The Evolution and Future of Cryptocurrency-Based Fundraising Mechanisms

Abstract

This scholarly work offers an in-depth analysis of the transformative impact of cryptocurrencies on fundraising mechanisms, with a particular focus on the evolution from Initial Coin Offerings (ICOs) to airdrops and beyond. We delve into the importance of tokens, elucidating the advantages of ICOs over traditional fundraising methods such as Initial Public Offerings (IPOs) and crowdfunding. Additionally, we critically assess the effectiveness of airdrops as a bootstrapping mechanism and facilitator of project development. To optimise the benefits for the ecosystem, we propose a set of design criteria for airdrops. Furthermore, we introduce the latest innovative fundraising approaches for future development and indicate meaningful directions for further research. By providing valuable insights and references, our study offers a comprehensive guide for researchers and industry professionals exploring new cryptocurrency funding methods.