As the team sits here, two hours after project launch, we have sold 18,000,000 OAX tokens.
9.50 PM Hong Kong Time
What a difference 15 minutes makes!
The team are exhausted but happy. Most of us admit that we cannot remember the last time we have worked this hard for this long.
Blastoff! -Do these people seem happy?
project has consumed the vast majority of our time and resources over
the last few months and has taken a life of its own. We all feel a sense
of ownership and responsibility. But it isn’t just the project team,
its all of the community as well. The users, the backers, the
supporters, the tireless hours given by our guys in Russia, China and
Korea, the US and a dozen other countries who believe what we are trying
to do and see the value of the openANX proposition. It’s a great
at the video and the picture that accompany this article. These guys
all believe very strongly in this project. They have worked hard, stayed
late, and delivered. This is what success is. If it comes easy it has
we’ll all be back in the office. We’ll be rubbing our tired eyes and
getting back to it. We aim to deliver something of value, something
cool, and great. We look forward to working with the community that came
out to support us.
us if we are slightly slower than usual tomorrow, or a little less
quick on the uptake. That’s the lack of sleep catching up with us. We’ll
be good after the weekend though.
like to thank all our advisors, Jehan Chu, who has tirelessly supported
the project from Day #1, Peter Smith, who saw the value as soon as he
understood the potential of the project, and Chandler Guo, who without
his help we could not have succeeded in China.
Jehan Chu (Hong Kong) on LinkedIn | LinkedIn View Jehan Chu's professional profile on LinkedIn. LinkedIn is the world's largest business network, helping…www.linkedin.com Peter Smith | Professional Profile | LinkedIn View Peter Smith's professional profile on LinkedIn. LinkedIn is the world's largest business network, helping…www.linkedin.com Chandler Guo | Professional Profile | LinkedIn View Chandler Guo's professional profile on LinkedIn. LinkedIn is the world's largest business network, helping…www.linkedin.com
Last, but not least, thanks to you guys in the community, our backers and supporters. We couldn’t have done this without you.
The vanity headline is not the goal: Introducing the Civic Token Sale
Today, at Civic, we’re releasing our much anticipated whitepaper, on our Token Sale page.
We’ve done things a bit differently, but for very good reasons which I
outline later in this post. We’ve decided to create a model for doing a
token sale that is fair & innovative, and we hope others will follow
in our footsteps. Before I delve straight in, I felt the need to
identify an area of concern in the crypto ecosystem around how the
current media attention to token sales are leading us down a path where
we are no longer focusing on the goal, but instead following a narrative
that is harmful to the ecosystem.
In the startup world, we’ve become very familiar with the term “Vanity Metrics”.
In the crypto world, this is just beginning to rear it’s ugly head in a
new format — “Vanity Headlines”. This is typical for a new industry
that emerges — vanity headlines attract more clicks (aka clickbait) and
this gets more pageviews and more people excited about where the
industry is going. It stirs the imaginations of the readers, makes the
impossible seem possible, and attempts to convert skeptics into
reality is that these headlines are very damaging and misleading to
even some of the most educated in an industry. It sets the tone that the
goal is to one up the previous headline. We’ve had token sales end in
days, then hours, then minutes to now seconds in the past couple of
months — with millions of dollars in crypto being exchanged. These
headlines have gone from being misleading to becoming just outright
Gnosis token sale did not raise $312.8m. That was the value of the
outstanding tokens, and the website indicated as much — the reality is
that the website that published the story decided that writing a false
headline because that would be better at attracting clicks than the
reality is that even if you look at the $12.5m in tokens that were
sold, most of those were spoken for already in the pre-sale. The smaller
buyers didn’t have a fair chance to buy tokens once the crowdsale went
What makes Civic
different is that we believe in delivering the truth, transparency and
always doing what’s right —we believe our values shouldn’t be relative.
We have a strong sense of purpose, with our ultimate goal and mission
being to change the world by creating a platform for democracy — with
creating digital identities being just the very beginning of a long
journey for us. When we decided to embark on doing a token sale, we
decided to take the road less traveled and do what we believed would be a
fair and inclusive token sale that would leave everyone feeling
Solving the Chicken & Egg Problem
the problem we are trying to solve in doing a token sale for Civic is
the proverbial chicken and egg problem. When trying to build a network
effect business, you have the cold start problem: How do you get users
if you don’t have companies on board, and if you don’t have companies on
board, why would users use your service. By creating a token where the
utility increases the larger the network becomes, the early participants
in the network begin to benefit from enhanced network effects.
