Catizen
CATI
Target Name
Catizen
Ticker
CATI
Strategy
long
Position Type
token
Current Price (USD)
0.34
Circulating Market Cap ($M)
70.4
Fully Diluted Market Cap ($M)
341.8
CoinGecko
As Telegram ships / mindshare recovers, $CATI should remain the faster horse given delivery of products / value-capture
01 Nov 2024, 04:48pm
Compiled this list of points by sourcing Q’s and getting a response from the company. Should be useful to the community but think the idea is now finally actionable. Some key points:
Token down from 1+ Bn to now 300ish mm (-70%) post BN listing alongside all the other Telegram memecoins. The narrative on TON ecosystem had faded generally.
At Binance Blockchain Week, we met up w/ a bunch of telegram ecosystem partners and learned of significantly more dev efforts around new apps, ad networks, and Web2-like initiatives (live-stream, ecommerce, etc) that should come out in the coming months. Based on our partnership w/ both OKX+TOP and Bybit / Ton Accelerator, we believe the mindshare + activity on Telegram should begin recovering into the end of the year.
Given the points above, we continue to believe $CATI to be the fastest horse in the Telegram ecosystem given its (a) close proximity to key Web2 initiatives, (b) actual cashflow and long-term viability of the business, (c) our relationship + observation that the team continues to ship products + trying to get uplisting / capturing value back to the token.
Generally think it’s a better levered beta to TON if anyone wants to allocate to the ecosystem amongst a sea of memecoins (most of which we believe the devs have no intension of working on after TGE).
Full transcript below:
Our transition from a single title to a full-scale game publishing platform can be broken down into four key areas:
Game Development Engine
We have developed a proprietary HTML5 game engine and SDK, providing a one-stop solution for global game developers. Through our H5 engine, developers can create high-performance mini-games for Telegram, integrating login, payment, and sharing functions with a single click via our SDK. Moreover, they can deploy smart contracts on TON without any prior experience, significantly reducing both development time and costs.
Game Publishing Platform
Since launching the Catizen Game Center on August 22, 2024, we’ve received over 100 game submission requests. However, we maintain a stringent review and recommendation process to ensure only high-quality games are listed on our platform. Currently, 12 games have gone live, including Bombie, which is showing significant breakout potential alongside Catizen.
Bombie Highlights:
Bombie is rapidly emerging as a breakout hit on our platform, distinguished by several key operational and product-driven advantages:
Exponential User Growth: Bombie has garnered over 3.6 million players since its open beta launch in August 2024. This explosive growth reflects strong market demand and the viral appeal of the game, which capitalizes on Telegram’s massive user base and our seamless onboarding experience.
High Revenue Performance: With over 132,000 paying users and total in-game revenue exceeding $3.5 million within the first two months, Bombie’s average revenue per paying user (ARPPU) has surpassed $25, indicating high monetization potential and user engagement.
Sustainable Growth Trajectory: Bombie’s revenue growth is showing an impressive MoM increase of 335.5%, with projections for Q3 revenue reaching $8 million and a potential for $16 million in Q4 2024. This demonstrates both strong market penetration and repeat engagement from its player base.
Retention and Monetization Optimization: The game's design features a combination of timed events, competitive arenas, and in-game token rewards, driving consistent user engagement. Players are highly incentivized to remain active through daily and weekly challenges, contributing to strong retention metrics and ongoing revenue streams.
Bombie Key Data (as of October 18, 2024):
Total Players: 3,648,118
Paying Users: 132,601
Revenue: $3,587,732 USD
ARPPU: Over $25 USD
MoM Revenue Growth: 335.5%
Projected Revenue for Q3 2024: $8,000,000 USD
Projected Revenue for Q4 2024: $16,000,000 USD
These product and operational highlights underscore Bombie’s potential as a flagship game for the platform, setting a new benchmark for future releases. The game’s sustained revenue growth and high user engagement make it a critical component of our broader transition to a game publishing platform.
Bombie’s Token Generation Event (TGE) is scheduled for Q4 2024.
Unified User Account System with Viral Growth Mechanism
A key part of our platform’s strategy is the integration of a viral growth model, enabling rapid user acquisition and engagement through built-in referral and rewards systems. We launched the Referral Rebate Center in early September, which incentivizes players by offering 10% of their invited friends' in-game purchases as a rebate. This system has demonstrated significant traction in boosting both player engagement and retention, while fostering organic growth.
