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ICOs are coming back following sweeping crypto reforms in South Korea

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ICOs are coming back following sweeping crypto reforms in South Korea

Korea› ICOs

A new South Korean administration, in Yoon Suk-yeol’s conservative People’s Power Party, is wasting no time in bringing crypto reforms.

2 min read

Updated: May 6, 2022 at 7:14 pm

Cover art/illustration via CryptoSlate

South Korea’s Presidential Transition Committee is proposing a crypto framework designed to foster the growth of the digital asset industry.

The Digital Asset Framework Act aims to create an environment that encourages responsible growth based on investor trust. It will implement investor protection measures and improve “transaction stability,” which refers to activities related to issuing tokens, including NFTs and exchange listings.

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Surprisingly, the proposals also include domestic Initial Coin Offerings (ICOs) unbanning. Details show regulators will distinguish between ‘security’ and ‘non-security’ ICOs.

“it is planned to establish a regulatory system in the form of ‘security type’ and ‘non-security type’ such as utility and payment settlement depending on the economic substance of virtual assets.”

ICOs to make a comeback?

ICOs refer to a way for new crypto projects to raise money. Although they’ve been around since 2013, with the ICO launch of Mastercoin, it wasn’t until 2017 that people began to take notice.

Back then, cryptocurrency prices were booming, and it wasn’t uncommon for early ICO investors to strike it rich overnight. During this boom phase, 800 ICOs sprung up, raising a collective total of $20 billion.

However, being unregulated instruments, many of those projects were scams looking to take advantage of the market euphoria.  Research shows that as many as 80% of ICOs launched during the ICO Boom were scams that took investors’ money and quietly exited.

ICOs were banned in South Korea in September 2017 and in China around the same time. Given their dubious reputation, new fundraising mechanisms took their place, such as Initial Exchange Offerings, Initial Securities Offerings, and Initial Stakepool Offerings.

Under the Digital Asset Framework Act, the stage is set for ICOs to make a comeback.

Crypto friendly President stays true to his word

Pro-crypto Yoon Suk-yeol won South Korea’s presidential election in March 2022, beating political rival Lee Jae-myung in a narrow victory of less than 1%.

Yoon had promised to implement policies to legitimatize the crypto industry, including the unbanning of ICOs.

Some were skeptical that Yoon would follow through, including Han Dae-hoon, an Analyst at SK Securities, who tentatively commented, “we will not know until we see it.”

However, with Yoon’s inauguration date set for May 10, it seems he’s wasting no time in making things happen.

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ICOs

Launchpad projects under pressure to choose money over project fundamentals

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Launchpad projects under pressure to choose money over project fundamentals

Interview

Polkastarter co-founder, Daniel Stockhaus, laments that launchpad projects that do too well at IDO make him nervous

3 min read

Updated: April 17, 2022 at 6:36 pm

Cover art/illustration via CryptoSlate

Speaking with Polkastarter co-founder Daniel Stockhaus during Paris Blockchain Week, he revealed that many launchpad projects are under tremendous pressure from business development specialists acting on behalf of blockchain projects. Polkastarter is the number one fundraising platform in the blockchain space, with some projects reaching 270x on initial investments. However, Stockhaus claims that this is not the goal of Polkastarter, and he prefers to see much smaller returns during an initial IDO.

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Polkastarter wants strong fundamentals.

This statement may seem counterintuitive, but in speaking to Stockhaus, you can see how passionate he is about the projects he works with. This is much more than a simple launchpad looking to scream about the insane gains it can offer uneducated investors. Instead, Polkastarter focuses on projects with solid fundamentals and educating their community to ensure they are well informed before investing in the next potential crypto unicorn. A simple glance at crypto Twitter reveals thousands of crypto projects all vying for your attention. As Helen Hai from Binance said recently, a responsible launchpad does not want its investors to buy into something worth nothing in a few years. This only leads to disenfranchised users who will fall out of love with the crypto space and have lost their money by trusting a platform that was only interesting in one thing; money.

Interestingly, there was a severe lack of talk of profits or ROI during Paris Blockchain Week. The projects we spoke to focused on adding value to their users, creating a safe place for their team to work, education within the blockchain space, and safer adoption of new technologies. Stockhaus, who deals with projects that have the potential to return live changing ROIs, is no different. He stated that one of the biggest problems within the blockchain space is the number of chains vying for the attention of the next promising project. At the NFL draft, teams attempt to convince the best talent to join their franchise regardless of whether they may be a better fit for another team.  Stockhaus described onboarding a new launchpad project similarly as “new organizations are struggling to decide where to launch their projects.” He expands on this by saying,

“if an investor wants a specific chain then one VC brings in another 10 VCs. It’s hard to say noif you really need the money then you go with the one offering the most.”

