5/Token Sale
Sale Process
Token Offer to pitchIN community Tokens allocated: 50,000,000
Minimum Investment amount: 10,000 MYR
Maximum Investment amount: 2,000,000 MYR
Token price: 0.13 MYR
Minimum Fundraising Target: 1,500,000 MYR Maximum Fundraising Target: 6,500,000 MYR
Token Distribution Policy
Token Minting: Completed
Targeted Distribution Date: Q1 2025
Vesting Start Date: Q1 2025
Vesting Period: 18 months
Cliff Period: 6 months from Listing
Token Unlock Schedule: Linear release monthly till full unlock
Distribution Plans
For the pitchIN community, the tokens will be held by pitchIN and released to the investors. All $FRAC will be distributed on the BNB Smart Chain, to lower gas fee-related costs for all parties. In terms of abiding by the vesting schedule, Frac will be endorsing the use of https://sablier.com/, a tool trusted by many major organizations within the blockchain industry. Sablier is a tool created for projects to professionally vest the tokens of the project and makes sure all parties follow the vesting schedule strictly. The tokens can only be unlocked for withdrawal when the time-period is met. During TGE (Token Generation Event), pitchIN will send an email to investors with clear instructions on how to receive their $FRAC in their designated wallet addresses. Frac will cover for all gas fees incurred in this process. Most importantly Sablier's smart contracts are heavily audited to ensure no backdoor control of vested tokens can be exercised.
Critical Considerations for Token Valuation
1. References to Other Similar Companies in Terms of Angel Round/Seed Round Valuation
Assumption: Comparable companies have gone through their angel or seed rounds recently, providing public data on valuations.
Methodology: Identify a cohort of similar companies or projects based on industry, asset class, technology stack, and market presence. Analyze their angel and seed round valuations to establish a benchmark. Adjust these valuations based on $FRAC's specific characteristics, such as maturity, technology differentiation, and market potential.
2. Market Capitalization of the Gemstones/Precious Liquids/Real Estate Markets
Assumption: The value of $FRAC is directly correlated with the market dynamics of the underlying assets (gemstones, precious liquids, real estate).
Methodology: Research the total market capitalization of each asset class and analyze historical growth rates, demand and supply factors, and market forecasts. Utilize this data to project future value and how these trends might impact $FRAC's valuation.
3. Market Capitalization of Real World Asset Related Web3.0 Projects and Their Tokens
Assumption: The market capitalization of similar Web3.0 projects can provide a proxy for $Frac's potential market cap.
Methodology: Compile a list of Web3.0 projects with a focus on real-world assets, noting their market capitalization, tokenomics, and growth trajectory. Evaluate how these projects' success factors and challenges could relate to $FRAC, adjusting for differences in asset class, technology, and market strategy.
4. References Towards Revenue Targets for the Company
Assumption: $FRAC has clear revenue targets based on its business model, asset management, and tokenomics strategy.
Methodology: Outline $FRAC's revenue generation mechanisms (e.g., transaction fees, asset management fees, appreciation of underlying assets). Project future revenues based on market growth rates, adoption curves, and operational scalability. Compare these projections with industry benchmarks to validate the revenue targets' realism and attainability.
5. Angel Round Valuation of the Company
Assumption: The angel round valuation reflects the company's early-stage potential, considering the uniqueness of the asset class and the innovation in tokenization.
Methodology: Assess the company's value at the angel round by considering the total addressable market (TAM), serviceable available market (SAM), and serviceable obtainable market (SOM) for $FRAC's asset classes. Incorporate adjustments for technological innovation, team expertise, and strategic partnerships. Utilize discounted cash flow (DCF) analyses and comparable company analyses (CCA) to refine the valuation, considering the speculative nature of early-stage investments in the blockchain space.
By systematically addressing these considerations with the proposed assumptions and methodologies, stakeholders can gain a nuanced understanding of $FRAC's valuation, facilitating informed investment decisions. This approach balances market-driven insights with the unique characteristics of $FRAC, providing a comprehensive framework for token valuation in the context of emerging asset classes and blockchain technologies.
