The surge of institutional capital entering the crypto realm has led to confusion among investors, as they frequently confuse tokens with equities. Despite their similar trading patterns, tokens and equities differ fundamentally in how they accumulate value. For instance, when Elon Musk purchased Twitter, a publicly traded company, its value remained at $50 billion. In contrast, if Musk were to buy 100% of the Bitcoin supply, its value would drop to zero. A token's utility by itself does not ensure its success; it must achieve a certain level of distribution for its tokenomics to function effectively. Conventional token launch models prioritize price and liquidity over distribution, resulting in a prosperous first month of trading before a gradual decline. Capx aims to revolutionize token launch strategies by addressing the existing models' limitations.
Capx's New Token Launch Model
Capx proposes a new token launch model that optimizes for better token distribution, tried and tested tokenomics, and a good price and liquidity at token launch. This model aims to foster network effects around a token, which only kick in after the token reaches a critical mass of holders.
Traditionally, founders raise funds through private sales and then focus on building the product, gaining traction, and finally listing the token after a year or more. However, Capx emphasizes the importance of token distribution from day one, which can be challenging without launching a token.
Issuing IOU Tokens
Capx offers a solution by enabling projects to issue IOU tokens to community members. These IOU tokens can be swapped for real tokens post token launch. By incentivizing specific actions, projects can distribute IOU tokens accordingly.
One of the advantages of launching IOU tokens is that it allows founders or projects to optimize tokenomics based on user behavior. Project contract addresses can be whitelisted to limit token use with specific contracts only. To prevent price discovery, IOU tokens are non-transferable and non-tradable.
Building a Strong Community Before Token Launch
The goal is to have hundreds of thousands of users before the actual token launch, resulting in a robust community that understands how to use the token and engages with the platform, rather than merely speculating on the token price.
Capx is revolutionizing the token launch strategy by focusing on better token distribution, optimized tokenomics, and healthy community growth. By using IOU tokens to kickstart distribution and foster network effects, projects can set themselves up for long-term success, creating a more sustainable and valuable token ecosystem.
Capx is a sector-specific Layer 2 blockchain, specialized for token distribution and trading, facilitating curated distributions for project communities, token streaming for investor distributions, and a liquid secondary market for tokens, built on Polygon Supernets.