Helping projects grow

What seems to give Polksstarter the edge and the reason they have been so popular in the launchpad space is that they are almost platform agnostic. Although they are based on the Polkadot ecosystem, they were forced to launch before Polkadot was fully ready due to delays in the Polkadot launch. As a result, many of their initial projects launched on the Ethereum blockchain, and they now support around six different chains within their ecosystem. The interoperability of Polkadot means that this strategy is sustainable and gives unseen advantages for projects within the Polkastarter community. Stockhaus explains that,

“Polkastarter helps projects decide which chain is right for them as we know the projects decisions, what they did previously, how they feel about those decisions and have good connections with networks themselves. As we know the networks so well we often know some of the issues that may affect new projects, which we cannot say directly, but can steer them towards a better fit.”

Polkastarter also focuses on education by using its information hub to help projects based on their needs. They do not launch the projects and then move on to the next; they support them through monthly, or even weekly, meetings to see how their connections can help the projects grow. Stockhaus says that when they look for new projects,

“we do not look for projects that we know the token price will do very well. We want team that is very sincere and focused on what they do and not just in it to make money.”

I prefer a 2x to a 200x

He even went on to say that he prefers it when a project only does two or 3x on launch as this means that the wider community also has a chance to make a profit as the IDO goes live. However, he lamented that when a project does too well straight away, that can only lead to disappointment for the wider community who ape in after a 200x only to see the price settle at a commendable 20 – 40x. This leaves many members outside the Polkastarter community disenfranchised and thus less likely to invest in future IDOs.

Stockhaus admitted that “anyone can look like a genius in a bull market. I’ve always said judge us after two years.” Well, Polkastarter is now 17 months into their adventure, and they have launched some highly successful projects such as Superfarm and Ethernity. We still have seven months left before he will allow us to judge their success, but with their launch of Polkastarter Gaming, it seems like they are certainly moving in the right direction.

Posted In: ICOs, Interview

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5 Launchpads to Look Out For in the Crypto Space

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5 Launchpads to Look Out For in the Crypto Space

DAOs

Launchpads are becoming more popular in the crypto space. They have grown in popularity due to the perks given to early investors.

6 min read

Updated: April 16, 2022 at 5:23 pm

Cover art/illustration via CryptoSlate

In the world of cryptocurrency, launchpads are becoming increasingly popular. They address a unique challenge for both crypto-investors and developers and have gained a lot of popularity as a result of the benefits they provide. 

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Although the launchpad phenomenon is increasingly typical among cryptocurrency experts, the majority of people have no idea how launchpads work and their intended uses.

What is a Crypto Launchpad? How do they Work?

Launchpads are incubation platforms that enable blockchain projects to raise capital via crowdfunding. These platforms also enable users to buy into crowdfunded projects at a low price due to being early investors.

Projects can use launchpads to raise funds through different methods including:

Initial Exchange Offerings (IEOs)

Token sales are conducted through centralized exchanges, users usually deposit a certain amount of tokens (USDT or ETH for example) and then get the crowdfunded projects tokens in return.

Initial Dex Offerings (IDOs)

Like IEOs but done through a decentralized exchange (DEX), users usually stake the platform’s native token for a certain period to gain an allocation or receive the project’s tokens in return.

Initial Game Offerings (IGOs)

This system is similar to IDOs, instead, users usually receive in-game NFT items in return for investing in an incubated project.

In this post, we’ll be looking at five promising launchpads to look out for.

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Bybit

Bybit Initial Exchange Offering (IEO) Launchpad Platform

Bybit Launchpad is a crowdfunding platform that gives investors early access to new and pre-listed tokens from blockchain-based projects. Users must stake the platform’s native token BIT towards each project to participate in a crowdfunding round.

