TARS: A better Way to Invest in Web3!
Cryptocurrencies are swiftly gaining traction among venture capital (VC) funds and other institutional investors eager to profit from the technology and incorporate it into established financial procedures.
A venture capitalist (VC) is a private equity investor who makes investments in high-growth companies in exchange for a stake in the company. Sponsoring new initiatives or supporting small businesses that want to expand but don’t have access to the stock market are examples of this.
Venture capitalists (VCs) are regularly sought by new enterprises in order to scale and sell their tokens. Venture capitalists have a high failure rate due to the risks associated with investing in unproven firms (including DeFi Projects). Returns on investments that pay off, on the other hand, are substantial.
If a project wants to change the public’s perspective and link itself with qualities like loyalty, sincerity, and trust, which are attributes that define Key Opinion Leaders, including KOLs in marketing campaigns are tremendously advantageous.
As a result, KOL marketing is closely related to branding activities rather than sales goals. It is critical to find the correct figure to head your KOL promotional campaign if you want it to be successful.
Venture capitalists are ready to take a chance on such businesses since they stand to profit handsomely if they succeed. VCs, on the other hand, have a high failure rate due to the uncertainty that comes with investing in new and unproven businesses.
Investors most times commit to fund the creation of a new project and end up dubbed and robbed of their investment, this is where SAFT shows up.
The Introduction of SAFTs
SAFT, an acronym for Simple Agreement for Future Token, is an agreement made between an accredited Investor and a project owner. Basically, an investor agrees to fund an upcoming project in exchange for discounted tokens of the project, SAFT agreements aid in the raising of funds for new projects.
Initial Coin Offerings (ICOs), Initial Public Offerings (IPOs), and Initial Exchange Offerings (IEOs) all evolved into IDOs (IEOs). Each of these options had its own set of constraints, so IDOs were a remarkable solution in 2019. Initial Coin Offerings (ICOs), for example, sell tokens before they are listed on an exchange, allowing developers to collect assets for the pool.
In the case of IDOs, however, some of the money raised are placed in liquidity pools in order to create a liquid market before they are listed. They also solved the issue of the expense of paying an intermediary to list an ICO. The idea of launching and funding via a decentralized exchange was soon accepted by many projects.
With IEOs and ICOs, investors struggled with the fact that tokens were not made available for trading immediately. Scammers thrived because it was easy to create a vague project and rug pull, leaving investors with huge losses.
That being said, both developers and investors were pleased to accept the offer of immediate listing or listing after a vesting period via a decentralized exchange. With that new level of transparency and fairness, IDOs soon became the preferred option for projects. However, as lots of projects are being successfully launched through IDO, its strengths have unveiled some of its prevalent limitations.
These limitations were the building blocks for the introduction of SAFTs, as individuals decided to create a technology that could increase the security of investment on the blockchain. The problem, however, was that most of these agreements had no legal effects and the project team could still break the statements of the agreements, elope with the investments, or distribute the tokens at a later date than stated in the SAFTs. This is why we created the TARS Protocol!
TARS Protocol brings a solution to investment security for VCs, KOLs, influencers, and investors who are looking for safer platforms to invest in a decentralized world. The TARS Protocol is a protocol for automated deal execution, TARS was created to build an orderly financial system in a decentralized way.
The first of its kind, TARS resolves key issues of private sales/seed round investments without relying on trusted parties, but codes that mitigate the risk that is encountered by VCs, KOLs and other investors of cryptocurrency.
Features of TARS
TARS is a completely decentralized platform that anyone can utilize, and its eye-catching features which include:
- Smart SAFT
With TARS, investors can draft a Smart SAFT on the TARS platform, including all key terms of the SAFT, and invite the project team to a meeting with the counterparty. Investors can set fundraising time, commission, and the whitelist for the participants, etc. The project team won’t get any funds unless they send all tokens into the Smart SAFT.
TARS has a list of options in Smart SAFT, which users get to choose from. These options are:
To manage the SAFTs, Space acts like a folder. An influencer in the crypto space can easily start a project in TARS Space on Web3, which includes managing your Smart SAFTs and portfolios, sharing your projects/clients for investment, and creating IDO/Private Sale deals, among other things.
A claimer is a decentralized tool that allows project teams, or token buyers to store tokens in a non-custodial, time-released smart contract vault, where whitelisted users can claim tokens according to the token vesting schedule. Use Claimer to create a once-and-for-all token vesting schedule with few clicks, so that all investors can receive specified tokens fairly/timely and no more complaints.
- NFT receipt
As proof of purchase that saves your deal information when you buy tokens through Smart SAFT and contributes to TARS’ investor credential data network’s development, The world’s first Non-Fungible Tokenized Receipt on Web3, 1% of the investment will be invested on the NFT receipt.
As a result of their participation in the TARS ecosystem, holders of NFT Receipts will be eligible for a range of rewards, and NFT Receipt holders will gain multiple incentives for their engagement in the TARS ecosystem.
TARS is revolutionizing the blockchain space by providing a novel solution to traditional investment practices in the space; the Smart SAFT. With TARS, the code is law, the protocol is aiding investors, KOLs, and VCs in making safer investments via the TARS platform.