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In this guide, we will discuss a new fundraising model called the Fair Community Offering (FCO). Fronted by Raiser, this model aims to bring fairness and authenticity into the blockchain fundraising process.
If there is one thing that the blockchain industry is in a constant state of, it’s fundraising. Because new and innovative projects hit the market every day, there is always the need for these projects to raise funds and drum up support within the community. This has led to the creation of several fundraising models, including Initial Coin Offerings (ICOs), Initial Exchange Offerings (IEOs), and Initial DEX Offerings (IDOs).
But as the industry innovates, a new fundraising model called the Fair Community Offering (FCO) is on the rise. Fronted by Raiser, this model aims to bring fairness and authenticity into the blockchain fundraising process and help projects build true communities. In this article, we’ll break down what FCOs are and how they work.
Raiser is a crypto accelerator and launchpad that specializes in not only creating genuine opportunities for both investors and project developers but also educating the public about crypto. Instead of using tokens, it creates challenges and activities for users to show their commitment to a project.
Raiser is currently one of the biggest curators of community-centered projects that rely on the FCO model and connects these projects with a network of people who want to invest. This involves a thorough screening process of the project, the team behind it, its market potential, and its possible value to the community. Should a project pass this process, it will be listed for Raiser’s investor community to consider.
Using the Raiser platform, investors can engage in the necessary challenges to be allowed to invest in them and also receive support after the investment process has been completed. So far, Raiser has seen a lot of success in getting projects listed on tier 1 exchanges, securing the liquidity they need, and getting more visibility within and outside of the industry. And, of course, it is known for pioneering the disruptive FCO model.
One of the Raiser-backed projects getting a lot of attention in the industry is Playbux, which is acting as its inaugural outing of its FCO model. Playbux’s fundraising process will give both the public and investors themselves insight into the FCO fundraising method and how it can benefit them.
Raiser’s co-founder and CEO Kori Leon explained:
“Our goal is to effectively support both the community and centralized exchanges, which show belief in the potential success of new projects through initial listings. Our unique platform rewards active community members and so assists exchanges in their strategic decisions.”
Before the launch, potential investors have been advised to sign up for Raiser’s mailing list so they can receive updates as the launch goes underway. This will include the challenges they will need to take part in, how to buy into Playbux if they are chosen, and support after they have invested.
The stakes have been high for this FCO launch because it is one of the few (if not the only) instances that a public blockchain fundraising round will take place without based on token purchases. For years, the way that projects in the space raised funds was by offering tokenized ownership for sale, whether this was through the project’s platform, a centralized exchange, or a decentralized platform. Those who got to invest in the projects were those who could simply get their hands on these tokens first.
While this created a way for projects to secure funds, it did not take into account the intentions behind the investment. This, in turn, created a problem of people who weren’t passionate about the project getting to invest first and often selling off their tokens at the first sign of profit.
But an FCO is completely disrupting this process by investing based on passion and not strictly pockets.
We already know at this point that FCOs plan to disrupt the current industry fundraising system. But how exactly do they work? To understand this, we need to look at how ‘traditional’ blockchain fundraising works. Usually, when a project in the space wants to fundraise, they offer tokens for sale. The only requirement for getting these tokens is having the funds to make a purchase and being one of the first to sign up for specific lists or being the first person on the exchange when it launches. As we’ve said before, the intent behind buying the token doesn’t matter and an investor doesn’t need to be passionate about the project to buy into it.
This is the issue that an FCO tries to solve by making sure that the only people who get to initially invest in a project are those who are the most passionate about it. But how do you do this? First, it eliminates tokens. No longer will investors simply buy a batch of tokens to invest in a project and instead, there is a screening process of sorts.
This screening process involves the investors completing a series of tasks to show their interest in the platform. Anyone can buy a token but it takes someone who truly believes in a project to complete tasks on the Raiser platform just to get access to its pre-exchange listing. It is not enough to just complete the tasks; Raiser also creates a ranking list that positions participants according to their dedication and performance.
Those who sit and the top of the list will be rewarded and those who rank high overall will be given access to the project. The result of this is that only those who have proven that they are truly passionate about the project will get to be its earliest investors. This also benefits the project itself as it will be backed by its loyal people who are not looking to exit as soon as it is profitable to do so. Playbux is the first iteration of this and if it succeeds, we can expect to see the FCO model used more widely in the industry.
Now that we know a bit about the FCO model, it is also worth looking at Playbux, the decentralized app (dApp) that Raiser is promoting with it. First, Playbux is far from a new application. It is ranked as the number 1 most active dApp on BNB Chain and boasts 16 million users. Monthly, it has 1.3 million active users and over 26,000 merchants signed up on its platform. And what does Playbux do for these consumers and merchants? The features are listed below:
As long as people are willing to invest in cryptocurrency, there will be many ways created for them to do so. Raiser is adding to this list of options with its ground-breaking Fair Community Offering (FCO) option. This fundraising method is unique because it removes the need for token purchasing for investors.
On top of this, it uses an intricate system that only allows the most passionate investors to get their hands on new projects. Playbux might be its maiden edition but considering the many benefits that it offers both developers and investors, it will probably be the first of many.
A Fair Community Offer (FCO) is a new fundraising method in which potential investors complete a series of tasks to show their interest in a new blockchain project. They are then ranked on their performance and are allowed to invest based on this.
Raiser is a crypto accelerator and launchpad that is pioneering the FCO model and helping to connect passionate investors with innovative projects.
The date of the first Fair Community Offer is January 2024.
An FCO sees potential investors sign up to Raiser and then complete a series of tasks to signal interest in a project. They are then ranked on their performance and can invest based on this.
Playbux is a BNB Chain-based dApp that allows users to earn cashback, play games, trade and use NFTs, and much more.