After ICO and IEO, We Now Have DYCO
The best year in the history of crypto has been 2017 and in that particular year, we saw the rise of Initial Coin Offerings(ICOs). Hundreds of new blockchains raised billions of dollars during 2017 but then suddenly bear market came which started the downfall of ICOs. ICOs are held today as well but there is no hype behind them these days.
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I think Binance was the first exchange that came with the concept of Initial Exchange Offerings(IEOs) where people pay for a coin in advance and then they receive coins in their wallets when that coin gets listed. IEOs are working pretty well for top exchanges as well as the coins.
However, a new method of raising funds has been introduced in crypto space just a few days ago and it is called DYCO which means Dynamic Coin Offering. In DYCO, investors can claim refunds if the project fails. This motivates the project team to work hard to achieve their milestones. However, the refunds won't be available immediately, the project owners are given enough time to prove that their product is going in the right direction.
A few days ago, Orion Protocol raised nearly $3.5 million in their DYCO which was conducted through Maker DAO. Orion Protocol, which is a DeFi liquidity aggregator has been built on top of Elrond blockchain. In the case of the Orion Protocol, investors will have to wait for a period of 9 months to claim buybacks. But if Orion Protocol delivers, they might not do it. Orion Protocol has already been done extremely well as it registered gains of more than 100% in a matter of a few days.
I think DYCO is here to stay for a long time until something better shows up. This gives the investors confidence to invest without worrying much as they are guaranteed refunds if the project fails. This also motivates the team to work hard on their project as they know that if they fail, they will have to return funds and I don't think they will ever want that.
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Hello, great article.
The fact that investors will be able to claim their refunds in case the project fails; will give currencies that adopt the DYCO method some advantage in its positioning themselves inside the cryptographic market; as this will generate confidence in the public, making many decide to invest in them.
True.
This type of fundraising will be preferred by investors as soon as everyone becomes aware of this.
This will also prevent scams.
Hello @syedumair
This is new, but I think it's a big plus.
Because as you describe it, having to pay back the money in case the project doesn't go well, is a pressure on the team behind the project to work harder, and gives some security to the investors. Which is important. Because with so many things that happened, where there were losses for many, you need an environment of trust so that you can call in investors.
Thank you for sharing this information
Absolutely.
We know that there were plenty if ICO scams in 2017 and no one was able to do something about that. DYCO is a great way to raise capital and I believe over the years, it will be a preferred way as investors won't have to worry too much about their investments.
Yeah. That was a big problem, the scams.
Hopefully that will continue to improve, just so, ensuring that investors don't lose their money, we could expand the use of the cryptos.
Hi friend, thanks for sharing.
Interesting article, interesting proposal is that you mention, I think that with these repayment conditions the projects can attract more investment and it is a fair way of working, is what I think.
Yes, it is.
People are never guaranteed a return on investment if you invest in ICOs or IEOs and therefore, people tend to invest only what they can afford to lose but you get a guarantee in case of DYCOs. A large portion of your investment can be claimed after a specified period, so, you will not be afraid to invest more.
DYCO is great then and investors are going to be glad by the news, now their funds are safe and they know that either the project fails or succeed they can have their cash back.
Yes, but if the project fails, they won't get a full refund. Something around 80%, I guess but that is still a decent amount.
DYCO really looks like a good deal for investors who believe in startup cryptocurrency companies with prospective coins.
This is how startups will raise funds in future.
It is a great project and very interesting didn't know about DYCO I thank you for sharing such good data.
I agree with you, people are going to go for something that guarantees their investment, and s the project really fails and they refund the money, so it is something that generates confidence and resolution.
Oh, my... So many options to chose, haha!
DYCOs will definitely be a great advantage to investors since they are able to withdraw their money back if the project fails and if the project is also successful they get their returns.. Nice one!
Thanks for sharing this great post with love from @hardaeborla and I hope you have a great day ahead
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