Crypto fundraising is a well-known pathway to raising capital investment for crypto businesses. In July 2014, Ethereum raised around 31000 BTC through an Initial Coin Offering (ICO) [Source: WIKIPEDIA]. This crypto fundraising idea has been a great success and a motivating force for crypto startups. Presently, crypto crowdfunding ideas have newer dimensions with STO, IEO, etc, to meet the skyrocketing demands. So, choosing the best crypto fundraising method is essential for efficient crowdfunding.
Indeed, the priorities are different for inventors and fundraisers. Fundraisers generally prefer flexible fundraising models with a broader audience base. For them, cost-effectiveness and promotional activities are secondary requirements. Understanding the diverse requirements, this blog outlines the best crypto fundraising methods in the crypto markets. The deeper insights about the 8 Top Crypto Fundraising Ideas help you choose the right crowdfunding method.
So, without wasting your time, let us move straight to the topic…
Here are the top 8 crypto fundraising ideas you should consider to raise funds effectively.
- Initial Coin Offering (ICO)
- Security Token Offering (STO)
- Initial DEX Offering (IDO)
- Initial Exchange Offering (IEO)
- DAO Crowdfunding
- Initial NFT Offering (INO)
- Initial Farm Offering (IFO)
- Initial Gaming Offering (IGO)
The above-mentioned are the top-tier crypto crowdfunding ideas preferred by investors and fundraisers. Each of them holds certain qualities and advantages. Let us hereby explore the crypto fundraising methods one by one.
1. Initial Coin Offering (ICO)
Initial Coin Offering has been the leading fundraising idea for crypto startups widely recognized among global countries. The fundraiser, with the help of the ICO platform, can conduct token sales. The token might be a utility token bound with the offering of service or access. Investors who want to enroll in ICO fundraising can contribute by completing a minimal KYC procedure. However, the fundraising process is more straightforward as it doesn’t involve regulatory supervision.
Advantages of Initial Coin Offering
✍️ Quicker access to global investors.
✍️ Fast and efficient crypto fundraising idea.
✍️ Requires minimal investment, but offers higher ROI.
✍️ ICO tokens can be traded easily.
✍️ Minimal legal procedures.
Essential Components of ICO
➡️ Whitepaper with a project idea.
➡️ Smart contract-powered utility tokens.
➡️ Crowdfunding platform and crypto wallet.
➡️ Plan for marketing and community building.
➡️ Understanding of exchange listing procedure.
2. Security Token Offering (STO)
Security Token Offering is the process of raising funds for crypto projects by selling security tokens. The token sale is similar to the initial coin offering. However, instead of utility tokens, the event sells security tokens bound with access to real-time assets. The asset may be real estate, stocks, or shares of the company. As the name says, STO is safe as it adheres to regulatory guidelines and guarantees investment. The fundraiser needs approval from regulatory bodies before starting an STO crowd sale.
Advantages of Security Token Offering
✍ A secure crypto fundraising idea considering the regulatory guidelines.
✍ Anyone can participate with a verified profile as an investor.
✍ Blockchain data security and transparency in transactions.
✍ STO tokens are compatible with fractional ownership.
✍ Low risk and high ROI for investment.
Essential Components of STO
➡️ A detailed whitepaper describing the offerings, rules, and benefits.
➡️ STO token represents the ownership and rights of an investor.
➡️ STO platform with KYC/AML modules.
➡️ Crypto wallet for token storage.
➡️ Marketing channels for promoting STO token sales.
3. Initial DEX Offering (IDO)
The Initial DEX Offering is a crypto crowdfunding idea where decentralized exchanges conduct token sales. The fundraiser directly approaches the DEX launchpad services with their fundraising project details. Verifying the project details, the DEX platform conducts the token sale. The investor can contribute to IDO by investing in the native token of the DEX platform. Here, the fundraiser can raise funds more easily and quickly than STO. Indeed, you have to accept the price volatility and high gas fees practically.
