The crypto market is in the process of transformation, and the fundraising platforms are being redesigned. At the outset of 2024, the trends are transforming and shifting the approach to raising finance, working with investors, and managing complex regulatory regimes. This article presents the 8 biggest crypto fundraising trends. Investors, developers, and crypto enthusiasts will be more informed about the risks and prospects for the future of crypto. Join us to stay up-to-date!
- ICOs, STOs, IDOs, and IEOs represent the trends of future technology associated with regulation and market dynamics.
- Regulations and transparency will be crucial, with legal tools, such as SAFT, being the main ones.
8 Latest Crypto Fundraising Trends
Let’s discover the crypto fundraising trends that will shape the future of digital financing assets.
#1 Compliance with regulatory requirements
Cryptocurrency fundraising has emerged greatly, and regulatory compliance is one of the most important factors for a project’s success. ICO practices have become more transparent and comply with standards, while STOs are more strictly regulated. Cryptocurrency exchanges require a strict verification process for legal projects to conduct fundraising. The industry's primary focus is investor protection and more operation and risk-related facts and figures. The Simple Agreement for Future Tokens (SAFT) is one of the legal mechanisms for this purpose.
#2 Rise in Security Practices
Crypto investment security measures are at the highest level in 2024 because of the intensifying nature of cyber threats and the sense of extreme importance in guaranteeing the safety of crypto transactions and their storage. On the other hand, authentic security aspects like multi-factor authentication (MFA) and cold storage are being adopted increasingly to reduce hijackings and losses. Education and awareness related to cybersecurity are booming, and crypto workshops are being put forward to show how to manage security resources. Complying with regulations ensures that security standards across the entire industry remain the same (such as the KYC and AML measures).
Discover how to secure your crypto.
#3 Adoption of DeFi principles
DeFi continues to assimilate into traditional financial systems, resulting in more compatible platforms and services. DeFi helps develop innovative financial products to solve the challenge of conventional finance and blockchain innovations.
The Projects apply the principles of DeFi (smart contracts, liquidity pools, and decentralized governance) to develop new financial products and services.
#4 Integration of artificial intelligence (AI)
Artificial intelligence is gaining prominence in crypto fundraising systems. It enables elaborate data analysis, assessing risks, and giving tailor-made financial services. Projects that use AI improve the effectiveness of processes, enlarge the possibilities of decision-making, and provide a better user experience.
Read more about ML and AI benefits for fintech businesses.
#5 Public Engagement
Projects employ social media, online forums, and community activities to attract an audience, fundraise, promote, and elicit feedback and interest.
#6 ESG impact
ESG factors are becoming increasingly profitable for investors, so they are more interested in projects that keep these values in the fore. Incorporation of sustainability issues into the projects, concentrations on green blockchain technologies, environmental sustainability, financial inclusion, and social impact initiatives will attract socially oriented investors.
#7 Expansion into new markets
In 2024, the crypto fundraising environment is outward-looking with the widespread use of cryptocurrencies and blockchain technology across the globe. Emerging economies form the grounds for projects that aim to increase the number of unbanked and underbanked people. If the company can align its operations with the local regulations, the acceptance of the cryptocurrency following will increase, and the ecosystem will continue to grow. Creating strategic alliances with local businesses, banks, and national governments is the best way of entry to new markets. The implementation of blockchain technology makes it possible for any crypto project to operate worldwide with the feature of borderless transactions and universal investment opportunities.
#8 Growth of GameFi
GameFi, one of the trends in 2024, integrates gaming and finance to reward players in such a way that their in-game experiences have real-world value. This sector has exploded after blockchain technology progressed and met the increasing demand for more interactive games. As the GameFi expansion is driven by the Play-to-Earn (P2E) concept, players can earn cryptocurrencies or NFTs from the profits of their skills. In the GameFi space, the NFTs are a cornerstone of all operations because they act as asset tokenization and give an asset a real-world value. The scope of play is enlarging out of traditional gaming groups, coming into cryptocurrency lovers and investors. GameFi governance is mostly carried out by Decentralized Autonomous Organizations (DAOs) contributing to a community spirit, and enforcement of ownership, while at the same time democratizing fundraising processes.
Learn more about the NFT game development process.
Keeping abreast of these trends and adopting a strategic approach is essential to success. In this process, finding a reliable partner such as Agilie is crucial. With our 14 years of experience, we will provide the best and most advanced solutions for each project, finding an individualized approach based on your ideas and our knowledge.
Explore the Agilie projects with millions of happy users.
Crypto Fundraising Methods
Crypto fundraising is one of the most dynamic and diverse spaces. It offers imaginative ways such as Initial Coin Offerings (ICOs), Security Token Offerings (STOs), Initial Exchange Offerings (IEOs), and Initial DEX Offerings (IDOs). These techniques adjust to changing regulations, technology, and investor patterns, thus becoming crucial to understanding and navigating the crypto investment and project development field.
