What are Crowdloans? — A Game-Changer for ICOs

Learn the rationale behind crowdloans and parachain auctions

Imagine you could invest in the next 1000x-potential decentralized project without spending a dime. Wouldn’t that be grand? In the traditional crypto world, this is impossible. To invest in a project you have to give them your hard-earned tokens (or money) in exchange for their tokens. The real problem with this isn’t about money changing hands, but rather, the lack of security for you the investor.

Most times, projects are funded via an initial coin offering. In real-world investing, most times a prototype is offered, a real product, or even a balance sheet of at least a few months. But this is never so in the blockchain industry.

Almost always, and regardless of the quality of the team backing the project, all you’ll have to make your decision are a sleek website with information on fancy-named backers, an in-depth whitepaper with information on the tech and tokenomics (token economics), and an invitation to discord to hang out with the community and learn more. You have to trust that the team will deliver on their promise of changing the world with their protocol. If they do not, then sorry, try again next time.