Crypto Startup Financing Feeling Well in 2020, Here Are Few Examples
It’s just five months into the new year, but crypto fundraising is in rude health as several projects continue
to raise funds for their platforms with ease. This is welcome news at a time when the global economy has taken a hit from the ongoing coronavirus pandemic. Last year IEOs managed to raise around $1.7 billion as they took over crypto fundraising amid the death of ICOs. However, most of the projects have had negative ROI, and this has seen the mode of fundraising slowdown in 2020. But, for the better as now, new projects are expected to be of high quality and preferably have at least a first round of backing from venture capital.
That said, it’s a great time to raise funds for new quality crypto projects with financing easily accessible thanks to exchange backed launchpads that guarantee a swift sale of tokens to millions of users. Additionally, there is more money coming in from venture capital as recently Andreessen Horowitz managed to raise $515 million for a new crypto fund that will focus on supporting projects that focus on creating next-generation payments, new methods of monetization, modern stores of value and decentralized finance. During the IEO boom last year, Binance led the way with 8 of the top 15 IEOs conducted there and the launchpad has picked where it left with its latest project being the Cartesi token sale which was held exclusively for the owners of Binance Coin (BNB). This is a shift in funding, from the previous boom in funding when BTC and ETH were the preferred vehicle for investments. In 2020, there are more signs that crypto funding is doing well, with a handful of notable token sales active in May.
Independent Token Sale by AlphaPlay
Independent token sales are still using the Ethereum infrastructure and offering an ERC-20 token. AlphaPlay, a betting and cryptocurrency trading platform, has already completed one round of token sale, and is on its second round right now with a $0.05 price per ALPHA token that gives token holders 6% of platform’s turnaround as bonuses. At the same time, users are winning 90% of the turnaround as prizes, and 4% they are getting for playing with friends and for referrals. AlphaPlay is already have an ecosystem of referrals to promote both its platform, as well as the ALPHA token. A total of five rounds of token sales will distribute 50 million ALPHA. The token sale has a maximum cap of $4 million, and already surpassed its minimum target of $300,000. Owning the ALPHA token will pay out commissions on all activities of AlphaPlay and share the earnings through a smart contract.
OKEx Birthday Token Special Sale
Issuing tokens is not only related to new projects. An established exchange like OKEx is constantly innovating, and recently performed a sale for the OKB token. The new asset was placed at 80% of market prices toward the end of April, at $3.52 equivalent. OKEx uses Tether (USDT) for its token sales, posting an intuitive dollar-denominated price. For now, OKEx has slowed down its IEO offerings, but allows the occasional token sale.
LAToken: Where Token Sales Find a Platform
LAToken started off as a cryptocurrency exchange. But the project is now offering one of the most active token sale platforms, with dozens of projects in their active fundraising stage. The funding relies on longer token sale periods. One of the latest active projects for LAToken is YouEngine, a tokenized online ad ecosystem. The platform aims to gain the attention of 200 million advertisers, and potentially reach billions of users. But there are many more highly active token sales through the LAToken platform, showing that crypto crowd-fundingis still alive, and there is an appetite for new tokens and new business models. LAToken already expanded its trading selection to more than 133 market pairs, bringing liquidity to the newly listed pairs.
Celo ICO to Rival Libra
Where Facebook’s Libra failed, Celo ICO is trying to take over. Celo is an upcoming token sale that has decided to proceed with the fundraising, while some of the upcoming projects postponed their launch deadlines. Celo is ahead of the game, with already one round of funding completed. The crypto startup is considering a payment system based on stablecoins, with the aim of driving mainstream crypto adoption. The Celo payment system expects to incorporate personal finance tools, including small-scale lending, money transfers, even peer-to-peer insurance.
TRON-Based Token Sales Boost Funding Spree
Poloniex, through its LaunchBase token sale platform, is aiming to restore its former trading activity. The exchange is a close partner of TRON, hence LaunchBase is using TRX for its crowd funding, and generated TRON-based tokens. The latest sale, Just (JST) token, took only a few minutes to be sold out completely. JST will also become the newest asset to be listed on Poloniex, opening for trading on May 7. JUST is a decentralized lending ecosystem, built entirely on TRON, and featuring its own dollar-pegged coin, USDJ, in addition to the JST native token.Projects also continue to invite developer talent, and show that the blockchain infrastructure of Ethereum is still a leader. Other blockchains such as TRON, Binance Chain, and others also make crypto-based startups a possibility, and token sales have adapted to the changing climate of regulation and market activity.
Article Produced By
Heiko Closhen, Entrepreneur