Whitelist is one of the numerous innovations Cryptoshere gifted humanity. It is among the uniqueness Blockchain technology is spearheading to ensure financial freedom and sovereignty.
Most of the time, people have good entrepreneurship ideas that need transformation to become tangible businesses to benefit society. However, the lack of capital to turn them into enterprises, solving problems is a notable hindrance.
In the Blockchain space, processes like Initial Coin Offering (ICO), Security Token Offering (STO), and Initial Exchange Offering were explored in the past by stakeholders in the bid to raise capital. The results have been a mixed feeling, but not a total disaster.
Nevertheless, since the inception of Crypto in 2009, the space is evolving at an incredible pace. We keep improving upon practices and mechanisms, which are shaping the ecosystem to deliver the best.
Whitelist basically means a listing or a record of approved and classified people, organizations, and Crypto addresses. In general, it links a singular co-operation and event to some entities.
For that matter, it can bestow distinguished definitions based on the circumstances they are utilizing it. Some of its applications include a Mailing list, ISPs, Network Connectivity, etc.
Apart from the above, the mechanism also concerns the data of computer programs deemed reliable to utilize. Various antivirus software lists trusted applications established in advance that won’t be affected when system scanning, though users can generate whitelists.
In the Crypto space, whitelists are about raising funds for the development of a project through crowdfunding. The departure from ICO, STO, and IEO ushered in Launchpads to supervise capital acquisition for Blockchain outfits.
Crypto Launchpads offer essential services in Cryptosphere regarding the financing of projects. As a replacement for ICOs, STOs, and IEOs, it has impressive innovative features anchoring sustainability in a decentralized fashion.
The move is quite engaging and prudent since it ensures due diligence and prevents fraud that tainted the ICO regime. These platforms have strong communities around them with their native tokens that have variable utilities.
Whitelisting is a principal procedure in fundraising on a launchpad platform. It is the stage where investors are ready to engage in the private and public sale of Cryptocurrency project tokens.
Any investor interested in pre-sale, private, and public sales must present their individual information to get on the whitelist during the process. They are then screened through the Know Your Customer and Anti-Money Laundering system to ensure they can participate in the crowdfunding.
In a whitelist, investors provide their name, age, country, official nation ID, and ETH address. After qualifying for the sales, the allocation of tokens began.
Hence, only those who made it to the whitelist will receive tokens when they pay for it. Investors pay in the specified token by the project, and it can be in USDT, USDC, ETH, Bitcoin, or the native token of the launchpad platform.
It usually is on a first-come, first-served basis to get on the list depending on the ground rules. Some platforms required investors to hodl a certain amount of their native tokens before having their names on the whitelist, which many see as preferential treatment.
One such requirement is Guarantee Allocation, a process of hodling a number of the launchpad’s tokens to be part of the token sale. Many experts in the Crypto space consider that as an advantage for whales and sharks over others.
Launchpads like DuckStarter, Polkastart, Solstarter, and others have a requirement to hodl a specific amount of their tokens to be eligible in a whitelist. It is pretty a barrier to new entrants without much resources to access projects launching on these platforms.
However, some platforms have a fair allocation method where every community member interested in investing in the project gets equal allocation. Examples of such entities are Binance Launchpad, DAOLauncher, YFDAI, GainPool, among others.
Crypto Is Evolving
The evolution of Cryptocurrencies as a monetary system that guarantees faster and cheaper transactions without third parties is moving at a quicker rate. Now we are moving away from ICOs, STOs, IEOs to Launchpads, where allow listing is involved.
More of such innovative practices will crop up in the coming months and years to make the industry thick. But at the moment, the trend is about Whitelisting, and it is imperative to learn more about it to utilize it to the maximum.