A Decentralized Finace (DeFi) platform known as Mantra DAO, which was designed to be under the control of a community and to major on governance, staking, and lending, has just concluded its initial membership offering today (Aug 16). A total of $5.9 million was realized from it.
Small investors were encouraged to take part because Mantra DAO discouraged big investors from taking control by first conducting KYC verifications with every investor and then introducing the digital Simple Agreement for Future Tokens (SAFT). Cryptocurrency developers issue SAFT as a contract for investment. Mantra DAO is using it to raise the standard in crypto investment and hopes that others can emulate them.
This is the first time in the history of crypto investments where investors are protected by law. It says:
“Electronic signatures are valid under most jurisdictions and provide a very convenient, very transparent solution to retail investors protection. […] we issue a digital agreement via Docusign where the user inputs his wallet address and the amount contributed.”
The money collected from the initial membership offering is with a registered custody company. The company will continuously serve Mantra DAO and report any money raised. With this arrangement, Mantra DAO believes there will be no problem arising from who should manage the funds.
With these strategies mapped out by Mantra DAO, the project is expected to deliver all that it has promised to do.
Although Russia introduced regulations for tokenized securities, none still exists for cryptocurrencies. As a result of the COVID-19 pandemic, the SEC thought it was important to soften the rules that guided crowdfunding.