Introduction
Crypto community has to do with investors and traders developers who creates blockchain protocols and maintain decentralized applications and smart contract, it's also includes miners and stakers as well as crypto hobbyist are enthusiasts.
This group of people are seen in different parts of the world and they communicate through social media forums like Twitter Reddit and other messaging apps like telegram, they also hold some online meetups and also in person meetups and conference.
Crypto community put a lot of efforts to see that any new projects succeeds in reaching it set goals and one way they do this is by raising funds for the projects, to raise this funds crypto communities leverage decentralized nature to assist the new project in many ways.
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Methods for fund-raising.
Marketing and engagement.
Crypto community assist in fund raising for a new project by engaging a serious marketing and engagement.
They employ many social media avenue to be able to reach to many people, they use Twitter to announce the projects gets more followers and engage with them giving them updates about the projects, they also use Reddit to Foster detailed discussions and to build the community, they are as well use discord telegram and LinkedIn to discuss and support s from users.
Sometimes crypto community hold AMA sessions where everyone's comes together to discuss about the projects and this enhances transparency and trust.
When it comes to marketing crypto community uses blogs like medium where they can create content about updates on the project and they can as well do some YouTube videos to educate people about the new projects.
They also utilize paid ads social media and they also run some contest and create some tasks that will encourage people especially if the task or contest offers some reward.
They also implement referral programs where users refer people and earn rewards, you have to create awareness about the project, tokens airdrops giveaways attract users to engage more in the project.
All these method of marketing and engagement helps to raise funds and also help to build loyal and supportive users that are very essential for a long-term success in any crypto project.
Use of Defi platforms.
Crypto community raises funds through defi platforms in various method.
One method of fundraising through decentralized finance platform is liquidity mining and yield farming this process offers rewards in form of tokens and these tokens can be staked or unstaked keeping users active in the community and also increasing liquidity for the project.
Another method is initial Dex offerings where the projects will launch their token on decentralized exchange and investors will buy those tokens with cryptocurrency, this process gives access to investors from different countries to support the projects.
Example of IDO is some projects that we see on uniswap, community buys this tokens with ethereum helping to provide the needed fund for the project and buyers will be given ownership of the token distributed.
The Use of initial coin offerings
The use of white paper creation, token development, pre initial coin offering and main initial offering sales crypto community uses ICO method for fund raising for any project with some benefits because it creates opportunity for easy access to Capital and also gives opportunity for small investors to participate in making some profit from the projects.
process
The project team creates a white paper that has full information about the project team, their goals, how the token is going to be distributed and the technology that is involved, then they will create a crypto. token with standards like ERc-20 for ethereum then a presale of those tokens with discount will help to raise fund before the main sales comes up where tokens will be sold out to the public.
The use of crowdfunding platforms.
Crypto community also uses crowdfunding platforms to rise funds for projects especially platforms that specifically handle digital access and blockchain projects.
ICO is one of the crowdfunding platforms also security token offerings platforms are also a crowdfunding platform you just like ICO, security token offerings creates tokens that are backed up by real assets like real estate helping them to obey security regulations.
Initial exchange offerings is also another crown funding platform that uses key platforms like binance launch pad and Huobi-prime to conduct token sales and these are well-known crypto platform so it ensures security and trust.
Non-fungible tokens crowdfunding is another method of fundraising where project team will create and sell non-fungible tokens that can be representing digital art ownership and they use some platforms like open-sea and Rarible to issue and sell the nfts.
Using all the scrap funding method crypto community can succeed in raising funds for a new project.
Summary.
Though there are some challenges that faces fundraising for new projects but if crypto community ensures that all relevant regulations are obeyed to avoid any legal issues and also make wise choice of secured platforms to make sure that the funds are safe then have a strong support from both new users, the community and investors the project will definitely succeed.