- Valuation Model
- Expert Interviews
- Founders, funding
Do the FWB tokens exist within an allocated supply and are they traded on platforms like Uniswap to new participants?
Raihan Anwar
Co-founder at Friends with Benefits
Raihan: Right now, all of the tokens are locked up in our treasury. Yes, we're trading out to folks, but also Uniswap, as a decentralized exchange, has a bunch of the currency floating around. People are buying and selling with each other. If someone does sell off a bunch of FWB, someone else can just search that peer-to-peer via Uniswap.
Colby: Functionally, for a new member, all they need to know is go to Uniswap, click the FWB thing, swap ETH for FWB, send it to a wallet, and that's it. That's way more complex than a lot of people are used to, so that's its own challenge, but it's pretty easy. You go to a place; you buy a token.
I'm not an expert on the mechanics of liquidity, so forgive me if I'm mischaracterizing, but the way to think about it is: A million tokens were minted. Some percentage of those tokens are held in the treasury by the FWB organization. Some amount of those were staked to liquidity providers who put in large amounts of money, knowing that they’re going to be the ones providing liquidity on places like Uniswap, and they're going to sell for way less than if they had just bought those tokens and held on to them. The benefit for them is they get a percentage of these transactions for being a liquidity provider. So long term, ostensibly they'd be making more money. You're buying from these people who said, "Hey, I’ll throw money at you to make this work in the short term, hoping that long term this will be worth more to me.”