Opportunity & Pain Points

Opportunity & Pain Points

The discount token market is an underserved category within Web3 and poised for significant expansion. Historically, these offerings are limited to high net worth individuals and connected incumbents in venture capital, where most lucrative deals happen in a black box. Additionally, many of these large institutional players tend to focus more on pre-TGE protocols, where most of the hype is. The discount token deals that do exist remain generally out of reach for most. Furthermore, groups or individuals facilitating discount token deals must rely on manual methods of launching and tracking as no infrastructure exists to facilitate these tasks.

Vellos is poised to democratize this space by crafting a protocol that's not just a gateway for secure investments but also an arena for transparent, equitable trade. We're levelling the playing field so that individual buyers can access opportunities typically reserved for the few while also maintaining liquidity in their investment. Simultaneously, we are providing infrastructure to allow any group the ability to facilitate discounted token offerings. Our approach not only amplifies market efficiency but also nurtures the ecosystem, paving the way for a new chapter in discount token market growth where accessibility and trust are paramount.

To that end, Vellos sets out to solve the below 3 key issues in the market today. The intricacies discussed above, highlighted through meticulous market research and corroborated by user interviews, emphasize the urgent need for innovative solutions within this vibrant sector.

1. Market Fragmentation: Elite investment opportunities offering significant benefits are predominantly reserved for venture capitalists, angel investors, and a network of broker-dealers, limiting broader market participation. No existing platform offers a seamless way to connect buyers and sellers of discount token deals.

2. Lack of Post-TGE Focused Fundraising: No existing players focus on post-TGE protocols; instead, they deal with pre-existing SAFTs, token warrants, and other investment vehicles that have large ticket sizes and other conditions tied to them.

3. Lack of Liquidity: The privileged deals described above often result in locked investments (usually in the form of SAFTs), creating liquidity issues for stakeholders until much later in the project's timeline. Due to the form of the investment and the restrictions within the SAFT itself, there is no easy way to sell or exit the position before vesting finishes.