V2 Token Update — Wen CMC?
An update on the V2 Token and current issues we’re working around
Background
As most of you will be aware — when we re-branded from EarlyBSC to Lithium Ventures, our token (quite rightly!) was unable to be updated as the functionality to retrospectively alter the contract was removed during creation to build trust in us as a development team. Whilst done for all of the right reasons, the adverse impact of this re-brand was that the token’s code and our project names no longer matched — a quirk that has disqualified us from relisting on several platforms and resulted in daily ‘wen CMC’ questions.
Having identified this as a problem — we set to work, and as of today have both the new token (V2) and a working swap platform ready to facilitate the switch of the current ‘V1’ token to the V2 which will better represent us as a company with slightly different / less ‘meme coin’ tokenomics, plus the ability to once again be tracked by CMC.
There have been many questions as to why we haven’t yet announced a firm date for the swap. We want to be as open as possible on these strategic decisions, and in line with our building in public ethos we’ve implemented from the beginning — I wanted to answer these questions within this article.
The Blocker
As per common practice when launching any early-stage crypto project, we locked our V1 token liquidity within Unicrypt for 12 months (https://app.unicrypt.network/amm/pancake-v2/pair/0xAc434be743e378916F56712e09d2343e5E3a4D35) so it couldn’t be touched, moved, or manipulated. This locked V1 liquidity is currently around $1.1m — although changes with each buy and sell off the BNB/EBSC pair.
In order for us to migrate to a new token, we need to place a very similar amount of liquidity (circa $1m) into the V2 LP pool to prevent price changing relatively when we do the token swap.
And that, in a nutshell — is the problem we face now. Just like Donald Trump (although we hope this is where the similarities end!) we need to find a small loan of $1m if we are to complete the token swap prior to the V1 LP unlock date on 27/04/2022.
Where does that leave us / what are we doing in the background?
In the background, we’re having conversations with anyone and everyone who might be willing to part with the cash to help us move to V2 before the end of the unlock period. As you can imagine — this is not an easy task. The main issue is that if we took a $1m loan today, on the unlock period (27/04/2022) there might NOT be enough LP in the V1 pool to pay back the loan. If this was to happen, this would put the project in a dire situation and something we’re almost certain the majority of our community would be adverse to. In addition, any investor who fronts this loan needs to be paid accordingly… from our conversations this is in the region of 10–30% PA which then would saddle the project with additional costs should we find and close a bridge loan.
As it stands, we have the new V2 token and the swap platform. The worst-case scenario is we have to wait until 27/04/2022. On this date, our V1 LP unlocks in full, we can move this to the V2 token and conduct the token swap immediately. This route comes with no costs to the project or investors, we roll the marketing plan out as is, although the downside is we have to accept the CMC listing will be in April 2022.
The best-case (and favored) scenario, is we find a flexible investor. Someone who understands the nature of this unlock, and is happy to be exposed to a variable LP pool and the risk they may have to take another form of payment (such as vested EBSC tokens) as payment for providing the loan.
There are pros and cons to both routes, although we have worked to mitigate the project impact by pulling our marketing plan forward to start this week. This means the only real negative of holding off is the lack of CMC listing and price tracking. Please understand the team and I are doing everything in our power to drive this forward and find a solution. I hope this provides some insight into the strategic decision we’re facing in the background, plus a more thorough answer to ‘wen CMC’.
As always — please reach out for any more clarity. We appreciate all the support and can only try to be as open and honest on this to keep the community in the loop.
