Last updated on November 16th, 2022 at 11:58 am
DeFi is not short on ideas; rather, it is short on funding. There have been challenges with projects that simply don’t measure up, and better fundraising channels are required.
Platforms that facilitate project funding are becoming increasingly important. Each ecosystem has its own set of fundraising mechanisms. Vent Finance, an all-in-one platform for cryptocurrency projects on the Cardano and Polygon networks, is one such mechanism.
Vent Finance is the first multichain community crowdfunding platform that allows investors to participate in legal token sales of reliable blockchain projects. It also opens up new fundraising opportunities for everyone involved in the DeFi industry.
This article explores Vent Finance in detail and explains how the platform helps investors participate safely in early token sales.
An Initial Coin Offering (ICO) combines an Initial Public Offering (IPO) with online crowdsourcing for brand-new cryptocurrencies. The goal is to purchase a first-generation cryptocurrency at a low price and possibly profit in the future if the coin increases in value. Also, IDOs (also known as Initial DEX Offerings) are now available.
When a token is launched on a permissionless and decentralized liquidity exchange, the exchange organizes a fundraising event for the project. These initiatives are known as IDOs.
You can avoid lock-up periods for the ICO and the pre-mine issuance mechanism that benefits founders over community members by instantly listing coins on the decentralized exchange. IDOs will replace ICOs because they offer better and faster liquidity at all price levels.
Although there is still lax regulation of both ICOs and IDOs, buying an early-stage crypto asset can be challenging.
A lot of people are hesitant to participate in token sales. It’s hardly surprising that crypto customers are becoming more cautious about what they buy, given the growth in fake tokens and scams tied to the cryptocurrency industry. The Vent Launchpad seeks to address this by assuming responsibility for conducting due diligence on any project requesting to launch through them. It ensures that project backers’ money is kept secure and that it is only disbursed after the project has proven its worth.
What is the Vent Launchpad?
The Vent Launchpad provides safer crowdfunding for Web3 applications by enabling users to access the core advantages of DeFi with improved security, increased usability, round-the-clock assistance, and token purchase protection.
Vent Finance was founded in 2021 by four entrepreneurs dissatisfied with the difficulty of community token sales.
Customers on a traditional launchpad typically had to invest tens of thousands of dollars in tokens to obtain shares in early-stage businesses they were passionate about, while project visionaries lacked the ecosystem and support they required for a successful launch.
The Vent team created the Vent Launchpad to address this issue and streamline the procedure for projects and their communities. The Vent team is also developing several new technologies that will challenge and alter how money is handled.
Vent is built on the four tenets of simplicity, security, openness, and inclusion. Another exciting feature of Vent is that it allows users to contact projects on other chains using Binance, Ethereum, Cardano, and Polygon blockchains.
How Vent Finance Ensures Safe Participation in Early Token Sales
Detailed Vetting Process
Each project on Vent is evaluated to ensure it benefits its users.
Vent only wants to release high-quality projects that will benefit society in the long run. They speak with the project founders and examine the business strategy to determine whether a startup is based on short-term hype or a project that will provide long-term value to its users.
Most projects were usually supported by most crowdfunding platforms, which hardly examined their models or smart contracts. Due to the surge in smart contract fraud, Vent’s experts examine each project’s smart contract. This protects its users from falling victim to scams. Vent Finance conducts a thorough quality check before listing a project, examining the project’s fundamental technology, relevancy, tech integration, and tokenomics. This process is entirely transparent and open to the public.
Wise Use of Investors’ Funds
When people fund startups using Vent’s platform, not all of the money goes to the startups. Instead, they use a milestone-based method to prevent money from being wasted. Vent accomplishes this through their “milestone” system. Money is held in escrow until the startup reaches predetermined milestones. The IDO launchpad only distributes the funds after the project has achieved the milestones.
