Post
Topic
Board Altcoin Discussion
Re: Important variations on ICO model
by
Tytanowy Janusz
on 20/06/2021, 06:31:07 UTC
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.