Imagine you're investing in a startup, but with a safety net. A DYCO (Dynamic Coin Offering) is a new way for crypto projects to raise funds. Here's the twist:
USD-backed tokens: Investors buy tokens that are pegged to the US dollar for a set period (usually 16 months). So, even if the token price drops, it won't go lower than the USD value.
Buyback guarantee: A portion of the funds raised is set aside for buying back tokens if the project fails to deliver on its promises. This gives investors some protection.
Upside potential: While the downside is limited, the token price can still rise if the project does well.
Think of it as a way to invest in a crypto project with a bit less risk. However, it's important to remember DYCOs are a relatively new concept, so DYOR (Do Your Own Research) is still crucial!
