Dynamic Coin Offering (DYCO) Promises Investor-Friendly Token Crowdfunding Mechanism

Dynamic Coin Offering (DYCO) Promises Investor-Friendly Token Crowdfunding Mechanism

The days of the old and risky crowdfunding mechanisms in the cryptocurrency industry, including ICO, STO, and IEO, could be numbered. The secure DYCO (Dynamic Coin Offering) framework promises to safeguard retail investors from the inefficiencies of the yesteryear crowdfunding mechanisms.

DYCO Promises the Security You Want

In what comes as a breath of fresh air in the crypto crowdfunding space, DYCO promises to rid the early retail investors of the exploitative characteristics of the traditional crowdfunding mechanisms. With the DYCO, life could become tough for conmen who misinform innocent customers forcing them to invest in projects having their personal interests.

The DYCO crowdfunding framework puts investor protection at the top of its priority list which reflects in its unyielding commitment to transparency and investor safety. The innumerable scam projects that surfaced during the aftermath of the 2017 crypto frenzy cast huge doubts over the legitimacy of the investor safety mechanisms present in the industry.

Regulators the world over have adopted a considerably strict stance toward pump-and-dump digital currencies and the various crowdfunding mechanisms associated with it. However, over the years, the industry has steadily managed to come of age and now with the DYCO framework, it could be transformed into a reliable and trustful retail space and, subsequently, open doors for its adoption among the mainstream.

Features of the DYCO Framework

A DYCO differs from other traditional methods of fundraising in that it issues money-backed utility tokens. In simpler terms, 80% of the funds raised via a DYCO are put aside to buy-back all holders’ tokens should they be dissatisfied with their token purchase.

Essentially, DYCO is the first early-stage token investment opportunity open to retail investors. DYCO creates a price floor in the secondary market so that the investors can be assured of the safety of the investments made by them.

A project crowdfunded via DYCO would consist of a price floor that enables investors to claim a risk-free profit whenever the market price of the token falls below 20% of its initial price.

Laden with Cutting-Edge Features

Per an article by CoinGape DYCO crowdfunding mechanism comes with a swathe of robust features that makes it one of the most advanced token offering mechanisms existing today.

DYCO supports token burn and supply reduction, buybacks, and trust-less locks. DYCO boasts of an incredible secondary market which comprises of players including Arbitrage Traders, FOMO Traders, DYCO Participants, and Fundamentals-Driven Traders.

DYCO incentivizes the participation of the aforementioned market players in several strategic ways. For instance, given that every token on DYCO has a price floor, the Arbitrage Traders are incentivized to participate in the market to offer those tokens liquidity that tumbles below their price floor. The Arbitrage Traders do this because they’re aware of the fact that DYCO participants will eventually want these tokens to make risk-free profits. In this manner, by creating a mutually-beneficial relationship among its players, DYCO ensures that there is enough ongoing volume and liquidity for the tokens sold to investors.

However, it’s worth pointing out that despite their seemingly similar characteristics, the tokens issued via DYCO are not to be confused with stablecoins. Rather, the tokens so issued are utility tokens in that they are influenced by the speculated value before launch and by the utility value post-launch.

DYCO also provides an easy approach to token buyback. Once an investor has participated in a token sale, their digital wallet address is whitelisted to initiate and process buyback claims efficiently. This approach also provides the user with to readily capitalize on arbitrage opportunities if the market price of the token ever slides below the agreed price.

Final Thoughts

DYCO provides crypto retail investors a first of its kind opportunity to get involved with promising projects at the early stage of their development. The upside potential of investing in a good project with potential during its early stage is enormous.

DYCO essentially mitigates all risks associated with the fall in the token price by providing a price floor and, at the same time, offers investors a golden opportunity to capitalize on unparalleled upside potential.

Aisshwarya Tiwari

Aisshwarya is currently working as the Chief Editor at crypto.news and holds more than 4 years of experience in the digital assets industry. He holds an undergraduate degree in Commerce with Honours and a post-graduate diploma in Liberal Studies. Before entering the crypto industry, Aisshwarya worked as an SAP Consultant for a global IT firm. He also cleared the CFA Level 1 exam before pivoting to the crypto industry due to its novel and exciting propositions.