Due Diligence Process
We have a strict launchpad due diligence process in order to select and launch only the best projects.
Step One: The first step of our due diligence process is a call where our due diligence team gets to know the founding team of the project and hears a live pitch of the project. During this call, we also clarify the first questions that might arise.
Step Two: We request the founding to fill out our in-depth due diligence questionnaire. This questionnaire helps us to understand every detail of the project.
Step Three: During our third step, we do a detailed project analysis. Key parameters that we are focussing on:
Problem-Solution Fit: Does the project solve a real problem? Is the user's pain big enough in order to look for and pay for a solution to his problem?
Market: How large is the projects' market? Which market share can the project gain?
Product-Market-Fit: Will the product be adopted? What is the product's benefit over existing solutions?
Product/Development Stage: Is the product already live and has it users or is it still under development or getting tested on testnet? Is there an MVP available?
Team: Does the founding team have significant experience in the crypto and other project-specific industries? What do their social profiles (LinkedIn, Twitter) look like?
Competition: What sets them apart from their competition? What makes their product better or cheaper? Will users migrate to them due to a better product?
User Adoption/Community: How is the activity in social channels like Twitter, Discord, or Telegram? Are users actively chatting/interacting? Are the users real users or only bots?
Track Record: Which progress did the project already make? Which partners got already onboarded? This can be project/industry-specific partners or crypto/token launch-related partners like VCs, launchpads, exchanges, market makers, and marketing agencies. Are these partners reliable and well-recognized by the target communities?
Funding/Finances: How much funds got raised to date? What is the cash-burn rate for the project - when would it run out of money? Did they calculate the right costs? How much budget will be spent on CEX listings, DEX liquidity, operational expenses, and user adoption? Does the fundraising roadmap make sense, is it realistic?
Token: Which role does the token have within the project's ecosystem? Does the token make sense or could it be easily replaced by other cryptos, e.g. USDC? What is the intention behind the token? What can a user do with the token, what are the utilities? Will the demand for the token increase over the short and long term? Which factors are driving the demand for the token up?
Tokenomics: How is the token distribution? What is the token pricing structure? Is the vesting set up correctly and in a useful way? What is the ratio between market capitalization and fully diluted value? Can the token be easily dumped by any involved party? Are there deflationary or inflationary mechanisms in place? Which impact do the tokenomics have on the market? What are the fully diluted valuations during the tokens sales and during the launch?
Roadmap: Which use cases are planned for the future, and can they realistically be achieved? How will the product further grow and gain more market shares? Which impact has their roadmap on the token value?
Legal and Audits: Where is the company registered? Are there local or global regulations for the projects' products? How is the token regulated? Can it be easily listed on CEXs? Did the project get an audit for the token and the product/platform/protocol?
Step Four: After a careful evaluation of the above-mentioned checklist, our due diligence team hosts a launchpad committee meeting and discusses the next steps. If there are still open questions about the project, they have to be answered before any decision will be made. Once our due diligence team has the full picture and understanding of a project, we will decide how to proceed.
Step Five: In the last step, we sort projects into three different categories:
Rejected
On Hold
Approved
While 'rejected' and 'approved' are clear answers, 'On Hold' means that we will observe the project over the next weeks or months and expect them to either change or further work out details like their tokenomics or documentation that hold us back from launching them. Another reason for observing a project is that we want to test their product or see their community grow. During the observation, we help the project as advisors and provide them with best practices in order to become a successful project.
If you are a project and want to launch on the PEAKDEFI launchpad, please use the following link for an application: https://forms.monday.com/forms/f0d4083ebc3d99b9d70fbcf08f9ade91?r=use1
Last updated