Statement Re: IDAX
Hello Pied Pipers,
We have a bit of news today.
A few of you recall that we had a vote and discussion related to getting on a more established exchange with sufficient volume to provide liquidity for our coin holders. We originally settled on Cryptopia but due to a number of potential issues we went with an exchange that provided far more liquidity at a similar price point.
Let me explain why we did not go with Cryptopia:
- I had heard from a friend working on a project that it took them two months to list their coin after they paid the fee
- Cryptopia listings can only be purchased in their coin, DOT. This provides a few errors:
2a. We raised enough to potentially cover the DOT necessary to list at the time, we had roughly 50k in funds and at the time with the Topia discount it was about 45-50k to list. However if we tried to market buy 50k worth of DOT at the time I have no doubt the price would have rocketed. We needed time to be strategic and with the deadline for Topia discount being within the 24 hour mark, I did not feel that we had that time.
2b. As our members know, some centralized actors, i.e. CoinMarketCap, have been hostile to our project. There was a chance to be rejected by Cryptopia, as they retain that right. Normally that would not be a big deal, but since I have to put up funds in their own coin, DOT, not BTC ahead of time this could be an issue. We faced the possibility of not being listed for two months and rejection. When/if we got rejected we would be refunded DOT, not BTC. If DOT crashed or lost significant value we would be vulnerable to that extent.
For these reasons we went with another exchange I believed showed promise, IDAX. The exchange boasted roughly over $60 million in trading volume, and was a top 30 volume exchange by rank. We also could pay in BTC for this exchange. The amount of BTC was similar to the same price as Topia. We also were guaranteed listing that week to meet our deadline for our community.
In the process of listing they mentioned that we would have to hit a few volume marks that I thought were a bit high but doable. A large reason for my overestimation was that we did manage to hit almost $300k in volume in a day just on DEX's. We had many community members and twitter users messaging us about where to buy our coin. A lot of users were turned off on using DEX's and much rather preferred a centralized exchange. Our community agreed with IDAX listing to provide an easy to use exchange, easy to join and good UX.
Well as most of you know, since listing we have not made a splash. It had little to no affect on new buyers. We are anticipating to be delisted from IDAX unless a miraculous spike of volume occurs. I think the market conditions right now are pretty harsh especially to a new project like $PPI. I think that BTC's price action and consumer confidence in crypto is not helping but I take full blame. I am still human at the end of the day and vulnerable to mistakes. Here we overestimated that new buyers would jump in once we provided a bigger exchange option. I am proud that we made a promise to our community and kept it despite the outcome. We will continuously make good on our word with the community, as trust is everything especially in this market.
While we are not happy with the outcome here we are still listed on easy to get to marketplaces such as:
On the bright side our dApps are moving forward and still on schedule. We are going to focus on building our community and our platform. There will be news on which platform we are forking very soon.