The journey for blockchain protocols does not end after their Token Generation Event (TGE); in many ways this is just the beginning. While pre-TGE projects often bask in the glow of investor hype and support, post-TGE protocols often face significant hurdles when trying to raise additional funds by selling discounted tokens from their treasuries.
Fragmented fundraising environments and liquidity issues plague these projects, shifting their focus from development to fundraising. Introducing Vellos: a groundbreaking platform designed to tackle these challenges head-on.
The fragmented fundraising environment
For pre-TGE projects, the fundraising landscape is buzzing with venture capitalists, brokers and launch pads eager to invest in the next big thing. However, this enthusiasm often wanes once the TGE is completed. Post-TGE protocols exist in a fragmented environment where:
- Limited access for investors: Venture capital funds and funds specializing in pre-TGE investments may not extend their services to post-TGE projects, leaving a gap in support.
- Focus on new hype: Many investors are chasing the latest projects that are making waves and sidelining established protocols that still require capital to grow.
- Time-consuming financing hunts: Protocol founders are forced to spend valuable time looking for funding instead of promoting their platforms.
The lack of a centralized marketplace for post-TGE investments means there is no streamlined way for these projects to connect with suitable investors, hindering their progress and innovation.
The liquidity issue
Liquidity is another important challenge:
- Difficult to unload: Existing players in the discount token market mainly deal with pre-existing SAFTs or token warrants loaded with terms and conditions, making them difficult to offload.
- Large ticket sizes: Token deals with deep discounts are difficult to sell, limiting the pool of potential buyers.
- Concentration of tokens: When large quantities of a protocol’s tokens are owned by a single entity, selling pressure arises as tokens are acquired, potentially destabilizing the token’s value.
These issues contribute to a less dynamic marketplace, where both buyers and sellers face obstacles that hinder the overall health of the ecosystem.
Introducing Vellos: a new opportunity for post-TGE protocols
Vellos emerges as a solution to these persistent problems. It is a discount token marketplace tailored specifically for post-TGE projects, aiming to democratize access to discounted tokens and streamline the fundraising process.
What is Vellos?
Vellos is a platform where projects can offer their discounted treasury tokens directly to their loyal community and a broad spectrum of other users. By breaking down large raises into smaller, manageable ticket sizes, Vellos enables individual users to participate in funding rounds traditionally reserved for large players.
How Vellos tackles the challenges
- Uniform marketplace: Vellos creates a centralized environment where post-TGE projects and interested investors can connect effortlessly.
- Improved liquidity: By dealing with new investment vehicles instead of pre-existing ones, Vellos simplifies the process of buying and selling tokens at a discount.
- Dynamic NFTs: Vellos uses proprietary dynamic NFTs that act as keys to the underlying tokens. As tokens are acquired, NFT owners can claim them at will, adding a layer of flexibility and security.
Main features of Vellos
- Automated onboarding: The entire process is permission-free and automated, including wallet and token checks, reducing administrative burden.
- NFT resale marketplace: To provide liquidity to buyers, NFTs can be traded at any time, even before vesting begins, providing an exit strategy and market dynamics.
- Share revenue: Projects receive a portion of revenue from secondary NFT transactions, creating an ongoing revenue stream.
The benefits for protocols
By using Vellos, protocols can provide several benefits:
Direct Community financing
Protocols can raise money by offering discounted tokens directly to the community that has supported them since the beginning. This inclusivity strengthens community ties and diversifies the investor base.
Creation of ‘Micro-KOLs’
Every user who purchases discounted tokens becomes a ‘micro-Key Opinion Leader’. With skin in the game at a favorable price, these users are more likely to advocate for the project, expanding its reach and influence.
Controlled selling pressure
Protocols can set custom cliff and fortress conditions proportional to the discount offered, allowing them to manage selling pressure and maintain token stability.
Consistent revenue stream
By earning a share of revenue from secondary NFT transactions, protocols provide an additional, consistent revenue source that can fund continued development and operations.
Focus on core development
With fundraising streamlined through Vellos, the protocol’s founders can spend more time and resources building and improving their products, driving innovation and value creation.
Vellos Telegram App: Driving community growth
To expand and engage its community, Vellos recently launched a Telegram app that has quickly gained ground. Within the first two weeks since launch, the app amassed 240,000 active users, indicating strong interest and participation.
The app allows users to interact with various attractive features and earn points along the way:
Doge to earn: Players can participate in the game “Doge To Earn”, where they avoid enemies to collect points. The more successful they are in avoiding obstacles, the more points they can earn. Players can also use these points to upgrade their in-game features, increasing their point-earning potential over time.
Invitation: Users can invite their friends to join the app and earn significant points for each referral. Additionally, they benefit from passive points-earning opportunities, receiving 16% of the points earned by their direct friends and 8% of the points earned by indirect friends.
Task: Players can complete tasks such as following Vellos on various social networks (SNS), to earn extra points and rewards.
Looking beyond point farming, Vellos aims to use the Telegram app as a platform for education and community building, providing valuable content and resources that improve user experience and engagement over time.
Conclusion
Vellos is poised to disrupt the post-TGE fundraising landscape by addressing the fragmentation and liquidity issues that have long hampered protocols.
By creating a unified, automated and liquid marketplace for discounted tokens, Vellos enables projects to connect with a broader investor base, engage their communities and focus on what really matters: building exceptional products in the web3 space.
For more information:
Disclaimer: CryptoSlate is a strategic advisor to Vellos.