Primary Market

The primary market in crypto refers to the initial issuance and sale of digital assets directly from the issuer to investors. It is where new cryptocurrencies or tokens are introduced and sold for the first time, typically through initial coin offerings (ICOs), security token offerings (STOs), or initial exchange offerings (IEOs). Investors participating in the primary market purchase these assets directly from the project team or issuing entity.

Examples of primary market activities in crypto include:

1. Initial Coin Offerings (ICOs): Projects raise funds by selling a portion of their new cryptocurrency tokens to investors in exchange for established cryptocurrencies like Bitcoin or Ethereum.
2. Security Token Offerings (STOs): Similar to ICOs, but the tokens offered represent ownership of assets or revenue streams, making them subject to securities regulations.
3. Initial Exchange Offerings (IEOs): Projects conduct token sales directly on cryptocurrency exchanges, leveraging the exchange's platform and user base to raise funds.
4. Private Sales: Some projects conduct private sales of their tokens to institutional investors or accredited individuals before the public sale, often at discounted prices.

Cases of primary market activities in crypto include the ICOs of Ethereum (ETH) in 2014, which raised funds for the development of the Ethereum platform, and the IEO of Binance Coin (BNB) on the Binance exchange in 2017, which helped fund the development of the Binance ecosystem. These examples illustrate how projects use the primary market to raise capital and distribute their digital assets to investors.