It’s an incredible time for BTC (Bitcoin) investors all around the world. Once again, the oldest cryptocurrency is on a bull run and is nearing the 2017 all-time high of $20,000. Unlike back in 2017, this bull run might be here to stay, at least for a bit. Analyzing these two occurrences, we see two major differences. First is the absence of initial coin offers (ICO). Second, you have the institutional investors’ involvement. Back in 2017, almost every other company out there with a digital asset had an ICO.
Problems Early-stage Crypto Projects faceTheoretically, ICOs were meant to solve fundraising issues without involving the authorities or mediators to oversee the projects. These ICOs were also meant to tackle the issue of liquidity in trading
Decentralized Ecosystems and Liquidity OptionsOne of the most effective ways of exchanging crypto within a decentralized system is by leveraging automated market makers (AMM).
Several DeFi projects such as Polkastarter, Poolz, and BounceFinance building platforms were the bridge between early-stage investors and project owners. All of these projects are endowed with cross-chain swapping protocols that make it possible to exchange the different tokens across the various platforms and blockchain networks.
Read more in here:
https://crypto.co/technology/liquidity-auctions-solution-to-liquidity-problem-for-defi-startups/