Ultimately, crypto projects will get funding where they can receive it. Providing they can demonstrate real-world utility and the potential for rapid growth, which will not be difficult to source. It would be ambitious to suggest that startups can surpass 2018’s $ 21.6 billion in raised capital, but don’t expect the fascinating parade of rolling off the production line to let up.
The study, published on December 23, casually indicated that IEO lost investors up to 98% of their money in 2019. Cryptocurrency projects could turn retail investors. into early adopters, rather than long-term pocket owners, who are destined to survive.
Initial Exchange Offering (IEO)
After the collapse of the ICO market, Initial exchange offerings became popular. Last May was the high point of first-class exchanges, with eight IEOs being launched throughout Binance, Okex, Huobi, Bittrex, and Kucoin. In the first six months of 2019, IEO has raised more than $ 1.5 billion. From July onwards, growth is steady – to the point where there is only one IEO on these platforms in the last three months.
For major exchanges, Binance did not announce IEO for this month but is expected to continue operating in February, with other tier-one exchanges also in winter, during a seasonal discount when the crowdfunding history has dropped.
Initial Public Offering (IPO)
The IPO, a traditional fundraising model, dating back to 1602, which has raised capital for Google, Amazon, and Apple in the cryptocurrency era, is enjoying something from the Renaissance. Last year, cryptocurrencies saw initial public offerings – i.e. private-sales institutional projects often followed by IEO – that outperformed ICOs by average ROI for the first time. Ironically, that initial ICO was based on IPO.
World Chess, an online media and game company, recently offered a hybrid IPO for 2020, in which digital tokens will be issued before the stock is floated on the stock market. MERJ, the Seychelles national stock exchange, also announced its tokenization IPO in September. They claim to be the first fully regulated stock exchange to list token securities worldwide.
Security Token Offerings (STOs)
Security Token Offerings (STOs) has gained a lot of attention and capital in 2019. As a regulatory-friendly fundraising model, STO has been deployed in many industries, including financial services and energy sectors. To date, the cryptocurrency has seen more than 60 STOs, which have raised nearly $ 1 billion together. Hopefully, this trend will continue over the next 12 months, even if the STO is not yet fully taken off.
While many ICOs and IEOs are motivated by relentless tsunamis and hype, seasoned investors are more likely to be lured by strong economic models, experienced teams, and feasible routes.
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