How to Raise Funds for Crypto in 2019?

Even though the year saw 1253 ICOs raise around $8 billion, the vast majority of the funding came in the first half of the year.

STOs are more cost-effective than IPOs.Arrival of IEO. If 2017 was the year for ICOs, 2019 is the one for IEOs.

An IEO is orchestrated by a crypto exchange on behalf of a startup that is seeking to raise funds.

"First, retail users started to become wary of the many ICOs popping up. Users were looking to established brands in the cryptocurrency industry to vet through the projects before they would participate in token sales. Second, there was a proliferation of crypto exchanges and some exchanges found it profitable to fill this demand of vetting through the projects before token sales."

Nischal Shetty, the CEO of WazirX, which is the biggest crypto exchange in India, thinks that the shift to IEOs is a natural progression.

"IEOs present a ready audience that understands how crypto works, the good and bad of it. Overall, its a win-win situation for everyone involved."

Global investors have shown that IEOs are the go-to way to fundraise a crypto project.

Notably, massive crypto projects like Circle and Coinbase received funding through VCs. In fact, in 2018 alone, VCs invested close to $3 billion in crypto and blockchain-related projects, which is almost 40% of what was raised by ICOs.

An initial DEX offering is similar to an IEO except for the fact that IDOs are conducted on decentralized exchanges while IEOs are carried out on centralized ones.

Hoverer, IEOs have proved to be an avenue that is the middle way for the libertarian structure of ICOs and the draconian structure of regulation that comes with STOs.