Note: This article is originally dated Jan 9th, 2022. It has been migrated to optimise our Medium publications.
2021 saw the birth of Legion Ventures, a community-driven, early-stage, crypto venture fund. In less than 10 months the team, enabled by the power of our community, has invested more than $6.5mil into 90+ early-stage blockchain startups offering our investors an average ROI/project of 1200%. There have, of course, been brighter gems out there with some projects yielding over 500x (looking at you, Bloktopia).
Our goal was simple; to provide access to private funding rounds and enable our community of crypto-natives to access the best investment opportunities possible.
To that, we’ve achieved our goal. The past year has been a testament to the dedication of our community and, of course, to the talent of the Legion Ventures team.
The next chapter of the Legion Ventures journey is focusing on creating more earning opportunities for our community.
Contents
The Evolution of Crypto Investing
Opportunity Cost
The Legion Ventures NFT Collection
Tiers
Utility
Minting Prerequisites
TL;DR
FAQ
The Evolution of Crypto Investing
Launchpads
It’s no secret that, in the world of cryptocurrency, launchpads are a dime a dozen. Partly because of this oversaturation, and partly because of the stale and outdated tokenomics of these launchpads, their users are often dealt the weakest hand when it comes to IDOs and early-stage investments.
Users are investing tens of thousands of dollars to get a chance at a measly allocation. Shortly after the IDO of a much-anticipated project, we see the price of the launchpad token crumble, too.
Every legitimate launchpad token rises to a price level that prohibits new entrants from being able to afford a “tier”, or allocation. This has caused new entrants to move onto the next launchpad, which explains the rapid proliferation of a new launchpad every day (or so it seems).
In an ideal world, new entrants are not pushed so far out on the “risk curve” to the point where there is only a binary option set.
Pay $$$$$ to receive a $ allocation in a great project
Pay $$$ to receive a $$ allocation in a half-baked project on Launchpad (A-Z). We call this the RFB (risk it for the biscuit) Tier.
The question then becomes, how does one go about building a launchpad, and more specifically, a launchpad token which can BOTH rise in price while still affording new entrants an equal chance of receiving a decent allocation in great projects?
Without naming particular projects, we have seen three popular methods unsuccessfully attempted to solve the aforementioned problem.
Dilute the token supply-(causes temporary price drop but eventually rebounds back to unaffordable levels).
Lower token requirement per tier-(significantly reduces allocations for all investors).
Conduct a lottery for non-token holders (good luck winning one of these)
The first launchpad to successfully attain quality offerings, accessibility (pricing and allocations), and great investment opportunities will gain the lion’s share of the now fragmented launchpad market.
Source: NewField Fund “The Launchpad Problem”
Community VCs
Legion Ventures 2.0
Investment DAOs
“Investment DAOs,” which are collectives of crypto-enthused individuals capable of investing their personal capital or directing portions of the DAO’s treasury into early-stage crypto startups.
Typically, membership in an investment-focused DAO involves an upfront buy-in in the form of the DAO’s governance token in exchange for access to private spaces — invite-only Discord chats, Telegram groups or in-person events — where deals can be sourced and checks written.
Source: CoinDesk
The implementation of the Legion Ventures NFT collection marks a pivotal moment in the Legion Ventures journey. This step will facilitate the evolution of Legion Ventures from a Community VC to an Investment DAO.
NFT holders will be invited to analyse the value of potential projects with us and, through an open and transparent discussion, determine whether or not we move forward with acquiring an allocation.
After all, you, our community, sit at the heart of Legion Ventures. As such, you will have a part to play in steering the ship.
Opportunity Cost
We’ve analyzed 10 launchpads: Seedify, Oxbull, Red Kite, Trustpad, Blokpad, Paid, GameFi, Solanium, BullPerks, and EnjinStarter. Below are the findings based on this raw data:
Out of 56 tiers across 10 launchpads:
- 13 require tokens worth under $4000
- 9 are lottery based
- 3 are FCFS
- 1 provides a guaranteed allocation of $39-$48 (based on a $100,000 allocation and 1000 wallets) - 7 require tokens worth between $4000 and $8000
- 3 are lottery based
- 1 is FCFS
- 3 are guaranteed - 6 require tokens worth between $8000 and $12000
- 2 are lottery based
- 4 are guaranteed - 30 require tokens worth over $20000
- 1 is lottery based
- 2 are FCFS
- 27 are guaranteed
Conclusion: most of the benefits (unless you win the lottery-based allocation) are given to people spending over $20000.
