deBridge Attempts to Reinvent LFG Launch with DBR Token: Will It Work This Time?
Despite past LFG launches resulting in losses, deBridge hopes to buck the trend with its new token launch strategy for DBR.
deBridge, a leading crypto bridge, has announced an approach to its token DBR launch on Jupiter's LFG launchpad. This strategic move comes after a series of previous token launches on the platform experienced losses, prompting deBridge to reimagine the launch process.
The DBR LFG launch, with a $250 million fully diluted valuation (FDV), will see 2% of the total token supply (200,000,000 DBR) available for purchase at $0.025 per token. The launch is structured as a launch pool, distinct from traditional LFG launches, allowing only a select group of 28,029 eligible addresses to participate at the same price. Participants will receive 50% of their tokens at launch, with the remaining 50% vesting six months later.
debridge also announced that airdrop details for deBridge users will be announced soon.
Jupiter, the platform behind the LFG launchpad, has experimented with various launch strategies, including low initial FDVs and vesting schedules. However, most tokens launched on LFG are currently trading below their launch prices, including Solana's LST giant Sanctum's recently launched $CLOUD token, with the exception of Jupiter's own JUP token.
$CLOUD is currently trading at $0.20, down from $0.31 at the launch
deBridge's new approach addresses some of the challenges faced in previous launches. By limiting the token supply sold during the launch and restricting participation to eligible addresses, deBridge aims to mitigate selling pressure and reward loyal users.
In an exclusive conversation with SolanaFloor, Jonnie, deBridge's CMO, emphasized the launch's focus on fairness and rewarding loyal users. He stated, "The goal of the launch is for it to be fair and open for all participants while giving loyal deBridge users (and selected Jupiter community members) the chance to participate as early as possible."
Jonnie further clarified that deBridge's strategy is not a reaction to previous LFG launches but rather a thoughtful approach informed by past experiences. He added, "We don't have anything negative to say about previous LFG launches, just that we took note of how the dynamics of each played out, and thought about how to achieve these aims as well as possible."
The success of this new launch mechanism remains to be seen, but it demonstrates deBridge's commitment to innovation and its efforts to learn from past experiences. If successful, this could potentially set a new standard for fair and equitable token launches in the future.