Problems and Solutions

Overview

The Lithium Launchpad offers founders new ways to capitalise Web 3.0 projects, using blockchain technology and a mature network of partnerships to support idea validation, development, launch, and marketing. Facilitating the funding of highly talented founding teams helps to reduce the current market failure - assisting the development and legitimacy of the blockchain space as a whole, whilst directing capital to projects focussed on real world use cases.

Traditional problems and how we solve them

Problem: Lack of Quality Projects in the Early-Crypto Space

Unfortunately, the early-stage crypto space is filled with bad actors: from rug pulls to projects that offer zero utility, to founding teams with questionable commitments to the long-term success of their project. A lot needs to change to encourage investor confidence and ensure money is being driven to projects that offer real value to both the blockchain ecosystem and the planet.

One of the main issues is that the strength of blockchain—its decentralization and lack of barriers to entry for investors—is often one of its largest weaknesses. Anyone with a slick marketing campaign and a fancy-looking website can start raising cash for a project that has zero long-term potential.

Current launchpads on the market have a role to play in the plethora of poor-quality projects that end up raising large amounts of capital. By promoting teams that aren't vetted or KYC’ed, by providing poor quality information to investors, and by not auditing the code of projects, investors are exposed to the risks mentioned above.

Solution

Lithium solves these problems by surfacing only the best quality early-stage crypto projects on our launchpad. Our screening process for projects is thorough and involve the following steps:

• Founder KYC

• Tokenomics support

• Business plan analysis

• Team background checks

• Market function / utility

• Code audits

• Expert network interviews for idea validation

The Lithium Launchpad offers founders new ways to capitalise Web 3.0 projects, using blockchain technology and a mature network of partnerships to support idea validation, development, launch, and marketing. Facilitating the funding of highly talented founding teams helps to reduce the current market failure - assisting the development and legitimacy of the blockchain space as a whole, whilst directing capital to projects focussed on real world use cases.

While these additional steps prove more work for projects that wish to use our incubator, they provide investors with confidence that the project has real long-term potential. This in turn ensures that projects launching via our launchpad raise their required capital from committed investors.

2. Problem: Information asymmetry

Early-stage Web 3.0 projects are being flooded with retail investors. While during the Web 1.0 and Web 2.0 revolutions seed investment in companies required some kind of network, which in turn implied that investors had some idea of the companies they were investing in, the barriers to entry for investments in Web 3.0 are minimal.

In practice, this means that investors in early-stage crypto projects often don't have any knowledge of the project’s fundamentals that they are investing in. This type of investing behaviour contributes to a short-term investment mentality that causes 'pump and dumps', a practice where investors invest in a project based on its short-term growth potential.

At Lithium, we believe the only way to become a consistently successful investor in crypto-assets is to take long-term positions in companies and projects with strong fundamentals. We also believe the only way to achieve a successful launch is achieved when a community of early backers exists, who invest in projects for the right reasons and aren't just going to dump immediately after the pre-sale.

Solution

We work with all companies in the Lithium Incubator program to ensure that when their product launches, our community of potential investors is well-educated on the project. We ensure this by assisting founders in shaping their marketing message, delivering factual information on the market, product, and service, and providing all the information necessary for individuals to make their own decisions.

3. Problem: Lack of Capital For Talented Founding Teams

There's no way around it. Building a Web 3.0 product costs money. As a founding team, you need cash for marketing, product development, legal costs, admin and everything else that comes with bringing a project to life.

The Solution

Above all else, the function of Lithium's launchpad is to allow our native token holders to pool capital and invest this into early-stage projects through a contribution of USDC. Total raise sizes range from ca. 25,000 - 500,000 USDC, with contributors being rewarded for their participation with subsequent airdrops of the raise companies token. These raises offer early adopters discounts from listing / token generation prices and thus benefits both investors and project teams.