Allocation received per $1 invested
Seedify: You receive $0.0038 allocation for each dollar invested. You will need $13096 to get an allocation of $50.; Source
Oxbull: You receive $0.00914 allocation for each dollar invested.You will need $5467 to get an allocation of $50. Source
RedKite: You receive $0.01 allocation for each dollar invested. You will need $5000 to get an allocation of $50. Source 1; Source 2
Trustpad: You receive $0.0077 allocation for each dollar invested. You will need $6482 to get an allocation of $50. Source
Blokpad: You receive $0.01 allocation for each dollar invested. You will need $4870 to get an allocation of $50. Source
Paid: You receive $0.0278 allocation for each dollar invested. You will need $1793 to get an allocation of $50. Source 1; Source 2
GameFi: You receive $0.0267 allocation for each dollar invested. You will need $1869 to get an allocation of $50. Source
Solanium: You receive $0.0086 allocation for each dollar invested. You will need $5805 to get an allocation of $50. Source
BullPerks: You receive $0.0129 allocation for each dollar invested. You will need $3848 to get an allocation of $50. Source
EnjinStarter: You receive $0.0301 allocation for each dollar invested. You will need $1657 to get an allocation of $50. Source
Legion Ventures 3.0: You receive $0.0818 allocation for each dollar invested into the NFT + 20% of the profits generated by the crypto fund + 50% of the profits reinvested.
This comparison serves to illustrate the barrier of entry for each project only, it does not analyse each launchpad from the perspective of their business model.
Thanks to the constant innovation in the blockchain ecosystem, there exists an alternative to the launchpads and an improvement on the current token-based model of micro VCs & Investment DAOs.
By leveraging NFTs, we can retain the benefits of the token-based model whilst mitigating the aforementioned flaws.
With this in mind, the team has developed the Legion Ventures NFT Collection. Comprising of 950 unique NFTs developed by KoinGames, alongside unprecedented levels of utility, we’re incredibly excited to take the next step of the Legion Ventures journey together with you, our community.
The Legion Ventures NFT Collection
The Legion Ventures NFT Collection is, in part, devolving ownership of Legion Ventures to the most important member; you, our community.
NFT holders will access unparalleled investment opportunities in the cryptoverse and will not be held back by small allocations whilst falling victim to highly volatile token prices of launchpad platforms.
Instead, holders of the Legion Ventures NFT Collection will be able to access high-quality allocations in high-quality projects.
Oh, and did we mention the art is insane, too?
Tiers
Tirones
- Mints: 600 (500 for sale + 100 in Treasury)
- Value: 1.5 ETH
- Allocation: $200
- Method: FCFS
- Chance of entry: 20%
- Pool: 20%
Principa
- Mints: 300 (250 for sale + 50 in Treasury)
- Value: 3 ETH
- Allocation: $400
- Method: FCFS
- Chance of entry: 25%
- Pool: 25%
Centuri
- Mints: 200 (150 for sale + 50 in Treasury)
- Value: 4.5 ETH
- Allocation: $600
- Method: FCFS
- Chance of entry: 33%
- Pool: 30%
Primus
- Mints: 100 (50 for sale + 50 in Treasury)
- Value: 8 ETH
- Allocation: $1000
- Method: FCFS
- Chance of entry: 50%
- Pool: 25%
Public Whitelist:
- Requirements: You don’t need an NFT to participate
- Allocation: $50
- Pool: 5%
- Method: Lottery
- Loyal community members will be prioritized based on previous investments
In total, there will be 950 NFTs for sale and 250 NFTs in the Legion Ventures Treasury.
- The Treasury will be used for community giveaways, partnerships, marketing, and the like.
Utility
1. Seed/Strategic/Private investment opportunities
We’re dedicated to funding projects in their early stages that we deem can have a significant impact on their respective niche.
Individual allocations: $200 — $1000 (based on your tier)
Fees: 10% (10% out of your individual allocation: e.g: if you contribute $200, the fee will be $20)
Scenarios:
If a deal opens and the total allocation is $100,000
For NFT holders:
- If you hold Tirones, you are eligible for a $200 maximum contribution on a FCFS (First Come, First Served) basis. Your chances of getting into the deal are 20% — meaning 1 out of 5 Tirones holders will be able to contribute.
- If you hold Principales, you are eligible for a $400 maximum contribution on a FCFS basis. Your chances of getting into the deal are 25% — meaning 1 out of 4 Principales holders will be able to contribute.
- If you hold Centurions, you are eligible for a $600 maximum contribution on a FCFS basis. Your chances of getting into the deal are 33% — meaning 1 out of 3 Centurions holders will be able to contribute.
- If you hold Primus, you are eligible for a $1,000 maximum contribution on a FCFS basis. Your chances of getting into the deal are 50% — meaning 1 out of 2 Primus holders will be able to contribute.
- For all tiers: The individual allocation will increase linearly with the total allocation (if the total allocation doubles, then the individual allocation doubles as well)
For non-NFT holders:
- 100 of our most active members (either in previous deals or in our Discord/Telegram/Twitter community) will have the opportunity to invest $50.
