I am trying to figure out how the ICO crowdsale is usually done?
I have a good understanding of the ERC20 Token and its standards. When a new token is created the owner is assigned all the tokens. I have looked at a couple of crowdsale contracts and saw the usage of
transfer function and not
- Does this mean all the tokens from the owner is transferred to the crowdsale contract and then distributed to all contributors?
- Why not keep the tokens in the owners' wallet and distribute them by allowing the crowsale contract to spend tokens from the owner's wallet (using the
allowancein ERC20 Token)
What are the other differences in both the methods? Pros? Cons? Which is the right way to do? (If there is one)