AMA Recap Crypto Library with AvaLaunch


On 03rd August 2021, AvaLaunch conducted an AMA in the Crypto Library Community. Our guest is David Donnenfeld. Lots of questions as usual from the Community about AvaLaunch progress. The AvaLaunch team took part in a very interesting AMA session which included introductions, questions from twitter, and a live AMA session with the Crypto Library community. If you missed the AMA in person, read this recap for a deeper insight into AvaLaunch .

Let’s take a look at the most interesting points of our conversation.

Crypto Library Team : So, before we start the AMA could you please introduce yourself to our community?

David Donnenfeld (AvaLaunch) : Absolutely. My name is David Donnenfeld and I am one the co-founders and directors of Avalaunch. I came into crypto in 2017, probably a couple of years after it first garnered my attention. I had a previous background as a writer including investment memorandum and had done some work in private equity so my approach has always been more fundamental than most.
Crypto Library Team : Could you describe Avalaunch and give us an introduction to the project?

David Donnenfeld (AvaLaunch) : Avalaunch is the first protocol built exclusively for the Avalanche ecosystem, to offer promising and innovative projects a fast, secure, and efficient platform for decentralized fundraising. To expound on it some—traditional fundraising is one area that has a decided advantage over crypto. It is streamlined in terms of expectations and deliverables for a business seeking funding. Crypto, in my opinion has way more opportunity and innovation but it is untethered from any semblance of guidelines. I think typical platforms work with IDOs and aren’t that discerning. The reality is some projects are mature and ready with working products while others are great ideas by a few passionate individuals. Both can be deserving of funding and exposure but it’s a completely different proposition and each project is going to have different needs. I don’t think most platforms have done much to consider what the post sales needs of each projects are or fundamentally weigh in on their objectives. It can be short-sighted and I think we have to look at the body of work over time of a launchpad and not focus so much on day one results. In a bull market everyone is very forgiving but in normal to bearish conditions, a flight to quality takes place. For us, we want to create something more comprehensive, robust that can take the best what's come before us and add to it with all the innovation that is taking place in crypto.

Crypto Library Team : What is Avalaunch’s role in Avalanche’s and how does it approach fundraising and being a launchpad?

David Donnenfeld (AvaLaunch) : Avalaunch hopes to be a gate keeper of sorts that’s dedicated to the ecosystem of Avalanche. We hope to attract and help develop the newer, more innovative projects that are being built here. In terms of our approach, we’re looking at the box sideways; re-examining tokenomics, distribution, go to market strategies and using more fundamentals than the number of followers on socials. These are more qualitative factors but were important to our development. In that regard, we’ve come a long way. When the market turned bearish we were able to focus on infrastructure. We’re developing international communities, have partnered with both Gate and Kucoin and partnered with a number of Avalanche projects. So we are essentially ecosystem champions and hope to be known for our body of work. We believe we are early to something very special and want to contribute. So, as a launchpad, we strive to be more than a straight sales platform.

Crypto Library Team : You’ve addressed it somewhat but what problem does Avalaunch solve?

David Donnenfeld (AvaLaunch) : Well we looked at the pain points and are trying to address them. For example, there are a lack of guidelines in terms of needed support. You have to examine basic fundamentals which can go a long way in determining what’s going to be here in the future. Secondarily, the approach is broken as I see it, which is more than a pain point, it's an obstacle. Look at how it works now in most places— Leading up to funding, projects get a lot of mention, access to a launchpad’s list of influencers who shout about it followed by a small public sale which is oversubscribed. It creates a bottleneck of short-term demand. Thereafter, it’s basically game over and all it takes is one look at a launchpad’s resume after a few months to see the result. The rooms are abandoned, volume has dropped and now, project leaders have to work under incredibly strenuous conditions as angry communities gang up. And these are basically start-ups, which is challenging enough in a supportive environment. There needs to be support infrastructure for projects. You need to be able to guide them and provide resources and you also have to determine where a project is at. Not all are at the same stage of development but very different projects can be deserving of funding while having completely different needs. None of this is tailored. It's all just thrown into the wild, so to speak. To us, this is inherently wrong and you have to remember, we are an Avalanche launchpad because we believe that this is the blockchain to build on. When Avalanche comes to the fore like we think it will, it’s only going to be as good as the projects being built on it. We take that very seriously.

