“Become your own bank” they said and then the crypto market experienced it’s worst crash ever. It’s clear crypto fundraising and subsequent roadmap plan execution needs a re-think. Afterall, most people will not tolerate an 80% pay cut. Most startups also cannot deliver with an 80% drop in funding. It’s time crypto funding adopts a bit more mainstream funding practices than just counting raised Bitcoins.
The treasury department and its managers are the prime forces responsible for the firm’s financial assets. Both the firm’s interests as well as those of their clients and investors have to be balanced. This job requires up to date certified knowledge and experience. Firms typically have multiple hierarchical treasury and risk management professionals that specialize in minutia of nature of businesses in their respective firms. Treasury departments of many airlines for example, use the oil commodity futures and option prices to hedge the cost price of fuel purchases. Conglomerates specializing in various business avenues have treasury managing teams for the disparate avenues. Most ICOs on the other hand didn’t convert their core capital raised in cryptcurrencies to traditional (more importantly stable) currencies.
This article is not meant to discourage usage of cryptocurrencies in fundraising; at all! Rather, as the world gets more informed about the possibilities in the fluctuating valuation of crypto, especially the tokens used on average for raising funds via smart contracts, like ETH, NEM, etc, treasury managers with experience in crypto (possibly none as of now) can make a valuable difference. The difference between -80% or +400% in funding for a project, will benefit the new but in no way the novice crypto industry.
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