🏦Snark Insurance
Investing with protection
Introduction to Snark Insurance
The market has been very unstable this year, and sometimes prices have gone down a lot. It's difficult to know how much a token will be worth in the future, but we believe that crypto will continue to exist. The Snark team will keep building no matter what happens in the market.
People in the Snark community choose their own investments and take their own risks, but we think it's important for our platform to protect and keep our community safe when the market is unstable.
In the world of crypto, people don't usually talk about refunds, but Snark Insurance is like a refund policy. It's a way to invest in the launchpad game with almost no risk.
What is Snark Insurance
Snark Insurance protects all IDO Investors. Snark's main focus is on the community, providing a safe way to enter projects with the least amount of risk possible. Although Snark aims to launch only the best projects on zkSync, market conditions or changes in plans can affect this. While we hope for each project's token price to increase, Snark Insurance is there to help if the token price falls far below its IDO price.
Token Price Decrease Scenario
If the project's token price drops by 50% below the IDO price for 30 days straight, investors will get back what's left of their investment in USDT. This will come from Snark's insurance pool, which is funded by various sources like private sales, public sales, token transaction fees (0.25% of every transaction), and some of the revenue from IDOs. We will provide the community with a wallet address for the insurance pool in May 2023 to ensure transparency.
Example Scenario:
If a token IDO price is set at $1.00 and launches, but the token price drops to $0.50 for 30 days due to selling pressure, investors will be refunded to break even.
Jake invests $100 into Z token at a $1.00 IDO price.
30 days later, Z token is trading at $0.50.
Snark Insurance automatically sends $50 to the wallet that Jake used to invest in the IDO.
Jake can sell his Z tokens at market price and break even because of the additional $50 reimbursement.
Who Qualifies for Snark Insurance:
Early investors in the private and public sale of Snark are eligible for Snark Insurance for the life of the token.
Users who hold over 10,000 Snark tokens in their wallet (Platinum Tier) after the token launch are eligible.
All projects launched on Snark Launchpad, including Snark token, automatically qualify for Snark Insurance for their investors.
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