Transparency Update 2 - Part 1/2

5 min readMay 3, 2022

This is part 1 of the transparency update, it is intended to provide the community with some information while the private vesting extension is being completed. Part 2, with significantly more details will be released once the vesting update is complete.

Topics we cover in this article:

Why has there been a delay in the Circulating Supply?
Current Circulating Supply
Recent Marketing Allocation Transaction

Foreword

The team have been working on many aspects of the Chumbi Valley ecosystem. This is not a simple NFT collection nor is it a simple game. As it is an ambitious project, the team have been hard at work establishing a strong network of marketing experts, advisors, developers, manufacturers, artists and designers. The NFT P2E gaming space is full of innovation and uncharted territory, and the team continues to learn and improve while they strive to deliver an outstanding game and ecosystem.

Behind the scenes, there have been some challenges, but the team understands that this is natural for a tech startup and remains determined. We want to be transparent with our community about all that is being worked on, but at the same time, we are also working to plan our announcements strategically and provide more structure around our communications.

Why has there been a delay in providing the Circulating Supply?

Chumbi Valley has undergone a restructure of its main token (CHMB) private sale vesting terms. As market conditions began to decline the team made the decision to extend the vesting terms for all private sale investors to slow down the unlock of CHMB (previously a 3 month lock with 12 months vesting, now extended to 6 month lock with 22 months vesting). This was a responsible but difficult decision for the team to make, because it introduced a large amount of admin work that could only be completed by the core founders. We are still in the process of completing the vesting update which includes investor communication, creation of legal documents, vesting smart contract development, and other tasks. Additionally, any investor that does not align with our core values will be issued a refund and their allocation of CHMB will be burned.

Current vesting update status:

Total Private Sale Investors: 94
Processed: 59
Ongoing: 35

Note: Once the vesting update is completed, it will change the circulating supply calculation because of the extended locking and vesting periods. Additionally, as a small portion of investors will be refunded, this will also affect the calculation because of CHMB burning and further vesting adjustments.

Current Circulating Supply

Note: This calculation is outdated because the vesting update is not complete, the true circulating supply will be lower once updated. Additionally, the circulating supply is dynamic and will change daily based on vesting, burns, staking, etc..

Circulating Supply (3rd May 2022): 2,177,312,269 CHMB

Marketing Allocation Transaction

Chumbi Valley has been in contact with a high-profile exchange for 2 months and has been planning a very exciting announcement of a new listing. We had received the final contract and had it reviewed by our legal team and an advisor. A transfer of 110M CHMB tokens was transferred from the project’s marketing allocation to the exchange as a security deposit which is a standard procedure.

However, it became clear that after we made the security deposit transfer something was not right, as the tokens were being transferred into multiple wallets and some of the CHMB was being sold on the market.

Our team immediately began speaking with our advisors and we were able to speak with the CEO of the real exchange who confirmed that unfortunately we had become the victims of a sophisticated impersonation scam. The team that we had been dealing with were all posing as actual members of the exchange and used a copied version of the exchange’s legal documents.

The Chumbi Valley team quickly got in touch with their Kucoin emergency assistance representative and forwarded the blockchain transaction information. Together with the Chumbi Valley team, Kucoin was able to track and freeze accounts that were associated with the scam transactions.

In the meantime, to support CHMB’s value, the Chumbi Valley team strategically invested the teams own treasury’s funds to absorb some of the selling pressure caused by the scammers. These funds were initially dedicated to marketing, ensuring that the project’s core development itself was not impacted in any way.

Conclusion

Scams are prevalent in the crypto space and the Chumbi team has been very careful with many transactions and partnerships up to this point. However, we were caught off guard by a highly organised group. We have learned a great deal from this experience and the following are some positives:

Our due diligence and authentication process has been completely reworked, this will not happen again
The CHMB that was stolen from the marketing allocation will be replenished using the team’s allocation
We were able to freeze a number of associated Kucoin accounts making it very difficult for the scammers to move funds
Overall, the financial impact was minor and will not affect the team’s ability to achieve their project goals

Moving Forward

Despite some minor setbacks, the Chumbi team is in very positive spirits and working hard on the first video game development update of the player customization screen. Following this will be game world testing and more.

The new circulating supply and full Transparency Update (Part 2) will occur as soon as all remaining private investors have been processed which we are aiming for at the end of May.

Our marketing efforts have been significantly increased, as we begin to work with 2 top-tier marketing agencies we are very excited to implement innovative new ways of growing our audience and bringing fresh new faces to the amazing world of Chumbi!

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