CanYa Sets a New Standard for Future ICOs – The HODLers Club

Initial Coin Offerings (ICOs) have emerged as one of the hottest and most controversial aspects of the cryptocurrency space.

In recent months, they have become an increasingly popular source of funding for start-ups as a result of the increasing need for blockchain technology and the lack of regulation surrounding them.

With the recent publicity of Bitcoin, and the rising fear of a crash on the horizon, many are looking for alternative ways to invest their money…and many of them are turning to ICOs.


The Rise of ICOs

To date, over $2.3 billion has been raised from ICOs. Most of this amount was raised in the beginning of 2017, with a whopping $574M being raised in July 2017 alone.

ICOs are similar to crowdfunding campaigns. In a way, they’re similar to popular websites like Kickstarter (where users receive a copy of the product in return for their contributions) and Crowdfunder (where contributors receive a share of equity in the startup they choose to support).


However, ICOs offer something very different. Instead of offering a product, equity, or ownership, they offer utility tokens. Users contribute to ICOs by giving Bitcoin or Ether, and in return they receive digital tokens. In the majority of ICOs, these tokens are intended as ‘utility tokens’. They can be used by buyers to pay for the use of blockchain-based services.

Many ICOs have seen major success. In fact, a report has shown that the average return seen ac across 204 ICO offerings is 1,320% – including those that have failed.

The Current Issue with ICOs

The worldwide explosion of ICOs has attracted the attention of regulators, and a growing number are now preparing to implement new rules and take action.

Countries such as China and South Korea have already banned ICOs. Regulators in other countries such as Singapore, Hong Kong, and Russia are warning citizens that they are not a safe investment.

On top of this, it is getting increasingly difficult for ICOs to stand out from the crowd. It’s well known that most startups fail, and ICOs are no different.

Vitalik Buterin himself stated:

“It is an established fact that ninety percent of startups fail. And it should also be an established fact that 90 percent of these ERC20s on CoinMarketCap are going to go to zero.”

As a result, teams are having to be more creative than ever when coming up with unique selling points that will convince people to invest in their projects.

One company that has come up with a particularly innovative idea to get their investors excited is CanYa. They’ve created the HODLers Club.

Designed to buck the common trend of ICOs over-promising and under-delivering and leaving investors feeling cheated and disappointed, CanYa HODLers club is especially for those who are in it for the long haul.

If you’re wondering where the bizarre name came from, you might be interested in reading the famous Bitcoin post that inspired it.


How does the HODLers Club Work?

The way it works is simple – you are rewarded depending on how many tokens you have, and how long you’ve held them for.

Throughout the first three months after the ICO, members of the exclusive club will be airdropped tokens each month. Then, every year following, there will be another load of tokens airdropped to members.

As soon as you withdraw any of your tokens, your membership to the HODLers Club is revoked. Therefore, as time progresses, the club will consist of fewer and fewer members. This means that the remaining members will get a higher proportion of the reward.

The club is designed as a way to encourage loyalty among users, and to deter people from the usual ‘pump-and-dump’ strategy that is becoming increasingly common.


The Future of ICOs

There have been many speculations on how the future of ICOs will unfold.

However, with the market only continuing to get more crowded, and users becoming more and more careful about where they are choosing to place their investments, there is no doubt that future ICOs will be forced to step up their game if they want to remain competitive.

CanYa’s HODLers Club idea is a massive step forward for the potential of ICOs…but it’s still only the beginning.

By | 2017-12-14T15:06:08+00:00 December 14th, 2017|Token Review|0 Comments

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