PancakeSwap is set for its first IFO private sale with a brand new sales structure.
Pancake Squad
PancakeSwap team moves to its upgraded Initial Farm Offering (IFO) from its Basic Sale with Non-Fungible Token (NFT) staking as a condition to participate in its private sale. The team in PancakeSwap calls the new sales structure as IFO 3.1.
IFO are almost similar to Initial Coin Offering (ICO) where new tokens are launched, except that IFO are launched on Decentralized Exchanges (DEX). In order to participate, the interested party has to maintain an active PancakeProfile and Squad. Squad is an NFT collection launched by the team with an added utility. The utility enables its collector to participate in private sales on PancakeSwap.
This news was not viewed favorably by some. Chef Nina’s tweet on the announcement was met with some rather critical but valid observations.
Investors can still be part of the IFO but through public sale. To be fair to the team, private sales have a maximum commit limit. Therefore, the fear that any IFOs will be fully subscribed through private sales is unfounded.
Private Sale
Interested participants must delist the Pancake Squad collection from the marketplace and set it as their Pancake Profile avatar. A checkbox will appear confirming the owner’s entitlement to participate in private sales.
The criticisms leveled against the team for prioritizing a specific group of people that is eligible for exclusive participation will be the same criticism in any private sale. Platforms like PancakeSwap are geared towards creating customer loyalty and this incentive generates positive participation.
Investors that wish to participate in excess of the maximum commit are not excluded from public sale. Similarly, non-owners of the Pancake Squad collection are also not excluded from participating in public sales.
NFT is the Future
The team has taken a very brave step forward with their novel use of NFTs. This will likely be the new model for participation in Decentralized Finance (DeFi) platforms for better yields. This can also be incorporated into GameFi projects by granting its NFT holders exclusive previews prior to its official launch. It is a new way to reward loyal users.
The team should consider increasing the numbers of the Squad NFTs to cater to a wider group of users.
Source : bsc.news
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