Table of Use of Proceeds Allocation of funds in Maximum Funds raised scenario and Minimum Funds raised scenario
The use of proceeds outlined for Frac's fundraising effort through the pitchIN crowdfunding platform is strategically divided to cover various crucial aspects of the business and product lifecycle. Each section is tailored to ensure that the launch and sustained operation of the $FRAC token, along with the underlying technology and business model, are successful. Here's an elaboration on each section of the use of proceeds:
1. Licensing Application and Fees
Despite Frac being a SaaS (Software-as-a-Service) company now, there are plans to turn the Frac platform into a full-fledged marketplace in the near future. This allows partners to leverage on Frac to issue offerings. This allocation is directed towards securing the necessary licenses and paying associated fees that are critical for the operation of Frac in various jurisdictions. Given the regulatory scrutiny around blockchain and crypto-assets, it's vital to comply with legal standards to operate legitimately. This fund will cover:
Costs for applying for licenses in each jurisdiction Frac plans to operate, particularly focusing on Asian markets.
Fees associated with legal consultations to navigate the complex regulatory landscape of tokenizing real-world assets (RWAs).
Expenses related to compliance audits to ensure that Frac's operations meet the required financial and operational standards.
In the case where only Minimum sum of funds are raised, Frac will focus solely on working with partners who are already licensed and regulated instead of attempting to enable partners through Frac's acquired licenses.
2. Product Enhancement Roadmap
This substantial portion of the budget is earmarked for significant technological advancements and product enhancements including:
Deploying to other Layer 1 chains: This will enhance the platform's interoperability and accessibility, allowing a broader range of users and assets to participate in the ecosystem. We are currently studying the Solana and AVAX chains to assess it's suitability for the Frac product.
Integrating plug-ins to ease Web2 to Web3 onboarding: Simplifying the transition for users unfamiliar with blockchain, enhancing user experience, and broadening adoption.
Deploying compliance-related smart contracts: Implementing smart contracts like ERC-3643 for tokenized bonds, ensuring regulatory compliance in token operations.
Building a buyout-all fractions offer function: This feature will enable users to make offers to buy out all fractions of an asset, adding liquidity and flexibility to the marketplace.
In the case where only Minimum sum of funds are raised, Frac will focus on sharpening current technological domains such as improving user experiences, user interfaces and debugging.
3. Legal and Compliance Team
Funds allocated here will support the building or expansion of a dedicated legal and compliance team. This team's responsibilities will include:
Ensuring ongoing compliance with the legal requirements in each market Frac operates.
Staying ahead of regulatory changes and adapting Frac's operations accordingly.
Handling legal matters related to asset tokenization, IP rights, and investor relations.
In the case where only Minimum sum of funds are raised, Frac will focus solely on working with partners who are already licensed and regulated instead of attempting to enable partners through Frac's acquired licenses.
4. Sales and Marketing
A significant investment in sales and marketing efforts is crucial for building brand awareness, attracting new users, and establishing partnerships. This allocation will fund:
Digital marketing campaigns targeting potential users and investors.
Community building efforts across social media and blockchain communities.
B2B marketing initiatives to forge partnerships with asset owners, developers, and other potential clients.
In the case where only Minimum sum of funds are raised, a substantial portion will still go to Sales and Marketing, as this is required to drive demand for the $FRAC.
5. BD & Partnerships (3 pax): Included in Sales and Marketing
This focuses on expanding the business development team and forging strategic partnerships. The team will:
Identify and engage potential partners in real estate, gemstones, and precious liquids sectors.
Negotiate and close deals that will bring valuable assets onto the Frac platform.
Work closely with marketing to align partnership announcements with broader marketing strategies.
In the case where only Minimum sum of funds are raised, Frac will work with specialized Business Development Agencies who can help to funnel leads whereas only hire 1 in-house Business Developer, to follow up on those leads.
6. Operations
Operational funds are allocated to cover the day-to-day running of the company, including:
Salaries for the operational staff.
Office rent, utilities, and other administrative expenses.
Technology infrastructure costs, including servers, cybersecurity measures, and blockchain node operations.
This detailed breakdown of the use of proceeds demonstrates Frac's strategic approach to using the funds raised. It highlights the company's commitment to compliance, product excellence, market expansion, and operational efficiency, laying a strong foundation for the success of the $FRAC token and the broader Frac ecosystem.
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