Private sales are special pre-sales made before general sales and are only available for specific people, and usually, the sale price per token is low, so, a large amount of investment is required. So, the total amount of tokens bought per investor is higher than in the general sales stage. Therefore, if a small group of people who acquired tokens through a private sale sells the tokens all at once, there could be the disadvantage that it serves as the dumping amount that decreasing the value of the tokens.
Additionally, token businesses through private sales are usually not effective, so tokens are sold through block deals. As a result, after listed on the central exchange, a private sales lock was released, creating a vicious cycle in which a large number of tokens are circulated at once and prices fall.
After being listed on the central exchange, the Token Foundation is creating groundless favorable factors naturally to make profits by raising the token price. Rash information circulation in such favorable factors and media has led investors and existing holders to lose money by encouraging speculation with unclear price predictions.
In other words, the more tokens held by a small group of people, the more likely it is that ordinary investors will suffer from market manipulation. Therefore, to solve this problem, a large number of investors who will hold must be secured before listing.
In the real economy, in order for real users to play a role in preventing the extreme price fluctuation, such as spikes or plunges, depending on the foundation’s favorable favors or media information by not only having the clear token use but also becoming the holder, cooperation with securities firms or fintech firms is required. This is because only when the DeFi economy ecosystem, where users of existing real economy financial services through such cooperation are constructed, the price stability can be secured.
In addition, a portion of the private sale should be deposited into the pool. This should be about 50%~70% of the private sale amount in the form of fundamental assets (BNB and ETH), based on the number of tokens circulating in the market, in order to prevent a sharp decline in token price.
Note: When depositing 50%~70% of the amount of the private sales into the pool in the form of fundamental assets (BNB and ETH), depositing at once will cause a sharp increase in the price of the token so all amounts of deposits shouldn’t be deposit in the pool at once. In the “Private Sale Distribution Pool,” the amount of the private sale is deposited in the “Liquidity Main Swap Pool,” then it is calculated in the form of fundamental assets (BNB and ETH) based on the amount of CPX tokens in circulation.”
Refer to the https://centerprime.finance diagram
Since the Token Foundation can verify the transparency of the token and the early holders can act as a verifier, there is a great advantage even before listing because investors are secured through the private sale distribution pool. This has the advantage of gaining trust not only from existing holders but also from new holders. In other words, it means the Token Foundation is not encouraging speculation for just profit, but the ability to promote development by keeping tokens with investors who will hold. Therefore, a private sale distribution pool is necessary.
The CenterPrime project uses a hyperledger private chain to share an open banking API to apps, connecting centralized finance to decentralized finance. Also making smart pairing data for loan, remittance, exchange, payment, and exchange rate information possible to be included in fintech oracle networks.