Entertainment platform Web3 Playbux will raise $150,000 from the public via a token sale later this month. Instead of securing funding through an ICO, Playbux provides access to a pre-list of users participating in the platform through a so-called Community Fair Offer. This will be handled by cryptocurrency investment platform Raiser.
The Fair Community Offering (FCO) creates a taxonomy of the project's users based on things like on-chain activity, referring other users, taking educational quizzes and following its X profile, said Raiser co-founder Corey Lyons. Based on their rating, users have the opportunity to invest in a certain amount of the project’s token before it is listed on centralized exchanges.
The new community fundraising mechanism offers an alternative to initial coin offerings (ICOs), which were a popular scam in the earlier days of cryptocurrencies.
Read more: Crypto CEO Who Forged PayPal Partnership Pleads Guilty to $21 Million Fraud
Between 2017 and 2018, cryptocurrencies saw a spate of initial coin offerings (ICOs) where buzzy cryptocurrency projects crowdfunded their early development. Some of these ICOs have helped get promising projects off the ground: Ethereum, for example, raised nearly $18 million via ICO in 2014, selling tokens for $0.31 at the time.
But the ability to raise large amounts of capital without reporting requirements or accounting standards has also attracted unsavory actors. Initial coin offerings (ICOs) have created a breeding ground for fraud and are no longer popular in the cryptocurrency space. Instead, the concept has given way to new trends, such as distributing tokens for free via airdrops.
Read more: The Solana DEX book hit record volumes after the airdrop
Leon, who previously worked on the listing team at Binance, said that centralized cryptocurrency exchanges are now requiring projects to secure some supply of cryptocurrencies at launch, partly as an indirect result of the initial coin offering (ICO) era, setting aside some of the supply to prevent investors from cashing out. Plenty of supply. .
Raiser's FCO process allows cryptocurrency startups to meet more stringent listing requirements while providing access to pre-listing token to community members who may be less eager to sell their tokens on listing day, Leon said.
Leon said a public MFO for Playbux's PBUX token will occur sometime in late January.
Playbux was part of Binance Labs' incubation program and was added to the Visa Asia Pacific 2023 accelerator program. The metaverse-focused platform offers earning shopping experiences and customizable avatars, according to its website.
Don't miss the next big story – join our free daily newsletter.