Skip to main content

TODO -Fundraising for the Real Economy

· 4 min read
Catallactic
Catallactic Team
Adolfo Rodriguez
Catallactic

Introduction

The TradFi Fundraising model

Currently, either if you want to fund your project, or as a part of business functionalities, running your own token is a costly and uncertain mission, full of obstacles.

  • Not all are equal, some regions are prioritized
  • You need a clear definition of the company in discovery phase
  • You depend on the understanding of VCs
  • You spend more time funding that in your core business
  • You cannot mak your decisions

The crypto burden for entrepreneurs

Currently, either if you want to fund your project, or as a part of business functionalities, running your own token is a costly and uncertain mission, full of obstacles.

  • You have to assemble a multidisciplinary team.
  • You have to create and host a website, purchase, claim and vesting widgets.
  • You have to write a whitepaper, a litepaper and some pitch decks.
  • You need to design a roadmap.
  • You need to plan a tokenomics, token distribution and allocations.
  • You have to hire good developers to write some smart contracts and pass code audits.
  • You need to build and maintain a community, publish in press, perform AMAs, hire influencers and maintain an investors agenda.
  • You also need to get expert advisers, manipulate pools, deploy to exchanges, and perform manual vesting tasks.
  • And do not forget compliance with all national and local regulations.

And the list goes on and on.

You have to do tens of tasks with little information, lack of documentation, guidance or references. A whole IT department and a big bunch of funds are required just to launch your project. And, in this context, is difficult for interesting projects to maintain the focus in their core business and flourish.

Biased Projects

The fundraising mechanisms landscape

A number of fundraising mechanisms as launchaps tried to address these problems by providing solutions to some of these tasks.

LaunchpadDescriptionYearApplication Domain
ICOInitial Coin Offering2013-
DAICOInitial Coin Offering + DAO2018-
IEOInitial Exchange Offering2019-
IDOInitial DEX Offering2019NULL
ILOInitial Liquidity Offering2020-
SHOStrong Holder Offering-
ISPOInitial Stake Pool Offering-
ETOEquity Token OfferingEquity
IGOInitial Game OfferingGameFi
STOSecurity Token OfferingSecurity Tokens
INOInitial NFT OfferingNFT
FTOFair Token OfferingNo fundraising

The fundraising bias

However, all of them optimized their business rules for their own benefit, and for the investors safety, at the costs of entrepreneurs flexibility.

As a consequence of these entry barriers, crypto funding is not working on its own and, most of the crypto projects, are cloned of each other in some specific few domains. Industry evolves mainly by a diminishing number of equity-based VCs, which are financially biased, without underlying backing, and focused to endless infrastructure, gamefi, socialfi or metaverse. The self-funded projects panorama is not better and a large number of projects are directly memecoins, without other purpose that become rug-pulls or honeypots. The promising Crypto Industry looks cornered in a cul-de-sac and away from real world utility.

Biased Projects

The 2 faced economy

Decentralizing fundraising

Catallactic comes to the market to take all this burden out of the entrepreneurs and provide the tools to focus on their core business, guaranteing high quality and compliance with the requirements. Catallactic is an open source project that evolves because the requirements evolve.

Catallactic is born with the following goals:

  • Provide the know how to tokenize your commodity and create fully decentralized currencies capturing the value of your commodity.

  • Provide the know how to make decisions on networks, wallets, and infrastructure to guarantee your token is fully decentralized.

  • Provide the know how and tools to fund your project, including purchase, vesting, claim and other necessary widgets

  • Provide a meeting point for investors in commodity backed tokens.