Listing a project: Public or Private

It is important to understand your options for listing a project on T-Starter. You can open fund-raise up to the public or to whitelisted investors only

1. Whitelisting

This feature enables pool owners to limit their sale to a select few members. They do this by compiling a list of account names that T-Starter uploads to the smart contract. During the sale the smart contract verifies account details to allow only whitelisted investors to join this pool. This creates a private sale functionality.

The main reason to use whitelisting is to avoid having participation from countries where residents are not allowed to participate in sales. Another use case is where the sale needs buyers to be KYC'd. In this case users have their accounts added to the whitelist when they complete their KYC (know-your-customer).

One of the main benefits of raising your funds with a whitelisted token sale is that you want to limit your investors to a select group of people. That could be a group of people that you trust or are in partnership with. This is a way to protect your IP and competitive advantage. On the other hand you are limiting the potential for new investors and accessing a larger audience.

2. Crowdfunding

If you choose to opt for public crowdfunding you could expect a larger pool of investors. DeFi investors are very active at the moment and many investors are willing to buy into projects that run on blockchain or utilize crypto in innovative ways.

The benefit of creating a public sale is that you have access to more resources, and it contributes to the marketing of your project or product. It creates anticipation among crypto users and investors who buy into your idea.

However, you need to be ready for action because these investors want to see returns. This may create tension if your project requires an extended period of time for development. The risk involved is that your idea is shared in the public domain which could impact your competitive advantage.

Combination

You could benefit from both methods by raising your funds in two rounds. A good strategy for creating pools might be to create a private sale first and use that as marketing for your public sale. This would attract more investors in the public sale as they see the potential in the project as there is already so much trust in it. This opens your product up to the market and accesses a larger audience.