The First Yearlong ICO for EOS Raised $4 Billion. The Second? Just $2.8 Million

The Takeaway:

  • Block.One’s yearlong initial coin offering (ICO) for the EOS blockchain raised a record-breaking $4.1 billion in 2018.
  • LiquidApps created a second-layer protocol for EOS to offload computing expenses for dapps, which became very expensive just a few months after EOS launched.
  • In a similarly yearlong ICO, LiquidApps is currently selling DAPP tokens to be used on its new protocol.
  • However, six months in, LiquidApps had sold only $2.8 million worth of DAPP. After the same amount of time for its sale, Block.One had sold $700 million worth of EOS.

New cryptocurrencies aren’t raising money like they once did, even during marathon sales.

In the first half of 2018, the average initial coin offering (ICO) raised $25.5 million, based on data reported by PwC. The biggest ICO of them all, the yearlong EOS offering, closed during that era and raised a whopping $4.1 billion.

But a second ICO that aimed to make EOS more usable and also opted for a yearlong approach hasn’t drawn as much investor interest.

LiquidApps is building a second-layer solution for EOS that runs on the company’s DAPP token, which has been sold in daily auctions since February 2019. At the end of its 233rd auction cycle on Aug. 19, the DAPP sale had raised just $2.8 million worth of cryptocurrency.

A source with knowledge of the LiquidApps fundraise told CoinDesk:

“They’ve done an interesting job and [have been] innovative in learning from the Block.One sale and mechanics in crafting how a fundraise for a project should be done. Where they’ve struggled is, not just different market conditions, but finding the right investors and participants for their sale that fully understand the value proposition for the project.”

LiquidApps declined to provide comment on the results of its token sale so far, despite multiple attempts by CoinDesk for comment.

For 333 days and 444 sale cycles, 500 million of the 1 billion pre-mined DAPP tokens will be gradually sold off…

Source Link