Initial coin offering
Initial Coin Offering (ICO) is a decentralized way for blockchain projects to raise funds by creating new coins that are exchanged for existing cryptocurrencies like Bitcoin or Ethereum. ICO's tokens often provide utility inside the project's ecosystem with entry to services, decision-making rights, or revenue sharing.
ICOs are running on decentralized platforms and involve investors and projects without any middlemen. But, the ICOs were criticized due to the existence of scams, frauds, and failed projects. To regain the trust of investors, ICOs have moved from being non-compliant and non-transparent to becoming KYC and AML compliant.
Interested in launching ICO? Find out the step-by-step development guide
Security token offering
A Security Token Offering (STO) is a regulated variant of an Initial Coin Offering (ICO), which provides investors with digital tokens that are supported by real-world assets. STOs adhere to the securities laws. Hence the investor's security level is increased with guaranteed transparency and accountability for the fundraising process.
In contrast, besides the legal and regulatory issues that investors will face in different jurisdictions, STOs are more complex than ICOs. An STO, which merges blockchain efficiency and traditional security shelter, is a viable option for both emerging and mature companies. The STOs are also expected to be an integral part of fundraising in the future despite the obstacles they come with.
Initial exchange offering
An Initial Exchange Offering (IEO) is a crowdfunding model of the ICOs, where an exchange acts as the intermediary. It is a safe and trustful environment where investors don't have to deal with the smart contract directly. Instant Liquidity and KYC and AML compliance are the advantages of an IEO. Yet, the success of this exchange platform would depend on its reputation and range, as well as incurring high transaction fees and more stringent regulations.
Initial DEX offering
The Initial DEX Offering (IDO) is a new fundraising technique that directly lists project tokens on a decentralized exchange (DEX). This offers immediate liquidity, transparent trading, and a more equal opportunity for participation. IDO lowers the entry barriers for a project and investors, but it might enhance the risks of scams and fraud. Decentralization involved in IDOs means performing less vetting and putting the investors in action to carry out the due diligence efforts. The regulatory space for IDOs is still developing.
How to Choose the Crypto Fundraising Method
Choosing the appropriate crypto fundraising method is a key factor to the future success of your project. Through this step-by-step guide and comparison table, businesses will be able to walk through the selection process and choose the most appropriate method that will be in line with the project’s objectives, regulatory compliance, and readiness to enter the market.
| Fundraising Method | ICO | STO | IEO | IDO |
| Investors | Anyone | Anyone + qualified investors | Exchange users | Anyone |
| Executor | Project | Project | Exchange + project | Project + DEX |
| Administrator | Project | Exchange + project | Exchange + project | Project + DEX |
| Project review | None (external audit) | The most extensive testing | Exchange verification (less regulated) | The exchange conducts a cursory check |
| Customer verification | None | The most extensive testing | KYC | KYC or none |
| Adjustability | None | The most extensive | Exchange regulation | None |
| Launch cost | Medium | High | Medium | Low |
| Promotion | Project | Exchange + project | Exchange | Project |
| Liquidity | Project | Project | Exchange | Project |
| Security | None | High/medium | High/medium | Low |
Follow these steps to launch a successful project:
Step 1: Set Your Project Objectives and Needs.
Step 2: Get acquainted with the Regulatory Instructions.
Step 3: Assess Your Technical Competencies.
Step 4: Examine the Market Situation and the Investors' Tastes.
Step 5: Pick The Method That Is In Line with Your Aims and Abilities.
Step 6: Prepare, Launch, and Manage Fundraising Campaign.
The fundraising process is complicated, and companies must know every detail to go with the most successful approach. In this sense, choosing the right and trustworthy partner is a core function. Agilie's team is focused on ensuring customers receive up-to-date solutions and support.
Unlocking Your Potential in Fintech with Agilie
We are familiar with the ins and outs of launching a successful crypto fundraising project. We have an experienced team working with fintech projects for the last 14 years, designing tailor-made modern solutions and providing full technical support. Agilie focuses on blockchain technology, regulatory compliance, and market analysis to guarantee success for every customer. Our team is here to offer advanced and timely solutions effectively, considering all the latest trends and market parameters.
Inspiring Agilie’s dev team provides a full range of services from discovery to delivery to make your product the best it can be!
Find out more about Agilie’s blockchain software development services.
Conclusion
The crypto market is changing, and fundraising platforms are being redesigned to fit the current trends, regulatory requirements, and investor needs. Learning and implementing different fundraising options like ICOs, STOs, IEOs, IDOs is fundamental to adapting to the dynamics of the market and its changing regulations and investing patterns. Informedness and responsiveness are paramount for investors, developers, and crypto lovers in this constantly changing environment of crypto and decentralized finance. Agilie is a reliable partner and provides the top blockchain software development services to keep abreast with the ever-changing cryptocurrency and digital financing landscape.
Let us be your companion in bringing your vision to life.
