DAO Maker Launches Public SHOs For Investing In Crypto Startups
February 09 2022 - 4:21AM
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DAO Maker, a platform for retail venture investing in equity and
tokens, has launched Public Strong Holder Offering (SHO) as its
latest service to facilitate fundraising for blockchain and
cryptocurrency startups. Through this Public SHO, DAO Maker has
opened the floodgates to access an unprecedented volume of market
liquidity. SHOs are a mechanism or service which utilizes certain
procedures to choose genuine investors for funding crypto projects.
For example, SHOs analyze on-chain data, user activity, liquidity
provider (LP) status, and interaction with previous projects. These
data sets help in choosing the right kind of investors for a
particular startup, building a community around the project.
Investors too can apply for a refund if the projects perform poorly
and the developer team fails to deliver. The Public SHO model from
DAO Maker is a first-of-its-kind innovation in the crypto investing
space. Facilitating Fundraising With DAO Maker’s Public SHO DAO
Maker makes participation in fundraising procedures accessible and
open to a diverse set of crypto holders. Any user who has completed
the KYC process and has $2500 worth of crypto in their wallet on
EVM-compatible networks can participate. The platform creates a
profile on the basis of the user’s wallet activity. Thus, projects
can choose investors from designated groups like DeFi, NFTs,
GameFi, depending on wallet usage. The DAO Maker Public SHO is
divided into two segments: the ‘Freemium’ and ‘Premium’ services.
While the former is ‘free’ to access, premium access requires
holding $DAO tokens. Users need to stake at least 2000 $DAO tokens
in the DAO Vault to upgrade to the Premium version. Quite
obviously, the Premium DAOs have a greater chance of winning bids
and a larger allocation of funds. But DAO Maker generally uses a
sophisticated on-chain analytics system to decide the winners of
the Public SHO. The protocol calculates a score for each user
wallet using certain parameters. These parameters are as follows:
DAO Maker calculates the final score of every user and dynamically
chooses the winner of the Public SHO. Winners of the SHO need to
pay 30% fees on their tokens. The SHO is hosting 10% of the $10
million that Hubble recently raised from Three Arrows, Digital
Currency Group (DCG), Crypto.com and several others. For platforms
like CoinList, the seed to public stage surge is 20-50x, with
investors buying 2% of tokens for $2 million. However, DAO Maker
SHO claims to provide 2% of the same tokens at a much more
affordable price to the investors. Thus, the platform aims to
capture the retail investing space with investors getting early
exposure to tokens. DAO Maker’s Public SHO wants investors to get
the same access to tokens as Binance, DCG and Crypto.com. SHOs: The
Future Of Crypto Fundraising According to a Galaxy Digital report,
venture capital funding in blockchain cryptocurrency startups rose
to $32.8 billion in 2021. However, the crypto investment space
still faced some major structural problems. It was difficult to get
genuine and committed investors who will not abandon a project
midway in pursuit of quick profits. On the other hand, there was a
risk that the project will dupe genuine investors and not deliver
on promises. Strong Holder Offerings (SHOs) provided a reliable
solution for both investors and projects to raise capital for
crypto startups. In 2022, crypto adoption and investment will surge
from last year’s 880% growth with several startups coming to the
fore. SHO protocols from platforms like DAO Maker will contribute
towards a robust startup investing landscape with its sophisticated
on-chain analytics.
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