Convergence Finance announces the Lithium Finance pre-IDO token sale which will take place on ConvO

“It is better to be early than too late in recognizing the passing of one era, the waning of old investment favorites and the advent of a new era affording new opportunities for the investor.” — Thomas Rowe Price Jr.

Overview

Initial DEX Offering or IDO is considered one of the most important innovations in DeFi. This decentralized fundraising model has been helping thousands of crypto projects to get sufficient financial support to help materialize their visions into real DeFi applications. Despite its popularity, projects and investors have to undergo several limitations when going through the IDO process. That’s why the concept of pre-IDO is gaining traction in the market, and Convergence Finance’s pre-IDO offerings could provide unique edges for new crypto projects and their potential investors.

Pre-IDO: Place Yourself Ahead of the Game

Timing is the single most crucial element when it comes to investing. When two investors buying the same asset but different times could mean a make-it-or-break-it difference.

Gaining the first-mover advantage also seems a primary reason why IDO is popular these days. Investors can financially support early-stage projects they believe are promising. In exchange, they receive tokens representing the project at a discount; therefore, their upside is more significant than those who come in later.

Despite the popularity of IDO remaining high for both investors and project developers, IDO is not a perfect investment vehicle either.

From the viewpoint of a project developer, although IDOs are a go-to way for fundraising, macro market condition, on the other hand, is a massive consideration for projects that are planning or conducting IDO. In many cases, we’ve seen projects delaying their planned IDO due to market volatility, and that could potentially affect their funding schedule and product launching timeline.

That’s why the concept of pre-IDOs is gaining momentum in the market. Pre-IDO refers to token offerings that happen before the traditional IDO sales taking place. It will give investors exposure to VC-style private investment. For projects, pre-IDO can let developers put the market volatility aside and raise funds regardless of the market ups and downs, focusing more on the product itself.

Lithium Finance: Convergence’s First Pre-IDO

Democratizing investment is one of the main goals of Convergence Finance, and the team has been working hard on realizing this goal.

As Convergence entered a strategic partnership with Lithium Finance, Convergence will make Lithium the first-ever pre-IDO sale. Lithium Finance is the first decentralized pricing oracle for illiquid private assets — leveraging collective intelligence to price the unpriced.

Lithium Finance has already closed a $5 million seed round investment led by Pantera Capital, one of the largest blockchain VC funds in the US, and Hashed, a leading blockchain firm based in South Korea. Lithium has also received investment from some of the biggest names in the industry, such as Alameda Research, Houbi Ventures Blockchain Fund, and OKEx’s Blockdream Ventures.

The founders of the project also came from impressive backgrounds. David Lighton, one of the Co-Founders of Lithium Finance, founded SendFriend, a blockchain-focused payment company backed by Barclays, Ripple, and Techstars. He is also an MIT Sloan alumni and Yale’s Global Justice Fellow. Additionally, David also worked at the Office of the Special Envoy to Haiti at the World Bank.

Steve Derezinski is another Co-Founder of Lithium Finance. Steve is the Senior Executive and MIT Blockchain engineer/MBA. He developed blockchain venture courses for the university. He is also the Founder of Georgia Tech Venture Lab and an ex-robotic and nuclear engineer.

Pre-IDO Sale Details

The whitelist will be open on 17 June 2021, and the sale event will happen on 24 June 2021. Pre-IDO will offer individual investors an advantage of an entry price similar to many VC funds, giving them a significant first-mover advantage over those who will come later in the market.

The sales will be available on ConvO or Convergence Offering. Eligible CONV token holders will be able to have “premium access” to the Lithium pre-IDO. For details, please refer to the official announcement, which will be available soon on Medium.

Conclusion

Timing is everything. This is especially true when it comes to crypto investment. Pre-IDO offers unique edges for crypto investors, and developers will fund their projects in advance with added flexibility. It’s reasonable to expect to see more pre-IDO deals are going to hit the market. Convergence Finance will bring not only high-quality crypto projects to the pre-IDO scene via ConvO but also other private investments, so stay tuned for more.