In late September, we also introduced a Web3-based Battle Pass System with a dual-tiered approach:
Airdrop Pass (Free): Users can participate at no cost and complete tasks to earn rewards.
Airdrop Premium (Paid): This premium option provides access to higher-tier rewards, further motivating players to engage deeply with the ecosystem.
Through this gamified rewards structure, players earn points that qualify them to receive a share of the quarterly 1% airdrop of CATI tokens, effectively embedding token incentives into our core growth mechanics.
Viral Impact and Performance Data (as of October 18, 2024):
Premium Users: 30,038, demonstrating a strong adoption rate of paid upgrades.
Total Revenue: $1,013,152 USD, driven by viral referrals and paid upgrades.
Breakdown:
-STA: $746,844 (37,342,200 STA)
-CATI: $266,308 (665,772 CATI)
Additionally, the Referral Rebate Center has generated significant financial and viral momentum:
Total Rebate Payouts: $269,368 USD, effectively incentivizing players to bring new users onto the platform.
Breakdown:
-TON: $240,534
-USDT: $24,966
-CATI: $3,868
This viral growth model—rooted in referral rewards, gamified progression, and token incentives—serves as a core differentiator for Catizen, enabling us to not only scale rapidly but also build a loyal and highly engaged user base.
Game Asset Platform
The Game Asset Platform is crucial to ensuring liquidity and stability for the CATI token, directly supporting a sustainable and balanced ecosystem for Catizen. With the upcoming Token Generation Event (TGE) for CATI, features like Meow Earn and Launchpool are designed to significantly improve the liquidity profile of our ecosystem while promoting long-term value retention for our token holders.
High User Participation Driving Liquidity: In the initial phase of Meow Earn, over 1.15 million users participated, collectively staking 14 million CATI tokens. This scale of staking activity generates substantial locked liquidity, which is a key factor in maintaining token stability. The high number of participants also creates distributed liquidity, reducing the impact of any one user on market volatility and thereby supporting the token’s resilience in both bull and bear market conditions.
Launchpool for Cross-Project Liquidity Enhancement: The Launchpool feature allows users to stake CATI to farm tokens from other projects, creating additional avenues for utility. This mechanism helps sustain and grow liquidity across the ecosystem by encouraging users to keep their CATI tokens staked rather than selling them on the open market. Cross-project farming not only incentivizes users but also builds synergistic relationships with other projects, further bolstering liquidity and reducing downward pressure on CATI’s price.
Planned Ecosystem Features to Maintain Token Stability: We are launching a Gamified Staking Center in Q4 2024, where users can stake CATI in exchange for exclusive in-game privileges and rewards. By directly linking CATI staking with valuable in-game benefits, we incentivize users to hold and stake tokens longer, thus maintaining a healthy circulating supply and mitigating excessive token liquidation. This gamification effectively ties user engagement to token stability, ensuring that CATI remains a sought-after asset within the ecosystem.
Key Liquidity and Stability Benefits:
Locked Liquidity Supporting Market Resilience: The large number of staked CATI tokens minimizes circulating supply, reducing the likelihood of sudden price drops and contributing to market confidence.
Cross-Project Collaboration for Diverse Liquidity: Staking CATI to farm other tokens not only provides additional liquidity but also positions CATI as a central asset within broader token farming activities, strengthening its utility and reducing market sell-offs.
Stability through Gamified Engagement: By gamifying staking and integrating token rewards within the gaming experience, we effectively align user incentives with the health of the CATI token, ensuring a more balanced and stable liquidity profile.
The Game Asset Platform thus serves as a cornerstone for liquidity management and token stability. It is not just about enhancing user engagement; it’s about strategically locking liquidity, reducing volatility, and positioning CATI as a fundamental asset within our ecosystem and beyond.
The growth of WeChat mini-games since their launch in December 2017 has been astounding, now boasting over 5 million mini-games and 400,000 development teams. By 2023, WeChat mini-games had an annual revenue of over 20 billion RMB, with monthly active users surpassing 500 million. In 2024, that revenue is expected to exceed 60 billion RMB. Catizen aims to bring this successful mini-game ecosystem to Telegram and Web3 by leveraging our game engine and SDK, simplifying the process for WeChat developers to transition into Telegram’s mini-app ecosystem. This will not only bring high-quality content to our platform but also expand our revenue streams significantly
The transition of Catizen from a single game to a full-fledged platform significantly reshapes our unit economics and business model, creating new revenue streams and broader value for $CATI holders.
