The fundraising mechanism does not include another social media platform, but the charitable organizations are utilizing the tool of crypto crowdfunding to raise funds. It is the latest trend that philanthropic organizations are demanding cryptocurrencies such as Bitcoin or Ethereum instead of fiat money from the donors to build their revenues. Safe crypto Trading is such a useful platform in this regard and allows you to trade and donate Bitcoins to these organizations.
The philanthropic or charitable organizations that are in the early stages, or know nothing about crypto crowdfunding, have a golden opportunity to introduce it to a passionate audience: that is willing to make a social impact via charitable donations.
Crowdfunding is a technique to raise funds in which a pool of people contributes with their small investments, and the sum becomes a handsome amount. Similarly, in Crypto Crowdfunding these individuals are asked to donate their holdings of cryptocurrencies such as BTC, ETH, USDT, etc to make the sum required for a crypto project. Crypto companies set up a campaign for this purpose, and anyone from anywhere can contribute to the fundraising.
IFO (Initial Farming Offering)
IFO is a crypto crowdfunding model that operates by assisting currently established Decentralized Finance projects to raise funds by contributing to the pre-sales events. Initial Farming Offer is the descendant of ICO, which reflects the technique of Crowdsourcing utilized by cryptocurrency projects for fundraising in the initial phases.
Decentralized Exchanges organize pre-sale events, and investors are invited to attend them so that the required revenue can be collected for required projects. Initial Farming Offering has both; similarities and differences to Initial Coin Offering & Initial Exchange Offering.
Initial Liquidity Offering (ILO)
This crypto crowdfunding technique offers the latest tokens to the investors in return for an agreement that they will participate in the liquidity pool. Initial Liquidity Offering is convenient to perform at Decentralized Exchanges because these exchanges contain a lot of investors who might be attracted to buy crypto tokens at reasonable prices. Experts and specialists manage these liquidity pools on DEX platforms.
Initial NFT Offering (INO)
NFTs have been instrumental in reaching the target market and creating and establishing a resonance for current businesses or tokens. NFTs are a useful tool for marketing to get investors interested in them if they are shown some benefits. The germinal offer of NFT is an opportunity for the customers to get NFTs and utilize them for a specific project.
The Initial NFT Offering might be a marketing strategy to raise funds. The important thing is to evaluate the number of individuals who are interested in the popularity and utilization of the project. Often a free NFT offer can be used to complete a few tasks that help spread the project to as many people as possible.
How Would You Set Up A Best-Suited Crypto Crowdfunding Campaign?
Explain The Objective
You do not need to make a long list of small investors or a small list of investors who will donate massive amounts. You need to emphasize the “Why Now” mechanism as it will create curiosity among investors, and they will take a break to read your mission. In this way, you can put them on the required track to achieve the desired amount of coins or tokens.
Choose An Aim And Express It Publically
A crypto crowdfunding campaign might be the best facilitator to raise your funds, but not so high. The world will know about the target you are willing to accomplish by the campaign you are running. So, express your particular goals with your crypto investors.
Advertise Your Campaign
Creating a campaign is a difficult task but do not get yourself limited to creating only. Instead, pay attention to the marketing and management of your campaign. You can attract new crypto investors by advertising your campaign on various social media platforms.
Establish A Community Of Crypto Investors
After your campaign becomes successful, be grateful to your crypto donors and if you have access to them, show them the results of your campaign. Besides this, build a community of investors that made a good impact to make your crowdfunding campaign win.