If you are an investor, you want to acknowledge that your purchase is as protected as the possibility of profit and this is absolutely reasonable.
In today’s atmosphere, the number of spirits who don’t invest in any asset is quite low and I think the sentence I addressed above appeals to everyone. Of course, we invest to provide us with a specific amount of revenue. Some try low self-return without dropping the insurance, and some favour risky purchases, in order to get much more. But, the nature of the subject is perpetually the same: Gain from investment!
Naturally, as the case is crypto-assets and the investments made in them, the problem is that those are the investments that are much more dynamic and quick than daily life and common instruments and whose results are immediately very obvious.
Investing in crypto assets typically takes place in two systems.
❶ A crypto asset is previously in the market and if you do your analysis and understand its potential, you will purchase and wait in a short or long term. You decide how this investment goes by holding it for trading or long term.
❷ When a crypto asset is offered to the public, you can meet this initiative and expect it to tap the exchange. These movements, which are described as Initial Coin Offering (ICO) or Initial Exchange Offering (IEO), make you the owner of a new crypto asset to the market.
The first is comparatively less risky. Because there are many thriving and promising projects that you can discover in the market and you can invest in them in a way that decreases the risk.
The second one is an investment with an extremely higher chance of return and risk because it’s very challenging to foretell how the consequences of the launch are.
So, if that’s the matter, why is everybody so into ICOs / IEOs?
The explanation is obvious: The more risk you take, the bigger the results you get! And most people believe that they actually will get great returns!
But the studies about the results don’t show us that, unfortunately.
Researches on this topic state that most of the ICOs are already fraudulent. The surviving few real ICOs are quite poor in terms of price performance.
IEOs are comparably safer because they’re completed on exchanges and mostly the exchange lists the crypto assets that are offered as IEO. Still, severe price dumpings and liquidity issues caused by the absence of volume cause investors to suffer a big loss, at least for a long time. While this is the situation even with Binance IEOs, count the others!
So, if you have a comprehensive project that evolved out with a great idea, how do you finance it without harming the investors and yourself? What do you need for this? Let’s have a glance:
Large investors: Well, everyone needs big investors, but the amount of projects that huge conglomerates or holdings can support is pretty limited. Hence, it is so challenging for you to have this opportunity.
A quality public offering process: Yes, a crypto-based project has to go public one way or another. There are a few examples of the counter and prosperous, but this is the general situation that they fail, at least for the investors.
A majestic team: Of course it is crucial. However, serious funding is obliged to organise an impressive team. What a loop, right?
The bottom line is that the only position for the success of your project is accumulating the sum of money that will guarantee progression. All of these conditions and difficulties are only achievable with a dependable funding system. It is clear that the solution doesn’t rely on the ICOs or IEOs. So what to do then?
In fact, I wrote this article to explain to you what the solution is. The name of the system I will introduce is DYCO! Actually, it is now in the second version: DYCO v2!
What exactly is DYCO?
DYCO (Dynamic Coin Offering) is a funding practice developed and perfected by the DAOMaker platform. It is substituting the methods that other funding plans lack such as providing liquidity and volume, protecting the investors and creating time for the team to deliver the best.
When I first mentioned about DYCO, it hadn’t been tested yet and the first DYCO was about to be out. The project was Orion Protocol which achieved great success after the DYCO. It’s fully invested and the price was more than satisfying for both investors and the team.
So, we have proof for the capacity of DYCO. Now, let’s get into it deeper!
What kind of system is DYCO and what does it offer?
First of all, when you engage in any ICO or IEO I should notice, you are presented a token rate and you buy at that figure. However, this price is not a product that has any equivalent. It is a price arranged by the organisation and formed according to specific models, but let me repeat, it has no equivalent. In DYCO, on the other hand, the team that proposes the project to the society has to store cash for the token price according to the entire value of the tokens to be sold at the token price fixed. If you sell 1 million tokens at $ 1 each, this money (1 million) will be in a particular wallet and transparently admissible to your view. You can observe your guarantee and the reserves the project has collected! A specific smart contract is created for this and it executes all the actions.
So where will this cash equivalent be employed? This is another excellent feature. The project planning DYCO agrees to make a buy-back in a period of up to 16 months in total. Thus, we know that the money for that token is not absolutely for the show, but for protecting the investor.
In addition to these, there is a practice named “mirror flip” in the retrieval plan. Mirror flip is an arrangement that enables DYCO investors to gain even when the token value is decreasing. If the token value falls a specific level below the initial DYCO price, the investor will have the possibility to buy the token at the lower price and sell it back at the DYCO price. Consequently, even the low token price will not prevent it from succeeding. Let’s say you sold the tokens you bought from DYCO with a certain profit. If the token price falls below the base price to a certain extent, you can buy low-priced tokens from certain exchanges and request a buyback again. Even if the price drops, you can make a profit. Seriously investor-oriented indeed!
It is clear that all these advances protect the investor and give the project team the chance to have enough time to deliver the best. But the foremost benefit is here: The realization of this quantity of trade engagement proposes that the designated project gains serious volume and liquidity on the market, which will actually mean gaining value and having the two basic qualities required for trading.
DYCOv2.0!
The revolution of DYCO is on it’s way also. The DAO Maker decided to extend the benefits of DYCO as they prepared DYCOv2.0! All the benefits from DYCO are preserved and an essential upgrade called “toll bridge” is added. In this new version, the token unlocking period is not restricted and token owners can unlock every last one of his/her tokens whenever he/she wants. However, there’s a price for it: The earlier you exit, the more toll you pay from your token budget.
Check this graph to see what’s the ratio!
By this way, market confidence and price trust can be established and the investors that please with the price have a chance to get what they want. Also, toll that you pay for early exit will be burnt. This means deflation and valuation additionally.
How does that seem?
From now on, nobody should oblige non-transparent and bottomless funding systems such as ICO / IEO, as the DYCO practice extends an alternative to wiping out all its negative factors.
This article is just a start for a series of them. I’m planning to introduce other amazing products of the DAO Maker. Stay tuned and get ready for more!
One thing to notice, the DAOMaker platform also conducts promotional social mining campaigns of many colossal projects. Among the those that they collaborate with are the ones on Binance such as Elrond Network, NEM, Injective Protocol and Avalanche; there are platforms with great potential such as 2key Network and Open Predict. By participating in the social mining campaign, you can become a part of the promotion and earn.
Thanks for your time and reading.
If you want to go further, check out these links and dive deep!
● Incentive Theory in a Dynamic Coin Offering (DYCO)
● DYCO Buyback System Explained
● What is a Mirror Flip and How to Profit Through It?
● DYCO v2
