Updated Nov. 28, 2017
Published At https://CoffeeCoin.io/response.
This is a response to the “vocal minority” of one or two anonymous trolls complaining about our CoffeeCoin pre-sale and full utility token sale price difference and my pre-sale statements that the full token sale price would be higher.
We had our pre-sale in July and full utility token sale Nov. 14-24 to raise tokens for our CoffeeCoin project as described in our whitepaper.
Tokens were raised and we are very grateful for all the support. This weekend we checked our calculations and we have now completed post-sale distribution of CoffeeCoin. We now continue moving forward with our project as outlined in our whitepaper.
I am now responsible for using the tokens raised to build and grow our project – with the aim of making it successful in the future.
And that’s what I will continue working towards.
Most of our participants understand this and are very supportive – whether they got in during pre-sale, full utility token sale or both.
If you are to believe the one or two anonymous trolls posting on the Waves slack, Waves telegram and elsewhere, there were a few people who participated thinking they would profit fast. These one or two accounts resorted to name calling and spreading FUD across social media when that didn’t happen immediately after the full token sale ended. These people did not reach out to me personally before or during the token sale.
Such a mindset has nothing to do with the CoffeeCoin project.
I also know this attitude does not represent the majority of our supporters.
With this in mind, I’ll quickly respond to the pricing issue once here:
Yes, full utility token sale cost per COF worked out much lower than pre-sale cost.
Pre-sale was a very small sale in July that ran direct-to-dex where participants could choose to purchase COF at approximately 5 cents each in Waves, BTC or ETH equivalents. Waves, BTC and ETH were instantly exchanged for COF on the DEX. Participants immediately had COF in their wallets to hold or trade as they wished, in return we received tokens we were immediately able to use to start our project.
Around 50 people participated in the pre-sale. The pre-sale represented only 2% of total COF circulation – 800,000 COF.
After the pre-sale, the remaining allotted COF were distributed to participants. All pre-sale participants received around a 40% bonus in July after the pre-sale.
Lessons learned on our end:
Token sales are a new process. A sale for a utility token to use with a real-world product supply chain is even less common. We are breaking new ground, so not everything is going to go perfectly.
This is all part of the risk inherent with putting new technology like a utility token built on the Waves platform blockchain into use.
We were initially planning on doing the full token sale the same way we did the pre-sale – direct-to-dex, where we could set our sell wall price.
Because of this, during pre-sale in July I did make statements that the direct-to-dex price would be higher during the full token sale. In hindsight, this was a mistake – but one I couldn’t know at the time. Here’s why:
- Only after running the presale, we learned there were too many issues with doing direct-to-dex sales for full token-sale crowdfunding – mainly due to it being too difficult to maintain a steady value over the course of the sale because of fluctuations in token values on the DEX.
- After the pre-sale ended, we distributed a bonus of more than 40% to all pre-sale participants.
- Having learned our lesson about doing direct-to-dex sales, after the pre-sale and during the next quarter as we moved forward we had to change plans. We announced we would run the full utility token sale more traditionally – collect tokens, calculate value and distribute post sale at a value decided by the market.
- Of course, running the token sale this way meant we had no control over the value. In the end the initial Waves / COF value for our full utility token sale ended up being much lower than presale.
We were very transparent about this. All this information on how we would run the full token sale was posted very clearly over the past weeks and months in our email updates, whitepaper updates, website and slack.
Now, with full post-sale CoffeeCoin distribution complete, COF in over 24,000 Waves wallets, COF already trading on the DEX and us moving forward on the project – the market gets to decide the value.
We will not engage further in any discussion about pre-sale or token sale valuation, speculation, etc…
Fortunately, I sense the nasty name-calling posts and complaints came from just a couple people who aren’t really interested in what we are doing and were maybe just hoping for short-term speculative profits – if they were even involved in the pre-sale at all. Again, these voices are coming from just one or two anonymous trolls, so I have no way of even knowing.
This person or persons are loud and FUD spreads like wildfire in the crypto-sphere though – so I have addressed it here.
It will be the last time.
My focus is moving forward on our project – which I believe most of our true supporters would like to see us do. This is the path to a successful project and happy supporters.
If you would like to follow along on the next stage of our mission to bring blockchain efficiency to the specialty coffee trade, you are invited to visit us at: https://CoffeeCoin.io, read our whitepaper and join our slack.
Thanks again to Waves, Oceanlab and the many of you who support what we are doing!