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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