Feel secure in your investment with a unique, market-first pool protection pot.
Although KYC and audits fill a void in the security of an initial investment, it is not enough to dissuade a small amount of project owners from still performing an exit scam. We believe having pool protection fills this gap.
Current structure of a presale
A presale raises the initial liquidity and in most cases, the initial marketing funds for a project. The percentage split of the raised funds is determined by the project owners.
For example, a project could choose 60% of raised funds to go to liquidity and therefore the project owners would receive 40%. In the case of 100 BNB raised, the liquidity would have 60 BNB and the owners 40 BNB.
In the current structure of a presale, should an exit scam occur within the first few days or hours then investors could lose all of their initial investment, sometimes before they even had a chance to sell. A KYC report and an audit is not always enough of a deterrent for a project with an intent to deceive its investors.
How does this change with pool protection?
Not much! A presale still has the same purpose: raise initial liquidity and provide initial marketing funds for a project. However, the project owner is able to choose what percentage of funds they receive immediately and what funds they receive after 7 days.
For example, a project could choose 60% of raised funds to go to liquidity, 30% to the pool protection and therefore the project owners would receive 10% immediately and 30% after 7 days.
What happens in those 7 days?
Within the first 7 days after launch, a project can be flagged by the platform for any of the following reasons:
Owner sells a large amount of unlocked tokens to drain liquidity
Owner removes any liquidity
Owner raises tax on the contract without notice to deceive investors
Owner prevents selling tokens by any means
Owner pauses transactions for an extended period of time
If a project is flagged then the project owner is unable to claim back the pool protection pot and it is instead opened to investors. The amount able to be claimed back is based on your initial contribution.
For example, if the protection pot is 40% and you initially invested 1 BNB then you would be able to claim back 0.4 BNB in the event of the project being flagged.
Please note: inactive/deleted chat groups or marketing not occurring as the project owners promised is not classified as a reason to release the protection pot. It is only released in the cases where investors are unable to access their funds.
What are the benefits?
Investors should have a level of increased trust with the project. It is unlikely that a project with a protection pot would want to forego that payment and if they do, you are compensated for your loss.
We feel that there will be a strong correlation between a higher percentage held in a protection pot and a decreased amount of exit scams. However, it is always extremely important do your own research and stay cautious with your investments.
Gaining trust from early investors is a huge part of a successful launch. A large reason for quick dumps is that investors are frightened that the project will pull the rug at any time. Gaining the investors initial trust should hopefully allow a more organic growth and allow the project to blossom.