Thread by @Sabo_lendexe

(0) As a Leader & professional builder in #web3 I will explain you common strategies in #DeFi with advantages and disadvantages and the most hot topic inside the #IOTA community and needed education is about Pre-Sale vs Fair-Launch and why we have made our decision.
Let's go 👇

(1)
- What is Pre Sale?
Advantages & Disadvantages
- What is Fair-Launch ?
Advantages & Disadvantages
- Why has LendeXe chosen Pre-Sale instead of Fair-Launch
- Is it worth it to have taken this path despite the FUD, censorship, misinformation?
- Summary

(2)Token Pre-Sales are considered the most popular crowdfunding technique in the crypto space. In some cases, presales may occur in rounds. In each round, a select group of investors is allowed to participate. Afterward, the network sells to the public in the final round.

(3) Advantages:
+ You can get liquidity as a new StartUp with new ideas and hire Team members and pay all costs
+ You can pitch venture capital and arrange deals by exchanging tokens for tokens
+ You can build and bind a community
+ You can invest in Marketing
+ Mentor/Ambassador

(4) Disadvantages
With VC
- You may lose control over company and long-term goals
- Dumps are to be expected if vesting is incorrect.
- Need a lot of money for VERY GOOD lawyer companies for WEB3
Without VC
- Wrong vesting times for individuals CAN also lead to dumps
- Reputation

(5) Fair-Launch was invented (2020) by the yearn.finance (*) project & tried to be a better model for token distribution than a Pre-Sale model. So it's the exact other way around, where the tokens are then sold on one day via a launchpad at one price or over a DEX.

(6) Advantages:
+ The name Fair-Launch helps for marketing
+ attract new DeFi users easier
+ A model for Builder who are also a Venture Capital
+ Try to solve old "problems".
+ No token dump by partners because no other VCs are involved.
+ No Valuation (Unknown potential)

(7) Advantages:
- Could not solve the old problem, even made it worse.
- There are no VC dumps, but there are whales and with high concentration they are more dangerous
- Regulation focuses on these models (AML)
- Team with high liquidity has generated nontransparent amount token

(8) Why has LendeXe chosen Pre-Sale instead of Fair-Launch is maybe easier, I would like to explain with the help of example projects. A good (negative) example is Pangolin and Apeswap, both had a fair launch. If you look at the price development, you will understand, that the..

(9) Fair-Launch exacerbates the problem, there are too many reasons why this doesn't work, one of which is the fact that behind the scenes deals are made that are not visibile to the "community", causing Whales who through pre-pool-access and insider-knowledge and ...

(10) A continuous loop of: 'Mine-Sell-Withdraw'. You can see how this might not end well. I learned in 2020 that projects like to do THAT so you don't define "team" tokens and so can deceive TAX, because you participate with the assets and mint tokens and no team distribution BUT

(11) This is tax evasion, which is what tax offices specialize in. To feel safe, people anonymize themselves. For ethical and possibly common sense reasons, we decided AGAINST this strategy. Try to find a legal base, if you cannot, than look for a new business case inside #DeFi

(12) let's take a scientific approach: there is a problem, we try to solve it with an "idea", it doesn't work, we abandon it, so why continue with the "fair launch" concept? It makes more sense to optimize proven constructs from TradFi and DeFi and find new approaches with LQ...

(13) So in theory the concept of Pangolin and ApeSwap was promising no dumps, but in practice it failed, but why? Eventually, we find ourselves seeing a repeating trend in which 1,000 sellers “fight” for one buyer in the secondary market and with freezed MC its a death-spiral.

(14) With Key information and Influencers, the protocol can be dumped from the own community instead of VCs or the Team with the nontransparent amount of minted tokens with their own bags create a sell pressure because BTC broke any support line.

(15) Let's jump back 1 and a half years. I came from Avalanche ecosystem to IOTA all by myself with my private bags I had from a few good trades. I have visions that I want to implement as an entrepreneur, on a community where I don't know anyone and which are among the oldest...

(16) So I really need a team that I have to pay, besides the lawyers, concepts, consultations, audits, marketing and companies and more. Unfortunately, at the time, the IF did not have a grant fund, with an IF staff member through XYZ wanting to provide me with $100,000 after I..

(17) delivered an MVP. I did it with a small team of 4 people, but the IF could not pay me the money for legal reasons, in fact I should have stopped developing here if I follow the fair launch approach. The IF has no Grants or any other Funds to incentives people like me in 21

(18) However, our research was over. A pre-sale without VCs was our idea, so I finalized the results and we created our OWN strategy. We decided that we could do it with community & with vesting times. Its a new Hybrid form of Fair-Launch & Pre-Sale, let us call it >Absoluteness<

(19) Thanks to the Pre-Seed and NFT sale we are currently able to cover all costs. Right now (04/11/2022) we are in the public sale to achieve full independence. With the funds we have liquidity which we can provide. But what was the price of independence & stay with our ethic?

(20) Unfortunately, through a small group of people working together, FUD against us has spread publicly to censorship & through unawareness or deliberately spread misinformation about us. So let's just think short term:
- Is the current situation unfavorable for us right now?

(21) , definitely, it's difficult and we need to put more "energy" into it.
Let's think long-term:
- It is more difficult, but it is worth it, because our vision is bigger than some currently realize, it is clear in the startup scene: it depends on the team, if the team is....

(22) Very good, then you are more likely to launch super products, for this we do not need miracles to achieve our GOALS, but only time, and time we have to make miracles happen. Thanks to our supporters ❤️

(23) In summary, I would like to say, everything that is happening right now is good that it is happening, it has nurtured us and laid our milestones for what awaits us soon in the future. So #IOTA community, what do you believe in? Why are you here? Do you share our vision?

sources for DYOR:
cryptonews.com/exclusives/is-…

jamesbachini.com/token-launch/

apeswap.gitbook.io/apeswap-financ…

cryptoadventure.com/fair-launch-vs…