In May 2021, Eden raised $17.4 million in a token sale, making it one of the largest token sales of the year. Token sales—also known as Initial Coin Offerings (ICOs) and Initial Token Offerings (ITOs)—are a form of fundraising that involve selling digital tokens to investors. Through its successful token sale, Eden raised capital for its project. Let’s find out why Eden raised funds through a token sale.
Overview of Eden
Eden is a venture capital-backed startup that provides blockchain-based solutions for enterprise customers. The company has raised money from private investors and venture capitalists, but also chose to launch a Token Sale to finance and fuel product development, hiring and expansion plans.
The Token Sale sought to leverage the use of blockchain technology outside the cryptocurrency sector, allowing anyone interested in backing this unique project to participate in what was essentially an Initial Exchange Offering (IEO). All proceeds raised during the token sale are going towards developing Eden products and efforts in terms of tying into external partner networks.
The Token Sale was held from June 3rd to July 4th 2019 on major exchanges, including Binance Launchpad, Huobi Prime and BitMax Start. The total number of tokens sold is 100 million Eden Protocol tokens (“EDN”), at an exchange rate of 1 ETH = 4000 EDN, with a hard cap set at 50 million USD. All EDN tokens obtained during the Token Sale will be issued on Ethereum mainnet as ERC20 tokens.
Overview of Token Sale
In 2019, Eden Technologies held a token sale, an initial coin offering or ICO. This was done to raise funding to expand the growth of their decentralised energy project. After the success of their testnet, internal development and economic modelling, the team felt that an ICO would be the best way to fund widespread usage of the project and broader adoption in many parts of the world.
An ICO is a funding process in which a company sells cryptocurrency tokens in exchange for capital from investors. The token sale structure is created to be similar to buying stock options in a public company – as more people purchase tokens, their value rises. With the proceeds from an ICO, companies can finance large-scale development projects with speed and efficiency since there is no need for traditional boardroom techniques like due diligence or equity agreements.
The Eden Token Sale was different from other projects because it had full backing from renowned venture capital funds such as Coinfund and 500 Startups Japan. It also promised wide-ranging advantages such as higher transaction speed (than credit cards or bank transfers) via lightning payments – meaning fees on transactions could be much lower than current era payment methods; peer-to-peer trading capabilities; APIs for developers; secure transactions using blockchain technology; and energy cost reduction through decentralisation at its core.
Furthermore, investors that contributed ETH during Eden’s token sale received a 30% bonus of tokens originally purchased during their contribution period – leading to additional financial incentive while responding positively towards Eden’s mission and expansion plans.
Eden Raises $17.4 Million in Token Sale
In June 2020, Eden raised more than $17.4 million through a token sale. The token sale was designed to allow investors to buy tokens, which they can use to access Eden’s platform. So why did Eden decide to offer a token sale? First, let’s explore the reasons why Eden chose to use a token sale to raise money.
To Raise Funds for Research and Development
Eden sought to raise funds to further its research and development efforts over the long term. Through a token sale, the company was able to attract global attention and collect capital from a variety of global investors. The money raised during the token sale allowed Eden to invest in research, development, and design of its platform. It also enabled Eden to hire additional personnel and provide resources for recruiting, salary expense rewards for top talent, marketing campaigns for product awareness, legal advice about regulatory requirements, etc.
In addition, Eden was in a unique position to leverage its tokens as an asset class. Tokens could be used as currency and provide users access to exclusive content that could otherwise not have been attained with fiat currency or credit cards. This gave Eden’s token holders incentive to purchase tokens, enabling the company to access capital from an international user base. Ultimately this allowed Eden to develop its platform more efficiently than ever before due to increased funding support from worldwide.
To Increase The Liquidity of Eden Tokens
By launching a token sale, Eden had several goals in mind. Foremost among these was the desire to increase the liquidity of Eden tokens for future development and growth of the platform.
The Token Sale allowed Eden investors to contribute to creating a project that would soon enable secure, trustable collaboration between projects, companies, and organisations. In addition, this enabled Eden’s developers to build out their platform in an efficient and timely manner.
The token sale also clarified the initial value of Eden tokens before they hit exchanges for secondary trading. This gave holders confidence that their investments were secure in that they held immediate value upon participating in the sale.
In addition, a token sale is often beneficial to attract strategic partnerships with early adopters whose use cases can form part of network effects on platforms such as Eden’s NEO-based Security Protocol where professionals are incentivized through rewards by informing developers about potential security vulnerabilities. Such strategic partnerships can also expand access points into new markets and grow user bases quickly as incentives become available on launch day.
