Back to crypto history, Initial Coin Offerings (ICOs) have been popular since 2017 and gave unprecedented fundraising opportunities for startups in digital assets. Token launches focus on benefiting the founding group, which often finds creative ways to cash out of the project.
In 2021, IDO boomed. Investors tried their best to find slots with the hope of searching for the new x100 crypto gems. Unfortunately, pre-sale & IDO investors are sometimes left holding worthless tokens. It happened for different reasons, such as a developer failing to provide liquidity or initially providing the liquidity only to later remove it (this is called “rug pulling”). A rug pull is a situation when crypto developers abandon a project and run away with investors’ funds. Rug pulls sometimes happen in the Defi ecosystem, especially on DEXs, where malicious individuals create a token and list it on a DEX, and pair it with another cryptocurrency like BNB, BUSD,… But once a significant number of investors swap their cryptocurrency for the listed token, the creators then withdraw everything from the liquidity pool, driving the coin’s price to zero. In addition, investors face other risks such as not receiving the correct amount of tokens according to the project owner’s commitment or listing token issues that can be delayed…
In 2022, token launches still harm public users and token purchasers, after an initial successful run, left with less liquidity or valueless tokens. Overcoming the disadvantages of ICO and IDO, a fair launch concept was born. The fair launch is a platform that allows for equitable and fair token distribution. Those tokens are fully available to everyone for purchase at the same price. The fair launch makes it less likely for founders and whales to manipulate the token market they created and provides protections for the token holders and community. The community holds tokens entirely, and all founders and their affiliates are equally part of this.
Bringing more benefits to users, CowSwap will release a fair launch — a new feature in July and organize many token launch events. Thanks for your patience!
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