What Are WHO, SHO, IEO, IGO, IFO, IDO Fundraising Models?

| Updated
by John Caroline · 7 min read
What Are WHO, SHO, IEO, IGO, IFO, IDO Fundraising Models?
Photo: Unsplash

The acronyms WHO, SHO, IEO, IGO, IFO, IDO may seem unclear to enthusiasts who are yet to get well acquainted with crypto terms. Here is a guide to provide our audience with a vivid knowledge of each acronym and what they represent in the crypto space.

Fundraising is one of the exclusive activities in the crypto space that cannot be neglected due to its importance and relevance in the industry. There are lots of fundraising platforms created with the primary purpose of facilitating the expansion of businesses while helping them to raise funds to curb financial setbacks. Amongst the most popular fundraising models are WHO, SHO, IEO, IGO, IFO, and IDO. In this guide, we will be exploring each of them to help emerging enthusiasts understand the industry better while making good business and investment decisions.

Wallet Holder Offering (WHO)

Wallet Holder Offering (WHO) is a decentralized project that facilitates an efficient and accurate airdrop process via its secure, friendly, and easy-to-use user interface. It is a young airdrop infrastructure built with the primary purpose of eliminating and correcting the inefficiencies that come with the traditional reward distribution campaigns.

WHO in its unique design performs in a way that makes it serve as a connection between wallet users and blockchain projects. In other words, it connects wallet users with blockchain projects for better airdrop efficiencies. As such, it provides exclusive functionalities for both wallet users and blockchain projects.

Wallet Holder Offering (WHO) basically enhances an effective growth of user base, real engagement in product usage, and feedback for blockchain projects. As a result, it helps them build a strong social community with large active members.

Besides, Wallet Holder Offering (WHO) helps wallet users to experience simplified processes over the complexities in the traditional reward distribution mechanism as it provides an “Earn Via Learn” protocol for wallet users.

The first wallet to initiate the airdrop mechanism is Safepal. As of late 2021, the platform had reportedly hosted about 3 WHOs on its platform.

Strong Holders Offering (SHO)

Another popular fundraising project is Strong Holders Offering (SHO), a fundraising infrastructure that chooses qualified and eligible investors via a criterion of on-chain activities and other proprietary data sets.

With Strong Holders Offering, new projects are able to raise funds from holders of a particular cryptocurrency. It is much available to investors who have held a competitor coin for six months or to active liquidity providers on a decentralized exchange (DEX). Strong Holders Offering is a product of DAO Maker.

As the name implies, Strong Holders Offering has its main focus on investors with “strong hands”, or those who are able to hold crypto assets for extended periods of time. With this crowdfunding mechanism, investors with strong hands enjoy exclusive benefits as the DAO Maker incentivizes them by making them eligible to become participants of an SHO while also offering them protection.

Moreso, this mechanism guarantees investors due safety and protection as noted earlier. It compels proposing projects to a series of tests before giving room for an SHO. This helps to discourage and get rid of low-quality startups and fraudulent manipulators.

Strong Holders Offering deploys a unique model that gives room for investors to withdraw support for a particular project under certain criteria. More elaborately, it provides participants with the right to seek a refund. Although, this right may become invalid after the value of the token issued by a project during the initial Strong Holder Offering increases and holds at 400% for 120 days.

Initial Exchange Offering (IEO)

This is one of the most common and most adopted fundraising models among crypto projects. Initial Exchange Offering (IEO) is a type of fundraising mechanism that allows crypto start-ups to raise funds via listing on an exchange or trading platform.

Companies that are building on launching crypto tokens conduct Initial Exchange Offerings on crypto exchanges to help attract the attention of new investors. However, the contributions from interested investors are sent through the platform that hosts the IEO.

Following the fundraising model, these start-ups are thereby charged a fee. Moreover, a certain proportion of the tokens are sold, in order to fundraise on the exchange. Upon the completion of the IEO event, the tokens then become listed on the exchanges. This activity helps to boost the profile of the concerned companies while attracting the interest of investors towards the tokens.

Initial Exchange Offering in its unique features provides users with transparency and trust. One of the first few IEO platforms to be recognized in the industry is Binance.

Initial Game Offering (IGO)

The increase in gaming projects in the blockchain industry brought about the invention of Initial Game Offering (IGO). Initial Game Offering is a type of fundraising mechanism that deals with non-fungible tokens (NFTs) or token-based gaming projects while providing interested investors with the opportunity to invest in these gaming projects at an early stage.

