Sep 10, 2022
Launch announcement
Geminon Protocol will be released tomorrow, Sunday, September 11.
The opening of the Genesis Liquidity Pools will take place between 12:00 and 18:00 (UTC time). The exact launch time will not be revealed until minutes before to reduce initial volatility. From that moment it will be possible to acquire GEX tokens to interact with the protocol. Here is everything you need to know:
- Starting price: $0.001
- Initial supply: 100,000 GEX
- Initial market capitalization: $100
- Fully diluted market cap: $100 (remember that the GEX token can only be minted by collateral mining: it is deflationary by design, its value cannot be diluted by unbacked token issuances as most projects do).
- There have been no private presales, nor does the team own any cut of the supply. The only initial supply is the one existing in the pools.
- The launch announcement will be made first on our Telegram channel https://t.me/geminon_ann, subscribe to be one of the first to get the GEX token.
- To buy GEX visit our app: https://app.geminon.fi
- If you have any questions, check the quick guide in the official documentation of the project: https://docs.geminon.fi/
Liquidity
Keep in mind when trading that Genesis Liquidity Pools are a type of LBP (liquidity bootstrapping pool), and therefore create liquidity dynamically, allowing launching with zero initial liquidity. This implies that liquidity at the beginning is very low, so large trades can have a high impact on the price. If you want to reduce the slippage of your trades, split the amount and make several trades to take advantage of the generation of new liquidity from the pool, this will give you better results. It is also recommended to distribute the operations in different pools to take better advantage of the existing liquidity.
Price
The GEX token has not been pre-sold, nor is there any supply reserved for the team or others. There is also no reward mechanism in the protocol (staking, yield farming, etc.) that mints tokens out of thin air, so the token is not inflationary. This means that it is highly unlikely that the price could drop substantially below the initial price, as it happens in other projects.
It is important to note, however, that the purely liquid nature of the GEX token means that, in the absence of trading operations, it behaves like a derivative indexed to the assets that make up its collateral. This means that if no one trades on the token changing its relative value, its price will replicate that of a basket of assets made up of 40% gold, 30% Bitcoin, 10% Ethereum, 10% BNB and 10% Avalanche.
Is there any risk of “rug pull”?
Short answer: no.
A rug pull is a type of scam in which, after the launch of a cryptocurrency on a decentralized exchange (DEX), all initial deposited liquidity is suddenly withdrawn, leaving buyers of the token trapped without being able to sell it.
At the Geminon Protocol, we take security very seriously, both from external and internal threats. One of the reasons why we have developed our own liquidity pools (the GLPs) is that the generic Uniswap-type pools found in the main DEXes do not offer any guarantee of security to users against this type of risk.
The liquidity of the Genesis Liquidity Pools cannot be withdrawn by anyone. Smart contracts are programmed in such a way that this is impossible even for the team. The migration mechanism of a pool, if necessary, requires reducing its weight to less than 1% of the protocol’s collateral, has temporary locks that make the process last a minimum of 45 days and blocks minting (but not redeeming) of GEX tokens in the pool during that period, setting off alarms. The code of the pools is also public and can be reviewed by anyone willing to. In the official documentation there is more detailed information about the security mechanisms of the protocol.
Market cap
For an expert cryptocurrency investor, the fact that the initial market capitalization of the GEX token is almost zero can be very striking. It is common to find initial valuations on many projects in the range of millions to hundreds of millions of dollars, with only a few hundred thousand in actual liquidity. These are obviously misleading valuations that, as they are not backed by the corresponding liquidity, are the cause of the price of these projects falling by 99% as soon as the market is no longer strongly bullish.
The unique characteristics of the Geminon Protocol mean that the market capitalization of the GEX token always corresponds to the amount of liquid assets that back it. And this is its greatest virtue for investors: the GEX token has the same risk / reward ratio that Bitcoin had when it was created in 2010.
If you would like to have a time machine to travel to 2010 and buy Bitcoin for less than 1 cent, think about the opportunity that the launch of the GEX token represents.
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