Much of the current blockchain ecosystem has been built around traditional concepts. Therefore, it’s not surprising to see crowdfunding mechanisms tailored specifically for blockchain projects that resemble initial public offerings.
For example, in 2017, the blockchain space witnessed the rise of initial coin offerings, and while the ICO framework quickly attracted billions of dollars in venture capital, the approach was flawed, as any investor could participate by sending cryptocurrency to a project that had nothing to show for in terms of proof but a website (and sometimes a white paper). Unsurprisingly, many ICOs turned out to be fraudulent, resulting in a boom-and-bust period throughout 2018.