Crypto Issuance Models

I found and interesting graphic the other day that summarised all of the most current crypto issuance models in 2022. Some had had their day, others are most certainly yet to gain traction. Fascinating none the less.

Initial Coin Offering

ICOs are cryptocurrency’s version of an IPO, but without the ownership stake. By reading the white paper, website and roadmap for the coins utility, those who believe in the project can buy the coin directly from the developers on launch date.

Initial Exchange Offerings

IEOs are when a currency partners with a centralised exchange to launch the token on their platform at a specified date. One drawback of this model is that users must have a verified account with the host exchanges.

Initial Dex Offering

IDOs are usually carried out via DEX-like launchpads, though they often require whitelisting spots for participation. Following IDOs, tokens are immediately available for trading on the open market, usually on DEXs.

Bonding Curve Offering

A BCO is when a token launch is run through a smart contract- based AMM that increases the price of the token in correlation with the amount purchased, minting new coins as they are purchased. It assures liquidity and a smooth, incremental, and fair distribution of tokens.

AirDrop

An airdrop is when a project issues tokens to users for free as a way to immediately generate circulation for its token and to reward those who are currently involved in the project’s community. Snapshots of competitor project users may be taken to distribute airdrops to the right target audience.

Liquidity Bootstrapping Protocols

First launched on Balancer, LBPs are where a new token offered is offered with more than just one trading pair, and pools of uneven weight can be offered. This method is effective at avoiding frontrunner attacks and ensures a smoother distribution of tokens.