DEVELOPMENT
Let’s talk about the CyberConnect project.
The sale on CoinList will take place on May 18, 2023 at 17.00 UTC.
Let’s talk about tokenomics, fund prices, and possible capitalization.
About CyberConnect
CyberConnect is Web3’s earliest and largest decentralized social network that allows developers to create social applications, giving users the ability to own their digital identity, content, connections and monetization channels.
The project consists of three user-centric features:
- CyberProfile, a decentralized identity standard that provides access to Web3;
- CyberConnect Social Graph, which links your digital identity, data, content and friends;
- CyberWallet, a smart contract wallet that securely stores your digital assets and provides an easy transition to Web3.
The project aims to enable user data interaction between decentralized Web 3 applications.
“Ultimately, the open social graph lays the foundation for these identities and a truly interoperable and seamless social experience, which is a core feature of the meta-universe,” said CyberConnect’s co-founder.
Tokenomics
CyberConnect’s total offering (the CYBER token) will be 100 million tokens.
All allocations and token allocation rules look like this:
Let’s break down each allocation with the detail we need.
Team & Advisors allocation
Team & Advisors, 15%
Lock-in for 15 months after TGE, then a 3-year linear quarterly allocation of tokens.
There will be no tokens of this allocation in the market at the time of listing on the exchanges.
Private Sale allocation
Investors, 25.12%.
Lock-in for 12 months after TGE, followed by a 3-year linear quarterly allocation of tokens.
There will be no tokens of this allocation on the market at the time of listing on the exchanges.
The project raised $25 million in 2 rounds. Investors received 25.12% of the tokens.
1️⃣ Series A
May 2022 invested $15 million.
Lead investors: Animoca Brands (Tier 1), Sky9 Capital (no Tier).
The known purchase price of the token is $3
It turns out investors in this round received 5 million tokens.
2️⃣ Seed Round
November 2021 invested $10 million.
Lead investors: Multicoin Capital (Tier 0), Sky9 Capital (no Tier).
The purchase price of the token is unknown, but we can calculate that price.
In two rounds, investors received 25.12 million tokens. In the Series A round, investors received 5 million tokens, so in the Seed round investors received 20.12 million tokens. They invested $10 million, which means their price per token is about $0.5.
The price spread in both rounds, from $0.5 to $3 per token. The weighted average price will be $1.
I suggest to focus on just the average price 👉 $1.75 per token.
Allocation of tokens and what investors can earn
All investors have a blockchain for 12 months from TGE and then linear quarterly unlocks for 3 years.
It turns out that investors will not have any tokens at the start of the sale.
Also, there are no options presented for additional earnings on blocked tokens (stacking, farming, etc.).
Can investors get their hands on tokens?
Yes, if they are airdropers 🙂
Then they are in Community Rewards allocation.
Yes, if they belong in some way to 2 allocations: Early Integration Partners and Ecosystem Partners.
All 3 allocations have 4.7 million tokens on TGE. What share of tokens investors may have, we won’t know. This is only a guess.
Community Treasury allocation
Treasury, 10.88%.
10% unlocked on TGE, with the remaining 90% of tokens distributed monthly for 5 years.
10% of tokens of this allocation, or 1.088 million tokens, will be available on TGE.
Community Rewards allocation
Airdrops/rewards, 12%.
20% unlocked on TGE, the remaining 80% for future community rewards.
20% of tokens of this allocation, or 2.4 million tokens, will be available on TGE.
Coin List Public Sale allocation
Sale on Coinlist, 3-5%.
25% unlocked on TGE, the remaining 75% of tokens will be distributed monthly for 6 months.
25% of tokens of this allocation will be available on TGE, or 1.25 million tokens (if all 5% tokens are sold out).
There is one caveat: 25% of the tokens will be available between October and December 2023.
Ecosystem Development allocation
Ecosystem, 34%.
Ecosystem Development includes the following allocations:
1.the Ecosystem Partners allocation
Partners, 9%
20% unlocked on TGE, the remaining 80% of tokens are distributed monthly for 4 years.
