What Is a SAFT (Simple Agreement for Future Tokens) and How Does It Affect Distribution?
A SAFT is a legal agreement used primarily with accredited investors in the US to raise capital before a token is launched. It grants the right to receive tokens later at a discount.
This pre-sale distribution means a portion of the supply is concentrated among large, early investors, affecting the initial public distribution.
Glossar
Legal Agreement
Contract ⎊ A legal agreement in the context of financial derivatives and crypto trading constitutes a formal, binding contract establishing the rights and obligations between counterparties or between a user and a platform.
SAFT
Contract ⎊ A binding agreement, common in early-stage crypto fundraising, that grants an investor the right to receive a specified amount of a digital token upon a future qualifying event, such as a token generation event or priced financing round.
Accredited Investors
Criteria ⎊ Accredited Investors are defined by specific financial thresholds or professional experience metrics established by regulatory bodies to delineate sophisticated market participants.