🃏Flying Tulip by Andre Cronje: Fundraising Model Experiment
Raised $200 million in seed round at a $1B valuation and aims to raise another $800M at same FDV of $1B.
Flying Tulip is an on-chain exchange that offers spot trading, perpetual contracts, lending, options, and structured yield products.
- Based on principal protection derived from Cronje's past experience
- Whether it succeeds is still unknown.
Investor principal guaranteed *on-chain redemption rights* provided (downside protection + unlimited upside), granting investors on-chain redemption rights (perpetual put) that allows them to burn tokens at any time to get their initial principal back.
- Prevents project from using funds raised, instead, funds are deposited in a low-risk Defi strategy like Aave, among others, generating ~4% which covers operating expenses, buybacks, and incentives.
--🪧 Core strategy --
- From the investor's perspective, there is principal protection, limiting downside risk. (burn to receive capital)
- From the project's perspective, the interest income generated can be used for buybacks and incentives, creating a growth flywheel. (Annual return for operation)
In the end, Flying Tulip is a long-term experiment based on principal protection.
Crazy out here fam, will update as more info rolls in. 🫡
--Source:--
What ifs;
- There was no $200M raise
- Andre again? LOL
- How about Sonic? LOL
- Maybe an EL?
I'll update as info rolls in bros
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