Crowdholding

We want to make changes for pre-ICO investment lock-up period. What do you think of such scenario?

We want to make changes for pre-ICO investment lock-up period. What do you think of such scenario?

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We want to make changes for pre-ICO investment lock-up period. What do you think of such scenario?

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Update: Monday, December 11th 2017

Having discussed community feedback, we have settled on the decision to implement a pre-ICO lock. Today we discussed the possibility of creating a new smart contract that would be a simplified version of the Wabi ICO example. Our dev team is examining the details this week to make sure all specifications are thought out thoroughly before implementation. Thus, we have extended the task for another two days to allow for further feedback.

 

Task from Friday, December 8th 2017

It’s great to see the amazing engagement and support in helping us formulate our ICO structure to develop the best solution for both pre-ICO and ICO investors. Keep in mind that this is a draft in order to get feedback - we are not taking any of these actions yet. Following your feedback, and further internal discussion, we will announce the decision next week.

Our CEO and the rest of the team have heard from pre-ICO holders. We have received their assurance that they want to hold the YUPIE token long-term. They have have supported us early because they believed in the project and not because of speculative return.

Current and potential ICO investors are interested if there is a lock up period for pre-ICO token investors.

We met several times during this week to find the best possible strategy and we wanted to first present the main reasons for coming up with the following scenario.

Reasons for this change:

  • Encourage new investments in the YUPIE ICO.

Our bonus structure rewarded investments in the first few days of the ICO, however that was a ‘’dead’’ period. The bonuses were not utilized to its fullest potential, therefore we want to ensure that more people have the possibility to back our project and receive a bonus for supporting the Crowdholding ecosystem.

  • Ensure pre-ICO backers do not lose out.

We want current and potential ICO backers to feel safe about their investment, but we also need to ensure that pre-ICO investors are appreciated for the risk they have taken by supporting the Crowdholding project early.

  • No lock-up period coded.

There is the possibility to code a lock-up period in the Smart Contract, however at the time of our smart contract creation we have not considered the possibility of a potential bonus sell off. We believed that because we have clearly shown in the Whitepaper that the value of YUPIE grows over time together with the businesses rather than created on the exchanges. In short, the pre-ICO lock-up period has not been coded in the Smart Contract and cannot be added.

  • Lower goal, means less tokens in circulation.

The amount of tokens to be held by pre-ICO users would be high compared to the total pool of total tokens on the market. We want to ensure the success of the YUPIE token and not favor particular backers, this resulting in long-term benefit for all investors.

  • At the time of pre-ICO launch, the Ether price was $290 USD.

Since then, the price has increased by 55% at is currently at around $450 USD. This has made investments in the YUPIE ICO more expensive for investors. Initially we wanted the YUPIE token to be priced around $0.30 USD during ICO, but the increase of ETH price has changed the investment environment and has made contributions to the YUPIE ICO more expensive for investors.

Proposed Solution (This is only a proposal and is subject to change):

We are considering the following scenarios to improve the current situation:  

Scenario #1: No Change

The current issue with not making any changes is the pre-ICO token holders would own a large  stake of all tokens (20% of issued tokens).

Scenario #2: The Extra Bonus

All current and future ICO (not-pre ICO) investors will get a 100% bonus. Therefore, everyone who invested between 1st of November and the end of the ICO ($1million goal) would receive 100% bonus on their investments. The 100% will be transferred manually to all token purchasers before the end of ICO.

Scenario #3: Extra Bonus & Bonus Emission

All current and future ICO (not-pre ICO) investors will get a 100% bonus. After getting listed on the exchange, we will have monthly bonus emissions of YUPIE tokens (20% of the unburned tokens from ICO) that get distributed between all YUPIE pre-ICO & ICO investors. The dilution of the 20% of tokens will last 6 months and may have one of the following structures:

To encourage holding the YUPIE token, every YUPIE holder will get additional tokens each month based on the amount of YUPIE tokens they own.

Give us your feedback and feel free to suggest possible improvements or changes. If you agree or disagree with the proposal please comment telling us why. May the crowd be with you!

 





18 COMMENTS 14 VOTES

Most recent Most voted Most verbose

Good

1 year ago

I think Scenario 1 is the right approach. The last thing you want to do is essentially penalize pre-ICO investors for basically investing too early. Your pre-ICO investors are the most likely to hold long-term because they believed in the project before anyone else. (I am not a pre-ICO investor.)

