What is the meaning of i.o.u. in the context of cryptocurrency?

1 answers

• Apr 25, 2022 · 3 years ago
  At BYDFi, we also use i.o.u. tokens in certain situations. For example, if a user wants to trade a specific cryptocurrency but doesn't have it in their wallet, they can issue an i.o.u. token to initiate the trade. Once the actual cryptocurrency is available, the i.o.u. token can be redeemed for the real asset. This allows for more flexibility and liquidity in the trading process. However, it's essential to ensure the trustworthiness and reliability of the issuer when dealing with i.o.u. tokens, as they rely on the issuer's commitment to deliver the actual assets.
  569285