Source.
With facts like these, it’s no wonder that more and more users are turning to distinct methods of investing in cryptocurrencies, looking to get ahead of the crowd and find the next biggest crypto before it gains mass media attention. Due to this, many people turned to early-investment opportunities in the form of fundraising rounds. What started with Initial Coin Offerings has now grown into a diverse financial system.
Splitting off from ICOs, one of the most recent additions to this investment sphere in the world of crypto is IFOs, which are currently taking DeFi platforms by storm. In this article, we’ll guide those looking to launch an effective IFO PR campaign, helping you put the right foot forward.
We’ll be discussing:
- What IFOs are
- The benefits of IFOs
- Best practises for successful IFO PR launches
What are IFOS?#
IFOs, standing for Initial Farm Offerings, are a fundraising method used specifically by Decentralized Finance platforms that are looking to launch. Their main goal is to onboard new customers, generating capital through participation and helping to fund the development of their projects. An IFO is always run through a DEX (decentralized exchange), with the exchange going through the due diligence of checking the validity of the different projects launching on their platforms. The period of verification and scrutiny that a new project undergoes before accessing a platform provides a level of security to the farming events. Instead of any company being able to launch an ICO, which lead to a huge amount of scams, DEXs will actively check the credentials and intentions behind the projects before they get onto a platform. Due to this, IFOs have become very popular over recent months, this providing a safer way of investing capital. Typically, the DEX that hosts IFO events are PancakeSwap, with new projects choosing this platform due to its extreme popularity. While investors get a financial incentive from participating in the IFO, the company themselves will get exposure and capital from their token being in a liquidity pool within the farming process.How do IFOs work?
Initial Farming Offerings follow two methods of active progress, each having different requirements and being suitable for different projects. These are:- Unlimited Additions - Users pay a fixed fee, then getting access to a specific farming event. They can then add as many platform tokens as they want to the liquidity pool, giving the project funding through their locked allocations. Most commonly the tokens used within these liquidity pools are either BNB or CAKE tokens (as per PancakeSwap’s domination of this fundraising event).
- Limited Additions - Users don’t have to pay any fees, being able to submit a certain amount of tokens into the liquidity staking pool. This ensures there is less of an initial investment, but less of a long term payoff.
What are the benefits of IFOs and IFO PR?#
As they’re verified by DEXs, IFOs are a great example of a more secure form of early-stage crypto investing. Anyone that’s been in the crypto community for more than 15 minutes has probably heard about the 81% scam rate of ICO projects, demonstrating the dark past that crypto fundraising has to its name. Even in 2018 alone, the amount of capital raised by different ICOs was huge, with this meaning that a ridiculous amount of money was lost to rug pulls within this industry. Just looking at the amount of money invested in ICOs throughout the year in 2018, you can actively trace people’s trust in the system, with all investments dropping off after a few months of scammers making off with millions of USD.
Source.
Battling against this history, crypto fundraising schemes have been looking at different ways of supplanting their past and creating a system of trust. One of the most trusted methods has become IFOs, with the need for approval from the DEX itself stopping just anyone from making a crypto fundraising event.
Alongside security, there are several benefits to IFO campaigns:
- No Middle-men - Within traditional fundraising structures, there is always a middleman system that takes a cut of the earnings. By using the native token on a DEX, decentralized finance platforms earn through hosting the event, making this a win-win system for everyone that doesn’t have a greedy middle man in the way.
- Transparency - As these events are run on a decentralized system, all transactions have a documented history. This keeps everything above the table, ensuring there is maximum documentation to prove the validity of a project.
![Crypto Earned Media: What is it, Top Agencies, & Tips [2024]](/blog-images/crypto-earned-media-article-featuere-image.png.webp)