Early digital asset investors need to get rid of the risks associated with traditional ICOs, STOs, and IEOs, as the emerging DYCO (Dynamic Coin Offering) has become the best alternative framework for crowdfunding.
Retail investors can take a deep breath as a new type of crowdfunding structure emerges called Dynamic Coin Offering (DYCO) to save ICOs, IEOs, and STOs from exploitation.
Fears that scammers will sell fake news so that uninformed investors invest their money in the project may soon become the past. The field of digital currency is rapidly changing in accordance with the regulatory policy before mass adoption.
As a result of projects that arise every other day and collect a significant amount of capital from investors, and the possibility of free access can be buried forever. This trend was mainly observed during the 2017/2018 crypto bubble, as a result of which funds from investors increased x 1000.
However, after the sale of tokens at that time, there were also many victims, as a result of which several projects darkened after crowdfunding. Rules remain the main obstacle to mass adoption by both retailers and institutional investors.
What can DYCO (Dynamic Coin Offering) offer?
According to detailed article CoinGape, DYCO is the first opportunity for investing in tokens at an early stage, which creates a minimum price in the secondary market, therefore, offers protection to investors without any restrictions.
Some of the main features of DYCO crowdfunding are cost savings, guaranteed token buybacks, and trustless locks. There are five key market participants involved in the dynamic coin offering, including DYCO members, FOMO-led traders, arbitrage traders, fundamental asset-focused traders, and finally the Buyback Treasury.
Participants are strategically designed to generate current volume and liquidity for a token sold through DYCO. One thing that needs to be clarified with the help of tokens issued by this method is that they are not stablecoins, since they have similar features. However, they are service tokens, which are prone to speculative value before launch, and also affect the value of utility programs after launching the product.
As soon as an investor takes part in the sale of a token, its blockchain address is put on the white list for buyback purposes. This is to mark suitable ransom addresses. This guarantee gives participants the exclusive advantage of arbitrage opportunities if the market price ever falls below the agreed price.
According to the inventor of DYCO, crowdfunding creates a minimum price that allows participants to claim risk-free profits when the market price drops below 20% of the ICO price.
With this type of crypto thinking, investors are likely to increase the initial offers for various tokens, since the rules allow them to risk their capital.