ICOs Make it Too Easy to Raise Capital--Change It!

hatu (76)in #ico • 6 years ago (edited)

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The current hurricane of ICOs is allowing start-ups in all industries an opportunity to raise funds. Interestingly, the vast portion of projects offering an ICO exist as a mere whitepaper. Only a few projects have at least a functional prototype, and even among these, most have not faced any real-world operation yet.

Opiria, a project currently issuing PDATA tokens via an ICO, is setting a new standard. Opiria is a marketplace where anyone can sell personal data to any company. Opiria already has major corporate clients, and the testimonials from them show that they genuinely like Opiria.

A Look at Opiria’s Approach

Traditionally, a vast portion of IPOs are issued to companies that have a functioning product and aim to carry out expansionary efforts and rapid product advancement. ICOs aim to provide opportunities to anyone, but in this effort access to money has become easy to a point it seems unearned.

Opiria shows that it’s a valid requirement for teams aiming to issue an ICO to not only showcase a minimum viable product, but provide some degree of evidence that the product has functioned successfully in the real world. Setting such a standard does not make ICOs as elusive as IPOs.

There are many critical barriers for issuing IPOs: they are extremely expensive, require some degree of networking with major financial institutions, are largely out of reach of entrepreneurs who come from disadvantaged backgrounds, etc. ICOs will still offer a major access to capital without having the barriers attached with traditional capital raising. However, ICOs should not make money so easy to earn that it seems unearned.

Raising the Standard of ICO Issuers

In the vast amount of ICOs taking place, Opiria stands out because it has a product that has been tested and liked by its clients. Therefore, it intends to issue an ICO for the same purpose most IPO qualifiers raise funds: for accelerated development and expansion.

The funds Opiria will raise from its ICO won’t be used to hopefully develop a functioning product, as is the case with most post-ICO efforts. A large portion of teams fail to deliver the minimum viable product despite having collected funds via ICOs. If investors set a bare minimum expectation on ICOs to have an minimum viable product, the overall quality of projects seeking ICOs will greatly improve. This way, the usage of funds will have a clear value-additive purpose, as is the case with Opiria.

Opiria has a goal to strengthen its platform enough to allow it to support millions of users in the coming few years. It also intends to utilize funds to build product awareness and to incentivize immediate product adoption. Raising capital for the goal of developing an existing, successful product is the standard that should be adopted throughout the ICO market.

Many of the products that are backed by traditional financial means utilize funds to the same goals as Opiria. However, Opiria is one of the very few projects issuing an ICO to not develop the product, but to empower an existing one and carry it to the masses.
This should become the standard for utility of funds raised during an ICO.

Opiria is an example of an ICO that is taking the crypto market closer to a more mature investment ground.