USDC Presale Eve Thoughts
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Hey everyone! We are now just a few hours from the USDC presale for our Layer 2 farm, Stadium Arcadium! You can check the countdown here:
And head here to participate in the USDC presale:
My thoughts on the USDC presale can be basically summed up by the following: we seem to have tons of demand. Our first presale was capped at only $150k, but it sold out in under 2 minutes, and based on the number of people who could not get in, we believe that we actually had more than $750k in total demand for the first presale. Keep in mind that the true ownership token swap plan had not even been announced yet at that point.
It has become evident that we have gained a large amount of interest since the first presale as well. With the historic performance of our Layer 1 farm, we would expect high interest, but we have a combination of factors including the ownership system, low-risk code ratings, KYC, marketing, and others that make it almost a “perfect storm.” From an analytical standpoint, the prospect of participating in Stadium Arcadium as a native token holder are incredibly appealing.
As I stated in my Layer 2 Letter from the Founder, we have seen many attempts at crypto ownership tokens throughout history. I have used the historical examples of DASH, UNI, and others as ones that did not really hit the mark. But we are reinventing dividends within the context of the high-profit yield farming business in order to truly deliver where it counts. We know that you actually do not care about voting on various matters. What you really want is money.
The prospect of USDC cash benefits from the MYFRIENDS ownership token has been so appealing that LITHIUM has trended above the USDC presale “peg price” of $30 per LITHIUM. A $30 peg price means that each LITHIUM redeemed in the presale swap contract receives as many Presale 2 tokens as $30 USDC. Therefore, a LITHIUM price above $30 implies that people believe that the USDC presale will be difficult to get into.
With people currently paying a markup against the USDC presale price for LITHIUM, it seems that many who profited from Layer 1 may also intend to double down and receive more tokens in the USDC presale. We believe that people may ensure an early USDC presale sellout especially because a sellout will ensure that liquidity will be added for both Layer 2 tokens at 2x presale price ($166.67/MYFRIENDS, $30/ARCADIUM). This policy worked well for us in Layer 1, and so we intend to continue it in Layer 2, as it incentivizes a sellout while providing a robust cushion against early sales.
One other sign of extremely high interest in our Layer 2 tokens is our incredibly good redemption stats. Over 84% of all LITHIUM in existence has been redeemed for Layer 2 tokens, and less than 5% remains unaccounted for. Further, most current LITHIUM holders have very small amounts indicating use as a souvenir, but a few have chosen to hold their LITHIUM until near the end of the swap period in case of any major price fluctuations. Therefore, we expect the percentage redeemed to increase even further before the swap period is over.
Of course, we also have several informal signs of interest. All of our social channels are extremely active, and we have received a large membership boost from a recent AMA circuit we completed. Many invested in our last farm, and our LITHIUM token was hoarded on a historic level. This being our second farm, the level of investment we attract would be expected to be higher, as we have now proven ourselves capable of executing. Therefore, we are hopeful about meeting our fundraising goal.
We greatly appreciate your support and continued participation. Good luck in the USDC presale, and we hope that we are about to lock in an extremely financially healthy farm system going forward!
Regards,
Kurt
