Token Sales Are Often Manipulated. Can LBPs Offer A Solution?
The post Token Sales Are Often Manipulated. Can LBPs Offer A Solution? appeared on BitcoinEthereumNews.com.
When it comes to securing funding for your tech startup, the struggle is real. Even the most promising companies showing strong growth and high profit margins will need to endure a months-long marathon process that involves wooing investors, negotiating with banks, endless powerpoint presentations and masses of paperwork. And in the vast majority of cases, these efforts prove fruitless, even if you have a viable business plan and impressive numbers to show. As this article from Harvard Business Review reveals, the competition for venture capital is so intense that less than 1% of companies actually manage to obtain any. Going to the bank for a traditional business loan is not much easier. Companies working with intangible software-based assets will find that very few banks are willing to back them with reasonable terms. Democratized Funding Changes The Game Raising money used to be extremely hard, but the advent of Web3 and decentralization is transforming that reality, breaking down barriers to capital access by connecting entrepreneurs to the masses. Blockchain-based funding leverages transparent, decentralized mechanisms that bypass the complexities of traditional fundraising, giving companies the opportunity to pitch their ideas directly to a global pool of retail investors looking to back the next big thing. We’re talking about crypto fundraising, which usually comes via token sales. The basic concept involves Web3 startups issuing digital tokens to investors that represent a stake in their project or provide some kind of utility, in return for their financial backing. Token sales have had an enormous impact on the Web3 industry, enabling hundreds of startups to secure the capital they need to build on their ideas. The process is especially appealing to retail investors who are otherwise barred from investing in startups. Projects can source capital from a diverse array of investors, without any interference from…
Filed under: News - @ February 25, 2025 10:19 am