By Josiah Wilmoth
Blockchain startup CanYa raised $12 million AUD through its fourth-quarter token generation event (TGE), making it the second most successful TGE launched by an Australian company.
3 Secrets Behind CanYa’s Successful TGE
As the hype around TGEs has begun to give way to a robust, mainstream fundraising ecosystem, token buyers have and will continue to become more discerning in what projects they choose to support, particularly as the number and quality of TGEs continue to increase.
In fact, data indicates that less than one-third of TGEs launched in the fourth quarter reached their funding targets, down from fifty-seven percent in June.
Despite this competitive environment, CanYa managed to launch a wildly-successful TGE because it produced an innovative project, adhered strictly to applicable regulations, and leveraged a thoughtful token distribution model.
An Innovative Product
Increased competition for TGE capital means that developers must create quality products if they hope to meet their fundraising targets.
As explained in Strategic Coin’s token launch research report, CanYa is a peer-to-peer (P2P) platform built to disrupt the gig economy. Although freelance work has become exceedingly commonplace in the digital age, the industry is largely controlled by centralized intermediaries who exact hefty fees — often as large as 30 percent — from independent contractors.
CanYa aims to leverage blockchain technology and smart contracts to reduce these fees to as low as one percent — depending on their desired payment medium — providing contractors with either an immediate income boost or the opportunity to scale back the number of hours they work to receive the same payout. The platform will also provide both users and contractors with the ability to send and receive payments in a variety of currencies, including AUD, BTC, ETH, and CAN.
“By bringing together service providers such as gardeners and electricians with those in need of their skills and giving them a single global currency to use, we are making it easy for people to adopt cryptocurrency and utilize it within their daily lives,” said John-Paul Thorbjornsen, co-founder and CEO of CanYa.
Disrupting the freelance economy is an ambitious goal, but it is one that CanYa appears well-equipped to achieve, particularly since the startup used a portion of its TGE funds to purchase a majority stake in Bountysource, an open-source platform with 46,000 registered developers.
Another key factor that contributed to the success of CanYa’s TGE is its commitment to legal compliance. As TGE fundraising has ramped up over the past year, government regulators have viewed the practice with increased scrutiny and have not been hesitant to intervene against crowdsales that violated securities laws.
Recognizing this, CanYa trod carefully when structuring its token launch, and it endured the rigorous task of auditing every contribution and performing KYC verification on supporters who contributed more than 10 ETH to ensure that contributions from prohibited individuals (e.g. US residents who were not accredited investors) were refunded.
In the current climate, there is nothing more likely to derail a TGE than failing to abide by applicable regulations, and CanYa’s commitment to legal compliance demonstrated to investors that it took this area of its token launch seriously.
A Thoughtful Token Distribution Model
Finally, the CanYa TGE employed a thoughtful token distribution model that incentivized supporter engagement and demonstrated a long-term commitment on the part of the development team.
One-fifth of the total supply of CAN tokens were allocated to a reward pool, and community members could earn tokens from this pool in a variety of ways, from creating CanYa-focused content to translating official CanYa communications into other languages.
Token buyers could also receive rewards for referring other token buyers, and one user referred almost 100 other contributors. These incentives not only increased community engagement but also helped market the TGE to many contributors the project would not have otherwise reached.
Importantly, the token distribution is also structured so that the development team and advisors receive their tokens last, following predefined vesting periods as long as one year. This lock-up period helps assure contributors that both the team and its advisors are committed to the project’s long-term success rather than simply short-term profits.
For these reasons, along with the strength of its development team, Strategic Coin awarded the CanYa TGE with a viability score of 3.7 out of 5.0, and investors rewarded the startup with $12 million AUD to bootstrap its ambitious project.
Disclosure: CanYa is a featured client of Strategic Coin.
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