This is an open letter. I've been criticized about this subject before, and I'm not sure I should publish this that close of our token launch.
I'll tell you a little bit about opportunistic people.
Founders, KOLs, VCs… And most importantly, how does that makes 99% of the current token launches engineered to pump and dump.
Most of you read @cobie's Substack talking about low float high FDV projects and the “phantom market”, right? I deeply agree with several points, and I believe that not only some founders are opportunistic but some aren't serious. Some don't even know what they're doing or just don't care as much as they should about their projects community.
I'm not perfect. FAR from that. But I'll tell you a little about what we've been doing DIFFERENTLY than 99% founders in this space. Most people usually look at me with weird faces when I say some of those things in private, but I felt incentivized mostly by Cobie's Substack and by one of our advisors at @zarosfi to talk about this, thanks @krugermacro.
❗️Private rounds FDV and token launch strategies❗️
Founders are aiming for the highest valuation a VC will pay. The ecosystem got greedy instead of ambitious, and every hyped narrative becomes a perfect reason to skyrocket a project's valuation.
These insanely large fundraisings at incomprehensible valuations at a high frequency make the common user in crypto to feel numb about them, but it's not normal. Simply ain't. Why do you think most recent tokens from projects with those numbers dumped 60% after launch?
When I started raising for Zaros, both the pre-seed and seed round were so different than what I expected, and I realized that we often received feedbacks that the amount of funding and the valuation we were asking were low (obviously from close people, usually VCs don't even share feedback, they just think your project is not serious cause you're not asking enough) p.s.: there are good people and good funds that don't act like that, but it's definitely the smaller portion.
My line of thinking was and still IS: I'll raise as little capital as necessary so we can have a healthy cashflow for growing our team and building this great product, but not a penny more than what we need.
Why? Well, cause we always tried to position ourselves as attractive as possible and at a fair price, so I didn't want to loose too much % of our total token supply too early (too cheap).
The point I want to make talking about those rounds is that if a project raised tens of millions at hundreds of millions in valuation before even having the idea well shaped almost creates an obligation for them to make a multi-billion FDV token launch acceptable in the eyes of the community.
❗️KOL Rounds❗️
Recently, we've been offered SO MANY proposals from influencers and marketing agency managers to invest tickets on an extra round at Zaros so we could pump the token launch.
At first, I thought? Well that sounds amazing! I'm worried that not enough people will hear about our product that actually solves complex real problems for a large market that generates tons of revenue and that our token launch won't be seen as a success by the eyes of some "numb folks”.
Then, I actually read the proposals, with an AVERAGE of the following terms:
- 20% release at TGE
- NO CLIFF
- 3-6 months vesting
And my honest reaction was: “What the fuck are those guys thinking? Are they looking for a token to pump and dump on their audiences? Send them straight to the slaughterhouse?”
At first, some close people were telling me that this is just how the game is played, that if we didn't play by the “rules” we would be simply left behind… And actually I almost fell for it.
Then I started to analyze OG projects and how different their supply distributions were, how long it took them to make their token prices grow, but in a sustainable way, and for how long those project were around…. And I decided to make things differently.
NO KOL ROUNDS for us. One thing is strategic angel investors, some of them might even be considered influencers, a WHOLE DIFFERENT thing is opening KOL rounds simply because you need enough reach. There are several different ways to achieve that. And you can check what we've been doing. It may take longer, but I am confident that it is healthier and it will create many more millionaires than with the other most recent projects strategies.
❗️Token Supply Distribution❗️
I'm not gonna talk about pie chart skills here. I just want to point that it's becoming more acceptable every day that private investors eat 30-40% of the token supply from incredible projects. This shouldn't be normal. How is the community getting at least 40% of the token supply this way?
I believe protocol's communities should get access to at least 40% of the token supply distribution, with investors being able to get a good chunk of projects supply, but not most of it before a token launch.
❗️Product and Project's Roadmaps❗️
To sum it up, cause the tweet is already too long:
When did founders forget that this should be their life's project? Are you worried with how much money you're making in the next year? Woah.
It's normal to pivot, and it's great to SHIP USEFUL COMPLEMENTARY FEATURES AND PRODUCTS.
My thesis is that the projects which will last the longer in crypto are the ones like the OGs, who have been able to maintain themselves sustainable, shipping useful products that generate revenue.
This is what we're doing at @Zarosfi. I hope this long tweet opened your eyes for some stuff projects are doing recently and helps you to filter what you invest on thinking in the long term.
Of course I'm talking about structured protocols focused on real problems built to last and tokens with utility. If you're thinking about memecoins / narrative based projects / getting 1000x return in less than a month just nevermind everything I just said.
@SnoopyBaseChain @zachxbt look at this project, it is robbing us straight away, first on solana and then with passage to the BASE network and promises of AIRDROP if people sent their tokens!! and further promoted by @PythonCryptoLTD
Introducing the ERC-20i Marketplace: Enabling the secure exchange of ERC-20i inscriptions. 🍄🛒
Coming Soon.
Fungi 🍄 on @base 🛡️
Paving the future of the ERC-20i ecosystem 💫🌌
🎞️🔊👇
new ecosystem on the largest volume network in crypto
project with an active team and a real role excellent graphics and point of purchase
target: $700 approximately 450x
save this post and come back in 2 years
$BSSB
@bssbstable
$MUBI plays crucial role in BRC20 eco as a link between other chains. Soon they will integrate $SOL as well.
If you combine it with $BSSB which can be used to collect funds in IDO/earn yields and then at the end laverage accessability thanks to $SAVM - you get #BRC20 expansion.
Zaros is a groundbreaking protocol that empowers Liquid Staking Tokens (LSTs) holders to boost their rewards by lending their liquidity for the creation of perps markets.🐲
The protocol introduces USDC and #LSTs collateral Vaults and an over-collateralized #stablecoin: zrsUSD.🧵
In just 2 days, we're revealing exciting news as we transition from ZD Labs to Zaros!
We want to reward those who have been with us since the beginning, so: retweet and reply to this post, and we will give you early access and the “Alpha Member” role if you were here from the start.
Join the waiting list at our Discord and stay tuned for more updates in the next few days. ��
https://t.co/fPKMJCq0LD
#PerpetualFutures #LiquidStaking
@nubank 32 anos de idade, com a esposa esperando nosso primeiro filho e o @nubank retendo nosso dinheiro na conta bloqueada arbitrariamente!! Sem falar nada com nada, sem justificativa!! Cuidado com o nubank
O @nubank simples agiu de forma unilateral e parcial, agora não consigo retirar o restante do meu dinheiro do banco e recebi um email que a conta ficará bloqueada por até 10 dias úteis!! Cuidado com o @nubank pessoal pior banco, isso que sou cliente antigo e estou passando isso!!
O Banco NUBANK é o pior banco possível!! Prestei um serviço, recebi por esse serviço, a pessoa contestou os valores do PIX, e mandei as provas para o Email do banco e eles simplesmente bloquearam minha conta devolveram o dinheiro contestado sem ao menos me ligar e relevar.@nubank