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Topic: Important variations on ICO model (Read 101 times)

legendary
Activity: 2156
Merit: 1622
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June 20, 2021, 01:31:07 AM
#5
New fundraising model that most popular now is IDO/Initial Dex Offering. I though this fundraising model more transparan than ICO because the hard cap/ the target of token sale is lower than ICO. In 2017 alot of ICO targeting hard cap above $20 Million, but for IDO less than $1M, even lower than $100k. This mean the team member is not greedy and they dont want make investors loss money.

Its not about being greedy. Its about how much market is willing to pay for new project without price history. During ICO mania it was easy to collect $20million with homepage and few payed shillers. Now its hard to collect $1 mln so all they try to do is that. And low hardcap has nothing to do with being transparent (most of shitcoins has low hardcap and high inflation "for staking rewards")

One such model was STO (Security Token Offering) which directly ties our investment to a share, hence automatically valuable. Is there a good use of this for a crypto project that you can show? Are there other extensions we should consider?

STOs are extremely rare. Mostly because of law problems. For instance binance already announced that it is not worth to fight and is not going to list any STO.
legendary
Activity: 2898
Merit: 1253
So anyway, I applied as a merit source :)
June 20, 2021, 12:38:34 AM
#4
Firstly the "model" of ICO had shortcoming that it was not a "legal security" - a valid statement and so the people running them started using the name STO or security token offering which in short is nothing but a scam because they are still not legal, because the SEC said so.

So they moved on to IEO, where the coin would be listed already one exchanges and via something called launchpad be listed the day they got unlocked for trading

In either way, the entire system is a scam, they change names because they need to keep scamming 100$ from every retail investor. There is no regulation of the market and neither does the SEC accept either of these tokens as "security/equity". So if you want to go for the public offering, I suggest you go to the stock market first or go for a seed funding privately through VCs.

I am sure you have a legit project to fund, but please dont make up another Initial Blah blah offering, it is getting boring and the hype is gone. Seriously been watching this since ICO>ITO>STO>IEO>IDO - how many more do we have to see?
hero member
Activity: 1708
Merit: 553
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June 20, 2021, 12:30:06 AM
#3
New fundraising model that most popular now is IDO/Initial Dex Offering. I though this fundraising model more transparan than ICO because the hard cap/ the target of token sale is lower than ICO. In 2017 alot of ICO targeting hard cap above $20 Million, but for IDO less than $1M, even lower than $100k. This mean the team member is not greedy and they dont want make investors loss money.

The lower caps doesn't make anything more transparent. IDOs are just a new name or rephrase in order to attract investors again who got burnt by ICOs. The dangerous part of IDOs is that people think once a project is launched on a launchpad of an exchange, that project is automatically legit. That however is often not the case because the exchange abstain from taking any responsibility whatsoever. Sometimes they don't even conduct due diligence of any sort, but just provide the platform.
member
Activity: 476
Merit: 10
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June 19, 2021, 11:04:13 PM
#2
New fundraising model that most popular now is IDO/Initial Dex Offering. I though this fundraising model more transparan than ICO because the hard cap/ the target of token sale is lower than ICO. In 2017 alot of ICO targeting hard cap above $20 Million, but for IDO less than $1M, even lower than $100k. This mean the team member is not greedy and they dont want make investors loss money.
newbie
Activity: 4
Merit: 0
June 02, 2021, 04:17:30 PM
#1
Greetings cryptocurrency community  Grin

Does anyone have information on notable extensions and/or variations of the ICO/ITO model, which seems to have some shortcomings?

For instance, an interesting issue is that ICO income often gets allocated in a manner that is not very directly related to the value of the currency.

Do we have any recent examples of intelligent extensions to the ICO model that make it more reliable, or sensible, or in any way better?

One such model was STO (Security Token Offering) which directly ties our investment to a share, hence automatically valuable. Is there a good use of this for a crypto project that you can show? Are there other extensions we should consider?

Best Wishes,

examachine



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