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Bridging Projects and Investors: Paragon’s OTC & Early-Stage Funding Model

  • Writer: PARAGON
    PARAGON
  • Mar 13
  • 4 min read

In the crypto industry, OTC trading and early-stage investment serve as crucial roles, providing essential liquidity and funding for projects. These mechanisms enable investors to access promising projects before they enter mainstream markets. However, the traditional investment landscape heavily favors venture capitals and institutional investors, creating significant barriers for retail participants in terms of both access and transparency.

Capital management stands as one of the most significant challenges for projects. While startups require sustained funding throughout various growth stages, the current system presents several notable obstacles:

  • OTC markets operate with limited transparency, making it difficult for investors to assess fair pricing and transaction security.

  • Traditional OTC markets lack structured exit mechanisms, forcing investors into long-term commitments with limited flexibility.

  • Institutional investors and VCs maintain exclusive control over market opportunities, limiting broader participation in the investment landscape.

  • Startups must navigate complex and time-intensive negotiations with venture capital firms, often delaying critical development phases.

  • Many promising projects fail to secure necessary funding due to inflexible investment criteria that may not align with innovative business models.

  • Retail investors find themselves systematically excluded from participating in early-stage investment opportunities, despite their potential interest and capital.


Paragon's Approach

Paragon addresses these challenges by introducing a comprehensive investment model that prioritizes transparency, accessibility, and security. This approach effectively bridges the gap between projects and investors through two key solutions.


1. OTC for Post TGE

Paragon has transformed traditional trading by developing a structured, secure, and automated investment system. Through the integration of smart contracts and NFTs, the platform facilitates transparent and seamless transactions that benefit both projects and investors.

Key Benefits:

  • Transparent & Automated OTC Deals: The platform eliminates counterparty risks through on-chain public participation, ensuring trust and reliability in every transaction.

  • Exclusive Discounted Token Access: Investors receive privileged access to tokens at competitive rates, maximizing their investment potential.

  • NFT Liquidity: Investment shares are converted into NFTs, providing investors with early exit options in the secondary market and enhanced liquidity opportunities.

  • Yield Generation: NFT holders benefit from staking rewards from $PRGN token payouts, creating additional value streams.

  • Enhanced Fundraising: Projects experience improved fundraising outcomes through expanded investor participation and flexible post-TGE liquidity options.


2. Early-Stage Investment for Pre TGE

Through its decentralized investment system, Paragon enables retail investors to access high-growth early-stage opportunities. The platform utilizes NFT-based investment mechanisms and smart contract automation to ensure fair, transparent, and efficient participation for all stakeholders.

Key Benefits:

  • Equal Access: Retail investors can now participate in early-stage funding rounds that were previously exclusive to institutions.

  • Access to Exclusive Deals: Investors gain exposure to premium investment opportunities typically unavailable in conventional markets.

  • NFT-Based Financial Rights: Investment shares are tokenized as NFTs, enhancing liquidity and enabling seamless trading in secondary markets.

  • Automated Management Process: Smart contracts provide protection through automated payouts and liquidation safeguards.



Investment Process

 

Step-by-Step Investment Process

  1. Foundation Registration & Compliance

  2. The foundation registers on the Paragon platform.

  3. KYC and legal verification are conducted to ensure compliance.

  4. Investment & Token Deal Listing

  5. Pre-TGE (Early-Stage Investment):

    • Opinion Leaders (OL) curate investment opportunities and form investment groups.

    • Investors access early-stage projects with an investment cap.

  6. Post-TGE (OTC Trading):

    • Foundations list tokens for OTC sales.

    • Investors access Alpha Data, including Basic and Premium insights (staking required for premium access).

  7. NFT Minter & Investment Allocation

  8. Investors participate in funding rounds by acquiring NFT-based financial rights.

  9. NFTs represent a Token Sale Agreement (SAFT) and are tradable on the secondary market, ensuring liquidity.

  10. Investment Execution & Liquidity Mechanisms

  11. Stablecoin Payment & $PRGN Staking:

    • Investors deposit stablecoins for NFT-based investment.

    • $PRGN staking grants priority access to deals and overfunding control.

  12. Secondary Market Trading:

    • Investors can exit positions early by selling their NFTs before vesting completion.

    • Continuous liquidity is ensured through an on-chain trading framework.

  13. Yield Generation & Fund Distribution

  14. Profit Sharing & Staking Rewards:

    • NFT holders receive returns based on project growth and token performance.

    • 10% of OTC deal value is distributed to NFT holders in $PRGN tokens.

  15. Vesting & Fund Release:

    • Smart contracts enforce vesting schedules for structured fund allocation.

    • The foundation secures additional liquidity for sustainable post-TGE growth.

A New Paradigm in Investment: Paragon's Vision

Paragon's vision centers on creating a transparent, fair, and efficient investment ecosystem. Through its innovative approach to OTC trading and early-stage investment, Paragon effectively addresses critical market challenges:

Problems Solved:

  • Limited Investment Access: The platform enables retail investors to participate meaningfully in exclusive funding rounds.

  • Security & Transparency Issues: Implementation of smart contracts ensures verifiable and tamper-proof transactions.

  • Liquidity Constraints: NFT-based financial instruments enhance liquidity and facilitate flexible investment exits.

  • Centralized Funding Structures: OL based Community-driven, decentralized investment decisions reduce dependence on traditional institutional frameworks.

Looking Forward

Through strategic implementation of blockchain technology, smart contracts, and NFTs, Paragon is actively reshaping the investment landscape. The platform makes crypto investment more accessible, secure, and efficient for all participants. As crypto adoption continues to expand, Paragon leads the transformation toward a decentralized, transparent investment future.

This innovative approach creates new opportunities for both investors and projects, fostering a more inclusive and efficient crypto funding ecosystem. The transition from centralized control to community-driven processes represents a significant advancement in democratizing crypto investment opportunities.



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