As everyone probably knows 2017 and early 2018 represented the ICO frenzy moment. Reminiscing those days we in the main reflect on consideration on how each new agency had the satisfactory and most disruptive way to X Problem, on (white)paper, and definitely wanted blockchain and a software token to do that. Needless to say, the maximum of these projects proved to be either impossible to put in force or have been outright frauds.
However, ICOs have been not totally bad, they have been revolutionary as they democratized the get admission to early-level investment; something that in traditional economic markets is commonly reserved to Angel Investors, Venture Capital Firms and Private Equity firms.
As the excitement for ICOs wanes and the failings of this financing version turn out to be extra evident, some of the contenders are emerging to leverage the untapped potential determined through ICOs.
The most well known new version is the STO, however, a few new famous token issuance fashions are IEOs and DAICOs. So what are those new names and how do they stack against every other?
The DAICO is a new method for raising funds, proposed by Vitalik Buterin in 2018. It represents the union between a normal ICO (Initial Coin Offering) and a DAO (Decentralized Autonomous Organization). The goal is to minimize the complexity and risks associated with these.
An Initial Exchange Offering, commonly called an IEO, is a fundraising occasion this is administered by an alternate. In assessment to an Initial Coin Offering (ICO) where the undertaking team themselves conduct the fundraising, an Initial Exchange Offering means that the fundraising could be performed on a well-known trade’s fundraising platform, along with Binance Launchpad, wherein users should purchase tokens with finances directly from their own exchange wallet.
“We believe that our services are for people who, like us, see a world without barriers, where technology serves man,” says Leszek Forytta CEO and Founder of Wolfs Group OÜ.
Wolfs Group OÜ is one of the most promising group companies that are planning to raise funds through IEO process. Wolfs Group IEO will be held in 5 stages, starting from January 3, the planned soft cap is $ 2 million, and the hard cap is $ 10 million followed by the 2nd round will be held on January 11th with the same soft and hard cap parameters. The cost of the token at both stages will be $ 0.25, 20 million tokens are allocated for each round. The minimum purchase amount is $ 10 = 40 WLF. In total, 150 million tokens will be issued.
Wolfs Group is an established company which has more than 20 years of experience in Real estate, cutting edge technology, FinTech, Equity, Portfolio Management. There partnership with VISA for issuing multi-currency wallets and acquisition of Ferpay LTD makes them even stronger and fit for investment.
One of the obvious questions that come to mind is “Which method of token issuance will eventually prevail?”
Simply put there may be no right answer as this is a complicated matter, you may just attempt to make educated guesses. In my opinion, all of them will survive because they have extraordinary use instances and serve exceptional niches.
STOs are more evolutionary than revolutionary and play an important role in bridging the crypto world with the classic finance world. Furthermore, they promote asset tokenization, which is a use case with huge potential and implications.
IEOs are also revolutionary in a way, as they bring ICOs closer to IPOs (in a different way than STOs), as they also give more importance to the Exchanges as a key player.
For these reasons, I foresee a convergence of STOs and IEOs in the future.
The DAICO will possibly be the high-quality solution for pure-play ICOs that do really need an application token and who do now not just use Blockchain as technology but also follow a decentralized philosophy in their commercial enterprise conduct. It will possibly take longer for these projects to emerge in comparison to the 2 aforementioned methods.