Research Summary
The research provides an analysis of the two predominant token sale models: Dutch Auction and Fair Launch. Despite the burst of the ICO bubble in 2017, these investment opportunities remain attractive, with an average all-time ROI of 310% from top launchpads. Dutch Auctions allow participants to determine the token’s “fair value” through a descending price mechanism, while Fair Launch offers tokens to all participants simultaneously. The report also highlights that the performance of a token upon launch is mainly driven by narratives and market conditions.
Actionable Insights
- Investment Opportunities: Despite the burst of the ICO bubble in 2017, token sales remain attractive investment opportunities with an average all-time ROI of 310% from top launchpads.
- Token Sale Models: The two predominant token sale models are Dutch Auction and Fair Launch. Dutch Auctions allow participants to determine the token’s “fair value” through a descending price mechanism, while Fair Launch offers tokens to all participants simultaneously.
- Performance Factors: The performance of a token upon launch is mainly driven by narratives and market conditions. Other factors such as sale parameters, type of launchpad, and project can help to reduce sell pressure but price is still largely driven by the main factors.
