The sale of the community is the future of the crypto fundraising

Opinion: Darius Moukhtarzadeh, research strategy at 21Shares

The new wave of crypto collection occurs, changing how web3 projects are launched and which can be invested in the early phase: community sales. At first glance, the sales community may look resembling the ICO (home offer of coins) from 2016-2017. However, they represent a significant evolution that is better to align with the crypt’s basic values ​​of democratization, transparency and inclusion.

Projects should contain community sales as a basic element of their fundraising strategy, except for increasing the Angel Investor and the VC. Professional investors should accept the sale of the community, because they greatly increase the chances of the sustainable success of Web3 projects.

Ico era

The original ICO Boom promised a wide participation of retail and democratized investment opportunities reserved for well-connected insiders. The lack of clear regulatory frameworks has led to a widespread fraud, mat and market manipulation. This is a chaotic environment, prevalence and regulatory insecurity, eventually forced projects to leave ICOS, instead to transfer to private rounds available to well-related angelic investors and risk capitalists.

Problems with private funding

While private funding initially brought many necessary stability and credibility, also introduced new problems. During the past two years, many tokens started over excessively high FDV (fully diluted estimated) with low circulating token. These tokens have entered an exchange with mostly locked and heavenly-high estimates, which did not meet the demand. Retail investors, attracted to the initial hyperShe often became collateral damage. The result? Devalved tokens and damaged confidence. Most of these tokens will most likely never recover. This market dynamic discouraged investment in new projects and undermined efforts to build community, weakened the overall sustainability of Web3 projects.

Wall drops as an unsustainable alternative

The air caps appeared as another alternative, designed to distribute tokens and interest in the community for the project. Aerospace They often fail to produce meaningful, sustainable engagement. Instead, they often become targets for Sibil attackers who use multiple orders for maximizing token gains or mercenaries to cross from a single project to next, depressed prices and undermining project credibility. Without true financial commitment and interest in the project outside the aircraft, the recipients had little incentives to keep the tokens or actively participate in the community.

Community sales as a new cool child on block (chain)

The sale in the community is a practical, strategic alternative to private funding and token aircapers, offering a structured way to engage significantly and transparently in retail investors. Contemporary sales of community on platforms such as Legion and echo has robust regulatory frames, with basic KIC and AML processes that provide regulatory compliance and security. These inclusive fundraising opportunities require that participants bring real capital obligations, even if it is modest, cultivate original interests of stakeholders and reducing short-term speculations.

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One of the most significant benefits of community sales is their ability to democratize access. Investors acquire entry under fair conditions, similar or sometimes superior to those previously reserved for risky capitalists. With minimal investments, often as much as $ 100, sales in the community encourages broad participation, helping truly decentralized and dedicated to investor’s database. Investors who are financially commitments are far more likely to become long-term citizens and active members of the community.

Vin-win for projects, other investors and communities

For Web3 projects, community sales offers profound advantages outside the direct capital. The participation of the early community leads to the distributed basis of investors, reducing the risk of concentration and diverse future users. Projects with widely distributed tokens consistently show more stable prices, higher activity in community and healthier in plowing.

Sales in the community significantly improves the project market. Acceptance of transparent, inclusive fundraising sends a clear signal to the market and potential beneficiaries – Priority Priority Cooperation and community participation through value extraction. This transparency is built evangelism in evangelism, drives organic growth and creates a loyal community base dedicated to a successful success. Professional investors should accept community sales and actively encourage their portfolio companies to allocate into the community.

The wider crypto market has significantly from the transition to the sales community. Projects that collect funds transparently and inclusive of their communities usually attract more stable, supporting investor bases. This stability positively affects the tokens markets, reducing instability, returning investor trust and speed up the wider adoption and integration of blockchain technologies into daily financial services and applications.

The sales of the community is much more than the ICOS revival. They mark the mature approach, combining early coal-ideals with today’s regulatory clarity and technological possibilities.

Projects dedicated to community sales for the initial success of funds collection, permanent resistance to market and loyalty in the community. The CRIPTO ecosystem, established on the principles of decentralization and inclusiveness, should accept this model to meet its potential. The founders should, where possible, include the community when raising capital, as in the end, everyone wins: Vagmi.

Attitudes and opinions expressed in this article are exclusively mine and do not reflect the views of my employer, 21shares or any associate organization.

Opinion: Darius Moukhtarzadeh, research strategy at 21Shares.

This article is for general information on the need and should not be taken as legal or investment advice. The views, thoughts and opinions are presented here, the author itself is not necessarily reflected or represent the views and opinions of the cointelegraph.