Cr Square Guardian – Building Transparency Between Investors And Founders Of Web3 Community
Without a doubt, the blockchain space is brimming with opportunities as more and more projects enter this industry. Nevertheless, these projects are not always what they seem, and many are out there just to exploit those interested in them. The following example illustrates upcoming initiatives' hidden perils in the Web 3 space.
As one of the prominent downfalls, Block verse has been considered “the quickest carpet pull to date.” Well, the project creators envisioned a blockchain-based Minecraft game. After raising 500 ETH, the Block verse website, Discord server, and development staff vanished within a few hours. Afterward, the project even had a secondary sale of 808 ETH. They compensated various influencers to advertise Block verse by employing Web3digital marketing company Illiquid Assets, who founded the expenses out of their own pocket.
ANIRAND was one of the most promising and followed launches on Algor and, with over 1,000,000 locked in liquidity, quickly falling to absolutely nothing. To portray the image of "legitimate" enterprise, the founders designed a token and its aesthetics. They subsequently conducted a token presale, raising around 324,000 ALGO, which were matched with the ANI/ALGO trading pair on tiny man. At a very fast rate, eight days after the number of ALGO in the ANI/ALGO pool grew to 613,000 ALGO, the liquidity of tiny man was withdrawn, thereby rendering the token illiquid. Due to the failure of the website and social media platforms, early-stage investors lost their funds.
Moving onto another facet of the blockchain industry, NFTs, Big Daddy Ape Club arose as the biggest NFT rug pulls in Solana blockchain history. In January 2022, fraudsters executed one of the biggest NFT rug pulls and stole 9,136 SOL, or about $1.3 million at the time. While would-be collectors who submitted funds to mint "Big Daddy Ape Club" NFTs, there were no NFTs. Even though the NFT drop was "confirmed" by decentralized identity verification business Civic, the individuals behind Big Daddy Ape Club were able to flee with the cash.
Another initiative that raised the hopes of early investors, CFL 365 finances, was promoted as a break through initiative that seeks to develop a bridge between conventional and alternative financing. According to the company's website and other sources, they intended to close the gap between Cefi and Defi. Using the CFL365token, users of#CFL365.Finance may trade Cefi and Defi stocks using #CFL365.Finance.
Eventually, there were able to raise capital from prominent investors like GBV, Spark Digital, Titan Ventures, AU21,X21, and others. Despite boasting the world's "first dual chain quintuple IDO launch" in August, CFL365 Finance failed spectacularly, demonstrating that quality is much more essential than number when it comes to launchpads. Some investors have not yet gotten their tokens. The project has not updated any of its social media accounts since April 2022, whereas its beta application launched in January 2022 is no longer operational, according to their social media accounts.
Discovering the Signs of Unviable Blockchain Projects
These past failed initiatives portray some of the most important red flags to look out for when investing in novel blockchain initiatives. Have you ever encountered the following problems after investing in the PRE-SALE, IDO, IEO, or ICO of a tokenized Web3 startup? Delay in Roadmap implementation; too many modifications to the intended Roadmap; tokens not distributed in accordance with vesting; Inadequate fund-raising for the effective execution of the project; Insufficient liquidity on the decentralized exchanges; Unexpected token distribution on the market; Core Team Members leaving the project prematurely or team member disagreements. Lastly, are you aware that your Simple Agreement for Future Tokens (SAFT) is virtually unenforceable?
After all, you would require cutting-edge decentralized solutions for a decentralized problem. Considering this aspect, we began developing our first use case and product, Guardian, the ultimate secure escrow-based funding platform that facilitates milestone-based fund release to the founder. In an innovative manner, Guardian leverages our independent validator ecosystem, enabling decentralized due diligence and audit .Founders may seek money from venture capital companies or their own community, and they would get the cash contingent on the achievement of each milestone outlined in the smart contract.
Scrutinize Novel Projects with CR Square Guardian Platform
In this pursuit, CR Square Guardian Platform unites Investors and Founders via a trusted process of Smart Contract-powered Escrow Pools in conjunction with our strong Validator Ecosystem. Using independent third-party validators protects the safety of Investors' money and creates control over the founder's progress in product development and fund management. Using independent third-party validators protects the safety of Investors' money and creates control over the founder's progress in product development and fund management.
This breakthrough tool may be used by Grants Programmes, Investment DAOs, Investment Pools, Clubs, Decentralized VC Firms, Launchpads, and Angel Investors to support projects and keep track of the project's evolution, including stage-by-stage financing.
Uncovering the features of CR Square Guardian
Overall, Guardian deploys a multitude of innovative features in the pursuit of decentralized funding. One of the core features is represented by Milestone-Based Funding, which encompasses the release of cash in accordance with pre-approved milestones defined by Investors or the company's founders. Furthermore, Escrow Pools represent a core decentralized component, where funds held in smart contract-powered escrow pools instill confidence in Investors and Founders alike.
In all pursuits, decentralized due diligence is paramount. Investors and Subject Matter Experts in the blockchain sector work as impartial Guardians and rate projects in exchange for $CR2 token incentives. This increases the founder's ability to get capital from Investors.
Within Private Rounds, founders may interact with Investors inside the CR Square Guardian Platform or outside and raise capital via our private rounds and Investor-approved milestones. Conversely, during Public Rounds, founders may gather funds from the general public or their community based on predetermined milestones authorized and validated by the Guardians.
In addition, founders’ KYC Validation restricts fraud resulting primarily from identity concealment, eliminating the danger of rug pulls and exit scams.
Token Vesting allows founders to utilize the built-in vesting contract functionality to vest project tokens for Investors, Community, Team, and Advisors, hence eliminating the requirement for a SAFT
between Investors and Founders. Tokens may be vested in linear or non-linear forms, including daily or monthly. Token vesting also allows founders to execute community airdrops with a vesting timeline, lowering the selling pressure of the token now of airdrops.
The Guardian marketplace represented the forum where innovators may get different advisory services and white-label goods at steep discounts from CR Square Ecosystem partners. Some significant examples might be the announcement of Google Cloud Credits at a discount, White Label DAO Governance Dashboards, Company Incorporation Services, Token Minting Services, etc.
Using our milestone-based smart contracts, CR Square can enable a marketplace for grants programs to identify and release grants to web3 start-ups based on common milestones, including using our guardians to verify and approve the completion of milestones, there by reducing the workload of due diligence on the grant organizations.
How does it work
Overall, this is how CR Square Guardian functions in both contexts Private Rounds and Public Rounds:
To Learn More about CR Square Guardian, connect with us on our social media channels.