To Build a Global Community of Supporters
The purpose of Eden’s token sale was twofold. First, it enabled the company to raise money needed to create a decentralised home sharing network. Second, and perhaps more importantly, it allowed Eden to build a global community of supporters that could be engaged and provide input as the platform development progresses.
Eden offered contributors the exclusive opportunity to purchase EDN native tokens on the Eden platform and will enable access to platform services and incentives. Allowing contributors worldwide to participate in the token sale was crucial for making our community truly global – and thanks largely in part to this ability, EDN tokens were distributed across over 60 countries! We believe decentralised networks have an even greater impact when supported by a wide base of contributors. Therefore we are both very pleased with our ability to form an international supporter base during our token sale period.
Buyers who acquired EDN tokens during the token sale period have also benefited from special rewards such as early accesses, special perks depending on their commitment level (monthly/ yearly prices) or reward tiers as well as cash-back bonuses accumulated through using their EDN tokens on the platform once it launches officially in 2020.
Subsequently, establishing a strong community through our token sale allowed us to benefit from input related to key aspects such as product design or user experience before launching officially at scale on Eden’s decentralised home sharing marketplaces in 2020.
Allowing contributions from thousands of individuals worldwide has helped shape the product offering we can now deliver after completing development work over the last 18 months post-token sale. It has played a critical role in our success and continues driving growth for Eden going forward into 2020!
Benefits of The Token Sale
Eden recently raised $17.4 million in a token sale. By raising funds through a token sale, Eden benefited in several ways. These benefits include increased liquidity, expanded global reach, and access to funds quickly and efficiently. Let’s look at the token sale’s advantages and why Eden decided to pursue this route.
Increased Visibility and Awareness
The Eden team conducted a token sale to increase visibility and awareness for the project, enabling a larger audience to learn about our mission, vision and progress. In addition, offering funds through a token sale allowed us to create liquidity for our digital asset EDN so that those who support our mission and vision can trade it on different exchanges. Finally, the token sale was an important step in the project’s development. It gave us access to capital that would have been difficult or impossible to acquire through traditional means. This capital allows us to further progress on developing our products, rapidly expand and foster customer relationships, continue marketing efforts, and accelerate product launches.
Throughout the Eden project, we will use EDN tokens in several ways including incentivizing new users with rewards, allowing users access to premium features such as faster checkout times and early access to virtual venues such as pop-up shops or special events. In addition, holding onto your EDN tokens provides more uses than just trading them: they can be used today in limited locations and even more capabilities are being developed with each passing week.
Increased Liquidity of Eden Tokens
The purpose of Eden’s token sale was to provide developers, entrepreneurs and investors with the ability to invest in projects built on the Eden platform. The immediate goal was to raise money for the development of technology, such as hardware and software solutions, allowing small businesses access to enterprise-level blockchain tools. Then, with an investment from institutional investors, Eden could rapidly take its project from conception to launch.
In addition to these goals, a key benefit of raising funds through a token sale is increased liquidity of Eden tokens. As more people buy into a project before it goes live, they have time to become familiar with it and understand how valuable it could be once launched. This consumer confidence helps ensure a successful launch when the tokens eventually become available for trading on exchanges.
By providing increased liquidity before its official launch date, tokens are likely to carry more value than traditional investments with limited investors due to their accessibility before they go live. Eden’s investors will also have the opportunity to stake their tokens to secure access rights and network-based assets. At the same time, they wait to become officially tradable after the full network has gone live. These early adopters can also receive governance tokens which incentivize ongoing participation as contributors within the platform’s ecosystem.
These benefits make token sales an attractive option for startups seeking funding that is hard to access through traditional routes such as venture capital or angel investing possibilities – making token sales potentially game-changing opportunities for ambitious projects like those at Eden.
Achieving a Global Reach
Using a token sale to raise money was a strategic move by Eden, as it allows companies to have access to global investors and economies – potentially people from all over the world with different perspectives and backgrounds. By accessing this global pool of talent, capital, and resources, companies can aim for a viable business model faster and more efficiently than ever. Moreover, through a token sale, founder teams can raise the funds they need without giving away equity or having their company go through traditional VC processes.
Additionally, blockchain companies can access many more resources in a more equilibrium way since it does not require looking for big investors and covering the gap between early-stage and higher investments. With token sales, founders can tap into communities that align with their long-term vision: interest in principles like distributed power is becoming increasingly popular worldwide.
Token sales create markets of early adopters interested in building an ecosystem of value around these principles. By offering different rewards or benefits that appeal to this market of early supporters (such as discounted pricing incentives or exclusive use provisions regarding tokens), companies can benefit from invaluable feedback at early stages of their life cycles.
