A smart contract for Pooling funds from investors during pre sales of big new projects.
Many ICOs have a high pre sale requirement, 5 or 20 ETH, making them out of reach, certainly for a lot of new investors. Pools are a great way of spreading risk and including the less wealthy.
I have used pools in the past where I sent my money to a smart contract, along with many others I don't know, the smart contract becomes the main investor therefore passing minimum requirement and divides up the received tokens after the sale.
I haven't given much thought to how a smart contract passes KYC or AML so would appreciate input on this, unless the PoolPal website takes all details and only allows investors who have passed all checks.
A selection of contracts with various structures and terms.....lock in periods, fund return if cap not met etc..
To counteract whales. To give smaller investor same opportunities. Bigger distribution of tokens.
To allow new people into the space who may be blockchain and crypto savvy but not cash rich.
Personally, participating in some pools last year allowed me to get into some projects early at a discounted rate that I couldn't afford to get into on my own. I don't have enough "crypto" friends in real life so I rely on the online community. Hence the need for a smart contract that eliminates the need for trust and knowing my fellow investors personally.
I'm still holding those tokens so in my case it's not that I want to dump because I've made what ever X returns. I think many of the people in the pools are as well.
I find it strange that for me, blockchain and crypto was about fairness, trust, transparency and consensus, and yet Pre Sales are EXCLUSIVE, they exclude people, they don't promote trust as you know some have bought in at way lower prices, and they price out the smaller investor.
Pools promote mini communities. Which connect to other Pools.