Apart from the unlock at TGE, the first 6 months have the highest quantity of tokens unlocked, with unlocks quickly levelling out after.

Over a few calls, we strategised a plan on what actions our client can take, from marketing ideas to liquidity management, to sustain buy pressure during these months, in particular just before:

• Month 4, which spikes by about 20% due to seed and treasury tranches finishing their cliffs, both of which are very likely to cause sell pressure; and

• Month 13, which sees a small but significant spike in unlocks for the next 6 months.

If you finish your seed raise but need to increase the vesting schedule afterwards, investors won't be happy. Here's 3 things you can offer to negotiate with them:

1. Increased TGE unlock.
2. Reduced cliff.
3. Reduced valuation + increased allocation.

Or, if they're still not budging, make more money and deploy more liquidity to absorb the sell pressure.

Over the past month, Polkastarter and Paid have been among the top-performing launchpads for IDO returns, averaging a 340.8% ATH return on IDOs.

While 340.8% may seem significant, the returns are much lower compared to average ATH returns on IDOs earlier this year – are we witnessing a decline in the overall potential of IDOs?

A ton of IEOs and IDOs this week, all with poor returns. But next week will be stronger.

With more IDOs this week than last week, this week’s lineup feels much more promising and complete.

When conducting an audit for this RWA project, one of the most crucial issues was that their token retains practically no value.

There were no permanent, or even temporary, token sinks in the economy:

- no lock ups (except initial vesting);
- no reason to hold tokens for a given duration;
- no buybacks/etc.

Whilst this isn't a problem per se, it will become an issue for the token when the bear market comes around and the demand for the product dwindles, meaning everyone will sell the token with no gates.

Thus, we added a few temporary and permanent sinks that give the project time to manage sell pressure, but also gamify the experience for users.

The total crypto market cap is down 2.9% from 7 days ago, with the biggest decreasing in the top 300 being these 5.

The 3rd problem with burning that our article talks about is the source of the burn (in picture).

We always recommend building better products and running better marketing instead of supplementing your token price with buybacks & burns. But, if you still want it, then you must be aware of the opportunity costs.

Full article

This one's for our retail followers. How do you research tokens without insider industry knowledge? Check out our super detailed guide.

Full guide

This came from a 3 min video we made whilst explaining one of our design examples to a client. If you want a bit more information, check it out here.

Some massive gainers this week, especially in the memecoin sector. Ranging from 2x's to 4x's.

Data on popular memecoins.

Source

VC investment volume has seen a significant decline this week compared to the last two weeks.

Notably, the top five deals combined this week do not match the value of last week’s leading investment alone.

"But they're fine and they launched at a $1Bn valuation!"

IDOs are picking back up as there is a nice market-wide rally.

One of our clients wanted to propose liquid staking for benefits: stake more tokens = pay less fees, access drops sooner, etc.

However, pure staking directly benefits wealthier users, creating inequality in the economy. This creates a division between the users in Western countries and those in Eastern countries, where the disposable income is vastly different.

So, we added another factor: time.

This comes in the form of a lock up, whereby if you lock up your tokens, you need less tokens to achieve the same tiers. This evens out the playing field.

The valuation delta between rounds means the difference in valuation between the seed, private, public, and whatever other rounds you have. If your seed valuation is $5M but public is $50M, the delta is 10x.

Generally, a delta of 2-5x between the earliest and latest rounds is the standard, with other rounds falling somewhere in-between. But this varies between projects.

The higher the delta, the less happy the later investors are - not because they get a worse deal per se, but mostly because the greater the delta the less need there is for earlier investors to hold tokens for as long.

E.g. If two VCs who got in at $0.10 and $0.50, respectively, want a 10x, the first one only needs to wait until $1.00, which is only a 2x for the latter one; so, the former is much more likely to dump sooner.

Amidst the market-wide rally we're still seeing some major declines in prices for numerous tokens across various sectors.

One of our VC clients asked me why 2 of their GameFi portcos have vastly different market caps: A is on $9M, B is on $250k.

They have similar socials, so here's what we looked at instead:


1️⃣ A has much healthier market depth. -2% depth is $15k, +2% depth is $650. This means is currently 23x more dollars below the price (buy orders) than above the price (sell orders) - likely put up by the team or MM to uphold a particular floor price.

B on the other hand has -2% depth of $130, and +2% depth of $2k. This means there is 15x more sell pressure. It's as if they've given up.

Can be found on CMC if you scroll underneath the chart.


2️⃣ A has much better bag holder distribution. Top wallets own 39%, 20%, 15%, 10%... respectively. A sign of whales, and a real community, that wouldn't dump from tiny pumps.

B has most of its tokens in smart contracts, with the top wallet holding only 1.5%. No real whales, no community, nobody holding the token to the moon.

Can be found on Bubblemaps.