Hi All,
I'm a bit confused on the necessity of ICOs. Here is what I am trying to understand:
if you would like to create a platform on which a token represents the value you place on an answer to a question, the question is asked, someone answers correctly, the token is transferred to them, and the person who answered the question would then like to "cash out" so to speak. In order to "cash out" on this token and convert it to bitcoin, is it necessary to have previously held an ICO in order for that token to hold any value in relation to Bitcoin?
I realize my question may be a bit scrambled so thank you in advance.
For a token to have any value in relation to Bitcoin or whichever coin (ETH) as the case maybe, there is need to list it on exchange. Now to get to exchange, this is where ICO comes into the picture, some projects carry out ICO to get funds for listing as well as for developments, so when this token gets to exchange then a value will be placed on it, therefore when a person now "cash out" it would be in BTC or the listed pairs. Also, there are projects whose team may have the neccessary funding, could be from private investors or from the team, in this case, they might decide to list directly on any exchange without the need for ICO, thus having a value in BTC or ETH when a person "cash out".
So in conclusion, it's not a must to hold an ICO before a value can be added or placed on the token, there are other ways, just like I explained above.