Hi guys, I wanted to write a small recap on the events that happened yesterday. The following things happened:
- We chose to sell 8T tokens from the dev address (0.8% of the total supply). We did this a couple of weeks ago and the effect of such a sell was expected to be -23%. Last time, the token dropped 20% and price got back up within half a day. We announced the sells, posted the transactions and no one batted an eye. This time, 15 seconds after our first sell, a former valued community member sold his stack and left the project. This was the catalyst for an unprecedented drop in price, where the token price dropped another 50%.
- Our dev wallet funds are the result of a 4% allocation plus static rewards appreciation. These tokens were locked for 14 days initially. A small reminder, we launched this project with our own funds. These developer tokens were valued at $400 at the time of our launch. Since we had to manually lock all of our tokens during launch, we were not able to buy “cheap” LOGE when everyone else who participated during launch were able to grab percentages of the total supply for under 1 BNB. We could have done a stealth launch and bought up 20% of the supply and then slowly dumped that stack and nobody would have noticed. All of our transactions have been transparent, and all we get is negative reactions. This is impacting us negatively as a team, because it just shows that nothing except price appreciation matters to the bulk of our investors.
- As a result of all of the commotion in the chat and after carefully considering the options with the team, we chose to lock our dev tokens for the next month. The rewards accrued by the contract address will be burned. As a personal sorry note to all of the investors negatively impacted by the unfortunate chain of events, I’ve burned 5T LOGE of my own tokens.
Burn status
The current status of LOGE burned is as follows:
- Burn address: 61.2T
- Team token lock contract: 40.6T
Total amount of LOGE burned (verified): 101.8T (10.2% of total supply).
Furthermore, the addresses where all of the tokens are locked are considered burn addresses as well, so until those tokens unlock the following amounts will be used to burn rewards as well:
1. Team token lock contract: 200T
2. Dev wallet token lock contract: 32.8T
Total amount: 232.8T (23.3% of total supply).
This results in 101.8T + 232.8T = 334.6T (33.5% of total supply) LOGE being used to burn rewards. The total amount of LOGE eligible for rewards is 1000T (total supply) minus the PancakeSwap address (88.2T) = 911.8T. Therefore, 334.6T / 911.8T = 36.7% of the static rewards being burned. In terms of USD, that’s $18.35 out of every $1,000 traded that is currently being burned.
Some considerations
Another point I want to make that might put the current situation into perspective, is that a lower market cap is actually beneficial for a project like LunaDoge. The longer you are able to keep a lower market cap before shooting up, the better it is for all of the rewards and liquidity. Since liquidity is being added once the contract address reaches 500B tokens, the lower the LOGE price the faster liquidity is being added. Also, the lower the market cap the higher the rewards in LOGE being distributed to holders. Eventually when the market picks up again, you are not only up in price, but your real reward lies in your increase in LOGE. Take June 2 and yesterday for example. June 2 had a similar volume in USD (±$160k), but the amount of LOGE transferred was only 40T LOGE. Yesterday, the amount of LOGE transferred was 104T. That means that with the same volume in USD, the rewards in LOGE + liquidity added were 2.5 times as high as they were on June 2.
Closing remarks
The past day has showed me that the crypto space is still very immature and price is the only thing that matters to supporters, no matter what has happened in the past or what actions the team took to be as transparent as possible. From here on out, I will focus on development and actually growing the token. This also means I will not be spending a lot of time on TG anymore, because I’m losing a couple of hours of each day to deal with DMs, negotiations with exchanges and having to deal with an active main chat. Next up is the weekly recap on Monday! Stay tuned and be patient, many good things will come.
Sincerely,
Crypto Pajeet