- The ticket value ($50) won’t increase linearly with the total allocation, it will be fixed.
- The number of tickets (people that can contribute $50) will increase proportionally with the total allocation.
- If the total allocation were to be $200,000, then we will have 200 winners.
If a deal opens and the total allocation is $100,000, but the NFT holders contributed only $80,000:
For NFT holders:
- The remaining $20,000 will go to the other NFT holders
For non-NFT holders:
- If there’s anything left after the first 2 rounds, it will become available to the public on an FCFS basis. (the individual allocation/wallet will be determined on a deal by deal basis)
2. Tradeable Allocations
Legion Ventures NFT Marketplace
The Legion Ventures NFT Marketplace will allow you to trade either full or partial allocations that you’ve bought into through Legion Ventures.
Chain: L2 chain that doesn’t carry high transaction fees
NFT Sale: Late January, early February, exact date TBA.
Launch date: March 2022
Notes:
- The Legion Ventures NFTs will be traded on OpenSea for now.
- Only the allocations will be tradeable on our marketplace.
- There are different fees for Legion Ventures NFT trading and for Legion Ventures allocations trading.
- You’ll be able to connect directly with your wallet to our marketplace.
- Anyone will be able to buy allocations, no NFT required.
- Only if you have an allocation from LV you’ll be able to sell it, either full or partially and again, no NFT required.
Seller fees
- For the Legion Ventures NFTs: 5% per trade to Legion Ventures + 2.5% to Opensea
- For the Legion Ventures allocations: 5% per trade to Legion Ventures
Overview:
For NFT holders:
- You can sell your NFT on OpenSea
- You can buy partial or full allocations from our NFT Marketplace
- You can sell partial or full allocation on our NFT Marketplace
- You can only sell locked allocation
- The tokens received at TGE will not tradeable on our marketplace
For non-NFT holders:
- You can buy our NFT on OpenSea
- You can buy partial or full allocations from our NFT Marketplace
- You can sell partial or full allocations you previously bought from LV
- You can sell partial or full allocations you bought using our NFT Marketplace
- You can only sell locked allocation
- The tokens received at TGE will not tradeable on our marketplace
3. Yearly Dividends
Legion Ventures Crypto Fund
The utility of our NFT Collection doesn’t stop at tradeable allocations and high-quality early-stage investment opportunities.
Holders will share in the success of the Legion Ventures crypto fund, a pool of funds that is deployed to blockchain-based ventures by our team of crypto analysts and investment professionals.
At the end of each calendar year, 20% of the profits generated from the Legion Ventures crypto fund will be dispersed to NFT holders on a pro rata basis.
This is a Legion Ventures managed fund aiming at early-stage crypto projects. The Legion Ventures team will deploy capital, most of which will stem from the sale of our NFTs, into projects which we deem valuable with the goal of ensuring a return for our community of NFT holders.
We’re on track to prove to the crypto ecosystem that a crypto-focused fund is the best way to invest capital in the crypto ecosystem come bull or bear.
It’s important to note that, due to the distribution of profits from the Legion Ventures crypto fund, our NFT collection becomes a source of passive income for our community of holders.
Launch date: March 2022
Capital commitment: 45% from the NFT price
Profit split:
- 20% will go to the NFT holders pro-rata
- 20% to the LV team
- 10% management fee
- 50% will be reinvested to grow the fund further with the goal of creating a perpetually growing fund, and, consequently, more valuable NFTs.
At the end of each calendar year, 20% of the profits generated from the Legion Ventures crypto fund will be dispersed to NFT holders on a pro-rata basis.
Minting Prerequisites
We’re launching a brand new Legion Ventures website with a Web3 wallet login feature.
- After logging in, you’ll be presented with the NFT sale which will open at a specific time (TBA). The exact date and hour will be timely communicated on Discord, Telegram & on our website.
- Purchase the NFT through the website and it will be immediately delivered to your connected wallet.
- The NFTs will be minted on Ethereum (ERC20)
- You’ll be able to buy them using ETH.
- The Legion Ventures NFTs will be further traded on Opensea
Audentis Fortuna iuvat or, translated, ‘Fortune favours the bold’. In the world of crypto, the most fortune is found in the novel, community-driven, ventures.
We’re not here to rewrite the same story that a hundred launchpads have written before us, and we’re not prepared to stay stale and fade out of relevancy.
Instead, we’re on track to evolve toward the next iteration of community-driven crypto investing.
When Legion Ventures succeeds, you succeed.
Will you join us on our journey?
TL;DR
The current early-stage crypto investing landscape has grown stale and is plagued by problems across the board due to the nature of launchpad investing.
Legion Ventures is on track to change this by leveraging NFT technology to create an accessible, sustainable, and valuable source of passive income for our community of NFT holders.
FAQ
What’s the utility of Legion Ventures NFTs?