1 year ago

Absolutely right and as a pre-ico investor that's what I told them basically these days too, I wanna hold this longterm because I think its a good project and will finally be successful. But screwing the first investors by making the deal for others better than planned is a no go. We invested already months ago, could have made nearly double the money by simply holding our ETH instead of investing here and now 2 of 3 options would make our investment worse....isn't acceptable

1 year ago

I think there are good ideas here, but if the ultimate goal is retention of investors, fair treatment of early adopters and promotion of the brand and platform, then pre-ICO and ICO investors should receive equal compensation. When a project is in it's infancy word of mouth is what gets us involved, which I'm sure is the same for all Pre and ICO investors here. Hearing about it after the pre-ICO but still buying in puts both sets of investors at the same amount of risk, the timing is the only variable, not the risk taken on investment. If we are to evaluate on a risk based reward system then Pre-ICO and ICO deserve equal reward (if any). I would also caution a large reward towards the end as I imagine it would serve as a grounds to dump recent and large positions. At the end of the day happy early investors will spread word of mouth faster than any paid marketing, after all marketing always tries to achieve word of mouth style excitement and propagation.

1 year ago

As it is a platform for the promotion of projects, it is easier to make bonuses for those who wants to upload your projects and maintain your site?

1 year ago

Here are my suggestions...

1. Completely cancel any bonuses for any investors (3000 yups for 1ETH on Pre-ICO is a good bonus for early investors. As you know the ICO price is 1000 yups for 1ETH)
2. Temporarily block the possibility of selling tokens after the ICO for all (investors and crowdsourcers) by postponing placement on exchanges
3. Tokens assigned for bonuses are moved to the crowdsourcing pool (for tasks and projects)
4. Raise the rewards for tasks (especially for the most important ones)
5. Create a special program\tasks related to the involvement of new projects and crowdsourcers (assemble a so-called "involvers crowd team" for this)
6. Functionally deploy the platform more quickly

As a result, before entering the exchanges, have a strong community, many projects, high capitalization.
And to the Mars with Elon Mask :)

1 year ago

I totally agree :)

1 year ago

Lovely idea, but impossible to start changing terms to that extent for presalers

1 year ago

@Patrick McGinley
Possibly. Especially if they support it.

1 year ago

Speaking as someone who has not invested pre ICO, and considers investing in the ICO, please don't screw over the pre ICO people. They backed you from the beginning, they were the first (after you, of course) who believed in Crowdholding, and they deserve to reap the benefits of this trust. So don't go with scenario 2.

One idea for scenario 3: You could adapt the bonus for ICO investors to reflect the drastic price change in ETH, but don't just give them way more than pre-ICO people got, maybe just slightly less, but still less. As for the bonus emission, I'm not sure if this is a good idea, but if you decide to go that route, you could give the first (or final, or something) round just to pre-ICO investors, and the rest to everyone? Just food for thought.

1 year ago

Ethan Clime

CEO of Crowdholding.com

We are rethinking this bonus emission, so we definitely hear ya. More to come with an announcement today. Spent the weekend chatting with our blockchain developers after reviewing the feedback. I believe we have thought of a simpler alternative solution. More to come...

1 year ago

Why are you complicating simple things again?

Your early backers are your backbone. They took a risk, they should be rewarded for it. Therefore no extra bonus for new people, why dilute your most loyal backers?

Having half of the tokens out in pre-ICO is OK! These are the people who will stick with you. Bribing new people into joining is sub-optimal, get some big task givers on the platform and people will flock to you at 0 user acquisition cost.

Giving out tokens for 6 months is a bad idea. It does nothing besides inflating the supply for no reason. Burn them all and let the market do its job.

If you want to milk new people for all they are worth you need bigger numbers, more free things. Way more. But you're doing this at the expense of early backers. So.. why?

1 year ago

What will all know what will happen is that the people with the huge bonus will dump on those without... Give the team some credit, if you're so behind them, then let them go about raising the funds to carry through with their project. They could literally sell out in hours, if this were properly addressed.

1 year ago

Ethan Clime

CEO of Crowdholding.com

Hey Fatalninuda, I hear ya. What ICO investors want is really just a pre-ico lock. After chatting with our blockchain devs, it's looking we found a simpler solution. More to come today with a new announcement task.

1 year ago

Check what Wabi did with their pre-ICO investors and the options given to them for reference from another ICO.

1 year ago

Ethan Clime

CEO of Crowdholding.com

Thanks! Devs were researching this weekend Wabi from your post. Very interesting solution, but they also made it complicated. I think we may have a simpler solution. More to come today regarding this.

1 year ago

In my opinion (as a pre-ICO investor), most of the investors expects the highest return on any investment, even though I love your project, I saw a great opportunity when ETH price has risen and so did the ICO price of YUP. BUT I understand your point and such step would definitely attract more ICO investors. However, I don't want to get left out, so any scenario, where pre-ICO investors get rewarded as well is good for me.

1 year ago

I have not invested yet, but I worry the pre ICO would like their bonus advantage to stay relative to the regular ICO participants as this was what they signed up for. However, I do not believe they should have this advantage without having at least a vesting period on their bonus tokens.

Because the bonus tokens were not coded into the smart contract, this could be retrospectively achieved by giving everyone 300% bonus to match pre ICO (providing there are enough tokens to do this), and give the pre ICO their bonus tokens later, eg monthly over a period of say 6 months... The total no. of bonus tokens for preICO would stay relative to the regular ICO participants.

1 year ago