How Lithium Ventures Leverages Overallocation For Improved Returns

The cryptocurrency space is growing at a rapid pace and keeping tabs on all the projects being launched could be a challenge for most investors. Most importantly, the crypto market has witnessed explosive growth in the number of scams and rug pulls. This has caused a huge issue in preventing the mass adoption of blockchain technology and the growth of Web 3.0 protocols.

It is easy to understand that in the crypto space, the earliest investors win big. As such, many investors rush to buy tokens or invest in them without looking at the fundamentals behind them, which most times than not leads to losses in their investment. It is important for investors to keep an eye out for promising projects, and there are some crypto aggregators that search through the thousands of projects to find the best tokens to invest in early in their life cycle.

Lithium Ventures, a decentralized and trustless launchpad, is one of the leading aggregators that offers a unique opportunity for its holders to access initial DEX offerings, airdrops, and new token launches via its native $EBSC token. The audited platform lists some of the most promising projects within the crypto ecosystem to allow investors to generate a higher return on their investments. This model not only improves engagement and loyalty within the community but offers a higher likelihood for the platform to generate higher levels of trust and attract important projects and even more investors to it.

Image: Lithium Ventures

 Lithium Ventures launched in April 2021 with a view to addressing the increasingly abundant scams and rug pulls appearing in the early-stage cryptocurrency space. As the crypto communities moved towards decentralization, IDOs replaced the prevalent initial coin offerings (ICOs) in a bid to build more transparent, trustworthy, and secure token launches. Nonetheless, decentralized launchpads allowed founders with poor records or simply bad intentions to take money from investors and never actually build.

To solve this issue, Lithium Ventures built a decentralized launchpad that focuses on high-quality, KYCed teams with solid track records. This is meant to promote capital allocation to well-functioning teams and projects with a vision to solve actual real-world problems. The platform consists of a fully operational, cross-chain launchpad, which has already had 10 successful, including 8 oversubscribed, IDOs to date.

Before explaining how to participate in a decentralized launchpad, we need to understand the driving force behind the Lithium Ventures launchpad, the $EBSC token. The token incentivizes investors by simply holding/staking the tokens in their wallets. Additionally, it generates passive income for their investors as the token acts as a utility token, unlocking the value of other projects on the launchpad. Holders of $EBSC also have access to early IDO launches, airdrops, and an opportunity to vote on proposals on the platform.

So how exactly do you participate in an  IDO?

The first thing you will need to participate in the Lithium private sale IDO’s are $EBSC tokens. The tokens are used to purchase early-stage projects and guarantee the allocation of the tokens in the private sale round. The platform ranks investors into four tiers; Starter, Investor, Strategist, and Evangelist. Higher tiers get allocated proportionately more tokens than lower tiers.

Once you have your $EBSC tokens, you will need to stake them. Staking doesn’t need to be done before the IDO opens for investment. The steps to staking are explained in this article.

Lithium Ventures runs an oversubscription model for launchpad projects instead of a first-come, first-serve basis. This is to enable the wide distribution of tokens while minimizing the influence of whales who control the market. This builds a fair and transparent decentralized token launch, allowing every investor to have an equal chance at buying early into a project.

To explain further, in the case of oversubscription (mostly due to whale influence) investors are still guaranteed a proportion of the tokens. For instance, if you invest 2 BNB into an IDO and it is oversubscribed, you may receive 0.8 BNB worth of the IDO token and a 1.2 BNB as a refund.

Once you have invested, you will be notified of when to claim your IDO tokens. Once opened, you simply head to the claiming page and click ‘Claim’ and the IDO tokens will show up in your Metamask wallet.

With the rising number of scams in the decentralized world, it is important to get an overview of a project before investing in it. Launchpads such as Lithium could help investors discover early-stage crypto projects before they go mainstream while maintaining KYC checks, audits, and transparency, making sure the projects listed are not scams or rug pulls.