- The Jupiter team addressed the controversy surrounding their token sale and fundraising strategies, explaining their decision.
- They acknowledged the risk they took on, as they have no certainty about the final amount they will end up with.
- Jupiter’s newly introduced governance token, known as JUP, commenced trading at 10 a.m. Eastern Time the previous day.
In a recent statement, the Jupiter team addressed the controversy surrounding their token sale and fundraising strategies. The team clarified that they could have opted for an Over-the-Counter (OTC) deal or a regular Initial DEX Offering (IDO), which would have potentially raised a similar, if not greater, amount of funds without the confusion and risk associated with pioneering new concepts.
Hi all, i got advice in discord to be even more clear so let me say it simply:
If i did an OTC deal or a regular IDO, we would have gotten a similar amount if not more without any of the confusion that comes with pioneering new concepts and absolutely zero risk. Trust me, that…
— meow 🥧 (@weremeow) February 1, 2024
However, the team chose a different path. By their strategy, airdrop recipients are given a large pool to sell into, assuring prospective buyers of a substantial pool to absorb the significant selling pressure from airdrops, thereby preventing immediate massive losses.
The team acknowledged the risk they took, as they have no certainty about the final amount they will have. The community and those who have buyer’s remorse get first dibs. For instance, if the selling pressure from the airdrops is too large and there is insufficient demand, causing the price to drop below 0.4, the team would end up with nothing.
The team emphasized that they did not choose this path because it was easy or because they could have made a lot of money. They have already lowered the Airdrop amount from 20% to 5%, and then to 2.5%.
The Vision and Values of Jupiter’s Team
The team’s goal is to establish a good open market dynamic that prioritizes users, protects early launch pool buyers, and does not demoralize community hodlers. They believe this system compels the team to price it reasonably, backstops wild swings that hurt believers too much, and fosters strong alignment confidence between early buyers, the team, and community hodlers.
The team concluded by stating that they are not doing this just for themselves, but are trying to figure out a new meta that works for all teams. Whether they are wrong or right, only time will tell. But they are here to experiment for the good of Jupiter and the crypto ecosystem.
Jupiter’s newly introduced governance token commenced trading at 10 a.m. Eastern Time the previous day. The tokens were initially valued at $0.40 in Jupiter’s native liquidity pool, consistent with the price curve.
Following this, centralized exchanges such as Bybit, Binance, Bitfinex, and OKX started facilitating trading for the token. As of now, the token, known as JUP, is trading at $0.69, marking a 63% decrease from its highest trading price. This plunge has resulted in a market capitalization of $$6,962,956 and a fully diluted value of $18,862,588.