Decentralized Fundraising (Part 05)

This is the fifth post at stress on this important topic of decentralized fundraising. Last four posts, I have tried to discuss some basic issues on this topic and their importance & impact in the field of modern financial systems. If we get some ideas from examples in real life on these projects, then we can understand it better. So, by following this, I am going to share 5 examples of this decentralized fundraising in this post and another 5 in the next post. This is basically crypto-based fundraising. Let's get started.

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1. Initial Coin Offerings (ICOs):

Ethereum is a well-known blockchain platform. It conducted an ICO in 2014. It raised over $18 million in just 42 days. Investors purchased Ether (ETH) in exchange for Bitcoin (BTC). The funds raised through Ethereum’s ICO were used to develop its decentralized platform. In this way, they were able to create smart contracts and Dapps. Ethereum's success has inspired countless other ICOs.

2. Security Token Offerings (STOs):

tZERO is a subsidiary of Overstock.com. They conducted an STO to fund the development of its blockchain-based trading platform. The STO raised over $134 million by just issuing security tokens that represent ownership stakes in the company. By using blockchain technology, the tZERO platform seeks to reduce settlement times and enhance security in trading.

3. Decentralized Autonomous Organizations (DAOs):

The DAO was one of the first decentralized autonomous organizations. It was launched on the Ethereum blockchain in 2016. It raised $150 million worth of Ether through a decentralized crowdfunding campaign. Although The DAO was famously hacked, it set a precedent for DAOs as a model for decentralized governance and fundraising. For the hack, ETH had to make a hard fork later. DAOs are becoming popular day by day.

4. Decentralized Finance (DeFi):

Compound is a DeFi lending platform. This is based on interest in the crypto holdings. Compound conducted a token distribution event. In that event, COMP tokens were distributed to users who interacted with the protocol.

5. Non-Fungible Token (NFT):

Digital artist Beeple sold an NFT of his artwork, “Everyday: The First 5000 Days,” for $69 million through a Christie’s auction. The sale was conducted on the Ethereum blockchain. This is a huge milestone and an example of the most high-profile NFT sales. This sale demonstrated the potential of NFTs as a fundraising tool for artists and creators. By tokenizing digital art, creators can directly monetize their work. It is a wonderful opportunity for creative content creators to reach globally with the help of decentralized fundraising projects like the NFT sector.

~ Regards,
VEIGO (Community Mod)

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