DeFiRaccoons
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DeFiRaccoons

A step towards Fair Launch..

If you caught our latest article, “Enter the Raccoon’s Nest 🦝”, you’re already aware of ACDX and their crypto derivatives trading platform set to launch in the coming weeks. We’ve also mentioned they will be launching a convertible token on Uniswap but the team decided to spice things up with a surprise listing and make an important step towards the much coveted fair launch or fair distribution. This impressed our DeFi Raccoon crew so yours truly got tasked with summing up our thoughts on the launch and it’s impact on the DeFi space as a whole.

A launch out of the blue

With the DeFi space being even more fast-paced than the rest of crypto, some issues have started to be taken as granted and projects that slow down to address them immediately capture everyone’s attention. One of the biggest issues with Uniswap launches, is the issue of fair launch or fair distribution, right up there with the possibility of rug pulls and scam tokens. The flood of scam tokens drove a lot of projects to announce exact listing times along with their SC addresses in order to safeguard the community against scams. However, this created the issue of Uniswap bots, designed to snatch as much of the available tokens as possible for a single user, thus pushing the price upwards and forcing the majority of users to buy from them at the increased price.

The ACDX team pulled a fast one on the bots though - they we’ve announced the listing, reaping the hype that comes along with it (boosted by the fact that some people were left confused as to the role of cACXT but felt the fomo) but opted for a sudden launch in the early morning hours of September 24th. This created a situation in which everybody was given an equal chance to act upon the released info and try to get the tokens, while the bot runners didn’t have a chance to set up their trades in advance. The devil is in the details and Andy and the team nailed those details.

An added benefit was that, since the token was just created, nobody owned the tokens except for the team, so the tokens offered in the pool were exempt from the usual sell pressure (coming from token holders from the past funding rounds). While this would usually send the token price flying sky-high, this convertible token can be exchanged for ACXT at 1:1 ratio once the platform goes live and the team announced another public funding round to take place soon - both facts created a counterweight and introduced balance.

Well, ok, nothing is perfect, but I found this pic and it was too bad-ass not to use. Speaking of balance, there is one final thing the team did to help balance things out, and that was providing a massive amount of liquidity. They’ve locked 400k cACXT at 1.25$ peg in ETH, a total of 1 million $ in liquidity. Users got the chance to execute large orders without causing massive slippage, a welcome change from the way things are usually done on Uniswap.

Balanced moon?

So what did we end up with? If you take look at the Uniswap trading pair, you can see that the trading started off hectic (such is the nature of Uniswap listings I guess) and drove the price upwards, getting cACXT trading at nearly 4x from the initial peg before settling down at around 3$ as the volume subsided.

Keeping in mind the swap and additional funding we’ve mentioned before, we could almost say ACDX launched a derivative before its derivatives exchange went live with cACXT currently perceived as a sort of ACXT futures. Due to the swap, the team announcing the next funding round sale would act as a settlement event and drive the price of the convertible token towards the price they set for the funding round. This means that the token is currently trading at a market-determined premium while the large liquidity allows for speculators to join or leave the pool as they see fit.

All in all, our DeFi Raccoons team agrees this was one of the best launches we’ve seen a DeFi project pull off - corroborated by the fact that another DeFi project, PowerTrade used the same pre-announced-surprise-timing Uniswap listing that very same day and achieved similarly good results and community praise. In any case, this has been a positive step towards a fair launch/distribution that we hope other projects will consider using in the future. With the next funding round around the corner and rumored to be an IEO, we’re eager to see what Andy and the guys come up with next.

Now for a disclaimer — I’m not a financial advisor, anything you read on my Medium isn’t financial advice, it’s a log of myself doing due diligence on projects, please verify any and all information presented (error reporting welcome) and make your own decisions.

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Bobby BLocker

Bobby BLocker

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Blockchain technology enthusiast, Senior Editor and Marketing Manager for t.me/DeFiRaccoons