of NFT platforms are now offering the option of an Initial NFT Offering to its publishing community. NFT platforms allow the community to vote for promising projects to be listed on the platform and reward the winners.
At the beginning stage, creators and upcoming projects would provide technical documents, plans and roadmaps to the community. This is a great opportunity for the creators to gain exposure and promote their NFT work.
For those NFT projects to be listed, creators would launch by a First-Come-First-Serve or lottery model to fairly distribute their NFTs, thereby boosting the community engagement. Within the Initial NFT Offerings, different criteria and gamification options are available to choose from.
Normally, NFT platforms grant access to these NFTs depending on the number of native crypto tokens held by the user. It encourages users to stake native crypto tokens in order to receive allocations from upcoming NFT projects. Within the Initial NFT Offerings, users in the highest tiers benefit from extremely rare and sought after NFTs for each project.
The NFTs sold in the Initial NFT Offering will represent different kinds of artwork, games, fashion accessories, metaverses, music, photographs, and videos.
Moreover, some NFT platforms provide Initial Staking NFT Offering (ISNO), a modified version of INO. Initial Staking NFT Offering involves offering a set of limited edition stake-able NFTs for sale.
Creators would launch NFTs with different rarity, and burning period, and create their specific staking pools on the platform. Then, ISNO allows NFT holders to burn the NFTs and unlock the crypto tokens from them, among other benefits. On some NFT platforms, NFT owners and creators both earn a split of the staking reward.
What Makes Initial NFT Offering Unique?
As the NFT market grows and matures, the financing nature of NFT issuance is turning clear. The rise of Initial NFT Offerings aims to revolutionize the booming NFT ecosystem, with below unique advantages.
Easy-to-Launch NFT Projects:
Through Initial NFT Offerings, anyone can issue limited edition NFTs through our decentralized platform. Initial NFT Offerings enable everyone — big and small ideas — to be recognized by a wider range of audience. Many creators, still in the process of creating their masterpiece, need new funding to finance their projects. With initial NFT offerings, any artist can raise the needed funds before creating.
Early Community Building:
Only1 allow the community to vote for promising projects to be listed on the platform and reward the winners. The exposure encourages potential investors to look into the NFT projects. Additionally, the platform would grant active users and token holders access to exclusive NFT project launches. The mechanism enables creators to build an early community — active traders and experienced investors — around the NFT project. This represents a unique opportunity to lower the risk of entry for creating resource-intensive NFT projects.
Lower Transaction Costs:
Running on Solana, Initial NFT Offerings minimizes the transaction fees creators and investors face.
Higher Investment Returns:
Initial NFT Offering empowers participating investors to benefit from the inherent supply scarcity of the NFTs. Only1 has native social platform capabilities to increase visibility to certain creators, and hence increasing the value of their NFTs.
Choosing the Right Blockchain for NFTs
Before NFTs can benefit from widespread adoption for artists and creators, there are a number of questions and issues that must be addressed.
When choosing the blockchain to build on for NFT projects, scalability is one of the major issues to consider. With the cost of gas fees, some may find the Ethereum blockchain difficult to cater mainstream creators. Minting NFTs on the Ethereum blockchain can be costly and slow as well. Also, the transaction fees with buying an NFT may discourage supporters and investors.
The perfect choice for NFT projects would be on blockchains which allows the network to optimize for speed. It should enable higher process efficiency and higher security.
Moving forward, another important advantage for the right blockchain for NFTs would be the interoperability. Simply put, can an NFT move from one chain to another with ease? For now, Ethereum-based NFTs are constricted to the Ethereum blockchain. Therefore, interoperability development would be a key focus in the NFT industry, with blockchains supporting cross-chain migration of NFTs. This will boost a higher level of intimate user social engagement, and a vibrant, organic community for NFT projects.
For NFT projects and creators, Initial NFT Offering (INO) rises as a brand new type of offering that leverages the strongest elements of NFT technology. INO empowers them to kick-start their success stories.
Despite its meteoric growth, the NFT market is still in its infancy. INO serves as an innovative solution to resolve the current challenges that all participants face. So INO facilitates NFT liquidity, eases the listing process, avoids the compliance risks, and provides an inclusive experience for users. The new crypto funding innovation empowers global art lovers and collectors to enter the booming NFT space.
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