- EthSign, a digital property rights platform, has received investment from Animoca Brands.
- The Web3 venture capital firm will help power the launch of EthSign’s new product, TokenTable.
EthSign, a decentralized electronic signature platform, has announced receiving investment from Animoca Brands. The investment is part of the venture capitalist’s initiative to drive digital property rights via NFTs and web3 games.
Animoca Brands is keen on backing EthSign’s new product, TokenTable, which will help Web3 overlook and enforce agreements crypto projects use in distribution processes such as token allocation.
Token allocation is a highly debated topic within the crypto community. EthSign looks to change the outdated dynamic of ‘blindly trusting’ founders to allocate tokens with its solution. As a frequent recipient of token allocations, TokenTable seems like a good fit for Animoca Brands.
Token allocation in many Web3 projects is a tedious and error-prone task for projects and users. Founders find it difficult to facilitate the distribution of tokens to investors, project members, and their communities. On the other hand, investors don’t have a way to automatically receive the tokens upon launch.
The primary problem in token allocation is the lack of technology and legal industry standards overlooking necessary processes in token allocation.
However, EthSign solves the problems inherent in the allocation process with TokenTable. The product will mediate processes required in token allocation, including token warrants, grant payout, community airdrops, and more.
TokenTable will put the terms of legal agreements into a smart contract, ensuring the smart contract executes the investment terms of the underlying agreement.
Rohit Agarwal, Partner at Sequoia Capital India, shared,
“EthSign is unlocking the full potential of smart contracts by making it easy for organizations and individuals to seamlessly adopt and incorporate them in their daily workflows and business scenarios. We believe it can become the de-facto platform for multiparty collaboration and consensus across both Web2 and Web3.”
Animoca Brands has had its fair share of challenges with token allocation. The venture capitalist is an early investor in EthSign and an avid supporter of the new product. With hundreds of investments in Web3 projects, TokenTable has a perfect use case for Animoca Brands.
Perfect for Animoca Brands
Animoca Brands has a lot of experience with token allocation processes. The firm has launched multiple utility tokens for its play-to-earn ecosystem, including REVV and SAND. Moreover, with over 150 investments in Web3, Animoca Brands has gained familiarity with the many unique challenges in the process.
The venture capitalist firm looks to move the fundraising processes for its portfolio companies on-chain with TokenTable. The terms for future fundraising events will be written into smart contracts and recorded permanently on the blockchain.
Yat Siu, executive chairperson and co-founder of Animoca Brands, believes that TokenTable will help simplify the tedious processes of token allocation. He noted,
“Many projects use excel spreadsheets to calculate and track token allocation and unlocking, which is inefficient, not secure, and highly inconvenient. EthSign’s TokenTable addresses these challenges to enable a new standard of operational efficiency for Web3 businesses, and here at Animoca Brands we are proud to back the development of this highly useful solution and the growth of EthSign.”
On The Flipside
- EthSign’s first product, Signatures, closed a $12 million seed round led by Sequoia Capital India and Mirana Ventures. The product allowed users to sign legally binding agreements with their public keys.
Why You Should Care
Current token allocation processes are complex, prone to human error, and inefficient. EthSign’s tool fills a necessary void, helping ease the token allocation process for projects. Having launched multiple tokens, Animoca Brands has become very familiar with the various challenges in the process. However, with TokenTable, the venture capitalist will cut a lot of unnecessary hassles in its operations.
Read about Animoca’s last investment: