Launchpads for IDO sales are still a key source of fundraising for small-scale and even medium-range projects. In August, several platforms showed an inflow of new projects, keeping the pace of demand.
IDO sales through launchpads have not disappeared, despite new tools to immediately launch meme tokens. The IDO model proved viable for small-scale startups and even medium-range rounds, raising funds similar to seed rounds but also securing a wider distribution of tokens.
The IDO model now makes up above 76% of all public token sales, where the ICO direct sale shrank to 2.3%. Direct exchange sales make up the remaining public sales, often linked to decentralized markets with liquidity pools. IDO sales also hinge on the availability of a platform, which has pre-screened users, saving each projects funds on separate KYC.
Based on CryptoRank data, the DAO Maker platform was the most successful, raising $2.46M for the month of August.
IDO platforms often carry risky tokens, so their final returns are relatively small on average. Yet IDO tokens often achieve significant returns, especially for hot narratives. IDO sales also pre-screen projects for potential rug pulls.
Token sales are also shifting the balance of platforms. The most recent new tokens aim for a Gate.IO, MEXC and Bybit listing, displacing previously hot exchanges. As usual, an immediate Binance listing is almost impossible to achieve, save for the most high-profile, vetted projects.
IDO remains a viable alternative, but buying slows down in August
In August, the total IDO market slowed down along with the general correction of prices and a loss of enthusiasm. In total, the platforms still drew in 70 projects, raising $19.4M. For 2024, the IDO peak happened in January, when projects raised $213M. IDO sales remained above $100M for some of the months in 2024, only slowing down in July and August.
The monthly performance may hinge on particular projects, as well as the plans of a platform to host large-scale IDOs. Over time, platforms show a varied performance for their projects, hinging on overall exposure and liquidity. Binance remains the most reliable launchpad, due to the more easily provided listings.
IDO categories are also slightly different compared to VC-backed projects. The biggest categories are still user-facing GameFi and DeFi, along with a slim share of crypto social media. NFT were the least-active category in IDO sales.
Most of the public rounds were raised for projects on Ethereum, Solana, and Binance Smart Chain (BSC). Coinlist, Fjord Foundry and Tokensoft are the most liquid platforms in historical terms, raising more than $2.7B in total. Oxbull, Ape Terminal and Bounce had the biggest ROI achievements for the past two years, and PancakeSwap was a short-term winner due to its immediately available liquidity.
In September, a total of 16 IDO projects have set up dates to launch. The target fundraising ranges between $40K and $4.15M, depending on the project’s scope. IDO platforms target more varied investors, unlike early-stage ICO that mostly collected ETH and BTC for their treasuries. IDO-based projects may also move on to secure rounds of VC funding.
Funding rounds return to crypto startups
While IDOs show some outflows, VCs are back with funding rounds. In the past 30 days, new seed rounds reached $920M, an expansion of 69.4% month-on-month. More than 115 rounds were completed in the past month, as VCs singled out more projects compared to IDO launchpads.
Rootdata points to $758M in funding rounds for August, in a total of 115 deals. Overall, funding is more targeted in 2024, and coming from some of the bigger crypto insiders. Skeptics about VC funding see it as a tool to bring new projects and tokens, aiming to extract value from the market. VC funding does not necessarily increase available liquidity, and may in fact compete for inflows from investors.
The main focus of VC funding is still AI, spilling over into blockchain-based projects. Overall VC funding outside crypto is also focused on AI applications.
Among the top rounds in the past 30 days were Chaos Labs, raising $55M. Story Protocol now has access to $80M, while SaharaAI raised $37M. Eight additional private placements and funding rounds were closed since the start of September. Accounts on VC funding differ based on disclosure and project tracking, but overall crypto funding is still breaking away from its two-year lows since 2022.
Cryptopolitan reporting by Hristina Vasileva
Funding is trying to keep the pace, with deals and public sales still happening. IDO platforms remain viable, but took a step back in July and August, after competition from meme token activity.
Amazon’s journey from a modest online bookstore to the world’s largest online retailer is a narrative of innovation, disruption, and relentless ambition. Today, Amazon dominates the e-commerce landscape, setting the standard for online shopping with its vast product selection, lightning-fast delivery, and customer-centric approach. This article explores the evolution of Amazon’s leadership in online shopping, examining the key strategies, innovations, and challenges that have shaped its rise to the top.
The Early Days: From Bookstore to Everything Store
Amazon was founded by Jeff Bezos in 1994 as an online bookstore, capitalizing on the internet’s potential to reach a global audience. The decision to start with books was strategic; books were easy to ship, did not require much storage space, and had a universal appeal. From the beginning, Bezos envisioned Amazon as more than just a bookstore. His long-term goal was to create the “everything store,” a one-stop-shop where customers could find and purchase anything they needed online.
The initial success of Amazon was driven by its innovative approach to e-commerce. While traditional bookstores were limited by physical space, Amazon offered an extensive catalog of books that was virtually limitless. The company’s early focus on customer satisfaction, with features like customer reviews, personalized recommendations, and a user-friendly interface, set it apart from competitors.
By 1997, Amazon had gone public, and its rapid growth continued. The company began to expand its product offerings beyond books, gradually adding categories like music, electronics, and toys. This diversification was essential to Amazon’s strategy of becoming the go-to online retailer for all consumer needs. The company’s ability to offer a wide range of products, combined with its commitment to customer service, established it as a leader in online shopping.