It strictly exposes investors to gaming projects that have the potential to offer huge returns after their launch. It ensures that the gaming projects leverage tokens or NFTs as their in-game currency and rewards.

This crowdfunding mechanism operates in a way that allows investors to contribute their funds to the gaming projects from IGO launchpads. Meanwhile, it is giving them hopes of significant and mouth-watering ROI once the gaming project launches on major crypto exchanges or perhaps gains popularity in the gaming community that is massively gaining adoption as of the time of writing.

Examples of Initial Game Offering (IGO) launchpads that have surfaced since the invention of blockchain gaming projects include GameFi (GAFI), Enjinstarter (ENJINSTARTER), Gamestarter (GAME), Seedify.fund (SFUND), and many others.

Initial Farm Offering (IFO)

Initial Farm Offering (IFO) is one of the fundraising models that helps newly innovated DeFi projects to raise funds by participating in pre-sales events hosted after stern project vetting by decentralized exchanges. In other words, projects are able to raise capital while utilizing this model via the farming feature offered by decentralized exchanges.

This model allows interested investors to participate in the presale events of native tokens hosted by the DEX. The model features two common types of fundraising events, namely Basic Sale and Unlimited Sale. The former requires users to pay a predetermined fee, thereby allowing them to stake as many BNB and CAKE tokens as possible. While the latter only allows for the staking of a defined number of tokens without charging users any participation fee. PancakeSwap is one of the common launchpads for IFO.

Initial DEX Offering (IDO)

Initial DEX Offering (IDO) is a permissionless crowdfunding mechanism that features a new style of fundraising event. It allows young projects to launch their tokens through a decentralized liquidity exchange.

Decentralized Liquidity Exchange on the other hand is a type of crypto asset exchange that has its reliance on liquidity pools where traders are allowed to swap tokens, which includes crypto coins and stablecoins. For instance, Bitcoin (BTC) can be swapped for Tether (USDT) on decentralized liquidity exchanges.

The features of Initial DEX Offering (IDO) provide investors with the opportunity to enjoy better and immediate liquidity at every price level. IDO helps the desires of new projects to raise and access immediate funds.

Some examples of previously conducted Initial DEX Offering that came out successful in the crypto space include Raven Protocol IDO, Universal Market Access Protocol IDO, SushiSwap IDO, and others.

Conclusion

The above-mentioned infrastructures can be referred to as emerging fundraising models that cryptocurrency projects use to raise funds in their early stages. The public has adopted these fundraising models as the exclusive benefits they offer to baby projects and investors are significant.

Projects with insufficient capital can raise funds through any of these models, hence addressing their financial problems at their early stages.

Basically, these crowdfunding technologies aid companies in raising funds using blockchain and decentralized finance while bridging the gap between startups and big companies to find more funds for further expansion.

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FAQ

What is a Wallet Holder Offering?

Wallet Holder Offering (WHO) is a decentralized project that facilitates an efficient and accurate airdrop process via its secure, friendly, and easy-to-use user interface. It is a young airdrop infrastructure built with the primary purpose of eliminating and correcting the inefficiencies that come with the traditional reward distribution campaigns. 

What is a Strong Holders Offering?

Strong Holders Offering (SHO) is a fundraising infrastructure that chooses qualified and eligible investors via a criterion of on-chain activities and other proprietary data sets. With Strong Holders Offering, new projects are able to raise funds from holders of a particular cryptocurrency. It is much available to investors who have held a competitor coin for six months or to active liquidity providers on a decentralized exchange (DEX). Strong Holders Offering is a product of DAO Maker.

What is an Initial Exchange Offering?

Initial Exchange Offering (IEO) is a type of fundraising mechanism that allows crypto start-ups to raise funds via listing on an exchange or trading platform. Companies that are building on launching crypto tokens conduct Initial Exchange Offerings on crypto exchanges to help attract the attention of new investors. However, the contributions from interested investors are sent through the platform that hosts the IEO.

What is an Initial Game Offering?

Initial Game Offering (IGO) is a type of fundraising mechanism that deals with non-fungible tokens (NFTs) or token-based gaming projects while providing interested investors with the opportunity to invest in these gaming projects at an early stage. 

What is an Initial Farm Offering?

Initial Farm Offering (IFO) is a type of fundraising mechanism that helps newly innovated DeFi projects to raise funds especially capital by participating in pre-sales events hosted after stern project vetting by decentralized exchanges.

What is an Initial Dex Offering?

Initial DEX Offering (IDO) is a permissionless crowdfunding mechanism that features a new style of fundraising event which allows young projects to launch their tokens through a decentralized liquidity exchange.

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