Hi all. Just wondering why the deeponion team chose the airdrop method over an ICO. I'm guessing since the coins are premined, the team has allocated itself some of those coins and is using airdrops to distribute the other coins (because they don't need to raise money for development) and then as the project solidify and more people become interested, demand for the coins will grow (and the airdrop period will have ended), holders of airdropped coins will sell them on exchanges and the price will start rising, which will make the coins held by the team more valuable and they can recoup their investment. Is this analysis correct?
Also, are there projects out there that have skipped ICOs, mining (like bitcoin), airdrops, crowd donations and simply listed their coins on exchanges? Does doing that make any sense?
I think it is a fair analysis. There are some more points to why choose AirDrop instead of ICO:
- With AirDrop you can get a good decentralization and distribution of your coin. Not only big money investors get a piece of the pie but also crypto enthusiast that believe in teh project can easily get involved and are encouraged to hold.
- As you say there is no initial fund gathering but instead allocations of coins are done for development. But that means that in the beginning the team pretty much works "pro-bono" until a value can be established in the project.
- As for the developers and creators they have of course gotten extra coins through the Founders Reward and that is usually like normal around 10% of total coin supply. But different from an ICO where they could run away with the money the team must show promise and actual value in the project for it to even be worth anything. It is only if they can keep showing sustained value that they will be able to sell off some of their Founder rewards to get value on their investment.
It is very hard to build a succesful AirDrop coin since the project can only continue if the intial work shows promise and the consensus is kept during the entire project that it has value. Since developers are payed in the currency everyone is working toward the same goal: Making this project have value.
That is why a
succesful Airdrop could be much more promising investment oppurtunity than an outsold ICO imo. As I have mentioned I am no finacial advisor so please do your own research.
But this is in part of the reason i got interested in DeepOnion in the first place. They had managed to show value to the community and kept that up during the entire AirDrop process. Now that AirDrop is finishing I think that some will probably sell off some coins (the people that have just enjoyed the free 4-5% weekly interest) the rest will be holders that believe in the crypto long-term. And these people ahve been through the ups-and-downs of teh AirDrop stage so they won't sell cheap. That is why i think evaluation of the coin will rise as the AirDrop ends and the project "begins for real".