TPO to take place of IEO, new standards for investment and fund-raising

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Investment and fundraising sectors have witnessed revolutionary changes in the last years of 2010s, thanks to the emergence of blockchain technology and cryptocurrency.

From traditional schemes conducted through regulated stock markets like IPO, to private pitching with Venture Capitals (VCs) and institutional investors; nowadays, crowdfunding appears in various forms, which allows everyone to invest and raise funds without so much jurisdictions and strict regulation via cryptocurrencies. ICO, STO, and IEO are popular terms in crowdfunding recently.

Many of you may have heard about IEO recently along with the rise of many launching platforms from Binance, OKex, Houbi, Kucoin, Gate.io, Bittrex, and many others as well. IEO’s are believed to be the revolutionising next step for ICOs which have significantly help many projects to raise funds. But not every project does good in IEO’s as well resulting in losing public's faith in them because it has become easier for scam projects to easily pay some fees to exchanges and have a good shot at raising funds.To be precise, IEO projects gets the goodwill of the exchange that they are listed on to leverage upon.

One of the most successful cases of IEO’s is Binance who, until now, records no failure for every project on their launchpad. At times it has also witnessed cases wherein the tokens got sold out in a short span of time and also was able to see significant increase in price. As a result, it created a huge interest and significant hype among traders and investors. Many other exchanges like OKex, Houbi, Kucoin also jumped in the race for doing IEO’s for various projects.

However, due to FOMO and FUD incentives from both the exchanges and traders, there is this belief in many people that if the IEO’s still are trustworthy and efficient crowdfunding method for potential projects?

To be honest, project teams have to pay quite a lot of money to these exchanges to carry an IEO on them, for their reputation and promotional support. At first, IEO played a perfect marketing role as rising popularity and virality actually brought the teams more funds and higher market liquidity. But in today's time people have witnessed the cases wherein the projects are not even able to recover back the fees that these teams pay for the IEO. So it raises questions like is the involved cost for carrying an IEO really converts to capital benefits for the teams?

Besides listing fee as usual, the teams also has to bear other hidden fees to make sure that their tokens would climb higher x5, x10 after listing. So what is happening here is token holders wants to sell their tokens as soon as they are listed in order to dump them. They don’t care much about the real utility value of the tokens and product development.

In fact, many recent IEOs didn't reach their capital target and were suspected to fake sale volume. The buyers and the sellers both look at ‘instant" profits.

So what can be the alternatives to this IEO approach or in what ways can we improve this scenario!

TPO can work as an alternative for the IEO

I recently came across this new concept of TPO aiming at connecting projects with investors.
So what does TPO stands for?

TPO - True Product Offering is similar to IEO as it is also preceded via an exchange platform, however, with different standards. For TPO, the project must have a working product already i.e. MVP and their tokens can already available for use in their ecosystem.

TPO standards

TPO platform designs the whole process to make funding and capital using more transparent.

The projects are to prove their development potential via fundamentals including users’ growth rate and token usage growth. These fundamentals also play as a milestone to help unlock funding at a certain period of time. Specifically, if the team succeeds in reaching the defined target on time, funds will be released partially for the team along with a part of token sale (vesting period is up to the exchange).

This TPO concept is introduced in market by Nami Exchange requires the team to set objectives for 4 phases, namely Launching, Implementation, Growth Hacking and Expansion. If they fail to meet what they have committed, money will be refunded to the investors. During the 4 periods, investors can closely keep track on important metrics in real-time and how well-developed the ecosystem becomes. Finally one of the rare cases where investors interests and money are safeguarded.

 

nami exchange, nami tpo spin, nami launchpad, bitbattle.io, ieo, ico, binance ieo, venture capitalHow should a person buy or participate in a TPO?

  • Research on the project
  • Register and KYC on TPO platform
  • Experience through the ecosystem to evaluate the real value of the products
  • Invest and purchase tokens on your consideration
  • Contribute your vote to get tokens listed on other TPO platforms

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Investors are to prove their understandings over the products by experiencing and using tokens in real cases. In order to join TPO, investors need to complete several “missions” relating to the products and tokens. They will consider putting their money into the game based on their investment appetite and budget. Moreover, the mission is crucial for investors/users to understand the product well enough before contributing their votes to get the tokens listed on other TPO platforms.

If IEO is a game for small investors as individual cap is limited at $1,000 only; TPO’s will open a wider range for bigger players like investment funds. Based on their investment amount, investors will be classified into 3 groups: VC (venture capital), Shark, and Small Investor as below:

  • VC/ funds: $50,000
  • Sharks/ big investors: $2,500 - $25,000
  • Small investors: under $2,500

Number of slots are limited for each class which are calculated by the hard cap, so that small investors make up for at least 50% of funds raised; big investors proportion is 30% and big funds' is 20%.

If you worry about price manipulation as big guys hold a significant amount compared to total supply, partially unlock mechanism mentioned above will, to some extent, prevent the risks of price manipulations and market making.

The first upcoming TPO on Nami Exchange - SPIN project which will be used in Bitbattle.io will lead us to the results and also might help us in understanding how this mechanism will work for the mutual benefits of both investors and the team. They have claimed that they will be in charge of adjusting and supervising the improvement of the products and token utility at the same time. Hopefully in the near future we can see what revolutionary changes can they bring to this Ecosystem with this new concept.

Aiming at creating a transparent and efficient investing environment, they will be the first platform that applies and follows TPO standards for start-up projects. By complying with investment requirements, it is hoping to become a launch to leading platform for all real products. Although it seems to be difficult to change the mindset of people in the market, TPO is believed to be the first disruption in investment behaviors of current blockchain and crypto sectors. Hopefully it can do well in safeguarding the interests of Investors and help good and quality projects raise good.

Initiated by Nami Corp

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