Echo, early stage investing in startups and tokens discussion

[bbc.reporter]

Similar to what was being speculated before. The Donald's procrypto administration will encourage a new form of ICO that will be more functioning along legal boundaries. I reckon one of these platforms is something similar to Echo.

It appears this will give us small minnows our chance to not be dumped on our faces with our mouths open heheheh. This will be our chance to be early on investing on certain projects.



In January, Echo said some VCs had tried to stop founders from offering better terms to the Echo community, or to block community sales altogether unless done as late-stage, high-valuation launches. That pushback likely didn't come from top-tier firms, but from those struggling to get into deals — as I reported at the time, and as several experts reiterated. "For a certain type of 'follower' VCs, crowdfunding platforms like Echo are absolutely an existential risk," said Alexander Pack, co-founder and managing partner at Hack VC. "The reason is that while tech investing overall is a positive-sum game, allocating capital is a zero-sum game." In other words, if projects carve out room for community raises, someone else gets cut.

While top VCs were broadly supportive of Echo earlier, they're now formalizing that support. In recent weeks, Paradigm, Coinbase Ventures, Hack VC, 1kx and dao5 have all created groups on the platform — marking a shift from quiet alignment to active participation.

These funds aren't using Echo to find deals — they're backing projects the usual way, then helping founders raise from the community through the platform. In most cases, that means offering a portion of their allocation to retail, or encouraging founders to run a separate community round alongside the VC raise.

Read in full https://www.theblock.co/post/354738/big-crypto-vcs-joining-cobie-echo

[bbc.reporter]

This is a very good news update from the team of Echo.

It appears they are beginning to release their new Sonar platform that help founders of projects in the cryptospace to organize their own public sales very much to the ICO of 2017. However similar to what the article mentioned, this will be done with compliance tools and I am quite certain there will be strict examinations and inspections on the founders organizing the presales.



Today, we are announcing Sonar – a new product by Echo that lets anyone host a public token sale.

We started Echo last year, with the goal to create more equal opportunity in private fundraising. Echo’s purpose was to let regular folks participate in seed-stage investing, particularly in crypto startups and tokens.

As we built Echo, we heard two major pieces of feedback from founders.

Our goal with Sonar is to get as close to ICO-era market dynamics as possible, while providing compliant tools for founders who don’t want to go to jail etc.

To investors: hopefully this gives more projects the capability to self-host token sales. Like the ICO days, find projects you’re interested in and monitor them. Good luck!

To founders: if you want to grow your community, use Echo. If you have a big community already, use Sonar. Sonar’s beta is available to use today. Just get in touch!

Read in full https://echodotxyz.substack.com/p/introducing-sonar

[wavessurfing]

has Echo  something to do with thedonalds' deregulation ?

[bbc.reporter]

has Echo  something to do with thedonalds' deregulation ?

No, Echo was created when uncle Gary was still the chairman of the SEC. However, I speculate that Echo's Sonar platform for public sales which will be very much similar to the ICOs of 2017 might have been created because the development team might be thinking that it is presently safe to organize public sales under the Donald's regulation.

Echo was created to issue and buy presales legally, Sonar's creation was encouraged by the Donald's deregulation.

[bbc.reporter]

I very much wish all of this has occurred on the bear market because from a tactic of investing your money, it would be better of there is less overvaluation and more undervaluation so when the bull market arrives, your investment has already increased on listing.

However, if the bull market continues until 2026, getting in a public presale or a private round might be profitable. But this might not be as profitable as 2017 ICO pump.



Ten crypto projects raised over $145 million this week, according to data from DefiLlama.

The funding rounds brings the total invested into the industry this year to almost $9.2 billion. That’s only $500 million short of the total raised in 2024, and the performance puts the industry well on track to reach the $18 billion forecast for the entirety of the year by PitchBook.

Read in full https://www.dlnews.com/articles/markets/crypto-startups-bag-usd102m-this-week/

[joniboini]

However, if the bull market continues until 2026, getting in a public presale or a private round might be profitable. But this might not be as profitable as 2017 ICO pump.

Other than VCs, can a private investor get involved? I remember in the past I followed a whale who participated in various private sales, but he said he didn't have the capital to compete with VCs. I don't think it's reasonable for a retail investor to participate in such a round either, unless the team explicitly allocates some tokens for them. The risk is high. Remind me of the top of the 2017 bull run, where everyone was buying ICOs but later got burned. It doesn't help that some media still repost the $1 million Bitcoin price prediction every now and then.

[bbc.reporter]

@joniboini. On Echo private rounds, small minnows similar to use can join for low amounts. There are private rounds that you can enter for as low as $100 hehehehe.

Echo's purpose is to have small investors enter similar terms as venture capitalists.

On Echo's new Sonar platform for public presales, anyone can join very much similar to ICOs of 2017. There was only 1 company that used Sonar presently. This is Tether for their new blockchain for stablecoin payments. Their mission is to compete against Tron.