Evolution of the sale of token: from ICO to IEO
In the world of blockchain and cryptocurrencies, the sale of tokens has become a key tool for companies for raising capital. Over the years, this process has undergone significant changes, from its creation in the initial offer of coins (ICO) to the recently seen the ITEED Capital Model (IEO). In this article, we will examine the evolution of the sale of tokens and the method of adapting to new regulations, market conditions and technological progress.
Early days: ICO
The first large sale of tokens was the initial offer of coins, introduced in 2014 by the creator of Bitcoin, Satoshi Nakamoto. This model allowed programmers to raise funds for their projects without going through the traditional Venture Capital process. In ICO, entrepreneurs issued new tokens (or coins) to collect capital from investors who promised returns based on the results of the token.
ICO gained popularity because of several factors:
* faster and more available : ICO allowed for faster funds and greater availability for investors.
* lower regulatory obstacles : The lack of strict regulations in many jurisdictions has facilitated startups to raise capital.
* Increased investors’ trust : Success of early ICO, such as Dao Ethereum (2016) and Bitcoin’s Binance Coin (2017), showed the profitability of tokens sales.
model IEO: New era
In response to regulatory challenges and skepticism of investors, in 2020 the executive order of the industry (IEO) was introduced in 2020. This new model was aimed at creating a more transparent and responsible process of selling tokens.
* More stringent recipes : IEO are subject to more severe regulations, requiring companies to disclose detailed information about their projects.
* Increased transparency : IEO promotes transparency, enabling companies to exchange their tokens on stock exchanges, making it easier for investors to track sales progress.
* Improved protection of investors : IEO ensures that investors are protected by regulations such as “blockades” and “stop-loss” clauses.
The future of selling tokens
As the technology evolutions and the evolution of the regulations, we can expect that the sale of tokens will continue to adapt. The IEO model is already gaining grip, and several companies use the platform to raise capital for their projects.
* More available
: IEO becomes more accessible, which allows smaller companies to raise funds without the need for a traditional Venture Capital process.
* Increased control : Because the regulatory authorities still monitor the sale of tokens, investors are expected to get more detailed information about the project and its team.
* improved investors’ protection : The IEO model is aimed at protecting investors by providing more severe regulations and increased transparency.
Application
The evolution of the token sales was an amazing journey. From the early ICO days, to the current model of the iterated capital capital (IEO), each stage has brought new challenges and possibilities to both companies and investors. Because the technology is still developing and adapting regulatory authorities, we can expect to sell tokens will also continue to adapt.
Regardless of whether you are an experienced investor or just start in the world of cryptocurrencies, understanding the evolution of the sale of tokens is necessary to make informed decisions about your investments.
Key results:
- IEO becomes more available
- Increased control and regulation is growing
- Improved investor protection is a priority
Because the cryptocurrency market is constantly developing, it is necessary to inform about the latest achievements of tokens sales. Understanding the evolution of these transactions, you can make more aware decisions about your investments and certainly move in this rapidly changing landscape.
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