NFTs will grant access to future project allocations, whilst doubling up as an investment and source of passive income through the Legion Ventures crypto fund.
Part of the funds raised through the sale of the NFT collection will be strategically deployed into high potential crypto projects with 20% of the funds yield being distributed to NFT holders pro-rata.
In addition, each NFT will be made up of unique artwork which can be used as a profile picture or for marketing purposes.
When is the NFT sale?
Late January, early February, exact date TBA.
How can I participate in the Legion Ventures NFT sale?
We’re launching a brand new Legion Ventures website with a Web3 wallet login feature. After logging in, you’ll be presented with the NFT sale which will open at a specific time (TBA). Purchase the NFT through the website and it will be immediately delivered to your connected wallet.
Which network will the NFTs be on?
Ethereum.
Which currencies can I use to participate in the sale?
ETH
How many NFTs can I purchase?
1 NFT per address.
How much will the NFTs cost and how much is the allocation per NFT?
NFTs will be divided into tiers and will range in price from $4,000 to $20,000.
The greater your tier of NFT, the greater your potential allocation into private sales. Prices and potential allocations are as follows:
$4k — Tirones Tier — $200 allocations
$8k — Principales Tier — $400 allocations
$12k — Centurions Tier — $600 allocations
$20k — Primus tier — $1,000 allocations
The value of your potential allocations above is illustrative based on a $100k total allocation. If the Legion Ventures team acquires a $200,000 allocation into a project then your potential allocation can be doubled.
How many NFTs will be available for each tier?
There are a total of 950 Legion Ventures NFTs available for sale.
500 NFTs — Tirones tier
250 NFTs — Principales tier
150 NFTs — Centurions tier
50 NFTs — Primus tier
In addition to these 950 NFTs for sale, 250 additional NFTs will be reserved for the treasury to be shared with the team, partners, and for giveaways and marketing purposes.
Will the allocation be guaranteed?
No. It will remain FCFS. However, only NFT holders can participate in Legion Ventures deals.
Each tier has a different chance to receive an allocation, depending on how many people with NFTs choose to participate.
Tirones Tier will have a 20% (1:5)chance of entry
Principales Tier will have a 25% (1:4) chance of entry
Centurions Tier will have a 33% (1:3) chance of entry
Primus Tier will have a 50% (1:2) chance of entry
Note: The above chances imply that 100% of NFT holders are attempting to acquire an allocation. This will almost certainly not be the case for 100% of projects.
Who are the creators of the NFTs?
The KoinGames team, with whom we have a strategic partnership.
Can we hold the NFT/NFTs in one wallet and receive the allocations in another?
This is a feature we’ll be enabling in the future.
Initially, the wallet where you hold your Legion Ventures NFT will be the same wallet which you receive allocations to.
Can NFTs be upgraded to the next tier?
No.
Assuming I have an NFT with which I can participate in an FCFS allocation of 600 USDT, can I choose to participate with only 500 USDT?
Yes. You can always participate with less than your maximum potential allocation, never more.
If Legion Ventures fails to fill an allocation exclusively from NFT holders, will community members without NFTs be able to participate?
Yes. The maximum allocation, in this case, will be $100.
Will there be an OTC service for NFTs?
NFTs will be sold and bought on OpenSea, and then on our native marketplace. Allocations, on the other hand, can only be bought and sold through our marketplace.
Where do I find this marketplace
It will be available on our website.
Do NFT holders still pay the 10% fee?
Yes.
Are there advantages for members who have participated in more than one project? Can you elaborate?
There will be no advantages. In case they don’t get to buy NFTs or don’t want to, they will have access to the Legion Ventures marketplace to sell or buy allocations.
What network will the tradeable allocations be on?
Allocations will be made tradeable on a Layer 2.
Will the 20% of the profit generated by project investments be granted only in the first year or annually? Will you inform the community which projects you invest in or will we have access to an ROI?
Annually and yes, you will be informed about the investments in projects and the ROI.
How will the profits of the fund be managed?
20% will go to the NFT holders pro-rata, 20% to the LV team, 10% management fee, 50% will be reinvested to grow the fund further with the goal of creating a perpetually growing fund, and, consequently, more valuable NFTs.
How will the 20% of the profit generated be allocated?
NFT holders will receive a share of this profit, directly proportional to the tier to which their NFT belongs.
Will projects in the fund be able to overlap with community projects?
Rarely, depending on the project.
Why did LV decide on moving from a free-for-all model to a paid model?
We want to bring more value to our community and the only way we can do it is by setting higher goals and bringing innovation into the space.
If the NFT holders don’t buy the entire allocation, what will happen with the remaining amount?
The NFT holders that have won the FCFS process will get the first chance, then the NFT holders that haven’t won, and lastly anyone that doesn’t hold an NFT.
Join The Legion Ventures Community
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