Berlin, Germany – Crypto companies are raising millions of dollars again, with many projects clamouring to get in front of excited investors. With Bitcoin (BTC) breaking new all-time highs, many believe that a new crypto bull run is about to begin. The Initial Coin Offerings (ICOs) of the past are back, and blockchain based platforms like Polkastarter offer new tools to help projects raise funds.
Based on the popular Polkadot blockchain, Polkastarter aims to enable fundraising through a mechanism called a “fixed swap pool”. This allows cryptocurrency projects to raise funds by setting up a swap pool based on a fixed purchase rate for tokens. Projects will make their tokens available to the pool at a set price in bitcoin, ether or other popular cryptocurrency.
Investors can then exchange these cryptocurrencies for the projects’ tokens at a stable price–as long as supplies last. The advantage is that these pools have no purchase price volatility, allowing investors and projects to know exactly how much they are buying and selling.
The Polkastarter MVP is slated to launch on December 15 2020, with several high-profile projects lined up to offer token sales through the platform, such as SpiderDAO and MahaDAO.
The benefits of having Fixed Swaps
Fixed swap pools allow token projects to list their crypto-assets for sale at a set price, and as long as there still is supply of the asset, any investor can purchase it at the same price as others. Having the fixed price swap mechanism saves investors money on network fees, ensures that all investors have the same entry price, and significantly reduces the token’s initial price volatility.
For token projects, it ensures a much fairer and more equitable distribution of their tokens; Whales and other big players will have less incentive to pay big sums of money on gas fees if they know that they will not have a price advantage over others.
Polkastarter’s latest investment by Digital Finance Group (DFG) has shown that even institutional investors are looking closely at this space. At the same time Vendetta Capital has always been with us during our development process with other VC’s.
Partnership with Moonbeam for greater interoperability
Polkastarter recently announced a major partnership with Moonbeam, a blockchain company bridging the gap between Polkadot and Ethereum. Moonbeam allows for fast redeployment of Solidity (Ethereum’ smart contract language) code onto Polkadot environments.
The partnership will not only allow Polkastarter to be Ethereum compatible, but it will also allow for both Polkadot and Ethereum assets to be used in fixed swap pool fundraisers.
Feature Rich Fixed Token Swap Pools
Fixed swap pools can also provide additional tools to fundraising teams, such as the ability to whitelist, password protect, and KYC/AML investors prior to gaining access to their token sale. There are many reasons why projects would wish to filter or qualify their investors, for example due to compliance, or to address excess demand.
These features are set by fundraising projects and can help to ensure that token sales are safe and equitable. With recent developments in the European Union regarding know-your-customer laws in the 5th AML Directive, crypto companies are now seeking platforms like Polkastarter that can enable compliant token sales.
More to come
Polkastarter has announced that its first production ready fixed swap pools are going live on December 15, 2020, with several projects already lined up for their fundraises.
Social Links
Medium: https://medium.com/@polkastarter
Telegram: https://t.me/polkastarter
Twitter: https://twitter.com/polkastarter
Media contact
Company: Polkastarter
Name: Daniel Stockhaus
Support E-mail: support@polkastarter.com
Website: https://www.polkastarter.com/
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