Diversification of Revenue Streams
Initially, Catizen’s revenue predominantly came from In-App Purchases (IAP) in a single game, with 95% of income generated this way. However, as we transitioned to a platform model with the App Center launched on August 22, 2024, our revenue structure diversified:
Revenue sources now include In-App Advertising (IAA), Hyper-Casual Games, and platform-wide advertising alongside the existing IAP. This diversification reduces dependency on any one revenue stream, ensuring greater stability and sustainability.
The App Center model allows us to generate additional income by serving as a distribution channel for other apps and mini-games, leveraging our proprietary SDK to onboard content at a lower cost, particularly from WeChat developers transitioning to Telegram.
Unit Economics Transformation
With this transition, our unit economics have evolved:
Cost Efficiency and Customer Acquisition: The expansion to a platform model means leveraging our game engine and SDK, which has greatly reduced costs for onboarding new content. By acting as a hub for developers, we are effectively lowering Customer Acquisition Costs (CAC) while expanding our addressable market.
Lifetime Value (LTV) Improvement: Users now have access to a variety of games and applications on our platform. This variety boosts user retention and engagement, ultimately increasing Lifetime Value (LTV). Users engaging with multiple titles through a unified wallet and reward system means deeper relationships and more consistent spending.
Revenue Accrual and Benefit to $CATI Holders
The platform’s evolution into a content hub not only affects our revenue streams but also has direct implications for $CATI holders:
Buyback and Burn Model: Post-TGE, 50% of revenue generated from the App Center is allocated for buyback and burn of $CATI tokens, directly benefiting holders by reducing token supply and circulation, thus supporting a deflationary model. This helps increase the token value over time due to a scarcity effect.
Compliance Considerations: For compliance reasons, direct linkage between Web2 cash flows and the $CATI token isn’t feasible. Instead, App Center revenue acts as a channeling fee for facilitating traffic and providing exposure to applications listed on the platform. Revenue from Catizen’s own games also partially flows back to the App Center, adding another layer of income, but our primary goal remains maximizing the revenue share from all hosted applications.
Revenue Breakdown and Allocation
The main revenue streams for the App Center will be through IAP and IAA. The revenue allocation is structured as follows:
$100 from IAP or IAA:
After deducting Apple’s 35% fee, the remaining distributable income is $65.
Foundation (App Center Channel Fee): Typically 5-10%, equating to $3.75 to $6.5.
Content Provider (CP): 30%, equating to $19.5.
PLUTO Income: The remaining, which is $39 to $41.75.
All revenue generated by apps listed on the App Center follows this allocation model, allowing us to support platform operations while ensuring a fair distribution to content providers and stakeholders.
Historical Revenue and Usage of Funds
The previous revenue figure of $25-30 million was based on cryptocurrency prices at the time of receipt. However, with the depreciation in TON and other cryptocurrencies, the revised revenue stands at approximately $22 million. This figure is before deducting Apple’s fee. For the Telegram Star component, which makes up roughly 30% of the total revenue, a 35% Apple fee applies.
After accounting for Apple’s fee, 30% is shared with Content Providers (CP), and the remaining amount, totaling over $10 million, has been used for operational expenses, marketing, cloud server costs, and centralized exchange (CEX) deposits. It’s important to note that we still have a positive cash balance, and not all funds have been exhausted, ensuring ongoing operational capability and growth support.
Summary for $CATI Holders
The evolving business model benefits $CATI holders primarily through the buyback and burn mechanism, which aims to gradually reduce the supply of circulating tokens and therefore enhance token value.
The App Center revenue contributes to this model by effectively utilizing income from platform fees to benefit $CATI holders indirectly, aligning token utility and value appreciation with the success and expansion of the broader Catizen ecosystem.
The transition to a multi-faceted platform fundamentally reshapes our unit economics—lowering CAC, improving LTV, and diversifying revenue—while providing substantial benefits to $CATI holders through increased liquidity stability, a deflationary token supply, and sustainable growth tied to our expanding content ecosystem.
