Evolution of Cryptocurrency Financing — ICO Boom, IEO Innovation, IDO Emergence and Risk and Decentralization Tradeoffs | Blockchain Today | Coins | January 2024
rainLockchain technology introduces a groundbreaking model for coordinating global capital around shared interests without centralized intermediaries. Cryptocurrency financing has evolved rapidly in its short 10-year history, especially with Bitcoin’s original crowdfunding in 2009, followed by landmark token sales such as Mastercoin’s ICO in 2013, exchange-hosted IEOs in 2017, and today’s decentralized IDOs since 2020. I did.
Each successive fundraising model has created innovative solutions to problems such as governance trade-offs, regulatory potential, accessibility, security, and participant incentives seen in previous approaches. We chart the progress of the features of each new model while outlining the ongoing challenges that cryptocurrency financing still faces today.
The ICO boom, which began in 2013, revolutionized early-stage cryptocurrency financing by enabling liquid token sales directly to public participants. Teams can publish lightpapers and marketing sites to promote utility token or security token sales, where buyers can donate capital in exchange for platform governance rights, staking privileges, or profit sharing in future blockchain projects. can.
global participation
Internet-based promotion and the simple issuance of tradable tokens through Ethereum’s ERC20 standard have fostered global exposure for early-stage projects. Entrepreneurs in regions such as Eastern Europe, Asia, and Latin America can present ideas that could receive funding from Western donors.
Lean Launchpad
A minimum viable product with a basic whitepaper is enough to demonstrate credibility for many ICOs, accelerating their fundraising. Teams can raise millions of dollars with just a verified web page.
Unlimited Experiments
The open model initially faced no regulations regarding funding mechanisms, financial projections, jurisdiction or mandatory diligence. The team enjoyed the flexibility to be creative.