Crypto Library Team : What changes in fundraising do you think are most important for the future?

David Donnenfeld (AvaLaunch) : Firstly, the tokenomics of newer offerings need to evolve. As of now, it is very lopsided, meaning they are too often weighed in favor of short-sighted investors. This is difficult because projects need funding and private contributors often ask for terms which can hurt a project. The unfortunate thing is, in traditional environments, private and seed investors are long-term holders who are often years away from any real liquidity and take genuine risk. In crypto it doesn’t work that way. You have early-stage companies becoming quickly tradable assets and far too often the earliest investors are the culprits that abandon the projects. I’d like to see some price uniformity across tranches to begin. A multiple for someone who has been holding for years and took the most risk makes sense but when it’s a matter of a few months, that’s another story. Next up would be vesting. Vesting is going to become more stringent and longer. We are starting to see this already. Tokens should be released when there is demand or use that can support it. I'd like to see unlocks tie in with milestones on a roadmap. Don't just unlock because it's been X number of months. Show me something that says, "these tokens needs to be out there". Fundraising is supposed to provide capital and do its best to nurture the tokens they come to represent. This is why we are Avalanche focused; believing in where you’re building makes a difference. While the space is going to become blockchain agnostic, I think individual launchpads will find their niche. Perhaps you’ll see some early stage focused launchpads as well as those that prefer more developed projects. Larger and smaller hard caps may be best served on a launchpad branded to appeal to those buyers and of course, blockchain specific crowd funding sources. We chose that route because we are all crypto devotees and will endeavor to build out a suite of products that will ultimately make us more than a standard launchpad.
Crypto Library Team : What are the cretiria to evaluate the quality of projects that want to conduct IDOs on Avalaunch? And what strategies does it employ to mitigate possible losses during the bearish market?

David Donnenfeld (AvaLaunch) : Well, there is a theme emerging. Well, first I believe any launchpad start with fundamentals—market size, opportunity to penetrate, burn rates, pathways to autonomy to determine how much funding they need, the team of course as we invest in people as much as ideas, current stage of development, where our resources can contribute and the litany of things that you really don't see that often in crypto. There is a chemistry to assess because Avalaunch will have a lasting relationship with every project we support and a permanent affinity because it always be the place they launched. Regarding bearish conditions—A launchpad is going to be known for its body of work over time. To date, really nothing has been immune to bearish conditions, however, people can feel better about an investment if it's sussed out and making strides. Socials are often full of traders, not investors really who are hoping the token pumps in the next hour. We can't try to appeal to that thinking because it goes against our approach and would only work in the most bullish of conditions. Long term thinkers will understand what Avalaunch and Avalanche are building and will aim to be early on the great protocols building on there.

Crypto Library Team : I saw your most recent collaboration with PangolinDex when looking over your project. Could you perhaps clarify why PangolinDex was chosen as a partner? What role do you think Pangolin will play in helping you become one of the finest Avalanche Blockchain launchpads?

David Donnenfeld (AvaLaunch) : Sure. Well Pangolin is one of the premiere decentralized exchanges on Avalanche so it’s got relevance and history. We want there to be active trading on Avalanche because the ecosystem is vibrant and growing. For us, one of the things we do a little differently is provide support for our projects pre and post launch. Having relationships where there is active trading and having intimate knowledge of how things work on the trading side of the blockchain we support just makes sense. We’ve known Pangolin for some time and are supportive of each other’s desire to make Avalanche a destination blockchain so it’s only natural we’d be able to collaborate. They recently announced a formal alliance with us and offered a couple of incentivized liquidity pools for XAVA. It's this kind of support signaling that spurs interest and lends credibility. When there's good chemistry amongst projects on a growing Layer 1, I think it creates a decided advantage.

Crypto Library Team : What actions will the avalaunch team take for the community to prevent dumping during long term investments?

