An Introduction to Initial Model Offering, A New & Promising Fundraising Model

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Introducing Cryptotocurrency & Blockchain Innovation

One of the greatest exchanges of wealth ever in the history of the world is happening right now in the Cryptocurrency and blockchain decentralized world. The public has no idea what this is all about most people are distracted by the daily price of bitcoin with no clue of the functionality of the technology which is decentralization & financial freedom. This is more about the ability to transact without borders, without a trusted 3rd party, without regulations and red tape which can slow down a companies or countries momentum.

Cryptocurrency has so many great things to offer the global economy but people will never understand the power of cryptocurrency if the banks and big corporations have their way as their main goal is to remain a centralized system of economics.

Blockchain Fundraising & the Major Fundraising Techniques Introoduced

Token offerings are new ways of raising funds used to start up a business, or for development and expansion. A company can create a new token, coin, app, or service and launch a private and/ or public sale via the digital asset. Interested investors can buy into the offering, either with fiat currency or with other preexisting digital currencies like Ethereum. In exchange for their investment, investors receive a new cryptocurrency token specific to the project which they support. The company or startup uses the raised funds as a means of furthering its goals, launching its product, or expand existing businesses.

           This allows existing companies and startups to bypass the rigorous and regulated capital-raising process required by venture capitalists or banks and opens up investment opportunities to a broader investor crowd by enabling small or fractional sales to virtually everyone, democratizing investments.

ICO

The Initial Coin Offering is a method of fundraising, where a company which is looking to establish a new product or service will look for outside investment to help fund their venture. The company running the ICO will do this through various forms of marketing. In exchange for their investment, the investor will receive a certain number of cryptocurrency coins or tokens that are unique to the ICO. Investors can either use traditional, fiat currency or other tokens. Investors buy into the project with the hope that the value of the token will increase from the base price, and later sell for a profit. Other coins might not be of such speculative nature, but fulfil a certain utility and role within a project.

STO

The Security Token Offering is a method of fundraising through a crypto ‘security’ token which can entitle the owner to either a share of the profits of the business, a stake within the business itself or some other form of reward in exchange for their own money.

           In theory, we can tokenize everything that ever existed on traditional platforms, ie. real estate, government bonds, public equity, private equity, startups in their seed stage, votes, diamonds, gold, commodities, etc.

IEO

The Initial Exchange Offering is a method of fundraising, whereby a project gets listed on an exchange directly without going through an ICO. The exchanges host the offering and funds can be raised through the exchanges user base. The coin exchange listing, which is a separate process in an ICO, is mostly guaranteed shortly after the IEO sales period. Examples are BitTorrent, Fetch.Ai, and others.

It’s so unfortunate that both ICO and IEO are now at the verge of going into extinction the reason being that the industry being diluted with several scam and unserious projects that scares away investors. Several investors have regretted investing in one or two ICO or IEO because most of the time, the team behind the project are only after the funds and not necessarily development of the project.

           This has been a major problem in the blockchain industry and is raising a lot of concern, hence the reason behind the creation of Imo exchange platform.

Introducing Initial Model Offering (IMO) & What It’s out to Offer!

IMO ecosystem

Initial Model Offering (IMO) is a fundraising model that is targeted at raising funds for blockchain startup projects. The model intends to solve the several issues that come with the previous fundraising models. The model is to serve as a replacement for ICO, IEO and other fundraising models. Some of the problems include scam crypto projects that are out to make money off the investors and the high costs of purchasing crypto tokens during the initial phase of the fundraisers.

           IMO intends to create a different approach to raising funds for crypto startups. Among the many features and working frameworks for the solutions to other problems is the reduction of the cost of investment and the immediacy of raising funds.

           In the previous model, depending on the preferred payment methods for the projects, investors pay as high as $1 to purchase crypto tokens at the initial token offer price.

Instead of paying that high, Initial Model Offering promised to reduce the costs of investments to the barest minimum. It has so far lived up to that promise with many of the previously launched projects on its platform selling their crypto tokens/coins as low as $0.0003 and $0.0005.

           Just as IMO has significantly reduced the costs of investing in crypto projects launched via the platform, it has also placed a cap on the amount investors can invest. The maximum amount one can use throughout the phase of the Initial Model Offering (IMO) is $1,000.

The decision to promote and uphold the maximum price tag is inclined to the monopoly used by financially buoyant investors during ICOs and IEOs. The maximum investment limit extends to both individual and institutional investors. Through that, IMO can now control the excesses of investors who are only out to buy more crypto tokens to satisfy their wants and not leaving them for investors that want the same to satisfy their needs. Moreover, the $1,000 maximum purchase limit closes the line between the rich and poor crypto investors as everyone is now placed on the same level.

The IMO ecosystem comprises of two major products which includes the IMO wallet and the IMO exchange.

The IMO wallet can be utilized for assets storage and IMO private equity investment which literarily means that the wallet is meant for the presale stage.

While IMO exchange is the platform where clients can easily trade their assets. An interesting feature about the exchange is that all tokens or coins that being sold through IMO wallet app and are automatically listed on the exchange after all.

IMO Advantages over ICOs & IEOs

·                    Opportunity for proper supervision of project which in turns makes it mandatory for project owners to put great efforts in making the project a topnotch, unlike IEO which developers are at the free will of either developing project or mismanage funds

·                    IMO provides exchange and investors the opportunity of either proceeding with investing with the project at each stage or quitting after evaluating the progress of the project but IEO’s doesn’t work that way because whether the project progress or not, investors funds are already on the line and the project developers have nothing to lose should in case they decide not to develop the project

·                    IMO encourages utmost transparency and dedication towards the project development, which also carries the investors along; hence it makes it easy for worthy projects to raise enough capital for the project’s functionality, this is unlike IEO doesn’t care about the development of the project, hence putting investors funds at risk.

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Concluding Note:

Obviously I can boldly say that IEOs, ICOs and the other fundraising models are no longer doing any well and are currently being sidelined by upcoming projects and investors. There is clearly a huge demand for a more reliable and sustainable model for token sales to be utilized by startups and investors. IMO is here and it’s clearly gaining a lot of popularity already. I recommend anyone that read this to do well in looking into IMO and the remarkable idea backing it’s fundamentals.

For More Insight on IMO, Follow The Links Below:

Website

Telegram Group

Twitter Handle

Facebook Page

Bitcointalk Username: mohadrop

Bitcointalk Link: https://bitcointalk.org/index.php?action=profile;u=2362855

Abubakar Oyitoto Crypto

Digital Marketer, Cryptocurrency Enthusiasts, Crypto_Trader And a Content Writer

4 年

please engage with any question you got, i will respond as soon as possible

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