Launchpad project on the platform goes through four steps: 

  1. Snapshot – During this time, hourly snapshots will automatically record the daily average amount of BIT in a user’s Spot Account, Bybit Earn Account, and Derivatives Account.
  2. Subscription – Users can contribute a set number of BIT to the new initiative during this stage. Users’ maximum BIT commitment is determined by the daily average combined BIT balance in their Spot Account, Bybit Earn Account, and Derivatives Account for the snapshot period.
  3. Distribution – During the distribution time, the BIT equivalent of a user’s pledged amount will be deducted based on their token allocation outcome. Their new tokens will be credited to their Spot Account, together with the leftover BIT.
  4. Launch – If liquidity criteria are fulfilled, the new Spot pair will go live.

To take part in a launchpad crowdfund, users need to complete an identity verification process via the Know Your Customer (KYC) protocol.

Alpha Launchpad

Alpha Initial Dex Offering (IDO) Launchpad Platform

Alpha Launchpad is a crowdfunding platform that was launched by Alpha Labs as part of their Alpha Venture DAO platform and community. The Alpha Venture DAO is a completely decentralized venture capital fund that aims to challenge the current Web3 financing model. 

Members of the Alpha community may contribute their knowledge and talents to help all incubated ideas progress and, as a result, become owners of futuristic companies before they are released on more mainstream markets.

Alpha Finance Lab aims to provide end-to-end assistance and mentorship to Web3 projects through its newly created decentralized autonomous organization (DAO). These activities will be overseen and participated in by Alpha Venture DAO’s partner Terraform Labs and a group of more than 50 Web3 thought leaders, influencers, and investors. 

In addition to receiving advice from industry professionals, all Web3 initiatives fostered by the Alpha Venture DAO will have access to Alpha’s expanding network of over 100,000 Web3 users.

Selected incubated projects will work with the Alpha team to launch and build their Defi initiatives after passing a stringent screening procedure. Product-market fit, tech consulting, and assistance with the funding process are examples of areas where projects may get hands-on expertise, coaching, and guidance.

UpLift DAO

UpLift DAO Initial Dex Offering (IDO) Launchpad Platform

UpLift DAO is a fully decentralized and permissionless platform for token sales and exchanges. It provides possibilities to develop, launch, and advance DeFi-related projects.

UpLift DAO works via an open governance architecture that allows the community to make strategic decisions about the platform’s operation. Staking incentives, airdrops, and a token buyback mechanism are all ways that gains are returned to the community.

The platform has a community with members from over 80 countries. When projects join the UpLift ecosystem, they are incubated and supported throughout the whole cycle, including legal assistance, community building assistance, and access to UpLift’s network of partners.

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Without using a tiered allocation structure, UpLift allows the community early access to upcoming tokens. Instead, they employ a lottery mechanism that picks individuals at random. Additionally, following each IDO, there is a stand-off time to ensure a broad group of participants and equitable allocation.

UniX Gaming

UniX Gaming Initial Game Offering (IGO) Launchpad

UniX Gaming is a gaming community and platform with the goal of becoming the largest gaming guild in the Play-to-Earn sector. The IGO Launchpad platform is presently being developed by the platform.

The UniX launchpad is being created to provide members of their community early access to some of the most recent AAA games before they are released to the wider public. Members of the community will have varying degrees of access to the launchpad depending on how many UniX tokens they have staked.

There will be five separate categories in the tier system:

  1. Common – For users who have staked 2,000 UniX tokens. This tier’s members will be placed into a lottery to win tokens from the IGO, they also receive a pool weight of 30 during the pre-sale.
  2. Uncommon – For users who have staked 5,000 tokens. Members in this tier will still be placed into a token allocation lottery, but their pool weight will be increased to 65, giving them a higher chance of winning. These members will also receive initial access to the game’s wardrobe and merchandise.
  3. Rare – Members who stake 20,000 tokens will receive a guaranteed allotment rather than being placed in a lottery. Their pool weight will be raised to 145. Members also receive first dibs on game gear and stuff, as well as NFT drops.
  4. Epic – For users who have staked 50,000 tokens. The pool weight is boosted to 400 pounds and users get a guaranteed allocation. They also receive early access to the game in addition to all of the prior tier’s incentives.
  5. Legendary – For users who stake 100,000 tokens. Although they no longer have a pool weight, these members are assured a 700+ private allocation in the IGO.

The tier system is designed to reward members based on their efforts, so those who have staked more will be paid more, allowing the community to benefit fairly from this milestone.

Users get everything from the early access version of the game, including NFT drops, gear, and items, as well as two additional incentives. Legendary members will gain access to the NFT treasury and a private chat with the game’s creators.

