Opinion: Hata Sheikh, founder of Coin Terminal
Crypto has largely failed retail investors. Experts and institutions collect lucrative possibilities before they go to open markets. Memecoins and purely speculative pieces are the only ways to regain retail investors.
They remain exposed to the “supercycle of crime”, which began with unregulated initial coins (ICO) in 2017-2018. At that time, the initial DEX (IDO) offers appeared to provide retail investors with open, truthful access to projects at an early stage. Gradually, however, high threshold requirements, long periods of permissions and information asymmetry mean that most IDOs do not limit retail investors.
IDOs are essentially dead. But they will develop-longer than ever-providing long-term growth and sustainable generation of revenues for retail investors. In addition, IDO will become the most profitable and poignant path for bottom -up users to build generational wealth.
Loss of the dream of retail investors
From free transactions to fractional property, retail investors came to cryptocurrencies with sleep. Non -clear and weaker for the first time in global economic history, for the first time, had a real chance for financial freedom.
Despite this, they stood in the face of a constant multitude of dishonest projects and fraud related to obtaining funds. During the so -called madness, ICO lost over $ 16 billion, trying to buy “the next best thing”.
Idos promised the correction. They secured the collection of cryptographic funds thanks to solid investor protection measures, such as strict, preliminary diligence. Solid teams and realistic road maps have become a must -have project project.
Most importantly, Idos introduced token to provide more skin in a game for projects and investors. He offered crypto-economic safety before pump and ass fraud. But on the other hand, higher reference rates indicated a chance in favor of the institution. Retail investors were omitted. Again.
Related: Magic Square IDO platform in Binance to democratize retail investors’ access
Staking token has a negative impact on IDO. Circumscribed chance for retail investors and a problem with cool launch from the point of view of liquidity. And 64% of retail investors willing To pour liquidity into projects at an early stage, this is a wrong cycle.
Krypto develops for some reason with social financing. Until now, whales can only take the industry. If IDOs do not make a vast -sided financial reinforcement promise on a vast scale, they will inevitably sink into insignificantness. The crypto as a whole will also fall.
Democratization will buy back idos
It’s not too tardy. Ido can turn around and have a brilliant future. It matters that he will remain faithful to his original retail. It is crucial to ensure truthful premieres and fair opportunities.
The change has already begun. Ido Launchpads are not forcing investors to block funds. Everyone can start financing projects at an early stage, and even $ 100 (or even less), opening the field for tiny and medium -sized investors, such as institutions.
Going a step further, inventive starting pads offer unprecedented functions, such as phrases, so that investors can give up their positions if they want – because the choice is one of the most crucial aspects of freedom.
In addition to erecting investors over their funds, emerging, provide lucid and stringent verifications. As a result, only high -quality projects are listed, which gives investors access to long -term low risk growth and even lower input barriers.
This retail approach effectively solves safety and liquidity in one go. It also focuses on the basics of the early stage, priority of real value before ordinary speculations. It also creates equal opportunities in which investors and institutions can develop for the first time.
Ido entered the next evolutionary phase. Investing in early cryptocurrency projects is no longer a zero -sum game in which people with deep pockets are decisive, unfair profits.
Along with the growing democratization – and prefer to facilitate real meritcasts – the space finally becomes adapted to the basic principles of cryptocurrency.
The holistic assessment of the project based on market narrative, matching the product market, revenue distribution channels, token and community development becomes the norm. Chilly white papers and decks on the pitch no longer cut them. The barriers to scammers are higher. Barriers in investing in such well -rated projects are much lower.
On the demand and supply side they reach balance. It is also, without prejudice to internal value. This is a return to the basics in the most original, widest sense of the term.
Creative startups buy back IDO. They raise the bar and set recent standards for collecting funds for retail in crypto. The next step, although the most crucial, is platforms in space to accept the clue and subscribe to the whole change.
Ido has never been closer to fulfilling their promise, justifying their ethos to retail investors. However, they were never further. This is a point of inflection.
From then on, retail investors decide on the future of IDO and Crypto. They will join the numbers or they will frog for good. Innovators have their work cut off – this time really.
Opinion: Hata Sheikh, founder of Coin Terminal.
This article is used for general information purposes and should not be and should not be treated as legal or investment advice. The views, thoughts and opinions expressed here are themselves and do not necessarily reflect or represent the views and opinions of Cointelegraph.
