Why Token Launches Could Redefine Startup Fundraising
The post Why Token Launches Could Redefine Startup Fundraising appeared on BitcoinEthereumNews.com.
The pace of new token launches has picked up, with blockchain ecosystems introducing fresh assets at an unprecedented rate. For many, the trend recalls the initial coin offering (ICO) frenzy nearly a decade ago, when speculation overshadowed fundamentals. Yet industry leaders argue that today’s environment rests on stronger ground. Stephen Hess, Founder and Director of Metaplex, is among them. In an exclusive interview with BeInCrypto, he explained that modern launch frameworks aren’t simply fueled by hype — they are the product of years of infrastructure development, making them more responsible and scalable. Hess believes the shift is so significant that token-based fundraising is set to become the default path for startups. The Rise and Fall of Initial Coin Offerings (ICOs) For context, an ICO is a fundraising mechanism used by blockchain and cryptocurrency projects. It’s somewhat similar to an Initial Public Offering (IPO) in traditional finance, but instead of selling shares of a company, projects sell digital tokens. Sponsored Sponsored In exchange for their investment, investors receive the new tokens, which they can use within the project or potentially sell later for profit. In 2017, ICOs exploded in popularity and investors poured billions into crypto startups. According to data from Goat Finance, that year alone saw more than 800 ICOs launched, raising over $5.6 billion in total funding. “In 2015, Ethereum’s introduction of a standard for implementing tokens (ERC20) further streamlined the ICO process. From just 9 ICOs in 2015 and 74 in 2016, the market surged to over 1,000 ICOs in 2018,” ICO Bench noted. ICO Bench further revealed that coin offerings delivered 3.5 times more capital to blockchain startups than traditional venture capital (VC) rounds between 2017 and 2020. However, the ICO boom was marred by challenges. A study of 3,392 ICOs from 2016 to 2018 revealed a…
Filed under: News - @ September 29, 2025 7:24 am