The recent climb in the valuation of cryptocurrencies is leading some ICOs to reconsider their sale conditions.
Currently running at over $600 billion, the current total market capitalisation of cryptos are at an all time high. That figure is six times what is was six months ago and twice what it was a mere three weeks ago.
Ethereum, currently the most common platform for hosting token sales, has seen its price double in the space of those same three weeks. Some ICOs that have been running their sales over that period have yielded to pressure to readjust their token sale conditions as a result.
Token Allocations Increasingly Quoted in Fiat
Some token sale organisers are opting for token sales quoted in fiat currency with Ether contributions translated into a token allocation that is determined by the Ether / USD market rates at the close of sale.
The problem with this approach, however, is that investors cannot be sure ahead of time what token allocation they can expect at the precise moment they make their contribution.
There is, however, an alternative solution that is being pioneered by the Debitum network (DEB) ICO. Currently conducting Round A of its ICO which accepts ETH only, the ICO’s project leads have decided to adopt a different approach for it s Round B phase of funding.
Having signed an agreement with exchange solution provider Shift Forex, Round B investors will be able to contribute via fiat currency directly and receive a fixed quote for DEB tokens at the moment of making their contributions in fiat. The fluctuation in ETH / fiat exchange rates will be managed by the exchange instead.
Some ICOs appear reluctant to adopt this approach as it removes the ability for their amassed funds to benefit from the general increase in value brought by a bullish crypto market.
Whilst it is difficult to assess an overall trend, there are indications that the Debitum approach, which offers full transparency for investors, will become increasingly popular.