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Blockchain technology has introduced groundbreaking models for coordinating global capital around shared interests without centralized intermediaries. Crypto fundraising specifically has rapidly evolved in its brief decade-long history, with Bitcoin’s original crowdfunding in 2009 followed soon by seminal token sales like Mastercoin’s ICO in 2013, then exchange-hosted IEOs in 2017, and today’s decentralized IDOs from 2020 onward.
Each successive fundraising model has crafted innovative solutions to challenges like governance tradeoffs, regulatability, accessibility, security, and participant incentives seen in preceding approaches. We chart the progression of capabilities with each new model while summarizing persistent issues still facing crypto fundraising today.
The ICO boom beginning 2013 revolutionized early stage crypto fundraising by enabling liquid token sales directly to public participants. Teams could publish litepapers and marketing sites to promote utility token or security token sales, allowing buyers to contribute capital in exchange for platform governance rights, staking privileges, or profit shares in future blockchain projects.
Global Participation
Internet-native promotion and Ethereum’s ERC20 standard allowing simple tradeable token minting facilitated worldwide exposure to early stage projects. Entrepreneurs in locales like Eastern Europe, Asia, and Latin America could pitch ideas to receive funding from Western contributors.
Lean Launchpad
Minimal viable products with basic whitepapers were sufficient to demonstrate credibility for many ICOs, accelerating fundraising. Teams could speculatively raise millions with only a webpage as validation.
Unrestricted Experimentation
Open model initially faced no regulations around fundraising mechanisms, financial projections, jurisdiction, or obligated diligence. Teams enjoyed flexibility for creativity.
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