SHO (Strong Holder Offering)

November 21, 2023 - Around 2 mins mins to read

Understanding the Concept of SHO (Strong Holder Offering)

A Strong Holder Offering (SHO) is a fundraising strategy that targets eligible investors based on their on-chain activities and other proprietary data sets. The primary goal of a Strong Holder Offering is to attract funding from individuals who already possess a specific cryptocurrency. DAO Maker, a platform specializing in launching new projects in the cryptocurrency industry, commonly utilizes this fundraising model.

SHOs are typically open to individuals who have held a competitor coin for a minimum of six months or to active liquidity providers on a decentralized exchange (DEX). Additionally, an SHO may target individuals with a transactional volume exceeding $5 million in the past month.

This framework not only benefits the crypto project itself but also rewards investors who have “strong hands,” indicating their ability to hold onto a coin for extended periods. DAO Maker incentivizes these investors by selecting them as participants in an SHO and providing them with additional protection.

However, participants in the crowdfunding model also have the option to seek refunds if they wish to withdraw their support. Since DAO Maker’s update on the offering, SHO has been renamed to refundable Strong Holder Offering (rSHO). It is important to note that the right to a refund expires if the value of the token issued by a project during the initial Strong Holder Offering increases and remains at 400% for 120 days.

Furthermore, DAO Maker subjects a project to a series of tests before allowing them to conduct an SHO. This ensures that only a select few startups can offer this service within a 12-month period. As a result, only projects that can demonstrate their ability to adhere to their roadmap are encouraged to apply, effectively deterring scammers and low-quality startups.