Overview of Public Sale Q1/2024: Many opportunities as blockchain gradually opens

Projects on many blockchains want to attract new cash flow to the ecosystem through Public Sale events. The recovery in cash flow shows the growth potential of this segment.
Basic project group classification
Public fundraising from the community, also known as Public Sale, is one of the most effective ways to raise capital in the crypto market. A public sale will often contribute value to all participating parties by helping new projects raise a certain amount of capital, helping investors buy tokens early, and creating an incentive/user case. for foundation project.
This need actually appeared early on due to its important influence in helping projects thrive from the early stages. Some popular forms of public sale capital raising that are quite familiar in the market include:

• ICO (Boom in the period 2017 - 2018): A form of raising capital through issuing tokens for the first time, users will buy the project's tokens from the website or the project's open sale. Projects that conduct token sales can also be collectively referred to as ICOs.
• IEO (Boom from 2019 originating from Binance): A form of crowdfunding through token offerings on Crypto exchanges. Typically Binance Launchpad, OKX Jumpstart... tokens sold IEO on any exchange will usually be listed on that exchange.
• IDO (Exploding from 2021 with the DeFi trend): A form of capital raising through token offerings on decentralized AMM platforms. IDO emerged at a time when ecosystems and DEXs were developing.
• Launchpad platform: Form of projects that raise capital and issue tokens through a 3rd Launchpad platform. Users who want to participate often must satisfy certain requirements of that Launchpad project. Some projects in this segment include: Starship, Coinlist, Impossible Finance, DAO Maker, Tokensoft...

• There are also a number of other small trends that have appeared such as IGO, SHO...

Public Sale capital call is hot again?
Amount of recovery capital
Since their inception, token sale projects (Public sale and ICO) have attracted a large amount of attention from the community. By 2017 - 2018, this became one of the big trends leading the market with the amount of money raised from projects reaching 1.7 billion USD and 4.6 billion USD respectively.
In the last 2 years, this trend has almost gone unnoticed, in 2022 and 2023 the amount of projects called is 251 million USD and 133 million USD. Public Sale is showing a revival when only in Q1/2024, the amount of projects raising capital through the community has approximately reached that of 2023 (currently reaching 124 million USD).
Assuming the market grows in 2024, it can be expected that the amount of money projects mobilized from the community this year will reach approximately the same as in 2021 (about 900 million USD), ~7.2 times the current number. This means that Launchpad projects will be an important bridge in the coming period to receive the above cash flow.
Public sale on blockchains
Ethereum - Leading public sale
According to statistics in the past year, projects that have publicly mobilized capital through the community are concentrated in the group of 5 major blockchains: Ethereum, BNB, Polygon, Sui and Arbitrum. Projects on Ethereum crowdfunded 319 million USD, of which projects with high ROI are mainly meme projects.
Status quo on other blockchains
BNB with the backing of Binance Launchpad and Binance Launchpool ranked second, with the total raised amount reaching 149 million USD.
Notably, Sui is a newly emerged ecosystem but has also attracted cash flow from the community with 52 million USD for 23 projects. Projects on Sui often conduct Public Sale/IDO themselves through prominent DEX projects on the system such as Cetus Protocol, FlowX Finance...
With blockchain ecosystems, one of the most effective ways to attract cash flow is to conduct public sales, usually through IDO on DEXs to make it easier for users to participate, and the project side will also have centralized liquidity. middle better.
Following the general trend of the market, on newly emerging blockchains, there is also a trend of conducting ICO/IDO again. The purpose is to promote cash flow into these ecosystems. Solana is an ecosystem that is making a strong comeback, however the capital flow from projects raised is significantly lower than other blockchains.
This is because the Solana ecosystem lacks a platform project as a launching pad. Jupiter - the largest Aggregator on Solana is aiming to solve this problem with Jupiter Start, a product that has the same direction as Raydium's AcceleRaytor before it.
zkSync is a large ecosystem that also has the same problem. The largest DEX today, Syncswap, is also aiming for SyncSwap Launch to attract more capital into zkSync. Additionally, this ecosystem already has Holdstation's zkStarter which has made its first launchpad project.
DEX projects on Sui have been conducting IDO deals, helping other projects in the ecosystem raise significant crowdfunding in recent times. Contrary to other blockchains, Ronin cooperated with Impossible Finance to develop its own launchpad platform.
Regarding multichain, Starship recently announced the launch of its first launchpad project, users can hold multiple NFTs on the same wallet for more allocation. The project's FDV is currently at 11 million USD.
Another multichain capital raising platform, Coinlist, is also showing positivity when it has implemented 3 different launchpads in Q1/2024, previously Coinlist only had 4 projects on launchpad in the whole of 2023.
Which is the most potential capital raising platform?
To conduct public sale, projects often choose to use launchpad. Launchpad affects both sides: the project and the investor. To evaluate a launchpad project, you need to look at both sides. Specifically, the project side will be interested in the amount of money they can mobilize, and investors will be interested in the ROI (Return on Investment) they receive.
According to analysis of past data from prominent Launchpad projects, 3 different groups of launchpad projects have different directions.:

• IEO projects: The number of projects is small, the amount of capital mobilized per project is low due to strict conditions, in return investors receive a high ROI. *
• IDO projects: Easy to participate in, so there are many projects, but the average amount of money each project mobilizes is not high, and the profits earned by investors are also not outstanding.
• Launchpad Platform projects: The number of projects is moderate, the average amount of money raised per project is significantly high, and the ROI investors receive is also quite high.

From the data, it can be seen that launchpad platforms are the most optimal project group for the benefits of both the project calling for capital and the investor. The amount of money raised by projects is often much higher than that of fundraising platforms. other.
On the investor side, there are also more options than IEO while still maintaining a stable profit level. On the contrary, IDO projects have weaker results than the other two groups. Lowering the criteria to massively bring projects to launchpad results in lower funding results, but will be a suitable way for decentralized ecosystems that need to accelerate development.
Summary
The recovery of the Launchpad segment can be seen through the growth in crowdfunding. Launchpad is also thriving on blockchain ecosystems, which helps attract cash flow to the ecosystem during the uptrend period.
Sui is one of the blockchains that has carried out quite successful launchpad campaigns even though it has just launched. Other major blockchains such as Solana, Ronin, Linea, zkSync are also preparing to promote this segment. Another option for investors is to join the multichain launchpad platform such as Starship, Coinlist...