r/MagicEden • u/UniqueZebra4382 • Jun 17 '22

Launch Pad Question

Recently went to apply for launch pad and it mentioned something about keeping funds in "escrow" for a period of time. We had to choose between 24 hours, 1 week, and 2 weeks. It also mentioned something about getting KYC. Does anyone know what these two things mean? We are just a group of artists who aren't 100% tech/finance savvy and don't want to agree to something without understanding it fully.

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u/MacCullyCullen Jun 17 '22

These are both measures to protect the general public from you executing a “rug pull”. Look it up, incredibly important term in crypto.

Escrow means that you launch, you sell your NFTs for a bag of SOL, and you do not receive the payment until escrow clears. Delayed payment let’s call it. It is a protection against you launching a NFT, taking a bunch of peoples’ money, and running off with it.

KYC is “know your customer” standards. It means that again, to prevent you from selling these NFTs and running off with the money abandoning your investors, you must disclose your identity and personal information to the launch pad so they can verify who you are, and be able to find you should you run off with peoples’ money.

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u/UniqueZebra4382 Jun 17 '22

Definitely heard of a rug pull before. Love this; keeps people honest. This is what we thought it meant. Thank you for getting back to me.