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At 14 o’clock on August 3, 2018, FCoin launched a new warrant FT1908 after FT1808. It is only a week away from July 26. What will this new warrant do? What is the significance of launching it? Is it good or bad for the users? Let’s take a look at the announcement.
- Warrants FT1908 is issued similar to FT1808, with an exchange ratio of 1:1, and delivered at maturity date with the same method but at different time points. (In August 2019, make compensation after being locked for one year)
- Warrants FT1908 cannot participate in transactions in the secondary market. (Encourage long-term holding and investment)
- Starting conditions: starting from August, if the monthly average price of FT/ETH is lower than the compensation base price (0.0003ETH), then the compensation is started.
- Compensation method: compensation share = (compensation base price – average price of FT in current month)/compensation base price *quantity of FT holding in current month
What do you mean? Let’s take a look at the following situations (all calculations are priced in ETH):
Hypothesis 1: FT price is higher than the compensation base price, if no compensation, no problem, the price of the currency is so high, and it is too late to mine.
Hypothesis 2: FT price is lower than the compensation base price (0.0003), FT falls to 0.00027, FT price is 10% lower than the base price, then the loss rate of short-term holders is 10%, there is no need to calculate. Let’s take a look at what surprises will long-term holders have through the FT1908 compensation. Assume that the user’s position is 10,000 FT, the compensation amount is (0.0003-0.00027) / 0.0003 * 10000 = 1000 (FT). In this case, the assets of the long-term holders are (10000+1000)*0.00027=2.97eth, and the original assets of the long-term holders are 10000*0.0003=3eth, and the loss rate is 1%.
In summary, Fcoin bought a top-level big wealth management plan for long-term holders through the FT1908. When the price of the currency is higher than the base value, Fcoin does not reflect it. When the currency price is lower than the base value, the compensation share is issued monthly.
- For the original private placement and other pre-locked positions, FT will not participate in the asset compensation plan of long-term holders.
- The newly-issued FT locked in the FT1908 warrant will also accumulate income distribution. (Coins and interest will be given to you)
Why is Fcoin rushing to launch the FT1908?
Personally, I think that it’s related to the recent bad reputation of FCoin and the fluctuated FT price, Fcoin has been focusing on the community, and encouraging long-term holding of FT, both FT1808 and FT1908 are big bonus for the long-term holders. It hopes to further enhance the confidence of community users in FT holding through the compensation plan this time. From the perspective of the project side, “You are afraid of falling, no big deal! We will preserve the value of the currency and protect the total value of your assets. I hope that you have confidence in us.” From the perspective of community users, the short-sellers and the bearish have not changed, but long-term holders achieved benefits. The increase in the number of coins can completely cover the fluctuation of the currency price, and stabilize its position. What you should do is to wait for the take-off of FT.
Is it good or bad?
Through the above interpretation, it is more obvious that FCoin’s original intention is for the benefits of long-term holders. Starting from transaction-mining, various ways are used to encourage FT holders. The bonuses of FT1808 and FT1908 emerge one after another, boosting the users and the market. At the same time, because it is impossible to trade and the one-year lock mechanism, it is really good to keep the FT currency price by the way! Finally, the team’s innovation and the firm belief in adhering to the original intention are worthy of faith.