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Dear Alfprotocol community,
ALF token is now officially listed on MEXC exchange. Unfortunately, the process was not the easiest to manage. For those in a hurry, let us explain what happened in a simple and quick way:
Before the ALF token listing, we went through multiple launchpads to conclude our IDO. The agreements with the launchpads were that we distribute 20% of the tokens (as per public round vesting) before TGE, then if IDO price protection is successful, launchpads sends us the raised capital. With those LPs that raised higher amounts, we also agreed that buyers will not be able to move their 20% of tokens for the first 6 hours, to help us to maintain the IDO price. In case the IDO price is not maintained for 12 hours, launchpads conclude the refunds for us either in tokens or USDT.
Moments after ALF was listed, a few LPs (from the big raises) went ahead and sent all tokens to MEXC right away and started to sell. The selling pressure was way more than we expected, LPs didn’t reply and basically left us on seen. We had to intentionally let the price go lower so those LPs that decided to scam us can leave the market with minimal damage to us before we start the recovery process.
Going a little deeper into all of this:
In total 7 338 817 ALF was distributed. MEXC also had a pretty big chunk of ALF (as part of their marketing campaign). The good news is that we managed to recover 3 629 532 ALF from LPs. The rest as we believe is either already sold, or still circulating in the MEXC. We can’t be sure how many tokens those LPs that scammed us still have, but we have the intention to believe that most of them are already sold during the first days.
We had to make the decision to let the price stabilize somewhere lower to minimize the damage before starting the recovery process.
So now our MM started to move the charts and started to show support on the charts. Not entirely sure of how long the recovery process will take, as if we move too fast and those LPs still have their tokens they will dump them at higher prices which will cost us even more. So we’re slowly testing different price points and monitoring the sell orders to see if any big ones occur. As then we know that those are from the LPs, as nobody else could have these amounts.
The situation is not the easiest one, but we’re on a good path to managing it in the best possible way. We could have been ready for such sell pressure but we acted according to the agreements and didn’t expect such sell pressure to occur. Unfortunately for some institutions, agreements mean nothing.
Let’s come back together, we appreciate all support from the community.
Disclaimer
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