Solving post-TGE fundraising challenges: How Vellos is transforming token markets Solving post-TGE fundraising challenges: How Vellos is transforming token markets
Learn how Vellos is disrupting post-TGE fundraising by providing a unified, liquid marketplace for discounted tokens, empowering protocols and their communities alike.
4 min read
Updated: Sep. 26, 2024 at 2:04 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The journey for blockchain protocols doesn’t end after their Token Generation Event (TGE); in many ways, it’s just the beginning. While pre-TGE projects often bask in the glow of investor hype and support, post-TGE protocols frequently face significant hurdles when attempting to raise additional funds by selling discounted tokens from their treasury.
Fragmented fundraising environments and liquidity issues plague these projects, diverting their focus from development to fundraising. Enter Vellos—a groundbreaking platform designed to address these challenges head-on.
The Fragmented Fundraising Environment
For pre-TGE projects, the fundraising landscape is bustling with venture capitalists, brokers, and launchpads eager to invest in the next big thing. However, this enthusiasm often wanes once the TGE is complete. Post-TGE protocols find themselves in a fragmented environment where:
- Limited Access to Investors: VCs and funds that specialize in pre-TGE investments may not extend their services to post-TGE projects, leaving a gap in support.
- Focus on New Hype: Many investors chase after the newest projects generating buzz, sidelining established protocols that still require capital to grow.
- Time-Consuming Funding Hunts: Protocol founders are forced to spend valuable time seeking funding instead of advancing their platforms.
The lack of a centralized marketplace for post-TGE investments means there’s no streamlined way for these projects to connect with suitable investors, impeding their progress and innovation.
The Liquidity Conundrum
Liquidity poses another significant challenge:
- Difficult Offloading: Existing players in the discount token market deal primarily with pre-existing SAFTs or token warrants laden with conditions, making them hard to offload.
- Large Ticket Sizes: Big-ticket discount token deals are tough to sell, limiting the pool of potential buyers.
- Concentration of Tokens: When large amounts of a protocol’s tokens are held by a single entity, it creates selling pressure as tokens vest, potentially destabilizing the token’s value.
These issues contribute to a less dynamic market, where both buyers and sellers face obstacles that hinder the ecosystem’s overall health.
Introducing Vellos: A New Opportunity for Post-TGE Protocols
Vellos emerges as a solution to these persistent problems. It is a discount token marketplace specifically tailored 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 treasury tokens at a discount 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 big players.
How Vellos Addresses the Challenges
- Unified Marketplace: Vellos creates a centralized environment where post-TGE projects and interested investors can connect effortlessly.
- Enhanced Liquidity: By dealing with new investment vehicles rather than pre-existing ones, Vellos simplifies the process of buying and selling discounted tokens.
- Dynamic NFTs: Vellos employs proprietary dynamic NFTs that act as keys to the underlying tokens. As tokens vest, NFT owners can claim them at will, adding a layer of flexibility and security.
Key Features of Vellos
- Automated Onboarding: The entire process is permissionless and automated, including wallet and token checks, reducing administrative burdens.
- NFT Resale Marketplace: To introduce liquidity for buyers, NFTs can be traded at any time, even before vesting begins, providing an exit strategy and market dynamism.
- Revenue Sharing: Projects receive a portion of the revenue from secondary NFT trades, creating an ongoing revenue stream.
The Benefits for Protocols
By leveraging Vellos, protocols can unlock several advantages:
Direct Funding from the Community
Protocols can raise funds by offering discounted tokens directly to the community that has supported them from the start. This inclusivity strengthens community bonds and diversifies the investor base.
Creation of ‘Micro-KOLs’
Each 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, amplifying its reach and influence.
Controlled Selling Pressure
Protocols can set custom cliff and vesting terms proportional to the discount offered, allowing them to manage the selling pressure and maintain token stability.
Consistent Revenue Stream
By earning a share of the revenue from secondary NFT trades, protocols establish an additional, consistent income source that can fund ongoing development and operations.
Focus on Core Development
With fundraising streamlined through Vellos, protocol founders can dedicate more time and resources to building and enhancing their products, driving innovation and value creation.
Vellos Telegram App: Bootstrapping Community Growth
To expand and engage its community, Vellos recently launched a Telegram app that has quickly gained traction. Within the first two weeks since its launch, the app amassed 240,000 active users, signaling strong interest and participation.
The app allows users to interact with several engaging features, earning points along the way:
Doge To Earn: Players can participate in the “Doge To Earn” game, where they dodge enemies to accumulate points. The more successful they are at avoiding obstacles, the more points they can earn. Players can also use these points to upgrade their in-game features, enabling them to boost their point-earning potential over time.
Invite: Users can invite their friends to join the app, earning significant points for each referral. Additionally, they benefit from passive point-earning opportunities, receiving 16% of the points earned by their direct friends and 8% from indirect friends.
Task: Players can complete tasks, such as following Vellos on various social networks (SNS), to earn extra points and rewards.
Looking beyond just point farming, Vellos aims to utilize the Telegram app as a platform for education and community-building, providing valuable content and resources that enhance user experience and engagement over time.
Conclusion
Vellos stands poised to disrupt the post-TGE fundraising landscape by addressing the fragmentation and liquidity issues that have long hindered protocols.
By creating a unified, automated, and liquid marketplace for discounted tokens, Vellos empowers projects to connect with a broader investor base, engage their communities, and focus on what truly matters—building exceptional products in the web3 space.
To learn more:
Disclaimer: CryptoSlate is a strategic advisor for Vellos.
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Vellos
Vellos is a decentralized discount token marketplace designed specifically for post-Token Generation Event (TGE) protocols.
