@cakepop/usdcakepop-token-launch-strategic-partnership-with-cubfinance
We have a date!
This is the small IDO, which is great (only $250k raised). We'll be able to use this as a template for the other bigger IDOs coming down the pipe.
Unfortunately, a 35% premine is a bit of a slap in the face considering the phrase "fair launch" appears 6 times in the announcement. Luckily it is "team-locked" (multi-sig?) and there is a pinky promise in play that it will be used for development. Hold on while I ignore some flashbacks.
The mission of CAKEPOP is to fulfill our dream of the most fair launch sequence imaginable for the new age of meme-based dividend yield tokens.
I have some qustions:
- What is 25% liquidity lock?
I am (wrongly) interpreting this 25% liquidity lock as the 25% BUSD that CakePop will be paired to in the initial opening CAKEPOP/BUSD pairing. $125k CUB will be burned, and $125k CAKEPOP will be minted in it's place. This means the opening market cap of CAKEPOP will be $500k immediately after the IDO while the price for each token is pegged to $0.0005.
Confirmed by Max Supply: 1,000,000,000 x $0.0005 = $500k
The * on "Liquidity Lock"
We get the following information about "Liquidity Lock":
*Liquidity Lock is the CAKEPOP that will be locked in the liquidity pool alongside the $125,000 BUSD that we raise in our IDO (250M CAKEPOP+ $125,000 BUSD will be our seed liquidity in the Pancakeswap LP)
So this part is a little confusing.
It appears as though all the money from the IDO will be locked in the liquidity pool, so nobody owns it or can control it. However, the CUB/CAKEPOP side of this pool will then be cloned and given to the users that provided liquidity... kinda weird but interesting.
Important details:
*In an overflow style IDO raise, there is no max raise cap. Any amount of $ can be raised above the $250,000. When the total raise amount is breached, each user receives a proportional share in the total allocation (250,000,000 $CAKEPOP) based on their % ownership of the total raise amount.
For example if a user deposits $10,000 in the IDO raise of $250,000 but the total raise amount overflows to $500,000 then the user will receive 50% (since it was 2x overfilled) of their share in the total 250,000,000 $CAKEPOP up for grabs (10,000,000 $CAKEPOP tokens for this user) at the fixed IDO valuation of $0.0005 per $CAKEPOP. This means that this user has received $5,000 worth of CAKEPOP and their other $5,000 deposited in the IDO that wasn’t used will be automatically returned to their wallet as the original CUB-BUSD tokens.
This part is also a little weird. If the cap gets reached and someone wanted to get more tokens, they could simply keep pumping in more CUB/BUSD LP tokens knowing full well they're going to get half of it all back. In all likelihood this won't come into play, but you never know. If something like this did happen it could temporarily pump CUB price until the money was refunded.
Locked Team Treasury is the CAKEPOP reserved for the treasury. This $CAKEPOP will be released via smart contract drip paying out in small chunks weekly for 6 months. Before launch, we’ll release all of our Smart Contracts (including this drip contract) with details about how they work for public review.
6 months is a very short period of time to unlock such a huge premine.
Just sayin.
This leaves 15% of the distribution left to pay for marketing and giveaways. Again, this money will be managed and distributed by the dev team, so there's a significant amount of trust involved there.
Verdict Edict:
There are a lot of reasons to steer clear of the $cakepop token, most of it related to token distribution and a dev team that has yet to prove itself. As a network that's being self-marketed as a meme-token there will always be a high level of risk involved.
Will I participate in the Cakepop IDO?
Yes, I believe we CUB bulls are actually all honor-bound to participate on some level in this IDO (however much). In the unlikely event that we aren't able to hit the $250k target that would make CUB look pretty bad. On the flip side CUB looks pretty great if we raise significantly more than the $250k target.
What I do with my cakepoop tokens after the IDO ends is anyone's guess.
- Maybe I "dump" them.
- Maybe I use them to continue farming crazy opening yields.
- Maybe I try to time a pump/dump.
Who knows!
What I do know is that I will not make any high-risk plays with cakepop, just enough to dip my toes and see how it goes.
Dip your toes and see how it goes.
Potentially this could be a good way to get more CUB. Ever since CUB launched, users in LEOfinance Discord have been more than willing to participate in dozens of new DEFI projects. I have to assume that the first CUB IDO will be quite popular within this community. There will be some signals in the price action.
We've been told a lot of the money for these IDOs will come from the outside. If this is true price of cub and yield will increase across the LPs as CUB gets purchased. However, if significant liquidity is coming from den/kingdom, that will actually push the price down because our hardcore userbase is selling half their CUB for BUSD.
I'm sure there are others (including myself) who will remove CUB/BUSD tokens from the LP and add them directly to the new farm. This wouldn't change the price of CUB, but it would increase the yield of CUB/BUSD (less competition) and lower liquidity of the LP. If buyers from the outside then moved in to buy, CUB slippage would be higher and price would go up faster.
So it's money from the outside vs money from the inside.
Cakepop seems to have major focus on marketing and giveaways so there is a good chance this liquidity will materialize. People love airdrops and crazy opening yields.
No matter how you slice it, these IDOs are good for CUB and create a sustainable counterbalance of hyperinflation vs hyperdeflation. We can find stability in the middle of these opposing tides.
This IDO is only going to burn $125k worth of CUB but we're not sure where that CUB is coming from (kingdom vs LPs). Even though price will go down if pressure from the kingdom is high, there is still a big advantage of increasing the yield of kingdom.
It's also nice to be raising so little money because our market cap is $4M and we can handle that amount without experiencing supply shock. This is a good starter IDO for sure.
Den dominance still sits at 60%, which is pretty high. Does this mean den/kingdom dominance will fall when the IDO goes live? Who knows. Doesn't really matter to me in any scenario, just as long as CUB is destroyed at the end of all of this. This is the importance of maintaining a balanced position across the LPs and the Kingdom: as long as the IDO completes and CUB is destroyed, everybody wins.
Conclusion
After weeks and weeks of waiting we have an IDO scheduled and on track to launch August 30th. No more Soon™.
The dev team in control of 50% of the entire premine is a bit alarming, but those participating in the IDO don't really have to worry about that as the 35% dev drip contract won't complete until 6 months after the IDO completes. The other 15% being used for marketing and giveaways should theoretically more than pay for itself in terms of initial hype for a new defi token.
Let's also not forget about all of those users out there chasing new projects. I think it's very clear that the hype on launch is meant to create a pump/dump just like every other token launch out there (including CUB).
At the end of the day this is pure gambling on my end and I will personally risk relatively little on this one. I don't officially endorse cakepop in the long term but it still might be fun to participate in the launch given some capacity (even if you just dump your tokens on day one).
CUB DEMANDS IT!
You wouldn't say 'no' to cub, would you?
Not not Financial Advice