Innovation and Expansion: The Prime Revolution
One of the most significant milestones in Amazon’s evolution was the launch of Amazon Prime in 2005. For an annual fee, Prime members received free two-day shipping on eligible purchases, a proposition that was revolutionary at the time. The introduction of Prime was a game-changer, transforming customer expectations and further solidifying Amazon’s leadership in online shopping.
Prime was more than just a shipping service; it was a strategic move to create customer loyalty. The subscription model incentivized customers to make Amazon their default shopping destination, as the more they used Prime, the more value they received. Over time, Amazon expanded the benefits of Prime to include streaming video and music, exclusive deals, and other perks, making it an indispensable service for millions of customers.
The success of Prime can be measured by its membership numbers, which have grown exponentially over the years. As of 2024, Amazon Prime has over 200 million members worldwide, a testament to the value it offers. The Prime membership model has been so successful that it has influenced the broader retail industry, with many competitors launching their own subscription services in response.
The Technology Edge: Fulfillment and Logistics
Amazon’s dominance in online shopping is not just a result of its vast product selection and customer-centric approach; it is also rooted in its technological prowess. The company has invested heavily in building a state-of-the-art fulfillment and logistics network, which has been a critical factor in its ability to offer fast, reliable delivery to customers.
Amazon’s fulfillment centers, which are strategically located around the world, are marvels of automation and efficiency. These facilities use advanced robotics, artificial intelligence, and data analytics to manage inventory, process orders, and ship products with unparalleled speed. The company’s ability to deliver products quickly and accurately is a key reason why customers choose Amazon over other online retailers.
In addition to its fulfillment centers, Amazon has developed a vast logistics network that includes its own fleet of planes, trucks, and delivery vehicles. The company’s investment in logistics has allowed it to reduce its reliance on third-party carriers like UPS and FedEx, giving it greater control over the delivery process. This vertical integration has enabled Amazon to offer services like same-day and next-day delivery, further enhancing its competitive advantage.
Moreover, Amazon’s logistics innovations extend beyond its own operations. The company’s delivery service partner (DSP) program has created opportunities for small businesses to operate delivery routes for Amazon, while its crowd-sourced delivery platform, Amazon Flex, allows individuals to deliver packages using their own vehicles. These initiatives have expanded Amazon’s delivery capacity and ensured that it can meet the growing demand for fast shipping.
Expanding the Ecosystem: Marketplace and AWS
Another key component of Amazon’s success in online shopping is its ability to create a comprehensive ecosystem that extends beyond retail. The Amazon Marketplace, launched in 2000, has been instrumental in expanding the company’s product selection and driving revenue growth. The Marketplace allows third-party sellers to list their products on Amazon’s platform, giving customers access to a wider range of goods and enabling Amazon to earn a commission on each sale.
The success of the Marketplace has been staggering. Today, over half of the products sold on Amazon are from third-party sellers, many of whom are small and medium-sized businesses. The Marketplace has also been a critical factor in Amazon’s global expansion, as it allows sellers from around the world to reach customers in different markets without the need for a physical presence.
In addition to the Marketplace, Amazon Web Services (AWS) has played a crucial role in the company’s growth and profitability. Launched in 2006, AWS offers cloud computing services to businesses, allowing them to store data, run applications, and scale their operations with ease. AWS has become the backbone of the internet, powering everything from startups to large enterprises. The revenue generated by AWS has given Amazon the financial flexibility to invest heavily in its retail operations, including its logistics network, Prime, and original content for Prime Video.
Challenges and Criticisms
While Amazon’s leadership in online shopping is undeniable, it has not been without challenges and criticisms. The company’s dominance has raised concerns about its impact on competition, with critics arguing that Amazon’s scale and market power give it an unfair advantage over smaller retailers. There have also been concerns about the treatment of workers in Amazon’s fulfillment centers, with reports of grueling conditions and low wages sparking public outcry and calls for better labor practices.
Amazon has also faced scrutiny over its impact on the environment. The company’s rapid delivery services, which require a vast logistics network, contribute to carbon emissions and environmental degradation. In response, Amazon has pledged to achieve net-zero carbon emissions by 2040 and has invested in renewable energy and electric vehicles to reduce its environmental footprint.
Despite these challenges, Amazon continues to grow and innovate, constantly pushing the boundaries of what is possible in online shopping. The company’s ability to adapt to changing consumer preferences, invest in technology, and create a seamless shopping experience has ensured its position as the leader in e-commerce.
The Future of Amazon in Online Shopping
As Amazon looks to the future, it faces both opportunities and challenges. The rise of new technologies like artificial intelligence, machine learning, and automation will continue to shape the e-commerce landscape, and Amazon is well-positioned to leverage these innovations to enhance its operations and customer experience.
The company is also likely to continue expanding its ecosystem, integrating its retail operations with other services like AWS, Prime Video, and Alexa. This integration will further entrench Amazon in the daily lives of consumers, making it even more difficult for competitors to challenge its dominance.
In conclusion, Amazon’s leadership in online shopping is the result of a relentless focus on customer satisfaction, innovation, and scale. From its early days as an online bookstore to its current status as a global e-commerce giant, Amazon has consistently pushed the boundaries of what is possible in retail. As the company continues to evolve, it will undoubtedly remain a dominant force in the world of online shopping, shaping the future of commerce for years to come.
