Building a Better Token Sale Process with Valence
Here at Element, we’ve done deals in many industries. Our principals worked at big banks and at institutional asset management companies. We’ve done M&A, IPOs, Public and Private Debt, Converts, PIPEs, and most other things under the sun. Recently, we’ve done several prominent token sales for our clients.
The token sale offering process is similar to traditional capital markets in terms of the rigorous processes it requires. It’s often a very human process. Having been through a few, we’ve set out to do better and fix some of the economic and structural challenges we see with the current execution of token sale transactions. The problems we’ve pinpointed are:
- The pre-sales are long, locking in crypto and creating undesired FX exposure for the investor
- The process is manual, introducing potential for human error and security incidents
- Insecure communication via email to exchange wallet addresses
- Manually generated wallets, back-end systems with multiples vectors or attack
- No proof of process integrity for FX purposes and value reconciliation
We’ve worked with our client Tierion to solve these issues. Together we’ve built a system called Valence that sets a new standard for the token sale process. Valence is the reactive and combining power of any given element. The platform solves many of the pre-sale pain points and transitions into a full-scale sale and auction system for the main distribution event. Our new tool set features:
- Seamless process and integration with a robust back-end
- Guaranteed allocation and queuing system for the main distribution event
- Tierion is used to verify and timestamp purchase data
- Deep administrative functionality for refunds, corrections, error checking, and sale process management
- Avoidance of sale “gaming” sending MORE, LESS, or AFTER sale close
For purchasers it delivers value, convenience, and assurance:
- Guaranteed allocation and participation
- No need to lock up crypto in a multi-week sale process
- Security of not sharing private details or keys via email
We are deploying this system for the first time in the Tierion token pre-sale (tokensale.tierion.com). Access will be distributed to pre-sale participants via email.
Given the feedback we’ve received, and the volatility of the market, many of those who wanted to participate in the Tierion Pre-Sale are worried about locking up crypto for weeks. So we’ve responded by shortening the Tierion Pre-Sale process by making it more robust and seamless. The Pre-Sale will begin on Saturday, July 22nd, and the main sale will be on July 27, 2017. Welcome to the new token sale experience.
It’s a brave new world.