In February 2019 we completed the Airdrop of the SEED token, which attracted a lot of interest: 45 million tokens were redeemed.
While we cannot know who the airdroppers are, we have received reports that among them are professional and trusted investors, as well as representatives of incubators, startups, law firms, academies, individual developers and members of the crypto community. These entities have dedicated their time in obtaining the tokens and let’s remember, the way in which the tokens have been obtained required efforts in terms of technology and skill. Considering the interest in the subject expressed with clear questions by the Telegram community [http://tiny.cc/bvdd5y], we decided to better illustrate the characteristics of the main way to use the platform.
SEED Venture is a platform based on blockchain technology that makes use of multiple tokens: SEED is the native token with which investors can finance startup pools, which in turn are unlocked by incubators to finance individual startups, at the different stages of development of these entrepreneurial projects.
SEED can be qualified as a hybrid token because it is both a payment and a utility token. A payment token because its primary function is to act as a payment tool in favour of start-ups towards a contract called “funding pool” (in correspondence with the incubator, which in turn issues a token that represents the pool of start-ups that benefit from this payment), but it can also serve to pay, by the same start-ups, the services provided in the ecosystem produced by the platform itself. And it is also a utility token as it represents a voucher for the use of the services of the SEED Venture automated platform: its ownership is equivalent to the possibility of financing the startup pools of the incubators, trading the tokens of the incubators and liquidating the investments.
The SEED token, however, is not a security token, as it is not directly an investment instrument and does not give right to any interest or dividend, it does not confer any rights as a shareholder or voting or participation rights within companies: the SEED token allows investing in a pool of startups, but without buying shares.
The possibility of also being used to pay for the services provided in the ecosystem produced by the platform, such as those provided by the additional incubators, and whose price list can be expressed in SEED, or that the incubators themselves can enter into agreements and conventions with suppliers of goods and services – particularly technological – interested in operating with the startups, will allow the latter to spend directly the tokens collected, reducing the exchange rate risk.
In fact, startups need the certainty of having the amounts foreseen in the business plans at their disposal and these can be kept away from exchange rate risks by the incubators in many ways, ranging from agreeing on short term progress – and therefore more frequent releases, of a lower amount – to intermediating “over the counter” sales of the tokens issued to the startups, through prior agreements with the OTC desks of the exchanges.
The exchange rate risk is closely related to the price of SEED tokens on the exchange price lists, which is predictably volatile in the early stages of the platform’s life, and which depends on many factors, such as the functionality of the platform, the quantity and quality of the players operating there and, above all, the quality of the startup pools and the support from the incubators; however, in the final analysis, it is ultimately determined by supply and demand, which are always unpredictable.
The demand will come from investors who will be able to attract the reputation of the incubators, who want to finance innovation by keeping the investment liquid and mitigating the risk, and who will buy SEED tokens to finance the startup pools.
The supply will be that of the startups, who will sell SEED tokens to finance the projects, “over the counter” for example, with the mediation of the incubators to mitigate the exchange rate risk, with the result of not inducing sudden changes in prices.
With these mechanisms of price formation, the SEED token could prove, when fully operational, more stable than the native token of the underlying protocol, but, in any case, it is a vehicle of information on the ecosystem that the underlying token (initially ether) cannot convey.
This is the main reason for choosing an internal token, as well as being functional to an “agnostic” platform with respect to the underlying protocol and whose development is also oriented to protocols other than Ethereum, which, in turn, may be of higher levels than the underlying one (such as RGB), from the point of view of interoperability. The objective of the development is that the user does not have to worry about the underlying protocols.
The SEED token will be listed on an exchange partner in the run-up to the platform’s launch in the summer.
The token and the decentralized autonomous internal exchange are the tools with which investors can finance startups and enjoy the high returns of this type of investment, without buying shares, taming the risk and keeping the investment liquid.
SEED Venture is the platform with which it will be possible to overcome the very concept of “venture” understood as a niche activity, reserved for a few operators able to juggle the complex problems, taking very high risks.
It opens the doors of innovation, on the one hand, to small investors and, on the other, to traditional finance, which until now has had to keep its distance, allowing large amounts of capital to be invested only in projects that can best guarantee that a country’s economy has a lasting competitive advantage.
Here’s the information that uniquely identifies the SEED token, the key feature to this system:
contract: 0xC969e16e63fF31ad4BCAc3095C616644e6912d79
name: SEED
symbol: SEED
decimals: 18
smart contract: ERC20
