Over the past five years, the world saw several alternatives to traditional campaign fundraising. Cryptomnesia were able to participate in hundreds ICO, DAO, STO and other types of crowdfunding on the blockchain. We will remind, the most popular Initial Coin Offering has its own alternatives, which in some situations can give more to both investors and the industry at large.
In 2019 at the peak of popularity was IEO campaign conducted by the exchanges. Some of them were a success, and bought kriptonite coins even rose several times. More recently, to the HYIP joined Bitfinex team, trying to close the holes in its budget with the help of IEO. This process is so remarkable? Let’s deal.
That was before
Let’s start with the DAO. For the first time the concept of decentralized Autonomous organizations emerged in 2016. Under the concept of DAO meant the Association which would act as a traditional venture Fund, but with the help of the blockchain and smartcontract. At that time, DAO gathered 12.7 million ETH at the stage of crowdfunding or $ 150 million at the rate of Ethereum at the time.
By the way, about the Ethereum: money to Finance your project Vitalik Buterin received by the ICO in 2014. Ethereum has become the most popular investment among all crowdfunding campaigns in the crypt, its developers have managed to collect about 18 million dollars. Hacking DAO contributed to the fact that investors are fully interested in ICO by the beginning of 2017. In the next 12 months of team start-UPS raised more than $ 20 billion through this type of crowdfunding.
Unfortunately, their ambitions were crushed by the global fall, as prices of digital assets and their popularity. By the end of 2018, a new trend — STO, a more improved form of ICO. Here selling tokens already controlled by the authorities and even some financial regulators. However, peaks of ICO and failed to achieve.
What will happen in the future
IEO until not so long ago practiced by the exchanges, therefore, to draw Parallels with other types of crowdfunding difficult. While IEO has several advantages:
- the startup team may not spend money and energy on listing, because it already provides the exchange;
- largest stock exchange will not hold IEO with the Scam because it will harm their reputation;
- immediately after the IEO investors can count on good liquidity.
Currently participating in IEO is a pure experiment. It is unknown whether this trend in the market for a long time or sink into oblivion for example DAO. If you participated in the IEO, I can share the experience with our followers in cryptodata of hontarov.
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