Dynamic Coin Offerings (DYCOs) leverage blockchain technology to add accountability to teams.
Grow Your Business, Not Your Inbox
Stay informed and join our daily newsletter now!
5 min read
Opinions expressed by Entrepreneur contributors are their own.
Entrepreneurs and investors often struggle with finding a happy medium that balances risk, reward and accountability. The problem is, company accountability is hard to track and is often a catalyst for investments gone bad. A study by Harvard found that angel investors reported that only 11 percent of their portfolio yielded a positive return. This means nine out of 10 angel investments typically end poorly, with investors not having any control over the day-to-day operations of what a company does and how it spends its money.
Thankfully, a new crowdfunding model has emerged and just experienced its first successful launch. Dynamic Coin Offerings (DYCOs) leverage blockchain technology to add accountability to teams by holding raised funds in third-party management and offering up to 80 percent refunds to early contributors if the price of a company’s token drops below the initial participation price.
The first DYCO was managed by a Prague-based company called DAO Maker that managed the crowdfunding campaign, KYC,