I had a great video chat with Kenny the other day and it went longer than expected. I’m excited at the synergy they have and I’m hopeful for the future of Shell Protocol.
Some takeaways from our conversation:
-They raised some money previously in a pre-seed round which got v1 launched.
-They have learned all they want from v1 now. There’s really not an incentive to promote v1 or incentivize liquidity there anymore. They don’t need liquidity–they need investment/runway to build v2 and beyond.
-Therefore, Shell is raising a seed round of a few million dollars. This will help build v2 and beyond.
Since Shell is primarily in the USA, doing a token sale and allowing investments from Americans is very tricky. It’s much less regulatory scrutiny to partner with a helpful VC.
That being said, the ultimate success of Shell depends on the COMMUNITY & USERS.
-This is probably the only reason why they are likely going to do retroactive LP rewards—not because people are adding incredible value now—but to reward help grow loyal and evangelistic users. (Post thoughts on retroactive LP rewards in this thread. Not here, please.)
When investing in equity (even if that equity represents XX% of the token supply), the realization of this profit will be in several years. I have no inside news and there are no plans but certainly other projects have locked tokens for team members and investors to prevent big dumps of the token early on.
-Are you interested in investing in equity in Shell (which ultimately represents a percentage of the total token supply someday? Keep in mind that you won’t realize the profits from this investment for quite some time—this is very different from supplying liquidity in v2 which are your funds that you can withdraw.
-Are you American or International?
-Are you considered to be an accredited investor?
Would you want to invest directly (likely $50k or $100k minimums) or through a SPV with a lower minimum?
An SPV creates a single-purpose entity composed of many (oftentimes smaller) investors but ultimately shows up on Shell’s cap table as a single entity. The SPV takes the burden of paperwork and compliance and makes it easy for Shell. All things being equal, Shell would rather focus on developing than paperwork and CFO type stuff.
Investing directly or via SPV seems like the only safe and compliant options, but please post here if you have other ideas. Keep in mind it must be legal in the USA and also not so complex that it takes months of paperwork and ultimately delays v2 launch.
What are your thoughts and ideas on investing in the development of v2 and beyond (likely long term equity investment?? (Post thoughts on retroactive LP rewards in this thread. Not here, please.)