Learn what allocation is, definitions in the crypto world, and how it works on BullPerks’ platform.
The universe of crypto investing comes with a series of unique concepts and new definitions. Keep reading to learn more about allocation, how to identify reasonable allocation, and how it applies to IDO investing.
What does allocation mean?
Allocation is the distribution of assets, like how much of your investment portfolio will be dedicated to crypto, for example. However, it can have a few different meanings in the crypto environment.
A crypto project at its early stages usually has the team and the community deciding how to allocate the tokens and budget across the different departments and objectives. Many startups have their own treasuries and foundations, each with its own assigned coin.
Understanding the allocation and tokenomics of a project beforehand can help you decide if it can indeed become a profitable long-term project or not. For example, at BullPerks, our token allocation is:
- Treasury: 27.5%
- Liquidity and Staking Rewards: 20%
- Token Sale: 19.5%
- Team: 13%
- Advisory: 5%
- Operations: 5%
Learn more about our Tokenomics here!
Investors also benefit from allocations through rounds of investment. A team might sell shares of a certain “ticket size,” or maximum amount, to early investors in a private sale round. In this situation, each of these individual investors would possess a portion of the total amount offered in that round of sale.
When investing in the BullStarter platform, users lock a number of BLP tokens according to the tier they want to participate in. Each comes with its specific maximum allocation to each deal, so the investor can preview how much they will be able to earn. Our tiers are:
- Copper Bull (1500 BLP tokens)
- Bronze Bull (5000 BLP tokens)
- Silver Bull (15K BLP tokens)
- Gold Bull (50K BLP tokens)
- Titanium Bull (125K BLP tokens)
- Platinum Bull (250K BLP tokens)
Our goal is to offer the fairest and more profitable allocations possible. Because of that, our deals function under the First Come, First Serve basis for all tiers, except Platinum. By doing so, all participants have an equal chance of obtaining higher investment allocations.
What is allocation in IDOs?
Allocation in IDOs is the amount of tokens an investor can earn after joining a deal, which they will later be able to trade. While a few launchpads offer lower but guaranteed allocation, others increase the user’s chance of winning by the chosen tier, and BullPerks uses the First Come First Serve methodology.
Allocation is a fundamental principle of crypto investing. When referring to a project’s tokenomics and distribution of budget, it can help investors spot well-structured startups. On the other hand, allocation is also about how many tokens an investor can receive after participating in an IDO deal. Either way, understanding this concept will elevate your crypto investing game.
Disclaimer. This material should not be construed as a basis for making investment decisions or as a recommendation to participate in investment transactions. Trading digital assets may involve significant risks and can result in the loss of invested capital. Therefore, you must ensure that you fully understand the risk involved, consider your level of experience, investment objectives, and seek independent financial advice if necessary.