As is well known, when the market conditions are not favorable, project parties often choose to postpone the token issuance, waiting for better market conditions before launching the tokens. While this may benefit the project parties and early investors, it may not be a good thing for secondary market investors.
Renowned KOL Cobie shared on X today that the token generation events (TGEs) for Ethereum, SOL, and OP were all launched during unfavorable market conditions. The TGE for Ethereum took place at the bottom of BTCUSD, SOL’s TGE was during the low point after the COVID crash in 2020, and OP’s TGE occurred during the micro-bottom of 3AC liquidation.
Cobie used these examples to express the idea that protocols should launch their tokens during the worst market environment. Launching tokens when the market conditions are favorable will only result in higher fully diluted valuations (FDVs), which means that your (secondary market investors) chart will never rise.
In response to this, Tangent co-founder Jason Choi also agrees and states:
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