The majority of our revenue—over 95%—has been generated from in-game purchases (IAP), with a smaller portion from advertising revenue. We recognize the significant potential for advertising as a revenue stream and plan to introduce more hybrid monetization models and ad-based games in the future to boost overall platform profitability.
Below, we provide a detailed breakdown of our performance and revenue as of September 29, 2024. Note that the revenue figures are calculated based on the latest token prices, while at the time of receipt, the total revenue was approximately $30 million. Our ARPPU (Average Revenue Per Paying User) remains above $30 during this period, demonstrating strong user monetization.
Catizen Mini App Center Performance (as of Sept 29, 2024):
In-Game Revenue Breakdown
Total In-Game Purchases: ~ $23,744,615 USD
TON: 2,239,005 TON (~ $13,434,030 USD)
USDT: 1,311,145 USDT (~ $1,311,145 USD)
NOT: 140,127,893 NOT (~ $1,401,278 USD)
STA: 333,937,230 STA (~ $6,678,744 USD)
MNT: 1,393,058 MNT (~ $919,418 USD)
Total Paying Users
1,140,124 paying users have contributed to in-game purchases.
ARPPU (Average Revenue Per Paying User): ~ $20.8 USD.
Social Media & Community Engagement
X (formerly Twitter) Followers: 3,011,278
Telegram Chat Group Members: 400,000
Telegram Announcement Channel Subscribers: 9,165,696
Product Launch Milestones
Catizen Bot Beta Test: Launched on March 19, 2024.
Mini App Center: Launched on August 24, 2024.
Revenue Insights
The revenue from in-game purchases has been the main driver, while advertising revenue has remained minimal thus far. However, we are actively exploring opportunities to diversify revenue streams through ad-based monetization and hybrid models, particularly with the rollout of new games and features that leverage our growing user base.
Future monetization plans include increasing advertising integration within our ecosystem, given our substantial user numbers and community engagement metrics, which position us well for scaling ad revenue.
Our plan for deploying the generated revenue is designed to strategically fuel growth while optimizing our cost structure through collaborative advantages. Below is the breakdown of how we are allocating these funds:
Revenue Allocation:
Content Provider (CP) Share: 30% of revenue has been allocated to compensate the developers behind Catizen's content, ensuring consistent quality and incentivizing ongoing high-level content creation.
Remaining Funds: The remaining funds are allocated across several key areas:
Media Advertising and Promotions: A relatively small portion of our revenue has been spent on media and promotional activities. Due to our position as a leading traffic hub, we benefit from strong network effects. Instead of heavily investing in traditional paid advertising campaigns, we focus on partnerships and collaborations with other projects. Thanks to our large and high-quality user base, we are able to negotiate highly favorable terms in these collaborations, often achieving greater visibility and user acquisition at a lower cost compared to standard paid channels.
Exchange Deposits: A portion of the funds has been reserved as deposits for centralized exchanges (CEX) to support token liquidity and facilitate smooth trading for users.
Onboarding High-Quality Content: We are also using part of the revenue for onboarding new and high-quality content to our Mini App Center. These costs are essential for building a rich ecosystem that will continue to attract users, ultimately enhancing the platform's overall value.
Operational Costs: Revenue has also been allocated to cover essential operational expenses, including team salaries, infrastructure such as cloud services, and daily marketing operations to keep momentum strong in both user growth and engagement.
Future Deployment Focus:
Talent Acquisition: A significant part of future spending will focus on recruiting top-tier talent. We need experts in product research, content integration, and operational execution to realize our long-term vision of building the most comprehensive and premium application platform on Telegram and potentially other social media blockchains.
Content Acquisition and Ecosystem Expansion: We will continue investing in high-quality content acquisition for the Mini App Center. Our goal is to become the largest high-quality consumer application hub on Telegram, leveraging Web2 cash flows with Web3 token mechanics to drive viral growth. This will require targeted spending on acquiring top applications, research and integration efforts, and continued content support to ensure that we attract and retain users effectively.
By leveraging our large traffic volume and high user quality, we are able to create advantageous partnerships with other projects, which significantly reduces our need for direct advertising spend. This approach allows us to allocate more resources towards strategic growth, such as building a highly skilled team and enhancing content quality, positioning Catizen as a scalable and resilient platform that effectively blends Web2 revenue with Web3 growth potential.
