A fundraising initiative by a business founder, for the purpose of fueling existing business growth, or a special project / launch. While founders leverage their social media following and channels to market a new campaign, Xorro.io acts as the secure and licensed fundraising platform & partner, enabling fans to create a crypto wallet and invest in a campaign for as low as US$ 100.
These are financial assets like equity or revenue share tokens that are issued by founders to fans, in exchange for their investment into their Xorro campaign. Securities represent ownership (equity share) or profit-sharing rights (revenue share) in a business or project, and the sale of securities is monitored by the SEC to protect investors.
The government agency that ensures businesses and founders follow the rules when offering securities to the public - thereby protecting investors from fraud and unfair practices. Depending on the type of security being issued, the SEC may require founders to make disclosures or exemptions like Reg CF, Reg D, or Reg A. Read more here.
Tokens are a form of regulated securities and traded on a blockchain. A token is a digital asset representing ownership (equity token) or profit-sharing rights (revenue-share token). Once a fundraise campaign is successfully closed, tokens of a certain value are issued to every investor by the founder, and will reflect in their Xorro wallet.
Equity tokens = like digital shares, these tokens are issued to fans who invest in a campaign (e.g. owning 10% of a startup via tokenized stock).
Revenue-share tokens = entitle holders to a % of revenue (e.g. 5% of monthly sales distributed to token holders).
A web3-compatible cryptocurrency wallet. It enables you to store your crypto assets, tokens, and cryptocurrencies securely and is also used to send and receive cryptocurrency. Xorro wallet partners with Circle / MoonPay to provide founders as well as investors a secure way to manage your digital assets.
A leading fiat-to-crypto on-ramp provider. It allows investors to purchase cryptocurrencies directly from websites or web3 applications.
A stablecoin - a type of cryptocurrency pegged 1:1 to the US dollar. It’s fully backed by cash and short-term U.S. Treasury reserves, making it stable (unlike volatile crypto like Bitcoin).
In addition to receiving tokens, fans who invest in campaigns may also be offered unique perks by a founder. Depending on the investment amount, perks are divided into Reward Tiers (silver, gold, platinum or diamond). Campaign perks can range from exclusive invitations to a new product or launch event, to behind-the-scenes access or a meet-and-greet with the founder.
Xorro’s team works closely with every founder to analyze and validate their business model and financing needs, and accordingly derive the fundraising target or goal for the campaign.
This is a legal document that provides detailed information about a regulated token sale to investors (e.g. the equity or revenue-share tokens that will be issued by a founder after a successful fundraise, via Xorro), ensuring compliance with securities laws (like SEC Reg D or Reg CF). Key Components of this document include:
Investment Terms: Token type (equity/revenue share), price, fundraising goal
Risk Disclosures: Legal, financial, and market risks
Company Details: Business model, team, financials
SEC Compliance: Exemption used (e.g., Reg D 506c), investor eligibility (accredited/non-accredited)
SOMA.finance is powered by Tritaurian Capital - the first FINRA-approved broker-dealer authorized to issue and trade tokenized securities. Through this partnership Xorro ensures regulatory compliance with the SEC and FINRA.
When creating an account on Xorro, you will go through a KYC application. KYC stands for “Know Your Customer”. Know Your Customer (KYC) standards help safeguard financial institutions from fraud, corruption, money laundering, and terrorist financing. In the context of real-time, cross-border payments, KYC compliance fosters trust, transparency, and collaboration while reducing risk. To effectively combat financial crime, a community-driven approach is key i.e. speeding up compliance and enabling more cooperative solutions.
In finance, capital represents any resource with value that can generate further value. In Xorro’s case, this relates to funds being raised by the founder from the investors/followers via raise campaigns on Xorro.io.
This is another upcoming, innovative solution under the New Social Theory umbrella. Peeps is a social commerce platform that aims to seamlessly integrate all your social media and e-commerce activities into a single, streamlined experience. Designed to empower both consumers and creators, My Peeps aggregates your various social media accounts and online shopping activities into one cohesive flow.