Thread by @zachxbt

1/ Here’s an interesting one. A short story about how @lemiscate (angel investor) dumped all of his XDEFI immediately at launch for a $418k profit on his public ENS.

2/ On 3/24/21 XDEFI announced they concluded their $1.2m seed round. Among those was @lemiscate

Tokenomics wise seed round participants received 25% at TGE (Token Generation Event) with the rest vested linearly over a 3 yr period.

3/ XDEFI trading went live after their IDO on 11/18.

From aavechan.ens we see he received 240k XDEFI on 11/18 (25% on TGE) so during the seed round we see he bought 960k XDEFI tokens for $25.9k ($0.027/token)

etherscan.io/token/0x72b886…

4/ However that same day he added liquidity (USDC/XDEFI) with all 240k tokens on Uni V3 and proceeded to dump it all hours later for a nice $418k profit.

Adds liq:
etherscan.io/tx/0x7555a4249…

Removes liq:
etherscan.io/tx/0xaca6a3cbe…

5/ That’s not very (3,3) for someone supporting a project as an Angel investor and using the community for exit liquidity.

Obviously he has every right to sell all 25% at TGE but when your cost basis was only $25.9k why would you dump your entire stack ($418k) like that?

6/ As an Angel investor you should be supporting the project and not doing the complete opposite on day 1

From a tokenomics standpoint the project shouldn’t have distributed 25% of the the seed round at TGE. That’s messy in itself.

You still should expect better from angels

7/ Since then aavechan.eth was removed from his Twitter. Luckily it is still linked on his Foundation profile (for now)

foundation.app/@Lemiscate

It’s clear from the comments there’s two sides to this topic.

Yes the project shouldn’t have done 25% at TGE but VCs/angels still help shape up the tokenomics a decent bit.

Noob founders then get mislead and VCs/angels get the free pass.