Fundraising Mechanisms and Best Practices

Fundraising significantly impacts project sustainability and success. Common methods include:

  • Private Sales: Early funding rounds offering tokens to strategic investors or venture capital.

  • Public Sales: Broad distribution through open market offerings, launchpads, or ICOs.

  • Launchpads and IDOs: Platforms providing visibility, liquidity, and market-driven pricing. Popularity and effectiveness of launchpads can fluctuate based on market conditions.

  • Liquidity Bootstrapping Pools (LBPs): Market-driven pricing mechanisms; their success highly depends on market conditions.

Fundraising success is highly dependent on market sentiment (bullish, bearish, memecoins, DeFi, AI-backed tokens, regulated digital assets). Align your project's narrative clearly with prevailing market sentiment.

Time the market effectively.

Build your product/project sustainably, craft robust tokenomics, and allow the market to align with your vision. Be patient and strategic, like a surfer waiting to catch the perfect wave, rather than chasing fleeting trends.

Hot tip: when making decisions around public fundraising, consult a trust Market Maker. They have their fingers on the pulse when it comes to understanding what’s hot and what’s not and will play a pivotal role in ensuring a robust fundraising strategy.

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