Synapse Network has recently announced a brand new Investor Protection Program. In this industry, although investing in cryptocurrency assets can be very profitable, there are nevertheless numerous fraudulent entities who would like nothing more than to hack, exploit and steal the funds of other hardworking traders and investors.
In order to help fight back against those who would bring harm to others, Synapse Network has initiated the aforementioned program which shall hopefully provide some much-needed security and safety during these uncertain times.
What is Synapse Network anyway?
Of course, understanding what a project is beforehand usually goes a long way towards helping establish trust and reliability. With that being said, the Synapse Network is creating a cross-chain investment and startup acceleration environment built on blockchain technology to provide everyone an equal opportunity to contribute to outstanding emerging ideas early on.
The team is hence mixing the conventional and crypto markets and the Synapse Network technology concept therefore goes beyond the typical market offer of launchpads. Instead, it aims to become a full technical brand delivering reliable tech solutions.
Why is Synapse Network significant?
Transparency and honesty are among the top priorities for Synapse Network as it continues to focus on improving the DeFi ecosystem and addressing key challenges such as those related to investment strategies, tokenomics, and protection of consumers. It is for this reason that the team has come up with a brand new set of standards which can potentially help fix some of the main contemporary problems in the world of decentralized finance.
This is important because numerous projects are currently experiencing challenges, forcing them to compromise their standards of quality or cancel previously promised debuts, resulting in investors not reaping the full advantages that they might have otherwise.
It should also be noted that the Synapse Network launchpad has always had extremely stringent criteria for projects to participate, but the team feels as if it is important to not only provide the community with some amazing opportunities, but to additionally safeguard them from taking part in potentially harmful and dangerous activities too. Thus, the Investor Protection Program was created.
But what does the program actually entail?
Firstly, the team shall strengthen its quality control systems to guarantee that everything is thoroughly checked when investigating potential difficulties with any given project. Then, for projects which have already joined Synapse, they will add various new requirements as well.
The Synapse Network has implemented new internal guidelines for their partners in order to guarantee that the platform itself is focused on the same goal of increasing community standards. As such, any project which violates the rules or does not follow regulations shall be required to return all or a portion of their investments to the community, although this will also largely depend on the seriousness of the offense.
Furthermore, several countermeasures have been deployed regarding staking in order to enhance efficiency. A common and recurring problem when it comes to staking is that of inflation, so in an effort similar to that of the token burning event, Synapse will be decreasing the APR of its staking pools. Nevertheless, this is still the highest APR being provided across all launchpads.
What else is there to know?
Other noteworthy changes involve but are not limited to the platform requiring every project to maintain their token price above the initial DEX offering price until 41% of tokens from the IDO sale are successfully distributed or for a week from the listing, keeping at least $200,000 for liquidity purposes with some exceptions, enforcing strict liquidity pool rules and regulations, getting and sharing relevant information with various other notable launchpads as well as collaborating with them, eliminating seedy venture capitalist funds which contribute to excessive price dumping, ensuring that all projects provide smart contract addresses for their vesting pools, shortening the time between the IDO or public round and the listing date, providing refunds where applicable, ensuring that all projects present viable strategies, increased monitoring and tracking efforts, and more.
Finally, all of these new rules were put into effect from the 1st of May, 2022, at 18:00 UTC. With this latest development, the Synapse Network marks a new chapter in both its history and for its community.