Crypto Expert (Beginner to Pro) #7 - Crypto Community Access Before the Public Market: Fair Launch

|

We are into the 7th edition of the crypto expert journey after a few week's break. Today, we will take a closer look at some of the investment methods in crypto before those assets finally make it to the public market.

_{Canva edited}

|

Cryptocurrencies are often introduced to the crypto community before they finally make their way to the crypto market (on exchanges or DEXes). Some of the reasons for this are to enable projects to raise funds for further development, increase the awareness of the product to the crypto community, enable investors to gain early access and so on.

_{Free Image from Pexels}

Without a doubt, investing in such an early access phase of legit projects is one of the ways investors have increased their profitability over the years.

The early introduction can come in the form of presales (private or public), ICO (initial coin offering), IDO (initial DEX offering), IEO (Initial exchange offering), Fairlaunch and so on. There is a clear difference between Fair launches and Presales with Fair launch facilitating an unrestricted user participation.

|

Fair launch is an early crypto sale organized by the project to allow people to invest in their products without any restrictions. This appropriately keeps the crypto community in total control after the project has a specific number of tokens available for the fair launch and tokens required for participation.

Fair launches allow investors to contribute to a pool of the sale without a specific price per unit like presales where the project specifies a unit price for the sales. In addition, fair launch leaves the price generation for the token in the hands of the community through the amount raised during the event and the market condition.

_{Free Image from Pexels}

Fair launch sounds a bit nicer for investors because it eliminates the existence of price manipulation from the project end and thereby increases the credibility of the product even for wider adoption.

|

Key features of Fair Launch

• It's the truly decentralized way of introducing a new token to the community before public listing.




• The state of the event is open to anyone either participating or not.




• Users are not hindered by the small size of their investment or other factors.




• A proportional share of the token is given to participants based on the total participation.

|

The fair launch has some notable advantages over presales, some of which will be discussed below.

Fair participation

• Participation in fair launches is fair, eliminating every hindrance on the way of small investors. For example, presales often have a minimum investment requirement, fair launch eliminates this.

Community Governance

• Most fair launch events leave the governance of the token in the hands of the community whereby every participant has a say in the process. Participation of the community in a fair launch event and the market condition determine the price of the token in the long run.

Transparency

• Fair launch events are transparent, making it a preferable event to invest in and this tends to drive more adoption for the project.

Higher rate of Approval

• Tokens offered through fair launch have higher chances of approval by the crypto community because of the entire process of keeping all in the hands of the participants rather than the project rules.

|

In conclusion, fair launch events tend to have a higher rate of success as compared to other events and that makes it a choice for a lot of investors. Early investment into assets requires proper knowledge of the project to avoid falling victim to scams.

And it's a wrap for the week. I will see you in the subsequent weeks. Steem On!