A new and improved model for participating in early stage cryptocurrencies
Most of us have heard of the term ICO (initial coin offering). They were all the rage back in 2018. But in reality most of these were the brainchild of a scammer or an over ambitious under researched computer programmer. Saying that many of the successful cryptos of today were funded via ICO including Ethereum, Filecoin, Cardano and Ripple. It has been claimed ‘The ICO is dead, long live the ICO.’ And they were right. The ICO is not dead, it just keeps reinventing itself.
Its latest incarnation – the IDO
These are tokens that represent any type of asset hosted on a decentralized exchange (DEX).
This is how they work
A project looking to raise money through an IDO is most likely one step away from listing on a platform such as Uniswap or Pancakeswap. Users of an IDO platform contribute either USDC, ETH or a native currency of the platform. The offerings are limited and are on a first come first served basis.
The good news for the investor is that many of the platforms vet the project including its team before the project is able to tap investors. Some don’t — it is our job, as investors, to select the responsible platforms. As is always the case when the demand for anything hits the ceiling, the quality deteriorates rapidly, we are at that point now with many scams getting through the so called vetting processes.
Many IDOs are massively oversubscribed. They are more popular than buying a ticket for a Britney Spears concert — some are sold out in 10 seconds. And talking about tickets, some platforms allocate tokens by virtual lottery ticket in an attempt to level the playing field.
The great thing about investing through these platforms, which have been aptly called launchpads, is that you don’t have to wait long for your return. Within a few days of the IDO closing, projects are quickly listed on Uniswap or Pancakeswap and or other exchanges at a substantial premium to the IDO price.
Advantages of IDOs
The IDO has many advantages. The project’s token gains access to immediate liquidity. We all know that insufficient liquidity can
be the downfall for any project. In the case of an IDO, as soon as a project launches investors can start trading its token. If we are
lucky enough to get in early we are able to buy a new token and later sell it at a higher price during the IDO.
It is also far cheaper to list a project on an IDO compared to a major central exchange. That and the speed at which the process
can be completed is a major advantage for the project owner.
An IDO exposes a project to a large community of investors allowing it to build both a following and credibility. Finally some IDO
platforms provide an incubator service which will assist the project with both its development and marketing. That is helpful to both
the project owner and the investor, the investor being assured a pipeline of better quality projects
Disadvantages of IDOs
The advantage of being able to trade a token as soon as it launches is also a disadvantage. Investors late to the game can end up
paying multiples of the original listing price. In reality there are very few investors who are lucky enough to get in at the issue price
because the token price starts to climb as soon as the allocation of tokens begins to fill.
Rug pulls are another problem, although some platforms have put in place certain controls to prevent this. A rug pull is when a
dubious project pulls its token’s liquidity from the decentralized exchange thereby rendering the token worthless due to lack of
US investors are also prevented from buying on certain platforms and participating in certain IDOs.
The biggest gripe among participants in IDOs is the fact that very few people have
ever managed to get on the whitelist let alone receive an allocation of tokens. There
are two simple reasons for this. Firstly the demand for new shiny cryptocurrencies is
unprecedented and secondly the amount of money raised by each new project is
relatively small compared to its predecessor the ICO. Generally the amount being
raised is between $50,000 to $150,000. With high demand and a limited allocation of
tokens you can see why there are few ‘lucky’ investors.
A whitelist is the first step in the IDO process. In order to participate you must register.
That means doing a few things first including registering on the project’s Twitter
account and retweeting a prepared tweet to your own followers. Next you have to
provide a form of ID. Some platforms expect you to provide a copy of your passport
which many investors are understandably not overly happy about. Assuming you
follow these steps to the T you are then eligible to participate in the IDO. The
advantage for the project of a whitelist is they are able to quickly establish a large
community of potential users and or investors which is going to be a very valuable
asset as the project matures.
Introducing a new model to the world of crypto startup capital
CashCow.Capital is a new breed of animal when it comes to raising capital for crypto startups. Its innovative structure overcomes
many of the disadvantages of the IDO aiming to make the process of investing in the next big thing as easy as milking a cow.
This is how it works. By simply purchasing the native token MOO you automatically become part of the community giving you an
immediate interest in a portfolio of high growth cryptocurrencies and the right to distributions there from. The team at
CashCow.Capital performs due diligence on each opportunity presented to it. If successful the projects are then uploaded to our
High Growth Platform for the community to vote on. The community earns tokens for their vote thus encouraging participation.
