Disclosing disparaging snags of existing tier-oriented IDO models
Are you a regular or occasional IDO investor and holding/staking ABC launchpad’s tokens for the sake of getting allocation? You’re probably being played. Here’s how.
We have observed that various launchpads are offering different tiers to provide allocations but it seems that they have failed in satisfying investors’ demands. With the help of team members with substantial experience in IDO investing through a variety of launchpads, we have listed the following crucial problems:
1. Bureaucratic tier systems
“Launchpad A” is governed by the following 5 tier levels. Based on these minimum token holding/staking requirements, you will be provided allocations.
· Tier 1: 1000 tokens
· Tier 2: 2500 tokens
· Tier 3: 5000 tokens
· Tier 4: 10,000 tokens
· Tier 5: 25,000 tokens
Have you felt something wrong here? Let’s shed some light on the actual hidden issues.
1. You own 1000 tokens and you are qualified for tier 1. Now being the cheapest tier, there will be more qualified tier 1 investors reducing your maximum guaranteed allocation. Would you afford doubling your tokens to get a little more allocation?
2. Let’s say you could afford 2000 tokens. Will you be qualified for tier 2? NO. Then why on earth would you hold extra 1000 tokens where there is no absolute point of holding more tokens exceeding your current tier? Think about it.
2. Staking requirements
We have come across certain launchpads demanding tokens required for one tier to be staked for at least 30 days or 7–14 days prior to IDOs.
For example, “Launchpad B” is making you stake minimum tokens required for tier qualification for 30 days. Why would you stake your tokens valued in thousands for 30 days when there is no reward for staking? On the other hand, DeFi made staking rewards available almost everywhere though. Even cryptocurrency exchanges started providing attractive APYs on holding USDT today.
3. Threshold holding need
Because of seeing issues in tier structures, certain launchpads are coming with threshold holding requirements for guaranteed allocations.
For example, “Launchpad C” is providing you a guaranteed allocation for holding at least 1000 tokens. If you don’t afford that, you can’t get a promising allocation. Yes, that provided warless guaranteed allocations indeed. But why aren’t there any incentives to holders having tokens less than 1000? Come on, categorizing 1000 token holders in the FCFS batch is not the solution here.
4. Whitelisting lotteries
This has become obsolete but some of the launchpads are still adopting this method.
“Launchpad D” is organizing lotteries to select participants based on the number of seats available for each tier. Then tier owners will be asked to participate on a first come first serve basis. On the other hand, “Launchpad E” is opening whitelist for investors holding a minimum of 2000 tokens and then they whitelist 650 address to fill a maximum of 400 spots.
Why would you burn your gas even after holding a great number of tokens?
5. Centralized governance approach
Have you ever observed that even after holding hundreds of dollars, if not thousands, worth of tokens; your input does not matter? Or, you are not asked for feedback. Instead, they are launching new IDO structures without consulting the community. Do you think it’s fair? On top of that, such launchpads are restricting token holders who are raising voices against their flawless structures or mistakes.
Do you agree with the points mentioned above? Are you from one of those who don’t like such a vacuous tier system? Do you want to get allocation based on tokens you hold regardless of numbers? Don’t you want to be part of something where your input does matter?
Then BlockPad may be the solution you’re looking for. Stay connected for our disruptive tier-free guaranteed allocation structure.
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