🎉 Gate Square Growth Points Summer Lucky Draw Round 1️⃣ 2️⃣ Is Live!
🎁 Prize pool over $10,000! Win Huawei Mate Tri-fold Phone, F1 Red Bull Racing Car Model, exclusive Gate merch, popular tokens & more!
Try your luck now 👉 https://www.gate.com/activities/pointprize?now_period=12
How to earn Growth Points fast?
1️⃣ Go to [Square], tap the icon next to your avatar to enter [Community Center]
2️⃣ Complete daily tasks like posting, commenting, liking, and chatting to earn points
100% chance to win — prizes guaranteed! Come and draw now!
Event ends: August 9, 16:00 UTC
More details: https://www
Reinventing ICOs: The Return of High-Risk, High-Return Investment Models in the crypto market
The crypto market needs to reshape the high-risk high-return investment model
The current financing model in the crypto market has deviated from the original decentralized concept. Projects that overly rely on centralized exchanges and venture capital support often go public with high valuations and low liquidity, failing to deliver substantial returns for ordinary investors. This situation is contrary to the original intention of cryptocurrencies becoming one of the fastest-growing networks.
The success of cryptocurrencies is built upon three main pillars: resistance to government capture, the revolutionary technology of blockchain, and the potential for users to accumulate wealth. However, the current mechanism of capital formation has forgotten the last point - the possibility for ordinary investors to also achieve high returns.
In contrast, Meme coins provide ordinary investors with the potential for high returns through their viral spread and equal issuance mechanisms. Although most Meme coins eventually go to zero, this high-risk, high-reward characteristic is precisely what many investors seek.
Projects supported by traditional venture capital are often limited by stereotypes, placing more emphasis on the founder's background rather than the product itself. This has resulted in a highly homogenized investment environment, which contradicts the core values of the crypto community.
The ICO model can better balance viral spread and technological potential, providing funding channels for innovators from various backgrounds. Although most ICO projects may fail, a few success stories can bring astonishing returns to early investors, which is exactly what crypto investors are looking forward to.
With the advancement of blockchain technology, ICOs are making a return in a more efficient manner. Investors can participate in projects and trade more quickly, and liquidity has also significantly increased. Emerging trading platforms are striving to attract more ordinary users to engage in crypto investments.
However, to bring ICOs back to their peak, both project parties and investors need to make the right choices. One should be wary of projects with high valuations and low circulation, as well as tokens that are listed on centralized exchanges with high valuations. Although ICOs carry risks, they offer investors the possibility of pursuing high returns, which is not available in the current venture capital model.
Let us reshape ICOs, create fervent support for new projects, give investors the opportunity to acquire immense wealth, and return the crypto market to its essence of high risk and high return.