It is an all too familiar scene that a project will launch, backed by an enormous amount of hype and excitement leading up to initial public token opportunities. Unfortunately, this is often met with VCs, founders, or substantial pre-public investors riding the initial wave of token appreciation — “the pump” — then opportunistically dumping all over the retail investors as they cash out. It is a common scenario of musical chairs that leaves the little guy holding the bag and wondering what the hell happened!
There are exceptions, however. The responsible approach that goes a long way to preventing this problem is vesting periods for the earlier and larger players. At Avatr, the founders and advisors who have been allocated tokens are all willingly wearing handcuffs. They have a vesting period of 3 years and have access to their first allocation 9 months after early investors who themselves are constrained by a 3-year vesting schedule. On the other hand, the public who chooses to invest when the token goes live will be able to access ALL OF THEIR TOKENS at the time of purchase, making them less susceptible to pump and dump scenarios by bigger holders.
Avatr is here for the long run. The only way this will be realized is by constructing an ethical framework that protects the most important stakeholders who ultimately drive the sustainability of the project — the public. This is not something we pat ourselves on the back for. To us it is the only methodology we ever considered because on so many levels it is the simply right thing to do. With our token generation event fast approaching, we are happy to offer you the comfort and protection that our approach provides. Invest in quality projects and be careful out there!