Catizen has evolved into a comprehensive application hub, and the TGE (Token Generation Event) has had minimal impact on our overall revenue trajectory. Below is a comparison of our weekly revenue run-rate before and after the TGE:
Pre-TGE Weekly Revenue: Our average weekly revenue before the TGE was approximately $820,000 USD.
Post-TGE First Week Revenue: In the first week following the TGE, our revenue reached $1 million USD, demonstrating robust demand and strong market performance even after the event.
In addition to weekly run-rates, our broader revenue streams illustrate consistent performance and a healthy consumer base:
Airdrop Pass: This initiative generates between $3 million to $4 million USD per quarter, translating to approximately $1 million USD per month.
Game Platform Revenue: The platform as a whole generates between $15 million to $20 million USD per quarter, or roughly $5 million USD per month.
Single Game Revenue: Even for individual games like Catizen, monthly revenues have remained above $1 million USD post-TGE.
These figures underscore our platform's strong consumer demand and engagement, demonstrating that our user base extends far beyond individuals seeking only airdrop opportunities.
We have several major product and token launches planned for the next three months, focusing on expanding the Catizen ecosystem into a diverse consumer-grade application platform, incorporating gaming, finance, short-form media, and AI. Here’s an overview of the upcoming initiatives:
Product Incubations:
Bombie (GameFi): We are currently focusing on incubating Bombie, a high-revenue GameFi product that has demonstrated significant market traction.
Vanilla Finance (Trading App): This is a finance-focused application that aims to introduce a streamlined trading experience. Vanilla Finance is positioned to attract a broad user base by integrating familiar financial products with Web3 functionality.
Two Airdrop-Based Mini-Games:
Lucky Galaxy: A high-monetization, premium game that integrates unique airdrop features to boost user engagement and spending.
Memeblock: A casual game focused on advertising-based monetization, designed to drive user engagement through ad rewards while diversifying the revenue streams of the Catizen ecosystem.
Telegram Short-Series Platform: We plan to launch a short-form video platform on Telegram, aiming to migrate high-quality short-form content from WeChat and TikTok. This initiative will capitalize on our team’s experience with successful Web2 entertainment products and expand Catizen’s media content offerings.
Platform Expansion and Vision for 2024:
Our ultimate goal for 2024 is to transform Catizen into a comprehensive consumer application hub, integrating gaming, short videos, trading, and AI. This platform expansion is designed to create a solid foundation for our e-commerce ambitions in 2025.
Pan-Entertainment Content: We are leveraging our extensive Web2 experience in pan-entertainment to continue importing high-quality content, including top games and short-form videos, into the Catizen ecosystem. This strategy will drive significant utility for $CATI tokens and increase their long-term value.
Geographic Expansion:
Expanding Beyond Telegram: We plan to extend our platform from Telegram to Line and KAIA, tapping into major consumer bases in Japan, Taiwan, and Thailand. Line, a popular super app in Asia, has over 96 million monthly active users in Japan alone, covering messaging, payments, gaming, and e-commerce. Catizen aims to become a key partner within the Line/KAIA ecosystem, leveraging the existing high engagement levels in these markets.
Market Insights & Growth Potential: Our data shows impressive performance metrics:
Revenue in Japan has already surpassed $6 million.
ARPPU (Average Revenue Per Paying User): Japan at $300, Korea at $100, and Southeast Asia at $60.
Despite the relatively low penetration of Telegram in Japan and Taiwan (with 75% of social media users on Line), we believe that entering the KAIA ecosystem will lead to significant growth in users and revenue across Japan, Korea, Taiwan, and Southeast Asia.
Product Launches & Feature Updates:
New Products: In addition to incubating Bombie and Vanilla Finance, we will introduce two airdrop-based mini-games, Lucky Galaxy and Memeblock, which are set to enhance user engagement and broaden our revenue streams.
Membership System & Staking Center: In Q4, we will launch a membership system in the App Center, rewarding loyal users based on their engagement. We are also enhancing our staking center to provide the strongest empowerment for $CATI holders, with the aim of capturing significant value from within our ecosystem.
Tokenomics and Business Model Alignment:
All our business models and tokenomics are designed to positively influence the three core drivers of token value: supply, demand, and value capture.
