Hi,
I've been reading about the strategy ICOs use for unsold tokens in case they do not reach their hard cap.
As far as I understand, there are a few options to be used for this scenario.
1) Unsold tokens are burned - the most common option used by ICOs. If tokens are burnt, token holders share will increase, therefore its price.
2) Unsold tokens are not burned - founders keep them. It's not a good option at the eyes of the token holders. It can be used as a personal interest.
3) Unsold tokens are airdropped - A few ICOs (eg. FundFantasy) used this strategy. As far as they see it, the token price will be decreased but will be readjusted because people will use it.
I'm not aware of any more alternatives to those three. What are your thoughts? Would you use option 1 or go for the other two options? Would you come up with another possibility?
Thank you very much.
Probably the best thing to do for an ico in case something like this happens is to have very clear policies from the very beginning about what they're going to do if not all the tokens are sold, because as we are seeing right now it is becoming more and more difficult for icos to reach their goals when it comes to funding, but if no policy was implemented from the very beginning about what to do with tokens that were not sold then the option number one seems to be the most fair and the one that is the easiest to perform, because airdropping tokens is very unfair to all of those that paid money for them and if the developers instead decide to keep the tokens then possible accusations that the project is a scam may arise.