Opinion: Darius Moukhtarzadeh, 21 share research strategist
A new wave of crypto funding has emerged, changing how Web3 projects are launched and who can invest early on: Community Sales. At first glance, community sales may seem reminiscent of the ICO (early coin-providing) era from 2016 to 2017. However, they represent important evolutions that better align with Crypto’s core values ​​of democratization, transparency, and inclusion.
Projects should include community sales as a central component of their fundraising strategy, in addition to raising money from angel investors and VCS. Professional investors should adopt community sales to increase the likelihood of sustainable success for Web3 projects.
The ICO era
The original ICO boom promised widespread retail participation and democratized investment opportunities previously reserved for well-connected insiders. The lack of a clear regulatory framework has led to widespread fraud, rug pulling and market manipulation. This chaotic environment, ramp-prolonged exploitation and regulatory uncertainty forced the project to ultimately abandon the ICO, instead moving to a private round that could be accessed by connected angel investors and venture capitalists.
Private funding issues
Private funding initially provided much needed stability and reliability, but also introduced new issues. Over the past two years, many tokens have been released with excessively high FDV (fully diluted rating) due to low circular token supply. These tokens took part in exchange along with a large portion of supply locked and Sky High ratings, which did not meet demand. Retail investors attracted by the first hype often became a side loss. result? Token falls and corrupted trust. Most of these tokens will probably not recover. This market has hampered investments in new projects, undermined community building efforts, and undermined the overall sustainability of Web3 projects.
Airdrops as an unsustainable alternative
Airdrops have emerged as another alternative designed to distribute tokens widely and stimulate interest in the project’s community. Airdrops cannot create meaningful and sustainable engagement. Instead, they often became targets of civil attackers who employ multiple accounts, maximizing token profits or airdrop mercenaries flying from one project to the next, dumping tokens quickly, lowering prices, and undermining the project’s reliability. Without a true financial commitment and interest in projects other than airdrops, recipients would not have the incentive to retain tokens or actively participate in the community.
Community sales (chain) as a new cool kid on the block
Community sales represent a practical and strategic alternative to private funding and token airdrops, providing a structured way to attract retail investors meaningfully and transparently. The latest community sales on platforms such as Legion and Echo feature a robust regulatory framework with thorough KYC and AML processes. These comprehensive funding opportunities require participants to make real capital commitments, even if they cultivate discreet, true stakeholder interest and reduce short-term speculation.
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One of the most important benefits of community sales is its ability to democratize access. Investors earn admission on similar or sometimes excellent terms to those previously booked for venture capitalists. With a low minimum investment of $100, community sales encourage wide participation and help build a truly decentralized, committed investor base. Financially committed investors are much more likely to become long-term holders and active community members.
Win-win for projects, other investors and communities
For Web3 projects, community sales offer great benefits beyond immediate capital raising. Early community involvement leads to a more diversified investor base, reducing concentration risk and diverse future users. Projects with widely distributed tokens consistently demonstrate more stable prices, improved community activity, and healthier on-chain engagement.
Community sales will significantly improve the market reputation of the project. Accepting transparent and comprehensive funding will send clear signals to the market and prospective users. Projects prioritize collaboration and community engagement over value extraction. This transparency creates grassroots evangelism, promotes organic growth, and creates a loyal community base dedicated to the ongoing success of the project. Professional investors should accept community sales and actively encourage portfolio companies to assign to the community.
The broader crypto market is making significant profits from the transition to community sales. Projects that raise money transparently and comprehensively from the community tend to attract a more stable and supportive investor base. This stability will positively impact the token market, reduce volatility, restore investor trust, and promote broader adoption and integration of blockchain technology into everyday financial services and applications.
Community sales represent more than just the revival of ICOs. They combine early cryptography ideals with today’s regulations with the clarity and technical possibilities to mark a mature approach.
A project that addresses community sales positions for initial fundraising success, enduring market resilience, and community loyalty. Cryptographic ecosystems established on the principles of decentralization and inclusiveness must accept this model and meet its potential. Founders should include communities when raising capital, if possible. In the end, everyone wins: Wagmi.
The opinions and opinions expressed in this article are my own and do not reflect the views of the employer, 21 shares or affiliated organizations.
Opinion: Darius Moukhtarzadeh, 21 share research strategist.
This article is for general informational purposes and is not intended to be considered legal or investment advice, and should not be done. The views, thoughts and opinions expressed here are the authors alone and do not necessarily reflect or express Cointregraph’s views and opinions.