Supply Management: Through our buyback and burn strategy, we actively manage token circulation to create deflationary pressure.
Demand Generation: We create compelling reasons for users to interact with the platform, including integrating loyalty programs, staking mechanisms, and exclusive in-app content.
Value Capture: Our ecosystem is built around maximizing value capture through a diverse set of consumer applications, spanning from gaming to media, while ensuring the value generated empowers the entire community through Web3 incentives.
Our vision is to transform Catizen into a leading consumer-grade platform across Web3 by leveraging traffic from super social apps like Telegram and Line, and providing users with value that extends beyond simple token airdrops. By executing on our roadmap, we aim to become the go-to platform for high-quality Web3 entertainment, driving sustained value for $CATI holders through meaningful content and a strong token utility framework.
Tokenomics Overview:
$CATI is the governance and utility token for the Catizen ecosystem, with a fixed total supply of 1 billion tokens. This supply will never be increased, ensuring scarcity and long-term value for holders. Below is the detailed breakdown of the token allocation and release schedule:
Airdrop and Ecosystem Development: 43%
Airdrop: 34%
Launchpool: 9% (100% at TGE)
Liquidity: 5% (100% at TGE)
Treasury: 15% (10% at TGE, with a 12-month cliff and 48-month linear release)
Team: 20% (0% at TGE, with a 12-month cliff and 48-month linear release)
Investors: 10% (0% at TGE, with a 12-month cliff and 48-month linear release)
Advisors: 7% (0% at TGE, with a 12-month cliff and 48-month linear release)
During the Token Generation Event (TGE), we release 30.5% of the total supply, which includes:
Player Airdrop: 15%, representing half of the initial circulating supply.
Launchpool: 9%
Liquidity: 5%
Treasury: 1.5%
This release structure provides sufficient initial circulation to ensure market liquidity, while also retaining enough tokens to drive sustained ecosystem growth over the long term.
Revenue Utilization and Deflationary Mechanism:
Game Center Revenue Buyback and Burn:50% of the revenue generated from the Catizen Game Center will be used to buy back and burn $CATI tokens, with the goal of burning up to 50% of the total supply. This deflationary model helps reduce the circulating supply, creating scarcity and enhancing the value of the remaining tokens.
The revenue for the buyback will come from platform charges applied to games hosted in the Game Center. While the platform fee is not currently implemented, it will soon be introduced (e.g., 3% of cash flow generated by partner games within the Game Center).
$CATI Utility:
$CATI serves as both the governance and utility token within the Catizen ecosystem, providing holders with numerous benefits:
Governance: $CATI holders can participate in important governance votes that shape the future of the Catizen platform, giving them a say in strategic decisions.
Staking and Rewards:
Launchpool & Task Center: Holders can stake $CATI tokens, play games, and participate in platform activities to earn rewards through the Launchpool and Task Center. Rewards may include third-party utility tokens or in-game virtual rewards, incentivizing active participation.
In-Game Utility: The token is deeply integrated into the ecosystem’s mini-games, where it acts as a currency for purchasing in-game items, participating in special events, or gaining exclusive benefits.
Here are all the account addresses and remaining balances for everyone to check against the vesting and usage:
Total Supply: 1,000,000,000 CATI
TEAM 20% -> EQAQqBr3yCDR1IVpwiB6buTRAg21DquV3wMcXpNS7tvAdZox
Advisor 7% -> EQDcU1sWrpxjdwFtZJyHMmZQBdc07lV9jRZOaAUcZLdJin5w
Investor 10% -> EQCEFQAYZhMGXT6GDpdIOlYYJ1iMqmiXAwh9vkU-s4Ovcin-
Airdrop & Launchpool 43% -> EQCWfRCrZNpLhjGwl5xhX6-TbUrPYDEIlMd-Iob94YRddbp4
Liquidity & MM 5% -> EQDqL05dpVypXieaGrHdZXD9AmZI_vCjTCSHvwzUuZ3DKsFK
Treasury 15% -> EQAnbLTnSI6rwqmvKwWge2rWpkG24cDTS0l5D1blnaiMDdME
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how do you think about the misalignment between the token and equity when ~40% of earnings accrues to Pluto and only ~4% goes to the token?