Legion’s new investor scoring system aims to level the playing field by prioritizing actual contributions over speculative funds.
Legion aims to prioritize community values over capital in token raising.
Posted October 29, 2024 at 8:00 AM ET.
Cryptocurrency funding platform Legion today announced the launch of Legion Score, a new reputation system designed to evaluate investors on criteria that go beyond just financial contributions.
The system was developed by Delphi Labs and operates across multiple blockchains, including Solana and Ethereum, and aims to create a more balanced and transparent funding environment in the cryptocurrency space.
Legion Score assigns investors a rating from 0 to 1,000 based on factors such as social influence, technical skills, community involvement, and recommendations that support investors.
Projects seeking funding can use the score to prioritize qualities other than capital resources and identify investors who align with their values and goals.
“Legion Score flips the narrative on who can participate in token raising, where non-financial contributions such as time, expertise, and community building are valued as much as capital,” said Nansen founder and early Legion leader. says Alex Svanevik. investors said in a Legion press release.
The launch comes amid increased scrutiny of venture capital (VC) practices in the crypto industry, with critics arguing that VCs are extracting value from token launches by securing large allocations at low valuations. It is claimed that this tendency gave rise to the term “VC coin”.
These practices are perceived by some to be unfair to retail investors, who often face price distortions once a token goes public. Such sentiments are fueling this cycle’s wave of meme coins, which are being celebrated as a “fair launch” because, unlike many VC-backed projects, there are no pre-sales or allocations to insiders. There is.
Legion aims to counter concerns about equality of opportunity in token raising by emphasizing investor contributions over speculative funds.
The Legion Score also adjusts based on investor behavior post-funding, promoting accountability.
Additionally, the platform uses EigenTrust algorithms to minimize bot and Sybil activity and requires customer recognition documentation, ensuring every investor is a unique participant.
“By encouraging individuals to maintain a positive position within their communities, Legion creates a powerful feedback loop that enhances the quality of communities formed through our platform,” said Fabrizio, co-founder of Legion. Giabardo said in the company’s release.
Compliant with EU MiCA regulations, Legion’s platform gives project teams more time to vet investors by identifying those who can bring more to the table than just deep pockets. You can also save money.
