Funding is a prerequisite for any new crypto project, but with IEOs likely to play a reduced role in 2020, where will the all-important capital come from? While minted entities like Ripple, Tezos, and Tron certainly have the means to plow tens of millions into their chosen ventures, they can’t be expected to finance an ever-expanding ecosystem. Alternative token distribution and capital-raising strategies are therefore under exploration.
Also read: After Blockstack’s Regulated Offering, Where Now For US Token Sales?
What 2020 Holds for IEOs
Initial exchange offerings became popular in the wake of the ICO market’s collapse, with Binance listing many of the most profitable IEO projects. May was last year’s high point for tier-one exchanges, with eight IEOs launching across Binance, Okex, Huobi, Bittrex and Kucoin. During the first six months of 2019, IEOs collectively raised over $1.5 billion. From July onwards though, the picture grew steadily bleaker – to the extent that there was just one IEO on these platforms in each of the…