Opinion of: Darius Moukhtarzadeh, research strategist at 21Shares
A new wave of Crypto fundraising emerges, changing the launch of web3 projects and which can invest at an early stage: community sales. At first glance, community sales may seem to recall the ICO era (Initial Coin Offering) from 2016 to 2017. However, they represent a significant evolution which aligns better with the fundamental values of democratization, transparency and the inclusiveness of cryptography.
Projects should include community sales as a central element in their fundraising strategy, in addition to moving providential investors and VCs. Professional investors are expected to adopt community sales because they are increasingly increasing the sustainable success of web3 projects.
The ICO era
The ICO original boom has promised large participation in detail and investment opportunities previously reserved for well -connected initiates. The absence of clear regulatory frameworks has led to generalized fraud, carpet titles and market manipulation. This chaotic environment, creeping exploitation and regulatory uncertainty have finally forced projects to abandon the ICOs, traveling rather to private rounds accessible to providential investors and well-connected venture capital.
Private financing problems
Although private funding initially provided essential stability and credibility, it has also introduced new problems. Over the past two years, many tokens have been launched to excessively high FDV (fully diluted evaluation) with a low -movement token diet. These tokens have entered the discussions with the majority of locked and high level of supply assessments, which did not meet demand. Retail investors, attracted by initial media threw, have often become collateral damage. The result? Devalled tokens and damaged confidence. Most of these tokens will probably never recover. This dynamic market has discouraged investments in new projects and has undermined community construction efforts, weakening the overall sustainability of web3 projects.
Air parameters as an unbearable alternative
Airdrops appeared as another alternative, designed to largely distribute tokens and arouse interest in the community for a project. Paratroopers often do not manage to produce a significant and lasting commitment. Instead, they have often become targets for Sybil attackers using several accounts to maximize chip earnings or aerial trays mercenaries that jump from one project to another, quickly pouring the tokens, depressing prices and undermining the credibility of the project. Without a real financial commitment and an interest in the project beyond the air card, the beneficiaries were little encouraged to hold tokens or to participate actively in the community.
Community sales like the new cool child on the block (chain)
Community sales represent a practical and strategic alternative to private funding and tokest air, offering a structured means to hire retail investors in a significant and transparent manner. Modern community sales on platforms such as Legion and Echo have robust regulatory frameworks, with in -depth KYC and AML processes ensuring regulatory compliance and safety. These inclusive fund collection possibilities force participants to make real capital commitments, even if they are modest, cultivating real interests of stakeholders and reducing short -term speculation.
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One of the most important advantages of community sales is their ability to democratize access. Investors are hindering fair, similar or sometimes superior conditions than those previously reserved for venture capital. With minimum investments often as low as $ 100, community sales encourage large participation, helping to build a truly decentralized and committed investor base. Investors who engage financially are much more likely to become long -term holders and active members of the community.
Win-win for projects, other investors and the community
For web3 projects, community sales offer deep advantages beyond the immediate lifting of capital. The involvement of the first communities leads to a more distributed investor base, reduction in concentration risk and various future users. The projects with largely distributed tokens systematically present more stable prices, a higher community activity and a healthier commitment in onchain.
Community sales considerably improve the reputation of the market for a project. The adoption of transparent and inclusive fund collection sends a clear signal to the market and potential users – the project favors collaboration and community participation in value extraction. This transparency creates basic evangelization, stimulates organic growth and creates a faithful community base engaged in the continuous success of the project. Professional investors should adopt community sales and actively encourage their portfolio companies to allocate to the community.
The wider cryptography market greatly benefits from a transition to community sales. Projects that collect funds transparently and inclusive from their communities tend to attract more stable and support bases. This stability positively affects token markets, the reduction of volatility, the restoration of investor confidence and the acceleration of a wider adoption and integration of blockchain technologies in daily financial services and applications.
Community sales represent much more than a renewal of ICOs. They mark a mature approach, combining the first cryptographic ideals with the regulatory clarity and the technological possibilities of today.
Projects have engaged in community sales are positioned for the initial success of fundraising, the resilience of the sustainable market and community loyalty. The cryptographic ecosystem, based on the principles of decentralization and inclusiveness, should adopt this model to fill its potential. The founders should, as far as possible, include the community during capital lifting, as ultimately, everyone wins: Wagmi.
The opinions and opinions expressed in this article are only mine and do not reflect the opinions of my employer, my employer, my 21hares or any affiliated organization.
Opinion of: Darius Moukhtarzadeh, research strategist in 21Shares.
This article is for general information purposes and is not intended to be and must not be considered as legal or investment advice. The points of view, the thoughts and opinions expressed here are alone of the author and do not reflect or do not necessarily represent the views and opinions of Cointelegraph.