Advantages of Initial DEX Offering
✍ IDO Tokens are easily tradable in the same exchange platform.
✍ Transparent crypto fundraising idea powered by blockchain technology.
✍ Quicker global recognition among the users of a decentralized exchange.
✍ DEX platform oversees post-IDO activities and doesn’t require fundraiser participation.
✍ Cost-effective approach, as IDO doesn’t need a separate fundraising platform.
Essential Components of IDO
➡️ A token and white paper describing the project goals.
➡️ Selection of the right IDO launchpad.
➡️ Crypto wallet for token storage.
➡️ Plan for liquidity provision.
4. Initial Exchange Offering (IEO)
The Initial Exchange Offering is similar to the Initial DEX offering regardless of the platform that conducts token sales. The fundraiser approaches IEO launchpads with a project ideology. A centralized exchange offering IEO launchpad services will announce the token sale. Similar to IDO, the investor has to stake the exchange’s native token to participate in the crowdfunding. Furthermore, the fundraiser can collect the required capital quickly, similar to IDO. However, you have to rely on the exchange and afford fees imposed for token sale.
Advantages of Initial Exchange Offering
✍ This crypto fundraising idea is considered secure and reliable as exchanges conduct token sales.
✍ Investors find trust and credibility in the exchange for their investment.
✍ Streamlined token sale as per regulatory guidelines.
✍ There is no need for fundraiser contributions for post-IEO token sales.
✍ Quicker recognition and greater liquidity for IEO tokens.
Essential Components of IEO
➡️ A token and whitepaper describing the solid project idea.
➡️ Collaboration with the right IEO launchpad.
➡️ Crypto wallet for token storage.
➡️ Plan for additional marketing strategies and activities.
5. DAO Crowdfunding
DAO Crowdfunding is raising funds for a crypto project among the members of a Decentralized Autonomous Organization (DAO). This is a transparent and community-driven fundraising in which the DAO protocol reserves the right of token sales. The fundraiser and investor should be active members of the DAO system. The investor can directly participate in the token sale by utilizing his governance rights. The collected funds will be given to the fundraiser after deducting certain charges for fundraising.
Advantages of DAO Crowdfunding
✍ A simplified decentralized crypto fundraising idea.
✍ Regulated fundraising process with transparent fund management.
✍ Requires low capital investment.
✍ The trust of DAO authority in fund handling and investment.
✍ Flexible crypto fundraising methods for all sorts of investors.
Essential Components of DAO Crowdfunding
➡️ A whitepaper with a clear description of the project.
➡️ Plan for tokenomics and incentives.
➡️ Crypto wallet to store the token.
➡️ Need for extensive marketing efforts.
6. Initial NFT Offering (INO)
Initial NFT Offering (INO) is the process of selling Non-Fungible Tokens to raise funds for a crypto project. INO fundraising is similar to ICO, where you need not rely on the exchanges for token sales. This NFT-based fundraising gives the fundraisers and investors monetary and intrinsic value proportions. That means the NFTs offered through INO crowdsale will have better prices in secondary markets. As a result, the fundraiser can gain quicker capital with minimal investment.
Advantages of Initial NFT Offering
✍ Quicker access to a wider audience base.
✍ NFT tokens can offer a potential return on investment. So fundraising becomes easier.
✍ Direct community engagement is a perk for your startup business.
✍ Blockchain security and automation ensure secure NFT transactions.
✍ Improved business flow with distributed INO tokens.
Essential Components of INO
➡️ NFT Token and detailed whitepaper.
➡️ INO crowdfunding platform.
➡️ Digital wallet for NFT storage.
➡️ Plan for marketing and promotional activities.
7. Initial Farm Offering (IFO)
Initial Farm Offering is the method of raising funds by utilizing the farming pool of the decentralized exchange. In this crypto fundraising idea, the fundraiser approaches the decentralized exchanges to conduct a crowdfunding event. The DEX platform offers a farming pool and a certain amount of its native token for sale. The investor can directly invest in the IFO tokens and stake them in the farming pool for rewards. Indeed, the fundraiser receives the funds while paying certain commissions to the DEX platform.