Once the voting has ended, and assuming the project has been approved by the community, CashCow.Capital will then invest in
the project on behalf of token holders.
We have set aside 30% of the circulating supply of tokens to be invested in high growth opportunities. In addition whenever MOO tokens are purchased or sold a 10% tax will be charged which will be added to the Treasury wallet. These funds will be used to invest in new projects.
Whenever CashCow.Capital exits an investment we will immediately distribute 50% of the proceeds to the community and add the remaining 50% to the Treasury wallet for future investments,
The most important point to note is that 100% of the investments and returns made are owned by token holders. No fees or commissions are deducted for the team at CashCow.Capital ensuring the team’s interests are aligned with token holders.
We intend to slowly transform to a totally decentralized platform so that projects submit their whitepapers and other relevant
information directly to the community to vote on.
Investing in the most promising projects
We are only interested in projects that have a clearly defined market with a unique offering.
Teams must be experienced and not stand behind anonymity.
Tokenomics must be sensible. We are not interested in featuring coins with massive maximum circulations and low current supply.
Also valuations that don’t reflect the startup nature of the project are also not of interest.
In order to prevent rug pulls we also require founders to have their tokens locked for a period of 3 years, on a sliding scale to be
Our process approval will be streamlined as our community will already be primed to vote.
With CashCow.Capital every holder of MOO gets to participate and benefit. This participation provides MOO token holders with
an interest in a portfolio of high growth crypto assets. By investing in a selection of projects investors are immediately diversified.
Following on from the above, not only does the MOO token holder have an interest in a portfolio of promising projects but he or
she also benefits from any capital growth in MOO itself. Token holders are able to generate income and capital from two sources. Firstly from any capital growth in the MOO token and secondly from distributions from the exit of investments. There is also a third income stream, payment for voting.
A built in incentive to HODL
Holders of MOO tokens are incentivized to hold their tokens in two ways. Firstly because of the 10% tax imposed when tokens are
bought and sold and secondly, and more significantly, the potential loss of their share in the investment pool. Only holders of MOO
tokens at the time of a distribution will receive a share of the proceeds.
The MOO token is crucial to our success
CashCow.Capital’s native token MOO is crucial to the success of the platform. To participate in the income streams you must own
MOO tokens. Rewards and distributions are paid out in MOO tokens.
No KYC required
You will be required to provide KYC when you purchase MOO tokens however you will not be required to provide KYC to participate in the community and share in the rewards. There is a simple reason for this, the platform is not facilitating the transfer of funds, that function is being fulfilled by the exchange onboarding the client. However there are restrictions which you can see here.
The IDO is relatively new by crypto standards. There have definitely been some mouth watering returns generated from IDOs however the sector is not without its problems. The biggest complaint is that investors are unable to participate or that prices move so rapidly they end up paying multiples of the listing price. CashCow.Capital solves many of these problems by making the process of gaining exposure to a portfolio of high growth crypto opportunities easy and cheap. Just the way the crypto investor likes it.
No financial advice
This article does not constitute financial advice or a recommendation to buy in any way. Always do your own research and never
invest more than you can afford to lose. Investing in cryptocurrencies is high risk, and you could lose 100% of your investment.
MOO TOKENS SHALL NOT BE OFFERED TO, OR FOR THE ACCOUNT OR BENEFIT OF, A CITIZEN OR PERMANENT RESIDENT OF THE UNITED STATES, SINGAPORE OR THE PEOPLE’S REPUBLIC OF CHINA, OR ANY RESIDENT OF A COUNTRY IN WHICH AMERICAN EMBARGOES AND/OR SANCTIONS ARE IN EFFECT, WHETHER DOMICILED FOR TAX OR OTHERWISE, AND WHETHER RESIDENCE IS PRIMARY OR OTHERWISE. THIS INCLUDES NORTH KOREA, IRAN, SYRIA, SUDAN, AND CUBA. ANY INDIVIDUAL WHO MEETS THE ABOVE CRITERIA IS NOT ELIGIBLE TO PARTICIPATE IN THE CASHCOW.CAPITAL PLATFORM OR PURCHASE MOON TOKENS.