should we give Icos another chance?

ICOs might become relevant again very soon. I did a little research to see if anything significant happened in 2023, and the result. Not much. Currently, the space is divided into centralized platforms like Coinlist and centralized exchanges that conduct these ICOs. The advantage here is that they conduct KYC for all participants. This is beneficial from a regulatory standpoint, but it also has its downsides.

On the other hand, we have LBPs. Most of them aren’t successful post-launch, and the main platform people seem to be using is https://fjordfoundry.com.

Why We Need ICOs Again Background:

ICOs used to be the gold standard. To give you some context, in 2017, the majority of project launches occurred via a public token sale. This was wonderful because anyone who wanted to could participate in capital formation. However, after the 2018 crash, the industry pivoted to a model where VCs invested privately, subsequently launching a token. For more than 4 years, the primary method for projects to introduce tokens to the public was through either an airdrop or liquidity farming.

Both of these methods were heavily utilized, and now projects are left searching for a viable launch strategy.

Token distribution methods are among the most underrated topics in crypto.

The Future:

Should We Bring Back ICOs?

Here’s the crux of the matter: America has stringent regulations, and they’re only going to tighten. As a result, American founders are hesitant to launch tokens via a public sale.

But should they be? Let’s delve deeper.

I’m not a lawyer, but broadly speaking, there are two regulations one should be wary of Reg D and Reg S.

Reg S focuses on selling to non-Americans, provided Americans don’t receive it immediately. I believe there’s potential within this definition. As an industry, we recognize that airdrops and liquidity farming aren’t the best methods for token distribution. Perhaps it’s time to give ICOs another shot.