Advantages of Initial Farm Offering
✍ IFO token sale is more efficient than traditional token sale.
✍ IFO tokens get immediate liquidity through DEX yield farming.
✍ DEX platform has its own infrastructure to distribute tokens fairly.
✍ Project approval and risk mitigation will be taken care of by the DEX platform.
✍ DeFi investors mostly prefer IFO-based investment. Hence, your startup business can easily gain market attention quickly.
Essential Components of IFO
➡️ Whitepaper describing project details.
➡️ Digital wallet for NFT storage.
➡️ Plan for Marketing activities
8. Initial Game Offering (IGO)
An Initial Game Offering is an effective blockchain fundraising idea for game developers. The fundraiser raises funds by selling tokens or game assets. The investor, in return, gains early access to game plays or game assets or tokens. The fundraising takes part in the gaming platform itself or any common blockchain crowdfunding platform. This is the preferred fundraising idea for blockchain game developers. Whereas, the investor and fundraiser have equal weightage of benefits.
Advantages of Initial Game Offering
✍ Fundraising is considering the profit potential of blockchain gaming.
✍ You can create a gaming community even if the game is in the development phase.
✍ The initial investment is very minimal compared to traditional methods.
✍ Quicker access to global gamers and investors.
✍ Require minimal follow-up for regulatory and legal guidelines.
Essential Components of IGO
➡️ Whitepaper with a clear project idea.
➡️ IGO token for sale.
➡️ Crypto wallet for asset storage.
➡️ Plan for marketing activities
So these are the 8 best crypto fundraising ideas that are top of the choice of fundraisers. I have given clear insights about each crypto fundraising method and the benefits you could gain as a fundraiser. Also, I have highlighted the essential components needed before beginning the fundraising process. So you may now have clarity on choosing the best crypto fundraising strategy. However, you might be worried about…
Here is the step-by-step procedure, the ideal crypto crowdfunding method employs,
✅ Understanding the project goals.
✅ Choosing the best crypto fundraising idea.
✅ Completing the development of essential components.
✅ Ensuring legal challenges and launching a fundraising campaign.
✅ Plan for post-crowdfunding activities.
So far, we have discussed how to choose the best crypto crowdfunding idea and what the prerequisites are. Hereafter, we will discuss how to develop the essential components and what are the factors you should consider for that.
Developing Essential Components
Crypto tokens, crypto wallets, and whitepaper are the essential components needed to start the crypto fundraising process. Here, you have two options to consider. Either choose a freelance developer or approach a crypto crowdfunding platform development company.
Choosing a freelance developer may be a cost-effective method for any crypto fundraising idea. It is also easy to find skilled developers from freelancing websites. But honestly, relying on a single person’s capability is not a smart move. Because, professional experience, technical fluency, up-to-date market understanding, and awareness of legal challenges are essential characteristics here.
In this essence, a Crypto Launchpad Development Company might be the right choice. You may opt for post-crowdfunding activities if the company has offered such services. However, this recommendation is truly based on my perspective and knowledge. Obviously, the final decision is completely yours.
The crypto space has many success stories whose origin started from a crypto crowdfunding idea. The crypto enterprises that started from scratch are now established business models by their fundraising strategies. According to Cryptorank data, more than $135 billion in funds collected through crypto crowdfunding to date since 2009. The legacy behind this growth is selecting the best crypto crowdfunding method. In this sense, this blog about crypto fundraising ideas must be helpful to get started with crypto crowdfunding.
Startups prioritizing their business values over cost savings will be good entrepreneurs. So, consider your project goals, choose the right crypto crowdfunding idea, and develop the prerequisite components smartly. I wish you all the best for your fundraising efforts.
