Sky Ventures recently invested in WeStarter. We want to discuss the reasons behind our investment.
Fundraise in Crypto Industry evolved enormously over the past few years. Initial Coin Offering(ICO) provided access to invest early in crypto projects for an average investor. But, small investor found difficult to cope with it.
Then Initial Exchange offerings (IEO) evolved and allowed a small and average investor to participate. Still, there is a significant barrier between new projects and IEO, such as volume of fundraising, etc.
Initial DEX Offering (IDO) narrows the barriers and provides easy access for early projects via Launchpads. IDO platforms gained tremendous traction over the last quarter and made it look like a one-stop solution for fundraising. Many Ido platforms came into existence like Polkastarter, Duckstarter, Bscpad, etc., with different concepts and models. All the IDO platforms performed reasonably well and made fundraise process super-efficient.
Why IDO Platforms are popular:
There are few reasons why IDO’s gained immense value. IDO’s raise was very less before launch as the last step before coin listing for few whitelisted investors. Less raise leads to no or less dump of tokens, and scarcity of tokens on the market leads to rising of immense value in the price of a coin. It leads small and average investors to gain high value within a short period of time and also providing access at early stages to invest. More than 70+ projects participated in various IDO Platforms over the last quarter. We will witness many projects choose this option as most of the investors prefer IDO Platforms.
Problems with IDO Platforms:
As most IDO Platforms are built on ethereum mainnet, a significant amount of gas fee gets wasted to secure an allocation. Most of the time, investors spend more on gas fees than the allocated amount. Sometimes, it results in loss of gas fee and no allocation secured as most are first-come, first served. The second problem behind IDO Platforms is a decline in choosing the quality and technicals of a project when they want to launch on their platform.
WeStarter is a cross-chain token initial swap platform which based on HECO network.
WeStarter, an initial swap token platform built on HECO Network, gained significant value over the past few months by launching quality projects on their platform with absolutely minimal fees.
Westarter recently raised a million dollars to launch their own token to access The IDO Platform. Launching an own token creates immense utility and demand in the decentralized crypto market to participate in the most anticipated WeStarter IDO’s projects.
Most of the Top VCs participated in fundraising, such as Continue Capital, NGC Ventures, AU21 Capital, Spark Digital Capital, SevenX Ventures, LD Capital, PowerLaw Capital, Kyros Ventures, DoraHacks Ventures, SkyVentures.
Sky Ventures Website:https://skyventuresvc.com/