Cover image
JAN 3, 2024

Playbux to introduce new funding mechanism instead of ICO

by CoinNess Global

Web3 entertainment platform Playbux is set to embark on a public token sale in a departure from the more established initial coin offering (ICO) model favored by many crypto and Web3 platforms in the past.

Fair community offering (FCO)

Aiming to raise $150,000 later this month Playbux, a blockchain-based e-commerce metaverse platform that runs on the BNB chain, has opted for a fair community offering (FCO). As part of the FCO, it will provide pre-listing access exclusively to engaged users through Dubai-headquartered crypto investing platform Raiser, backed by Visa.
In a series of posts on social media platform X on Monday, Raiser set out what it plans to bring to market by way of the FCO model. According to the startup, FCO involves ranking project users based on on-chain activity, referrals, participation in educational quizzes and following the platform’s X profile.
As the company puts it, “engagement is the king. The more interactive challenges you complete — the higher you climb on the Raiser.co leaderboard.” Users, depending on their ranking, gain the opportunity to invest in the project’s token before its official listing on centralized exchanges.
Raiser is being supported in its FCO model offering by market maker Kairon Labs.

An alternative to ICOs

This community fundraising mechanism emerges as an alternative to ICOs, which, in the earlier days of crypto, became associated with fraudulent activities. The surge in ICOs between 2017 and 2018 led to a mix of success stories, like Ethereum raising $18 million in 2014. However, the funding mechanism was sharply criticized as it also attracted unsavory actors due to the lack of reporting requirements and accounting standards.
In the aftermath of the ICO era, centralized crypto exchanges now mandate projects to lock a portion of their token supply at launch and vest some supply to prevent excessive dumping by investors.
Raiser co-founder Kori Leon, who previously worked on the listings team at Binance, notes that Raiser’s FCO process aligns with these stricter listing requirements while offering community members pre-listing token access, potentially reducing the urge to sell tokens immediately upon listing. Leon stated:
”Our goal is to effectively support both the community and centralized exchanges, who show belief in the potential success of new projects through initial listings. Our unique platform rewards active community members and so assists exchanges in their strategic decisions.”
Playbux’s PBUX token, part of Binance Labs’ incubation program and included in Visa’s Asia Pacific 2023 accelerator program, will undergo a public FCO in late January, according to Leon. The metaverse-focused platform is known for its shop-to-earn experiences and customizable avatars.
Playbux was founded by Thai entrepreneurs Tay Sitthisaktanakul and CEO Sarun Vichayabhai in 2022. This move by the firm through the utilization of FCOs signifies a shift away from the tarnished ICO model, acknowledging the importance of community engagement and responsible token distribution.
Comments
To comment, please sign in.
Article has no comments yet.