As it turns out, 2017 and 2018 have proved to be remarkable years for the blockchain technology, and digital ecosystem on the whole. According to a report by TokenData and Fabric Ventures, startups were able to raise $5.6 billion through initial coin offerings (ICOs) in the year 2017, and a lot of new projects were kick-started.
But Token Sale is not enough as You Might Quickly Run out of Money
Even after conducting a token sale, as a blockchain startup owner, the road might still be tough. Indeed, it feels good to be surrounded by like-minded people and who share the same passion for technology, but one cannot ignore the fact that ideas fail.
And we are not talking about common ideas here, but even various ‘great’ ideas have failed. It was found that around 75% of venture-backed startups fail. The keyword here is ‘venture-backed.’
This means that even after having millions or even more money in banks after conducting a brilliant token sale, startups are not secure!
Having millions in the bank doesn’t mean that the road ahead is a bed of roses, and this is perhaps why startups have to do a venture-backed fundraise even when they have significant money. There are prominent examples which illustrate this fact. For example, Airbnb has received $4.4 billion, and Uber has received $21.7 billion from venture capitalists.
Thus, just because a company has enough funds in the bank, this doesn’t imply that the company would be successful overnight. Chances are quite high that blockchain startups might run out of their cash deposits sooner, and if this happens, they would need to move towards traditional channels like acquisitions and mergers, equity rounds and so on.
What are Token Acquisitions and Why are they the Future?
So after the token sales, we anticipate that the blockchain ecosystem is gradually moving towards token acquisitions. It is a process wherein token companies instead of buying traditional equities buy another company for their tokens. This whole process can be termed as token 2 token acquisitions.
For example, Stellar recently used Stellar tokens for purchasing Chain worth $500M.
Keeping the technology in mind, a T2T acquisition is not a big deal. Token swaps are possible, and we have witnessed this happening with Icon, Tron and Wanchain.
But if Token Acquisition Doesn’t Interest You, You Might Need to Have an Equity Round
Launching a second token sale is difficult, all because of the legal complications involved. This means that companies who are not interested in token acquisitions would need to find more ways to boost their capital to work on their products.
As expected, the companies after launching a token sale would focus on equity rounds from strategic partners.
It would be interesting to see which companies pass the test of time and can bring some stable and innovative products.
Related post:
I have learn several just right stuff here. Certainly price bookmarking for revisiting. I wonder how a lot effort you put to create any such wonderful informative website.
Aw, this was an incredibly nice post. Taking a few minutes and actual effort to create a great article… but what can I say… I hesitate a lot and don’t manage to get anything done.
An interesting discussion is worth comment. I believe that you ought towrite more on this issue, it may not be a taboo subject but generally folks don’t talk about these issues.To the next! Kind regards!!
Thank you for the good writeup. It in fact used to be a amusement account it. Glance advanced to far introduced agreeable from you! By the way, how could we keep in touch?
Howdy! This post couldn’t be written much better! Looking at this post reminds me of my previous roommate! He always kept preaching about this. I’ll forward this post to him. Pretty sure he’ll have a great read. I appreciate you for sharing!
The heart of your writing while appearing reasonable at first, did not really settle very well with me after some time. Somewhere throughout the sentences you were able to make me a believer unfortunately just for a while. I still have a problem with your jumps in assumptions and you would do nicely to fill in all those breaks. In the event you can accomplish that, I will undoubtedly be fascinated.
Thanks for sharing your thoughts. I truly appreciate your efforts and I willbe waiting for your next post thank you once again.
Many thanks to you for sharing all these wonderful blogposts. In addition, the perfect travel as well as medical insurance system can often eradicate those fears that come with touring abroad. A medical emergency can in the near future become too expensive and that’s absolute to quickly put a financial weight on the family’s finances. Setting up in place the excellent travel insurance package deal prior to leaving is well worth the time and effort. Cheers
מילפית עם תחת ענק ושיזוף מושלם מקבלת סקס אנאלי חזק ומוצצת הרבהנערות ליווי
I do believe all of the ideas you have offered in your post. They’re really convincing and will certainly work. Nonetheless, the posts are too brief for novices. May you please lengthen them a little from next time? Thanks for the post.