Even a Massive Token Unlock With “F**ked up Tokenomics” Couldn’t Keep Solana (SOL) from Pumping
Most of the SOL tokens have been unlocked already today and while people were looking for a dump, the token did just the opposite. The price of SOL token is already up over 85% just a week into 2021, currently trading at $2.34 SOL -2.85% Solana / USD SOLUSD $ 34.53
-$0.98-2.85% Volume 439.33 m Change -$0.98 Open $34.53 Circulating 272.64 m Market Cap 9.41 b 6 d Tether in 'Open Dialogue' with DOJ, says Company on Report of its Executives Being Under Probe for Bank Fraud 1 w Neon Labs Integrates Cross-Chain EVM Solution Into Solana, Bringing Ethereum Dapps to the Blockchain 2 w Solana Based Crypto Wallet Phantom Raises $9M to Scale Operations .
This uptrend has been despite the huge amount of SOL being unlocked and 2 million being deposited to Binance. Out of the maximum 488,630,611 SOL supply, the current circulating supply is 261,900,515, as per CoinGecko.
Sam Bankman-Fried, the CEO of crypto derivatives exchange FTX and Solana proponent, is not one to let the market devalue a project which has been “building the most ambitious and powerful blockchain in the world.” He is ready to bet that SOL won’t be going below $2 in a week or six months.
FYI, no one seems to be interested in putting the money where their mouth is and take the other side of his bet.
This, while in part because the project itself is more about the creator Sam himself who in just over a year, made FTX one of the biggest crypto platforms.
Before the unlock was to happen, Sam wrote one of his usual Twitter threads, which have become popular among the crypto community; in it, he shared his expectations and disappointments about his creations FTT and SOL, which he selected for his DEX platform Serum, both of which have the same “fucked up tokenomics.”
Everyone is like "but the token unlock!"
Are you not paying attention?
Sam is literally going to buy any coins that get dumped, he's stated this publicly.
He's making a public wager that $SOL will be trading higher this time in a week.
if you have iron hands you can't lose.
— The Crypto Dog📈 (@TheCryptoDog) January 7, 2021
Enter the world on its own terms
“It took me a long time to become at peace with FTT,” said Sam in the Twitter thread.
With a market cap of $911 million, FTT is currently the 41st largest cryptocurrency trading at $9.52, up 128% in the last 30-days.
“At the beginning, I was fucking stoked…” said Sam, explaining how people have been willing to pay “$6m for 15% of the tokens that got 33% of the revenue… …from a project that didn't even exist those few weeks ago.”
“People were really eager to buy FTT at $0.10, too eager…” to get into the first round of the pre-sale.
But this was based on the exchange’s pitch — “FTX will be well built, and liquid” and with a roughly 20% chance of becoming the top 5 projects would mean it will be worth billions that made him realize that $0.10 wasn’t really crazy rather it may even be “too low” — a move he now calls “dumb.”
“I had sold myself short. I had sold our team short,” he said. The early days of FTX were a big success and FTX launched with much hype.
The token surged to $1.50 after the initial sale only to be stalled out here, that is despite the daily volume on the exchange growing steadily. This was because of the 60 million tokens, worth $90 million at market price, unlocked from presale investors during July through Nov. with a cost basis as low as $0.10.
“FTT didn't keep up with FTX's growth. It stagnated. And it became a self-fulfilling prophecy. FTT was dormant, so people lost excitement in FTT, so there weren't buyers, so it was dormant…” said Sam, for whom FTT was a “disappointment” for a long time.
While FTX actually became a top exchange in a year, FTT didn't’ see the same “meteoric rise,” although the token did start to show some signs of life. But while FTX grew 6x, FTT only did 2x.
The frustration pushed him to even buy the tokens from those who sold FTT below “what I thought it was worth.”
And it was after a session of meditating on FTT while blasting “TSwift,” did Sam realize that he had been thinking about it wrong. “I had wanted FTT to immediately become a powerhouse, and instead it was a slow excruciating grind upwards filled with constant sell pressure.”
But the sellers weren’t the problem, it was rather a good thing as “people who had no interest in FTT or FTX exited early, and the remaining holders were those who believed in us.”
FTT was maturing so “wanting FTT to be a cash cow that I could sell” was a mistake, he wrote. Now, he is maturing as the creator of the FTT — loving it for what it is instead of hating what it isn’t.
So, basically, FTT had “fucked up tokenomics” by pushing lockups so that seed investors didn’t sell early. But now all that needs to be done is to wait for its time to mature so that it is “ready to enter the world on its own terms.”
And now, with the same thing happening to SOL, Solana’s native token. He is ready for the day “Solana becomes free of its ever-present headwind” and starts “to live–and die–on its own terms.”