David Donnenfeld (AvaLaunch) : Avalaunch and the ecosystem are all doing our best to till the soil and make it fertile so we can have sustainable and lasting economies and ecosystems. To date, most everything tends to run with the market itself. In fact, there are rare exceptions. That said, anyone who would have held a solid project for a few years in crypto would be very happy with their return. Avalanche as a blockchain has been very deliberrate in how they've positioned themselves. They are building with the long game in mind and that's going to show itself very soon. It is attracting more genuine investor sorts who see cycles as 5-10 years. Crypto traders are much more short-sighted and that's always going to impact things somewhat but for us, people that can see the infrastructure we are building and dedication to Avalanche will be more inclined to hold. Still, you have early stage ideas that can be traded, which means there is a wide delta on interest, resources and liquidity. It is incredibly speculative and thus volatile. No way around that.

Crypto Library Team : How does #AVALUNCH make excellence and innovation from "one roof" especially in DeFi? How is your project pursuing its goals? and Can you tell us which areas the team is currently focusing on?

David Donnenfeld (AvaLaunch) : Luckluck - those are 3 questions. I appreciate all of them though. I think there are lots of ways to add value/innovate and strive for excellence. I think it begins with raising awareness and visibility for Avalanche on the whole and there is no better way to do that than by helping to introduce great projects. Providing pre and post launch support for projects is going to strengthen the ecosystem on the whole. Offering alternative type offerings as a platform is going to make things more dynamic. To be clear, Avalanche is not solely for DeFi but certainly offers advantages with its near instant finality, fixed gas fees and overall performance. I think fundraising for DeFi is crucial. Products need to be more mature, regulatory compliant if it's really the future. The spate of hacks and exploits have been costly and it can't continue if it hopes to attract institutional money or long-term users. The build fast motto is important to crypto as well but attracting top talent and providing the needed resources and runway is crucial as well. As of now, the team is currently focused on building infrastructure to help smooth the path for projects, we are in the final public testing phases and are currently putting together our line up for forthcoming sales.
Crypto Library Team : I read that the airdrop for validators and delegators is locked for one year. Why was it locked for so long? and is there also an allocation for locked team tokens?

David Donnenfeld (AvaLaunch) : The airdrop is vested for one year because we decided to give the supporters and those who secure the Avalanche network 2% of the total token supply. We felt it was a generous act and was not prompted. The reason for the lengthy vesting was simply that we did not want to release these tokens until we felt we could support them. Again, it was entirely a gift. Regarding team vesting, I honestly don't know offhand but encourage anyone to follow the team wallets. They are not eligible for IDO participation and not being sold any time soon.

Crypto Library Team : How can we know for sure that early adopters and seed phase investors can not dump token on us if we invest now?

David Donnenfeld (AvaLaunch) : Well, you're more than welcome to stalk any wallets but actually, we have an api that's plugged into coingecko so you can track the circulating supply in real time. Tokens have to be claimed and once claimed automatically enter the circulating supply.

Crypto Library Team : Is it not it will be the wrong decision to launch the project in this bear market? Every coin going down whether good or bad. How do you see this?

David Donnenfeld (AvaLaunch) : Fundraising goes on irrespective of conditions. You have to be graceful during the down periods and grateful during the bull runs. Great projects will find their way through and we want to be there to support them. Projects take a long time to plan and develop and organize. If one is very short sighted to the point where they feel their project's success is contingent upon the right market conditions, I don't feel they will make it regardless.

Crypto Library Team : What is your advantage over other projects? Is it from a security point of view or the technology you are using? Or are there other advantages? What makes you believe that your project is worth choosing?

David Donnenfeld (AvaLaunch) : I believe we have a decided advantage in our approach, our long term view, our collective experience in the space, our tokenomics, forthcoming suite of products, basically everywhere. That's what we believe which is not to say there are not and won't be other great launchpads. I think the space is big and capable of supporting any number but I believe we will always be one of the leaders.

Crypto Library Team : Each project has interesting stories before it is created. So can you tell people about the story that gave you the motivation to build and develop a great project like your?

David Donnenfeld (AvaLaunch) : For me, I used to go crazy whenever I saw the lack of fundamental considerations that went into projects. It was if no one thought to ask the most basic of questions and suddenly, there were around 8000 projects. And of course every one of them is trying to make strides and it clutters the space. Genuine projects were making progress and being overlooked. I thought there has to be a better way and then launchpads came along and, in many cases, made them worse. Just short term hype and basically abusing retail investors. I thought there has to be a better way to do this. Around this time, Avalanche became of interest to me and one of my cofounders was enamored with their tech. In short order, we had an experienced team, a path and a vision...thus Avalaunch was born.