ICOs On A Rollercoaster: What To Expect
The ICO market has changed dramatically since the 2017 Golden Age of Bitcoin price has reached the top. Since then, according to TechCrunch , over a thousand cryptocurrencies and tokens have become inactive, or “dead”. If you’re looking for a bit, you’ll find out what you’re looking for. This is a reversal of capital flows.
However, ICO remains promising. Let's get into the strategies and trends of action.
Private Sale Prevails
Pre-sales, about 30–35% of ICOs tokens go with them. ICO of the Telegram Company. Kodak Coin followed a private pre-sale, raising a total of $ 10 million.
As of TokenData ICO fundraising this year it comes from private sales and pre-sales. There's something in it to adopt, isn't it? If you’re planning an ICO, consider developing a strategy and a roadshow.
Meet STO and DAICO
A traditional ICO model has been disputed a lot recently, and both founders and investors are now shifting to more secure and reliable crowdfunding models. One of them is a Security Token Offering (STO). Unlike utility ICO tokens, STO tokens are backed by a real asset or a share in company revenue. These tokens are meant to function like traditional securities and meet the U.S. Securities and Exchange Commission (SEC) requirements. Venezuelan government’s oil-backed Petro coin makes a good example. There is a belief that security tokens will be the leading force in the nearest future. According to Polymath, STO tokens will prevail on the crypto-market by 2020 with a composed value of $10 trillion.
The other modified fundraising model is a so-called DAICO, which is basically a hybrid of ICO and DAO (Decentralized Autonomous Organization). DAICO was originally suggested by Vitalik Buterin, the founder of Ethereum. This model allows a project to attract investments, but at the same time, it provides investors with certain levers of management, which ensures additional security and reliability.
If you are planning an ICO, consider adding more value to your tokens by making them security tokens. Also, think of walking an extra mile and applying for SEC compliance. The last will allow U.S. investors to participate in your crowdsale, and it means a significant raise in funds.
ICOs are on a rollercoaster. ICO will be a blast!
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