FT auction price is $0.1 but has principal protection. This financing mechanism is a bit different.

flyingtulip(FT)Public Auction Details Announced. The valuation for this funding round is set at $1 billion, matching the seed round price, with a token price of $0.1. But this is not an ordinary token sale — the project team IMPOSSIBLE has made some innovative attempts in mechanism design, especially with the 100% principal protection, which is uncommon in crypto fundraising.

Highlights of the Auction

Several key features of this auction are worth noting:

• 100% Principal Protection: Investors’ principal is protected, and refund tokens will be burned to reduce the total supply. This means if the project’s subsequent performance does not meet expectations, participants can exit without losing money.
• 100% Unlock at TGE: All tokens are unlocked at launch, with no lock-up period. This is relatively rare during fundraising phases, where staggered unlock schedules are more common.
• No Team Token Allocation: This round of funding does not involve team token distribution; all funds are used for project operations.
• Interest-Bearing Funds: The raised funds will be deposited into low-risk DeFi protocols to generate yields, providing an additional consideration for investors.

Funding Timeline and Participation Mechanism

IMPOSSIBLE has allocated a total of $200 million for this project. The phased participation mechanism gives priority to IDIA stakers, serving as an incentive for ecosystem participants.

The Logic Behind Price Setting

According to relevant information, FT’s current market price is approximately $0.0422. The auction price is set at $0.1, which is about 2.4 times the current market price. This pricing difference reflects several possible considerations:

First, the $0.1 price aligns with the seed round valuation, indicating the project team’s recognition of valuation consistency. Second, the current market price is significantly lower than the funding price, which is not uncommon in crypto projects — after sufficient market liquidity is achieved, prices often fall below the funding price. However, the principal protection mechanism reduces participant risk.

Significance of the Mechanism Innovation

From an industry perspective, the design features of FT’s fundraising are noteworthy. The principal protection mechanism essentially addresses trust issues during the fundraising phase — investors do not need to worry about losing everything if the project fails. The 100% TGE unlock provides immediate liquidity for participants, which is attractive to risk-tolerant investors.

However, the actual effectiveness of these mechanisms will depend on the project’s subsequent operational performance. The sustainability of the principal protection promise, the stability of DeFi protocol yields, and the project’s development progress will all influence investors’ final returns.

Summary

The core features of FT’s auction are to enhance participant confidence through mechanisms like principal protection and 100% TGE unlock, despite the valuation gap between the funding price and current market price. With a funding scale of $200 million and an FDV of $1 billion, combined with phased participation, the overall design is relatively comprehensive. Future focus should be on the actual utilization efficiency of the raised funds, the performance of DeFi yields, and whether the project’s market performance post-launch can support this valuation.