Challenges of The Token Sale
In 2021, Eden, a blockchain-based service network, raised $17.4 million in a token sale. Token sales are a way to determine the value of a token, and can be used to fund projects and investments.
However, participating in a token sale can be quite challenging. Let’s discuss some of Eden’s key challenges when raising funds through a token sale.
Regarding token sales, regulatory issues add an extra layer of complexity. Regulations like the European Union’s General Data Protection Regulation (GDPR), or US Securities and Exchange Commission (SEC) regulations, can leave a situation open to interpretation. As a result, startups must understand the implications of different regulations and how those relate to their token sale.
In some cases, organising a token sale may require specialised legal advice or assistance from compliance or security partners to stay compliant with applicable laws and regulations. Companies must conduct due diligence on their token offering and remain compliant throughout their project lifecycle. Organisations must have all the necessary paperwork in order before launching the sale and ensure that any financial operations are carried out within accepted legal frameworks in each country where the offerings are being made available.
Moreover, it is particularly important for companies engaging in a Token Sale abroad to clearly identify different jurisdictions’ laws and tailor their Token Sale documents accordingly. For example, suppose a company does not register across multiple jurisdictions or fails to ensure security measures are enforced correctly. In that case, token sales can lead to significant financial penalties from regulatory authorities down the line.
Issuing security tokens may be associated with securities regulation, depending on the nature of the offering. For example, in many countries, such as the United States, unregistered offerings of this type are illegal. Therefore, issuers must consider local laws when launching a token sale and seek appropriate legal counsel for guidance. Security token issuers must also ensure that investor funds are protected from theft or hacking by adopting appropriate technical and organisational measures.
In addition to the risks described above, security tokens may also be subject to liquidity issues and volatility in their market price. Investors should consider these factors when evaluating the potential benefits of investing in a security token offering (STO). Additionally, they may not provide consistent returns over time due to their lack of maturity compared to traditional options like stocks and bonds. Therefore, it is important for investors considering STOs to understand these factors before making an investment decision.
High Volatility of Token Prices
One of the main challenges with token sales is that token prices often experience high volatility — making it difficult to value the token sale accurately. Volatility means that there can be huge fluctuations in the price of a given token in a very short period. These fluctuations can make it difficult for companies planning a sale to set an acceptable sale price, as they have no guarantee that their tokens will maintain any particular valuation after the sale is complete. Additionally, if tokens decrease greatly in value post-sale, investors may suffer significant losses, which can create negative sentiment and reduce trust in a given ICO or project. As such, volatility creates uncertainty for companies offering tokens and investors considering participating.
After raising $17.4 million in a successful token sale, EdenChain can move forward into the future of distributed ledger technology and digital asset management. The token sale was a massive success; the funds will help EdenChain reach its long-term goals and objectives. In this concluding section, we will discuss the success of the token sale, and why it was such a great move for EdenChain.
Summary of The Token Sale
In early 2017, Eden raised $116 million in three separate token sales. The primary purpose of the token sale was to expand Eden’s software development and marketing efforts. In addition, the cash raised by selling EDN tokens was used to fund the development of existing products, such as its decentralised donation system, and to develop new products such as a distributed computing platform.
The proceeds from the sale were also used for legal and administrative costs related to the token sale process; for marketing and community building activities related to Eden’s projects; and for operations, product development, customer acquisition, partnerships, recruiting new employees, legal advice and other related expenses.
The EDN tokens issued in the token sale provided individuals who participated with liquid access to services provided by Eden’s software solutions. Additionally, this gave them certain rights within the platform. Every month, 50% of the fees collected from events or competitions hosted on Eden would be used on buying back EDN tokens from the open market to convert these into treasury reserves that could be utilised as stipulated by their whitepaper strategy.
This token sale offered early adopters of Eden’s technology an opportunity to finance its growth while being financially rewarded for their return investment when coordinated with their product roadmap objectives. This approach is a great example of how blockchain technology can help start-ups accelerate innovation while rewarding investors completely transparently.
Benefits of The Token Sale
The token sale was conducted to raise money to continue the development of the Eden platform. One of the key benefits of a token sale is that it allows users to help fund and support the development of new platforms and technologies.
In addition, many organisations choose to conduct token sales as it allows users to gain long-term financial returns from a project they believe in. Successful token sales often mean that users and supporters have access to early-stage funding and a chance to gain increased value (through tokens) when the project outcome meets expectations or exceeds them.
The success of Eden’s platform depends on many factors, with user support being one of the most important contributors. To ensure this support continues, Eden offered tokens following its successful ICO event in October 2018. These tokens are now available on exchanges, allowing users and supporters worldwide access to financial opportunities related to Eden’s progress and success.
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