Great Crypto Indices Review

**Soulbound Tokens (SBTs)** are emerging as Web3's answer to moving beyond speculation and memes. These non-transferable NFTs represent identity, achievements, and credentials - but Envelop's upgradable version makes them dynamic. **Key Applications:** - **Gaming**: Players buy ERC-20 "power" or "armor" tokens to upgrade NFT assets, creating new revenue streams - **Reputation Systems**: Drop reputation tokens into SBTs for completed quests or contributions, leveling from "Junior" to "Legend" - **Event Access**: Fan badges that brighten with attendance, providing tokenized loyalty rewards Unlike static credentials, these **upgradable SBTs** can be enhanced with ERC-20 tokens, making them living representations of user progress. In DAOs, they track actual contributions across skills like development and marketing. The model enables **free NFT launches** with monetized skill sales, combining user growth with revenue generation through transparent, provable achievements.

**The Challenge**: Startups need VC funding but face community trust issues when early investors dump tokens, crashing prices and damaging project vibes. **Traditional Solutions Fall Short**: Manual token locks, clunky contracts, and endless legal processes are slow, expensive, and fragile. **Envelop's Approach**: The project claims to offer a balanced solution where: - VCs get liquidity without betraying projects - Startups protect against dumps while retaining control - Communities get fair participation without FOMO pressure - Built-in royalties and tamper-proof transparency The system appears designed to let VCs trade future tokens without immediately impacting current token prices, addressing a key pain point in crypto fundraising.

**SAFT NFTs revolutionize token distribution** by wrapping locked tokens in tradeable ERC-721 NFTs. VCs can trade these NFTs on marketplaces while underlying tokens remain locked until vesting. **Real-world implementation:** In October 2021, Envelop partnered with Animoca Brands for the first SAFT NFT test, achieving 100% on-chain distribution with secure token locks. **Key benefits:** - No paperwork or escrow required - Pure code-based solution - Maintains token vesting schedules - Enables secondary market trading This approach eliminates traditional friction in token sales while preserving investor protections through smart contract automation. [Read more about the partnership](https://blog.envelop.is/envelop-receives-investment-from-animoca-brands-to-build-a-protocol-providing-vault-and-oracle-56221a71518d)

**The Challenge** Startups need VC funding but face a critical problem: early token dumps by investors destroy trust, crash prices, and damage community sentiment. Current solutions are inadequate: - Manual token locks - Complex legal contracts - Expensive implementation - Fragile systems **The Innovation** A new approach allows VCs to trade future tokens without immediately impacting market prices. This could solve the fundamental tension between: - Startups needing capital - VCs wanting liquidity - Communities fearing price manipulation **Why This Matters** The crypto industry has seen numerous projects damaged by premature VC exits. Low float launches with high fully diluted valuations have created unsustainable growth patterns. This solution could preserve: - **Community trust** - **Price stability** - **Long-term project viability** *Ready to see how this changes VC-startup dynamics?*

**November crypto highlights reveal significant market shifts:** - **ETH treasury dominance**: Ethereum now exceeds Bitcoin in corporate treasury holdings by supply share - **New index launch**: CoinMarketCap unveiled CMC20, a DeFi-native tradable crypto index token built with Reserve Protocol - **AI sector surge**: Led by record-breaking cloud deals from IREN and Tether's $150M Rumble AI infrastructure commitment - **Perpetuals boom**: DEX perpetual trading volume reached historic $1.2T milestone - **Market expansion**: Real-world assets and equity perpetuals gaining traction on Hyperliquid, Injective, and ApeX Tron emerged as a top chain by fees, while AI tokens maintained momentum as the best-performing sector.