I like to see that the team has a 12 month cliff + 36 months vesting, that's often rare in crypto but common for tech companies.
They are increasing the price of the token in a static manner which may qualify them as a security token even though they should qualify for utility status. They might need a better lawyer I think.
They specified that the listing on the DEX will be composed of 1B token supply at $0.0024 (or even more since it's after the public sale on the launchpad I guess), that's $2.4M+. However, the combined funding they raised in previous rounds is $4.5M, so they should have $2.1M maximum to spend on building the tech, and for all other expenses until the IDO (will that be enough?). Unless they plan not to release all the tokens of the liquidity and listing during the IDO on the DEX to release them later during the CEX phase? that's a bit unclear from the pitch deck.
Seed round investors get 5% of their supply on TGE with a 2.4X on their investment, that's $192,000 of potential selling volume + strategic round investors that get 10% of their supply on TGE that's another $336,000 + 25% of the public round that vest on the TGE, that's another $180,000. So in total $708,000 out of the liquidity pool with maximum $2.4M. In worst case scenario that means the token will go from $0.0024 down to $0.001193, that's potentially a -50% drop in value for those who buy at the start of TGE. If the price goes up after TGE, those who buy at the top will have the compounding effect that may drop down to the floor price of $0.001193, so potentially more than 50% loss of value. The chance of this token getting wrecked is pretty high. A liquidity pool of $2.4M at most is small so if there is demand for the token, it could grow very fast as well, so I don't know which way it will go, but I feel it's not really worth the try given that they are starting at TGE with a fully diluted market cap of $24M. On the other hand if you can get on during the pre-seed round, that's just a $4M fully diluted valuation which is very low. Might make its way in a moonbag for some people, not for me though. Show Less
1