The opportunity to use a crypto token to build a network service is quickly being recognized. Civic is building an identity network
which will connect companies and users and we’re creating 1bn tokens in
order to achieve this goal. We’re selling 1/3 of the tokens via a token
sale for $33m, 1/3 will be given away to companies and users to
accelerate network growth, and 1/3 will remain in the company’s
inventory. We believe this model will bridge the gap between having to
buy users which are expensive in the beginning of creating a network and
onboarding companies, eventually getting to the point where the
incremental cost per user drops below the value that the network
receives from each user.
model only works if there is participation by thousands of users and
hundreds of companies. In fact, this is counter to the way that many
token sales are run today — where a few buyers dominate the landscape
and buy the majority of the tokens from a crowd sale, preventing it from
being truly community driven & supported network.
A better model for Token Sales
don’t want to compare us to other token sales as everyone has different
reason and logic, but I’m going to outline our terms of sale, to give
some insight into our thinking:
creating a fixed supply of 1 billion tokens. We are pricing them at
$0.10 each. We felt that we needed enough tokens to power the smart
contracting system for years to come and we could go to 2 decimal places
for fractional smart contract execution. 1bn felt like the right
number — no crazy scientific reason here.
decided not to offer any discounts on tokens sold to anyone, pre-sale
or during the crowdsale. Like any premium product, we felt that
discounts cheapen the product and also gives certain buyers an advantage
over others which we didn’t feel was fair. No discounts to anyone, not
even friends and family.
of the tokens that Civic as a company will retain, will be available
for sale only after 3 years, with 1/3 being released per year.
we announced that we were doing a token sale and published the summary
whitepaper, we received a ton of interest. It was very clear that we had
hit a nerve and there was strong demand for our tokens. The goal for us to do a pre-sale was to ensure that we could place all 330m tokens — and we’re on track for that.
Theoretically, all tokens could be sold in the pre-sale and we wouldn’t
need to do a crowd sale — so what’s the point of doing one? We asked
the same question but we had a different goal.
a company perspective, if you can sell all your inventory to one or two
buyers, it makes life a lot simpler — why hassle with hundreds or
thousands of buyers if you don’t need to. Many companies have adopted
this approach to “crowd sales” and sell their tokens out before it even
goes to the “crowd”, resulting in highly concentrated holdings of tokens
by a few hundred people/entities. To be fair, it’s never been easy to
control who can buy your tokens. In the crypto world, it’s very easy to
setup a bot or script and auto purchase multiple times, so how do you
set a limit on purchases? This is also how we get wind up with these
spectacular headlines showing how token sales are over in minutes or
Civic. Our product is a digital identity service. We uniquely have the
ability to ensure that each buyer is somewhat unique — so we decided to
flip the model around and prevent big buyers from squeezing out smaller
buyers. The pre-sale will allow us to ensure that all 330m tokens are
spoken for, but we’re still going to allow smaller buyers to buy up to
110m of the 330m allocation because the bigger buyers are only
guaranteed up to 66% of the purchase order they have requested. When the
smaller buyers show up on the day the crowd sale goes live (21 June),
using a Civic account will be required to allow them to purchase up to
$25,000. This will ensure that we do not sell out in 30 seconds because
of a few big buyers, and even smaller buyers can get access to the
tokens during the crowd sale — and without discounts to either small or
bigger buyers, which is an even playing field. Bigger buyers have been
very supportive of this model, because they understand the value of
distributed ownership of tokens in order to create and build network
So, by design, we’re not going to sell out in 30 seconds
and the smaller buyers, who have been emailing us, will all get a fair
chance to own some of the tokens we are selling even if they just want
to buy a few hundred dollars. If we sell all 110m tokens, then it’s a
win-win, in that we will have a much broader base of supporters to help
kickstart the network and we would have still sold all 330m tokens. If
for some reason we don’t sell the full 110m allocation sold during the
crowd sale, then the bigger buyers would have effectively agreed to buy
the difference, so our goal of ensuring that all 330m tokens are sold
will have been achieved. https://twitter.com/VinnyLingh...We
believe that this was the fairest way of creating a token sale — giving
the little guy an even playing field with the big guys. The more people
using Civic Tokens and Civic the better. We want broad adoption and
support — and that’s really why we are doing the sale. We felt there was
a better way. We’re not chasing vanity headlines, we’re chasing results
and adoption. We believe there is a better way to conduct a token sale
and we think we’re leading by example. In the future, we hope more
companies will rely on Civic for identification of buyers, to ensure a
broader ecosystem of token holders.
Thanks to Elizabeth Maria and Jonathan Smith.