Even in these uncertain times, the crypto market has been growing steadily, presenting new opportunities for investors, and it seems token sales are coming back in 2020.
However, a token sale is not the only way to make (potential) money in today’s crypto market.
With the booming DeFi market, digital asset projects are launching an increasing number of decentralized alternatives to traditional finance products.
And, in this article, we take a brief look at the crypto industry’s hottest opportunities right now.
Token Sales Are Coming Back
While Initial Coin Offerings (ICOs) presented new, innovative ways for crypto projects to raise funds from investors, they have earned a bad reputation for themselves.
Due to a lack of regulation at the time, it was too easy to issue and offer a new coin to investors in a token sale during 2017’s bull market.
Many have exploited this opportunity, launching ICOs on fraudulent projects and mediocre concepts.
Fortunately, genuine crypto projects survived 2017’s ICO boom, and many of them generated excellent ROI for their investors while contributing to the digital asset market’s development.
Initial Exchange Offerings (IEOs) have become increasingly popular in the industry for a short time, presenting a safer alternative for raising funds.
And now, after the golden age of IEOs has come to a slowdown, amid recent bull market conditions and the growth of the DeFi market, a token sale boom is coming back.
DeFi on the Rise
Decentralized finance or DeFi applications offer alternatives to traditional finance solutions, such as borrowing and lending, tokenized assets, insurance, and alternative saving products.
While DeFi has been with us since 2017, the decentralized finance industry represented a very small share of the crypto market since the end of 2019.
However, the DeFi market has grown significantly in 2020, reaching over $1 billion by February.
While the market crash of March 2020 did indeed impact DeFi markets, everything seems back on track.
Since June, decentralized finance solutions have exponentially increased their market share, from June 5’s $1.14 billion to $6.77 billion by August 21.
DeFi’s Best-Performers: Compound, ThorChain, ChainLink
It’s important to mention some top projects of the DeFi space that have previously launched successful token sales and generated a good ROI for contributors.
One of them is Compound, a decentralized interest rate protocol, which has been ranking as the industry’s fourth-largest DeFi solution.
Since the project started distributing its COMP governance tokens in mid-June, the cryptocurrency has since increased its price by over 2.5 times.
Another great DeFi performer is ThorChain, a decentralized liquidity network that allows users to swap tokens across blockchains.
After a successful Initial DEX Offering (IDO) in July 2019, the project’s RUNE token’s value has grown from the initial $0.015 to today’s $0.85.
It would be a mistake to leave out ChainLink from this list, a decentralized oracle network, which has been powering the majority of the DeFi protocols.
ChainLink is both a survivor of 2017’s ICO boom and a crypto project that features one of the most successful tokens among DeFi solutions.
With a market cap of over $5 billion, the project’s LINK token ranks at the 6th position among cryptocurrencies, while featuring an all-time ROI of nearly 9,300%.
Hold AAB, Grow With AAX
The institutional-grade digital asset exchange platform AAX is among the crypto projects hosting token sales recently.
Launching in mid-April 2020, AAX’s native AAB token powers the cryptocurrency exchange with new features, such as trading fee discounts, access to premium AAX products and services, and incentives via daily AAB burns.
However, the greatest benefit for AAB investors is the opportunity to grow with AAX.
And AAX has been growing at a steady rate in 2020, recording a 400% increase for spot trading and a record 4,500% surge in futures trading volumes in recent months.
Funded by the futures earned by AAX, the native AAB exchange token reflects the platform’s growth.
As a result, AAB has experienced an over 220% increase between July 21 and August 21, with the surge expected to continue with AAX’s growth.