We have been reviewing and have arrived at the conclusion that in order to maintain transparency and to keep MGOT early investor and community well informed, we need to throw some light on why 2m tokens got issued at a very discount price significantly lower than the presale price.
We know this incident has unsettled early token holders. We are working to manage it and to provide MGOT token holders the value expected.
As some may know already, MoTA Global is a project aimed at bringing blockchain access and use to poor communities with limited tech infrastructure, knowledge and access. You may also be aware we constantly seek a larger platform to drive our token MGOT. This funds the project and brings value to our community. Our crowdsale which is ongoing aims to circulate 10% of total token supply.
In line with our goal to expand circulation and the medium of distribution, we decided to try an IBO launchpad platform.
On Wednesday, October 20 we launched an IBO on Benswap which is the first SmartBCH DEX and remains our primary swap. There was however a major miscalculation and misallocation of tokens resulting in the sale of 2m MGOT For 0.52 BCH instead of 1MGOT at 0.1USD or 0.00016BCH. Thus the value of tokens released per our presale issuance price was a whooping 200,000USD or 312BCH.
The lucky lot who chanced on our misfortune quickly lapped up the tokens and headed to the swap to tank the price. The dip in token price was quick and brutal but it drew our attention to the error though the tokens have already been bought up. What would have been elation about a successful crowdsale turned into a critical challenge.
Our initial response to the price drop when we had not discovered the problem was to quickly add liquidity to match the sudden volumes in trade and to buy back but we realized it put pre-sale investor funds at risk and also diluted the price further.
We have looked at three approaches to solving the challenge.
1. Mop up the heavily discounted tokens. Those who bought at a massive discount can afford to sell cheaper but they would have to be willing to sell first. We are pursuing the prospect of deploying a farm to incentivize the sale of discounted tokens.
2. Deploy valuable projects/products. Our primary focus is to deliver products that gives the world value with the expectation that the value will translate to value for our token holders. We are therefore working over-time to release products that provide practical and solid blockchain use cases to disadvanted communities of the world.
3. Total Recall. A snapshot of pre-sale token holders and tokens purchased has been preserved. As a last resort, we would use this to airdrop quantities that match the discounted value for all pre-sale holders. We will also had a surplus. This would act as a re-denomination excercise.
In the meantime we have deducted from our total tokens to be airdropped in future and marked total number of the IBO incident tokens minus the amount raised. This will ensure MoTA does not airdrop more tokens than specified in the tokenomics document.
We believe in protecting the interest of all MGOT token holders. Mode of Transfer Alternative (MoTA) Global remains committed to the delivery of blockchain transfer solutions to technologically disabled communities of the world.
With all I’ve read, you’re talking about a new token. I’m actually not familiar with most coins and that’s why I don’t venture into investing on a coin that I don’t know about. You’ve got a good write up. Take care