BeinCrypto presents our new series, Terranova Picks. BIC’s global head of trading and investments, Vinícius Terranova, brings readers non-biased research articles to help them understand the new projects launching on the market. These articles are not financial advice and are only for educational purposes.
As the DeFi and NFT market advances, several products have emerged in the blockchain area. One that has gained a lot of traction is Initial DEX Offering (IDO).
Undoubtedly one of the best ways to beat the centralization of traditional exchanges and provide a good path for DeFi and NFT.
At the moment, when there is no need for exchange fee payments, and it is the community that examines the project and the tokens, it is possible to see how much room IDO has for growth.
However, decentralization is not the only feature of an IDO. It also ensures fair fundraising, as anyone can participate in the offering.
Its trading is fast as an IDO can be traded immediately. Also, liquidity is instantaneous, which is important for the benefit of the token.
Despite all these benefits, there are still some issues that the IDO of a DeFi or NFT token needs to overcome.
These difficulties are usually in its pre-launch process because most of the transactions that occur before that time are over-the-counter (OTC). As a result, liquidity problems and the uncertainties of OTC, such as defaults, occur.
To solve these problems practically, Genesis Shards has emerged on the market. It creates an environment for illiquid tokens without investors having to worry about the often obscure OTC arena.
Getting to know Genesis Shards
Genesis Shards is a decentralized ecosystem powered by Polkadot. It is redefining NFTs as DeFi options, creating a permissionless environment of interchain liquidity for pre-IDO tokens.
It is possible to define Genesis Shards as the first pre-IDO marketplace in NFTs. Genesis Shards wraps fungible tokens for a while to become NFTs to create a market in a previously illiquid environment.
This way, the investor not only doesn’t have to worry about OTC risk but can use a secure and reliable NFT platform provided by Genesis Shards.
NFT Wrapped maintains full control of tokens and supplies in the NFT. Besides, its bundled token system does not interfere with IDO plans. With the liquidity presented in this scenario, projects can leverage the token already at its inception.
Genesis Shards also intends to allow projects to launch their GenTickets on its platform. This way, they will get direct liquidity for their token.
With all this structure, the platform has managed to attract the attention of major investors in the cryptocurrency market.
For example, Genesis Shards has raised $2.7 million from major funds such as 3Commas, Block Dream Fund by OKEx, Morningstar, Moonwhale Ventures, Master Ventures, Petrock Capital.
Genesis architecture
Pre-IDO tokens
- Zero liquidity and Zero market while the project figures out the IDO plan.
NFT wrapped tokens
Tokens are wrapped in NFT to:
• Retain full control of the tokens and supply in the NFT.
• Create isolated ecosystem of NFT wrapped tokens that doesn’t interfere with IDO plans.
• Enable liquidity of illiquid tokens.
Genesis ecosystem
- Tokens can be swapped within the Genesis Shard ecosystem. Leveraging the existing network and influence to harness the marketing power of the community.
Genesis NFTX
- Cross-chain marketplace for DeFi products coming out of Genesis Shards ecosystem with the ability to share NFTs for fractional swaps.
Post-IDO options
- Marketplace for DeFi products coming out of Genesis Shards ecosystem with the ability to share NFTs for fractional swaps.
Understanding $GS token
The $GS token is the native utility token of the Genesis ecosystem. The token gets used for Genesis Access, Genesis NFTX and plays a significant role in Genesis network governance.
GS Token Technical Details:
- Name: Genesis Shards
- Symbol: GS
- Type: ERC-20 and BEP-20 compatible | Decimals: 18
- Total supply: 208,969,354
- Initial Circulating supply on launch: 12,030,988
- Initial Market cap on launch: $1,443,712
- Seed round: $0.05/Token
- Strategic round: $0.075/GS
- Private round: $0.095/GS
- Unlocked round (POLS IDO & Gen Tickets): $0.12/GS
Genesis token distribution
Functions of the token utility in the Genesis Shards ecosystem:
Gen Access: $GS Tokens must be swapped for Genesis Access NFTs to be a part of the Genesis network. Based on the number of tokens held, access tiers are decided to enable different access rights to its users.
Gen NFTX: $GS token is the native token on the NFTX platform allowing users to benefit from a reduction in Swap fees for tickets, access cards, or Gen smart contracts.
Gen Governance: $GS tokens would provide governance rights to its members to vote on different proposals within the ecosystem. The number of tokens held would be a representation of voting power within the network.
The growth of NFTs will only create more of a market for the kinds of DeFi capabilities offered by protocols like Genesis Shards. By creating a space for pre-IDO tokens, it is providing more opportunities to smaller, start-up projects.
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