It can be difficult to obtain information about a project's tokenomics. In my personal experience, I joined the project's Telegram group and reviewed the pinned message to gather information. The token allocation is as follows:
- First, allocation, 15% for the team and advisors, 4.3 % for private investors, 2.95% for seed investors, and 70.3% for the incentive pool. This allocation ratio is reasonable for a mining project where team and venture capitalists do not hold a significant portion of the tokens. 4/5
- Secondly, the vesting details present a problem. Seed, private, and community investors' vesting periods are daily, and their vesting shall begin after 3-6 months. With the current price of $HYPE at 0. 82 USD, their investment has a multiple ranges from 8 to 5 times. This may result in a lot of selling pressure from August 23rd onward. Furthermore, the locked period for the team and partners is only six months, with monthly vesting. This indicates that their commitment to the project is not high enough, and a longer locked period would be preferred. 2/5
- Thirdly, the circulating supply at TGE in May 23 is 44 million $HYPC, resulting in a market cap of around 13 million USD as of May 15th. If the price remains the same, the fully diluted valuation in the next five years would be 600 million USD (ranking 70-80 in the current market). This may lead to an increase in selling pressure over time. 3/5
In summary, from my perspective, this tokenomics plan demonstrates that the project's vision and commitment to a node project is short-term. Therefore, it raises several concerns before investing in this project. Show Less
