Token Launch Mechanism

Definition ∞ A token launch mechanism describes the specific method by which new digital tokens are initially distributed to the public or early investors. This can include initial coin offerings (ICOs), initial exchange offerings (IEOs), airdrops, or fair launches. Each mechanism has distinct characteristics regarding price discovery, distribution fairness, and regulatory implications. It defines the initial market entry of a digital asset.
Context ∞ News frequently reports on different token launch mechanisms, particularly when new projects enter the market, analyzing their fairness, accessibility, and potential for price volatility. Discussions often center on which mechanisms promote broader distribution versus those that favor early or institutional participants. Understanding these mechanisms is essential for evaluating new digital asset projects and their initial market dynamics.