Polkastarter

Polkastarter Initial Dex Offering (IDO) Launchpad

Polkastarter is a decentralized crowdfunding platform allowing blockchain teams and businesses to fund and launch their initiatives. It enables projects to construct multi-chain token pools while also generating revenue and fostering community growth.

Polkastarter intends to eventually transition to a completely automated Decentralized Autonomous Organization (DAO) governance system.

POLS is the utility and governance token for the platform. Users must own or stake POLS to increase their POLS Power to participate in an IDO on Polkastarter.

Polkastarter supports many blockchains and has cheap transaction fees, allowing new projects to be launched across numerous blockchains. Ethereum, BNB Chain, Polygon, Celo, and Avalanche are among the supported blockchains. 

During Initial Dex Offering (IDO) sales, launchpad projects can accept any tokens that are compatible with Polkastarter’s supported networks.

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POLS is the Polkastarter ecosystem’s utility token. The token is available on both the Ethereum and Binance Smart Chain (BSC) networks.

POLS is a governance token that allows its holders to vote and propose recommendations for Polkastarter’s development and growth. Proposals for additional features, token use cases, which projects are listed on the platform, and other topics are among the proposals that can be voted on. 

Users can hold POLS in their wallet or stake the token to earn POLS Power which impacts a user’s chances of winning an IDO or NFT auction. POLS Power is an aggregator that figures out how much POLS users have across the network, including the POLS they have in their wallet and the POLS they’re staking. 

Conclusion

Crypto launchpads are unquestionably a departure from the usual fundraising model, which is generally characterized by a lengthy and rigorous procedure. New businesses may now raise millions of pounds in a matter of minutes, with high returns for early investors.

However, the comparatively simple nature of these fundraising techniques is not without danger, and investors must do due research and consider their risk appetite before investing.

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ICOs

3AIR – The token that helps Africa

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3AIR – The token that helps Africa

Disclosure: This is a sponsored post. Readers should conduct further research prior to taking any actions. Learn more ›

The blockchain-based start-up sets out to solve connectivity and identification issues around the African continent and has already started to assemble the infrastructures that will enable the growth of its comprehensive all-in-one blockchain ecosystem.

Through its partnership with K3 Telecom, 3air proposes wireless broadband internet, digital TV, and IP telephony access to areas where cable service is not possible or would not be viable, guaranteeing connection speeds of up to 1.000 Mbps per end user.

The 3air Ecosystem

Issues like connectivity or access to proper personal identification are still very present in most African countries, gaining a special relevance when they translate into difficult barriers in business relations.

The 3air blockchain platform is taking on the ambitious task of creating a solution that will not only solve connectivity and allow access to high-speed internet, but also tackle the personal identification problem with the introduction of the Digital Identities feature – a trustless, secure, and private way for users to maintain credit scores, medical history, or proof of education as verifiable information on the blockchain.

At the base of the entire ecosystem will be 3AIR, an Ethereum based utility and governance token on the SKALE blockchain.

The 3AIR Token

Serving as the sole currency available in the 3air ecosystem, 3AIR will grant its platform’s users access to services such as monthly subscriptions to TV and internet services, digital identities while enabling users to take advantage of the several adoption incentives that will be incorporated into the platform.

These adoption incentives take different forms and serve different purposes. From Rewards and Loyalty programs using gamified structures and granting access to cashback, airdrops, or NFT coupons, to a Referral system designed to boost the market’s trust indexes and prevent fraud by allowing users to recommend services or businesses to their friends, family, or associates.

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Furthermore, by positioning itself as a secure and trusted bridge between users and service providers, 3air aims to help transform digital payments into a seamless and common activity in African countries. As with 3AIR, even the unbanked percentage of the population can complete bankless transactions and pay for the services included in the ecosystem, while the service providers receive the equivalent amount in the respective fiat currencies.

The ecosystem has been devised to include a number of supplementary features that not only make the user’s life easier but also drive the token’s adoption. Staking rewards, access to microloans or the development of governance solutions are a few of the additional attributes envisioned for the token, however, 3air’s vision is to keep developing their blockchain platform into an all-purpose ecosystem serving identity, payment, community, governance, and marketing needs and striving to become a reference for the telecom sector.

Commitment to Transparency: The author of this article is invested and/or has an interest in one or more assets discussed in this post. CryptoSlate does not endorse any project or asset that may be mentioned or linked to in this article. Please take that into consideration when evaluating the content within this article.

Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.

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