Looking at the markets and the various tokens available, it is important to consider what these tokens have in common. Whether it is Ethereum, NEO, or Tezos, it is easy to see that they have ecosystems, and are now widely used globally, these cryptocurrencies demonstrate an example of a successful ICO to launch the token. Each of these is a case study of how it is possible to grow from an unknown project into a cryptocurrency with a huge capitalisation within a few years – the perfect example of what crypto-investors and talented start-ups dream of.
Looking at the numbers: Ethereum was launched, through funds raised via a crowdfunding ICO campaign. In 2015, the founders raised $18,439,086 this was the foundation of a start-up now widely known and sought after.
Does this mean that investing in any cryptocurrency is a risk not worth taking? Not at all. In fact, there are many worthy and interesting projects in which you can invest with lower risk. The Pledged Capital platform, where you are able to invest in start-ups, that have pre-set milestone-based payouts (based on agreed targets) provides investors with a safety net ensuring the risk of losing all of your investment is now far lower than ever before.
Pledged Capital: Safe for Investors & Powerful for Projects
Pledged Capital is a decentralized fundraising platform combining traditional crowdfunding with blockchain technology giving investors transparency, oversight and governance over funding decisions.
The team’s objective is to increase the security of investments in both the traditional and cryptocurrency spaces, through their unique milestone-based payout mechanism. This mechanism releases agreed-upon payouts when milestones are met, helping to ensure project accountability and safer investments for investors and VCs.
This solution eliminates the risk of a complete failure of investment on the one hand and introduces much needed independent systematization into the ICO process on the other.
How does Pledged Capital work for investors?
To start investing, an investor follows the link to the project app where, after registering an account, investors are able learn about the offer, the roadmap as well as the reputation of the project. In addition, the investor can discuss the project with fellow investors and experts in Pledged Capital’s embedded community, on social networks and communication channels.
When an investor decides to invest, they buy the Pledged Capital platform’s native token – $GAIN. After purchasing GAIN for a specific investment, the investor is entitled to exclusive information about the status of the start-up in which he has invested. This information is verified by the investment community and Pledged Capital’s internal security team. If the start-up has fulfilled all agreed milestones on time, the smart contract confirms the transaction to pay the funds to the project for the next phase, if the milestones have not been met, investors have the opportunity to vote to allow for more time to reach the milestone or pull the plug on the project.
How does Pledged Capital work for startups?
After registering an account with Pledged Capital, start-up project representatives can create, publish and promote their projects on the platform. The project team publishes detailed information about the project, including a White Paper, roadmap, available resources, funding, team members’ portfolios, etc. The more information is available, the better the chances of being promoted as a credible project, and getting the investment required.
Along with the project information, the team develops a detailed project milestone map in advance, in which they determine the amounts required and available funding levels. Once all necessary information has been provided and the project has been confirmed for inclusion on the GAIN start-up list, the creator can launch the project publicly or privately. At that point, the project becomes available for funding on Pledged Capital’s website. This allows Pledged Capital start-up projects to reach a broader market and find serious investors for their projects. Investors, in turn, will be protected from unscrupulous start-up projects not only by Pledged Capital’s verification system but also by the phased transfer of funds after each milestone is.
Features of the $GAIN smart contract
As noted before, the investment process at Pledged Capital is managed through the GAIN token and smart contracts built on the blockchain. Within the platform, the smart contract is divided into 2 levels – frontend and backend.
● The frontend level, is the ability for start-up projects to create their value proposition via a user-friendly web-based constructor interface allowing the establishment of project milestones, funding requests and other information on the project.
● The backend level reflects the independent process of executing a smart contract, according to the terms and conditions focused on the information that was entered by representatives of start-up projects at the frontend level.
Thus, the GAIN smart contract ecosystem combines not only the benefits of a simple setup but also the guaranteed security provided by the Pledged Capital technology. No funds would be released, should the set conditions and milestones not been met.
Here is a breakdown of just how east it is to buy $GAIN tokens.
Pledged Capital Yield-Farming
Due to the nature of the Pledged Capital milestone based payout system, a number of the investors’ funds are waiting for project conditions to be met (sleeping funds), the Pledged Capital team has established the project that these funds could be used better, for the benefit of all, and therefore while funds are held in GAIN waiting to be paid out, they are also invested in stable coin yield protocols.
The yield protocols allow investors to invest GAIN in a liquidity pool backed by smart contracts, while earning interest as the GAIN token appreciates. Yields are calculated based on the annual percentage yield (APY), which is the rate of return accrued during the year on a given investment. Of the APY return for each project, 80% of the funds are transferred to the investor, 10% of the funds are paid to the project and 10% are paid to Pledged Capital as a platform commission.
A single solution for investors and startup projects
By establishing the ICO process, with smart contracts, Pledged Capital makes the crowdfunding process attractive for investors and start-ups alike, as this system, provides a level of accountability and safety for all involved.
In summary, Pledged Capital creates a comprehensive investment platform that:
● Provides transparency and security for investors;
● Provides accountability from projects as they have milestones to meet to secure funding
● Creates new tools for financing start-ups;
● Enables start-ups to find serious investors;
● Provides passive income for all GAIN native token holders;
● Raises the level of trust in the global investment market.
Trust forms the basis of any human relationship, and this level of trust is immutable on blockchain.. By striving to become the go-to standard for safe investment and creating opportunities for talented ideas to become more than just an idea, Pledged Capital creates an atmosphere of trust, transparency and accountability, where it is most needed.
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