Forget about ICO: how crypto projects attract investors
In the world of cryptocurrency and blockchain, innovation is a key factor for success. Various companies and teams develop revolutionary ideas and technologies to create creative business models.Today we’ll talk about one of these innovative DYCO ideas developed by the DAO Maker team.Let’s start in order or chronology.
How the ICO failed
In the media, there are reports that the ICO is a solid Scam (fraud). Perhaps this is the main advantage of issuing tokens — the ability to raise funds at the earliest stages, when the founders themselves do not have a clear idea about the future work.The rapid growth of cost tokens cryptoprocta provided General increase in the cost of cryptocurrency — with the end of 2016 at the moment, the cryptocurrency market capitalization grew from $20 billion to $280 billion (after passing through a peak of $800 billion) — 14 times.However, over time, the investor has become smarter and it is not enough to declare the start of the ICO.The main reason for the ”death“ of crypto projects is the loss of interest in them from investors. This fate befell about 60% of the devalued tokens.Almost 30% of the projects that were closed were fraudulent. Most of them were launched in 2017 amid the rapid growth of the market and the ICO boom. Already in 2018, their number has significantly decreased.
Why most IEO investors lost money in 2019
In December, the BitMex exchange published a study of 12 IEO. It showed that most tokens have lost up to 98% in price since listing. And half were from Binance — traditionally The most successful IEO platform.
The most profitable project, Matic, was the subject of controversy in December. Suddenly, the token rose in price almost three times, and then fell three times in the same way.Matic once again shows that serious and successful projects are not immune from extreme volatility. As for the second “winner”, Harmony, it brought profit only to those who bought tokens at a discount during the IEO. Compared to the listing price, the token rate fell by 74%. By the way, the BitMex report was based on the listing price, so the losses of investors in it looked even bigger.
The success of Matic and Harmony is impressive, but even they are not able to correct the overall sad picture. In 2/3 of cases, investors lost money-on average from 40% to 90%.
Dynamic Coin Offering (DYCO)
Our community has already said and written a lot about DYCO, so the description will be short. for those who want to learn more about DYCO, the links to learn more will be below.
A DYCO is a token sale framework in which utility tokens are USD-backed for up to 16 months. The buybacks are processed in 3 rounds, over 16 months.
With DYCO investors have multiple protection layers.
Orion will be the first token sale to implement a Dynamic Coin Offering (DYCO), a token sale framework in which utility tokens are held in reserve to 16 months.
Dynamic Coin Offering — Orion Private Sale is Live!
Orion is the first project using DAO Maker’s DYCO framework. After months of due diligence, the merits & technological capability of this project, which has been in development since 2018, were undeniable.
DYCO Benefits
- 100% of sold token refundable
- All refunded tokens burned
- Full exposure to project success, with downside protection (insurance) for 16 months
- Mirror Flip: if token drops, buy & refund them for risk-free profit
Thanks to the DAO Maker team for providing excellent infographics.
Read about DYCO: https://daomaker.com/dyco
Community: https://socialmining.daomaker.com
Telegram: https://t.me/daomaker
Twitter: https://twitter.com/TheDaoMaker
Orion Protocol is the first Token Sale operation on DAO Maker’s DYCO framework: https://daomaker.com/dyco/orion