This article will cover our private sale policy. The points covered below are very important . They are a must read for anyone taking part in a private sale on our platform or any project looking to do a private sale on our platform.
Overview
Private sales provide an early opportunity to invest in a project at the ground floor, they tend to be only open to seasoned investors, angels, VCs etc. Unlocking the door to these opportunities is tough, if not impossible for smaller investors.
At Sphere, we regularly work with early stage projects, those that are planning to launch, but are not ready to do so just yet. For these early stage projects, that we feel have real potential, we will put them through our advanced due diligence process.
If an early stage project passes this due diligence and they are looking for investment, we will explore a private sale for them.
The risks
It is extremely important to realize that an early stage investment carries a far higher risk, than even an IDO investment. You are investing in a project that could be months away from launch and a lot can happen in that time.
With an early stage investment, your investment is being used to help build the project in the run up to their launch. They therefore need to unlock funding to help them develop and grow.
This means that a refund for a private sale is not possible.
However, we want to go over some of the key areas, that we ask all projects that do a private sale with us to commit to.
Project commitments:
The following 8 points are ones we have in all the contracts that we sign with projects looking to do a private sale with us. We ask that projects adhere to them as we feel that they not only provide added confidence for private sale investors, but they will help provide a solid roadmap to a strong launch.
- Have their domain fully SSL certified one week prior to the launch date.
- Have their domain protected by Cloudflare and share the proof with Sphere prior to the launch date.
- Disclose the vesting schedule of all tokens, including team, strategic investors, private presale, influencers, etc.
- Add no less than $100,000 of liquidity immediately upon listing.
- Distribute tokens to participants at point of listing. If Sphere is undertaking token distribution, all tokens must be sent to us a minimum of 48 hours before launch.
- Lock liquidity within 3 hours of listing for no less than 12 months.
- Have at least two team members public no less than 72 hours before the private sale on each social platform (Telegram, X (formally Twitter), Discord, etc.)
- Launch their token within 150 days of the date of the private sale on Sphere.
Spheres Role
In a private sale, Spheres role is minimal. From a legal standpoint, the purchaser (the individual who is taking part) and the project are in a direct relationship. The terms of this relationship will be covered in the token purchase terms.
These purchase terms will be linked in the whitelist guide and in the whitelisting form. You will be asked to review these terms and confirm that you have read them. If you are taking part in a private sale, it is extremely important that you read these terms and understand what is being said.
Please remember, taking part in a private sale is high risk. If you are uncertain, or concerned about anything in the token purchase terms, then we would strongly advice you do not take part.
Once funds have been released to the project, (after completion of the raise), from Sphere, any and all follow up questions relating to the project, token price, project expectations/ delivery, road map etc, will need to be directed to the project from that point on via their official channels. Sphere is not accountable for any funds invested in a private sale after funds have been released to the project.
Due Dilligence
Just because we are bringing a project to you, does not mean it is not with out risk. Any investment decision you make is yours alone.
We are huge advocates on the importance of doing your own due diligence. Looking into a project, researching the team, understanding the space, reviewing their tokenomics, joining their communities. All of this and more can help you make an informed decision.
You must be comfortable with any investment decision you make, and doing your own research is key to that.