Vent provides a 100% token-back guarantee if these targets are not met. This ensures your money is never wasted supporting a project stuck in the development process. A BGA (base guaranteed allocation) has been created by Vent so that all users with an average holding score of at least 5000 $VENT can participate. This average holding score is calculated by averaging a user’s holdings at 7 points over seven days, then dividing that figure by 7.
What happens if a startup launches on Vent regardless of whether it meets Vent’s requirements? In that case, users will receive immediate reimbursement for every dollar invested in the project.
Vent is open and honest about the data they have on each startup. They also allow for dialogue and comments on each project’s profile. This ensures that people get a fresh perspective on a project they want to support. Vent also frequently releases project updates to help customers understand the long-term value of the coin they are purchasing. This continues even after the project is launched.
Account Safety (KYC, GDPR, and AML Compliance)
Vent Finance complies with anti-money laundering and anti-terrorist financing laws and regulations for all projects. As a result, the IDO launchpad requires KYC verification, which includes ID confirmation, residency proof, and passing an AML check when you create an account. The General Data Protection Regulation (GDPR), which Vent complies with, guarantees that all of your data is handled safely and out of the reach of scammers.
2FA and 24/7 Support
You may set up 2FA (2-factor authentication) on the Vent Finance platform to make sure you’re the one logging into your account. This significantly improves your security, but if your account is compromised, all is not lost. Vent users have access to 24/7 support, which makes it easy to restore your account and stop any fraudulent activity. You can visit their support centre to find answers to some of the most frequently asked questions about the IDO launchpad.
What to Know Before Participating in an Early Token Sale
Understand the process
People from specific countries are sometimes barred from participating in token sales. This is due to legal concerns in some regions regarding cryptocurrencies and tokens. A professional investor is defined differently in each jurisdiction.
Complete the Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures
If you fill out these forms online, inquire about the issuer’s data protection and cybersecurity procedures. Evaluations of bugs are frequently included in bounty programs. If you’re still not convinced, don’t participate at all.
Know the restrictions on what you can buy
In some nations, capital limitations may apply to cryptocurrencies. The tokens could cause tax problems, especially regarding capital gains and associated value-added taxes.
Before participating in a token sale, you should consult with a specialist regarding your specific situation. However, keep in mind that tax laws and capital regulations can change suddenly and without prior notice.
Presence of a lock-up or vesting period
Most token sales contain lock-up periods and vesting schedules for the issuer and pre-sale buyers. They should be compared to the project’s road map to see if they provide the right incentives to the right people at the right time.
Tokens from buyers may also be kept in escrow until AML/KYC requirements are satisfied. These terms should be made clear in the provided documentation.
Check the security measures adopted
Several attacks, including DDoS (distributed denial of service) attacks, have been made against token sales. Buyers should consider the security measures implemented by the issuer to protect the integrity of the token sale (including any personal information associated with it), the token sale proceeds, and the tokens themselves.
Take precautions to avoid fraud, hacking, and other issues
Hacks, fraud, and scams have occurred in different token sales, including Ethereum addresses being updated on issuer websites. Less-skilled attackers would just post their wallet address on social media and lie that it is the address so that investors can send money to them.
It is, therefore, essential to take measures to protect yourself. You can do this by:
- Visiting legitimate, non-social media threads for information on token sales.
- Using social media wisely. Although social media may offer helpful information on token sales, don’t rely on it. Do not use any smart contract addresses shared on social media, which is especially important when learning how to pay money.
- Consistently monitoring reliable channels for official announcements.
- Educating yourself on the token issuer’s security measures and only using trusted exchanges and wallets
- Vent Finance will offer new investment opportunities and make DeFi accessible to everyone. The platform seeks to redefine decentralized launchpads by combining simplicity, security, and transparency. It also wishes to enhance the reputation and development of the DeFi space as well as the entire crypto ecosystem.
- The platform’s vetting procedure ensures that fake and subpar projects never see the light of day. The Vent team is dedicated to building the economy of the future and changing people’s perceptions of what a decentralized launchpad should be.
Disclaimer: This article is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence.
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