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Kraken Expands On-Chain Fundraising with Legion’s Reputation-Based Model
Kraken is set to expand its fundraising offerings by hosting token sales from Legion, a fundraising platform backed by VanEck and Brevan Howard Digital. The move, announced Thursday, marks another step in bringing compliant crypto fundraising to a global audience.
A Reputation-Based Allocation Model
Unlike traditional first-come-first-served fundraising systems, Legion introduces a reputation-based allocation model. Using its proprietary “Legion Score,” the platform allocates up to 20% of each token sale to long-term industry participants, including developers, DeFi users, and community leaders. This structure is designed to reward engaged contributors while limiting the influence of bots and speculative wallets.
The remaining allocations will be split between Kraken Launch, the exchange’s onchain fundraising hub, and the Legion platform. Token trading is expected to open shortly after each sale concludes, making the process smoother for investors and projects alike.
Building the Future of Crypto Infrastructure
Kraken executives described the partnership as part of the exchange’s broader vision to shape crypto-native financial infrastructure.
“Kraken is building the foundation of tomorrow’s financial infrastructure with crypto at its core,” said Brett McLain, Head of Payments and Blockchain at Kraken. “Together with Legion, we’re scaling a product that democratizes token sales and aligns communities with builders.”
The exchange had already demonstrated its commitment to Legion by participating in the platform’s $5 million seed round, further strengthening ties between the two firms.
Investor Protections and Regulatory Alignment
Both companies emphasized that token sales will require MiCA-compliant disclosures, due diligence, and transparent allocations, reflecting growing regulatory demands in Europe. This proactive approach contrasts with the more enforcement-heavy oversight seen in the United States.
Legion’s founders believe democratized fundraising can better align projects with their most engaged supporters. As co-founder Matt O’Connor put it: “The next Figma or Reddit won’t IPO. It will launch to its community on-chain.”
