This article is written by Fu Shaoqing, a member of the Buidler DAO economic model team, and mainly discusses Token issuance related content, including the examination indicators, issuance methods, and release rules of FT issuance, and also briefly analyzes the design and examination indicators reflected in NFT issuance.
ICO (Initial Coin Offering): Launched directly on the public chain. Advantages: Simple, convenient, and easy to issue new tokens. It can effectively raise funds and issue tokens. Disadvantages: There are risks in project management, financial risks, and regulatory and legal risks. User coverage: There are no participation restrictions, so it has the widest coverage, but it requires designing participation rules to screen out real customers. Compliance: Although KYC and other content may be added later, it is considered illegal in most regions. Fundraising: It generally achieves good results, but fund granularity is difficult to control, and there may be large users.
Airdrop: Free distribution of tokens directly to user wallets. Advantages: Promotes token circulation and application, and generally has no regulatory issues. It can target real users for airdrops and guide them to complete relevant tasks. Disadvantages: Lack of financing functions. Coverage: By setting airdrop conditions, it can achieve good coverage. Compliance: There are basically no compliance issues. Fundraising: It cannot meet the fundraising requirements, but it has good control over distribution efforts.
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IEO (Initial Exchange Offerings): Issued through CEX. Advantages: Directly listed on the trading platform, promoting circulation. Disadvantages: The issuance cost and audit requirements are high. Coverage: It can only promote users with trading demand and cannot cover real angel customers of the product. It is best to use in combination with airdrops. Compliance: Generally guaranteed by the exchange. Fundraising: It can raise abundant funds through trading. However, there may be situations where market manipulators drive up prices and early investors exit prematurely, and fund granularity is difficult to control.
STO (Security Token Offering): Issued in cooperation with financial regulatory agencies. Advantages: Has real assets or income as value support, automatic compliance and fast liquidation, smaller unit ownership division, democratization of venture capital, asset interoperability, increased liquidity and market depth, and reduced regulatory and circulation costs. Disadvantages: There are strict transfer and sale rules, cannot be used as a payment method on the platform, cross-platform circulation faces regulatory obstacles, high price volatility, and relies on financial intermediaries for risk assessment and pricing. Coverage: It can only allow users who meet regulatory requirements to participate and cannot cover product customers well. Compliance: Compliant. Fundraising: Generally not good, and granularity is also difficult to control.
IDO (Initial DEX Offering): Issued on DEX. Advantages: Open, transparent, good liquidity, easy to go public on the secondary market, and early participation opportunities exist. Disadvantages: Generally no KYC or AML, the token requirements of the issuance platform increase participation thresholds, poor scalability, and face the balance between regulation and innovation, decentralization, and risk control. Coverage: Only users with trading demand in DEX, cannot cover product customers well, and it is best to use in combination with airdrops. Compliance: Generally guaranteed by DEX or non-compliant. Fundraising: Can raise abundant funds through trading, with good granularity control, and can set the amount of individual participants.
Reference: https://mp.weixin.qq.com/s/dHttI8UiqabuS7XE0ItHig
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