There’s a problem that all blockchain projects using initial coin offerings (ICO) as their fundraising vehicle of choice face: how to convert ICO investors, often looking to make a quick buck, into long-term holders.
In the crypto world, the long-termers are called hodlers, which is a misspelling of “hold” dating back to a famous post on bitcointalk.org in 2013, when everyone was bragging about buying Lambos (Lamborghini sports cars) – maybe 10 Lambos now. Still, others whimsically suggest it is an acronym for “hold on for dear life” in a nod to bitcoin and cryptos famed volatility.
Getting Investors on Board
Understandably, most effort from crowdsale organisers goes into encouraging investors to take part in the fundraising. Naturally, unless a project attracts investors, then the project may find it difficult to achieve the milestones its roadmap sets out, so such an emphasis is understandable.
ICO promoters concentrate on the well-worn paths of bonus incentives, where the earliest investors receive a discount, and bounties, where you can earn tokens in return for social media mentions.
However, it does nothing to safeguard against investors with a “pump and dump” mindset who are only interested in buying tokens so that they can flip them on an exchange at the first opportunity.
Guarding Against Short-Termism
In truth, what is needed now is a way to change the mindset of those ICO contributors who have not really bought into the project, despite having handed over some Ether. As with investing in stocks and shares, short-termism is the enemy of blockchain asset development as well.
Also, the problem with approaches that have an overreliance on generous bounties for blogging and tweeting and the like, is that these come with their own risk-warning downsides. They encourage extreme short-termism.
Put simply, if an investor is not even going to put skin-in-the-game at the ICO stage, then there really isn’t much hope that they will be sticking around over the next 18 months, or whatever a roadmap stipulates, to see the vision come to pass.
However, assuming the project is solid, which in the case of CanYa’s decentralised marketplace for services it is, given that it’s already live, although not yet crypto-enabled, it is incumbent on those designing an ICO to give due care and attention to the post-ICO landscape: how to keep investors onboard.
CanYa is raising funds precisely to build-out the cryptocurrency payments element, making it a first of its kind in the freelance marketplace world.
Stability Breeds Success
And it’s not just about getting the money in. Success also requires that a blockchain startup has a stable and supportive foundation of support from a community of investors.
Making investors “sticky” is key to making sure serious quality projects meet their self-imposed targets and aren’t over-promising what they can achieve.
And of course encouraging investors to stay with a project through leveraging a regular token distribution incentivization scheme, as CanYa is doing, will also help to attract investors to the crowdsale in the first place.
How the CanYa HODL Club Works
Enter the CanYa HODL Club. Let’s explain how it works and why it could be the benchmark for how quality ICOs are conducted in the future.
If you invest in the token sale by buying a minimum of 5,000 CanYaCoins (CAN) you automatically become a member of the Club. This entitles you to a payment every month for three months after the ending of the ICO. Just make sure you are buying with your whitelisted address.
If investors don’t take part in the ICO then they can still purchase later but it will mean buying twice as many tokens as required in the token sale phase, so would cost 10,000 CAN to join the Club.
Those who commit to the project over the long-term will receive a payment every year, in proportion to their token holding.
The payments will be in the form of airdropped CAN tokens, with 1 million earmarked for distribution in the first month and tokens allocated by partner businesses to be disbursed in months two and three.
CanYa’s long-term supporters in effect are receiving an income stream in exchange for their commitment to CanYa. It’s similar to the dividend payment an equity investor would receive from a company for owning its shares.
And there’s more.
Giveaways for Our Supporters
Club members will also receive giveaways such as hard wallets (Nano Ledger) and specially minted limited edition CanYaCoins. You will also be on the inside track regarding project news and early access to new features.
If that’s not enough incentive to check out the crowdsale, there’s still time to enter the Tier 2 sale at the price of 1,200 CAN for 1 ETH.
And to make things as flexible as possible, you can pay for your CAN in Ether, Bitcoin, Bitcoin Cash, Dash, and Litecoin.
As altruistic as this all seems, CanYa has not just investors’ interests to the fore but its own best interests too. What’s good for investors is also good for the company.
CanYa’s long-term investors win and so does CanYa because of the stability that comes from knowing it has a base of committed Hodlers. Join the Club!