20% of tokens of this allocation, or 1.8 million tokens, will be available on TGE.
2.Developer Community allocation
Developers, 10%.
5% unlocked on TGE, with the remaining 95% tokens distributed monthly for 4 years.
5% of tokens of this allocation or 0.5 million tokens will be available on TGE.
3.Early Integration Partners allocation
Partners, 5%.
10% unlocked on TGE, with the remaining 90% of tokens distributed monthly for 3 years.
10% of tokens of this allocation, or 0.5 million tokens, will be available on TGE.
4.Allocation Marketing
Marketing/promotion, 10%.
10% unlocked on TGE, with the remaining 90% of tokens distributed monthly for 3 years.
10% of tokens of this allocation or 1 million tokens will be available on TGE.
What might be the price per token on the listing
Let’s first talk about the fundraising by the CyberConnect project. On private rounds they raised $25 million.
On CoinList they will sell 3-5 million tokens at $1.8, which means they will raise a maximum of $9 million. Let’s say that’s not small at all when compared to private rounds ($10 and $15 million).
Assuming that the TGE date and the listing date on exchanges will be around the same time, the Initial supply listing will have 8.54 million tokens (8.5% of the issue).
In order to collect the investment, we need a capitalization of $62 million on the listing.
Possible capitalization on listing
To determine the possible capitalization on the listing, let’s look at the competitors.
The project has almost no direct competitors. The one we have is not suitable for our analysis. It is the project LENS.
The difficulty in finding a competitor is that CyberConnect is an implementation of Vitalik Buterin’s concept of SoulBound tokens, which was proposed in May 2022.
SoulBound token, aka non-transferable token, aka reputation token. This is one of the trends of 2023.
Speaking about trends, some time ago, the three of us together with Yura (Crypto Family channel) and Vadim (Coin Metrika channel) recorded a video about trends for 2023 according to Binance, a16z, Pantera Capital. If you haven’t seen the video, I recommend you to watch it!
Who else could be considered CyberConnect’s tentative competitors?
The projects that somehow fit CyberConnect are Mask Network and Galxe.
Mask Network had a capitalization of $145 million at the start (2/27/221). The token price was $16.12.
It turns out the initial supply was 9 million tokens, i.e. about 9% of all tokens (the maximum issue of 100 million tokens).
Galxe at the start had a capitalization of $593 million (05.06.22). The price of token was $16.86.
It turns out the initial supply was 35.2 million tokens, i.e. about 17.5% of all tokens (the maximum issue of 200 million tokens).
Let’s assume that the current capitalization on the listing will be $145-200 million, like Mask Network. If the current capitalization is like Galxe, we will be even more excited.
We know there will be 8.54 million tokens on the Initial supply listing. If that’s the case, we can expect a rough price per token of $17-23 – that’s 9 to 13 X’s.
And you can take back what you invested and earn on top of it!
Let’s talk about the pros and cons in a big way:
Pros
- Coinlist is still the #1 marketplace for seals and after a long hiatus Coinlist just has to come out on X’s.
- the tokenomics look reasonable, assuming the TGE and listing date, will be around the same time.
- At least one serious fund that knows how to do X’s is participating – Multicoin Capital
- The price for a Coinlist sale is very good.
Minuses
- Not enough places to get allocation on Coinlist. About 10,000 places.
- TGE probably won’t happen until the 4th quarter of 2023. What the market phase will be at that point, we can’t guess right now. But if TGE happens before then (say June 2023), the Coinlist seals will not get their tokens before Q4 2023. It would be a cliff-period for Coinlist buyers.
- if the listing date and the TGE date do not coincide strongly, there will be a noticeably higher number of tokens on the market.
Conclusion
Participating in a Coinlist sale is definitely worthwhile.
I deliberately did not add social metrics to this article. Why?
Firstly, I did not want to overload it with information.
Secondly, it is better to look at these metrics before listing to see how marketing + mass-marketing works, in the moment.
Telling you that you participate strictly according to risk management (2-5% of the deposit) is useless. No one will listen anyway. This is a Coin list, you say! 🙂
