Monad ICO Loans 160 Million Tokens to Five Market Makers

Monad ICO loans 160M tokens to five market makers - 1

Summary: The Monad ICO, which is set to launch soon, has announced a loan of 160 million MON tokens to five market maker firms. This move, revealed in a disclosure from Coinbase, highlights the transparency of the token sale and details the amounts loaned to each market maker along with the terms of those loans.

Key Takeaways:

The Monad ICO is lending a total of 160 million MON tokens to five market makers.
The largest loan of 50 million MON goes to CyantArb, with loans also extended to Auros, Galaxy, GSR, and Wintermute.
The ICO is set to take place from November 17 to November 22, with a fixed price of $0.025 per token.
Up to 7.5 billion MON tokens (7.5% of the total supply) will be available for sale, with specific allocations designated for the development team, ecosystem, and community.

Monad ICO Overview: Token Loans and Market Makers

In a significant disclosure, Coinbase has shared details on the Monad ICO, specifically regarding the market makers involved and the number of tokens loaned to each. This announcement could be one of the first major instances where a large institution provides comprehensive information about the market makers in a Layer-1 EVM blockchain ICO.

The document notes that the Monad Foundation's subsidiary, MF Services (BVI), Ltd., has entered into token lending contracts with five market-making firms in the cryptocurrency sector. CyantArb has received the largest loan of 50 million MON tokens for a one-month period. Additionally, three other firms—Auros, Galaxy, and GSR—will each receive 30 million MON for the same duration. Meanwhile, Wintermute will get a loan of 20 million MON, which it can hold for up to a year.

Information disclosed for market maker agreements regarding Monad ICO | Source: Coinbase

The total loans amount to 160 million MON tokens. Based on the initial price of $0.025 per MON, this translates to an approximate value of $4 million. The agreements with market makers allow for monthly renewals. A monitoring agency, Coinwatch, will oversee these contracts, ensuring proper token usage and tracking any idle balances among the five market makers.

Furthermore, MF Services plans to allocate up to 0.20% of the total MON token supply to provide liquidity for one or more decentralized exchange pools, aiming to facilitate initial token access and help stabilize the price amid potential market fluctuations.

Upcoming Monad ICO Details

The Monad ICO is set to launch on November 17 at 9:00 AM EST and will continue until November 22 at 9:00 AM EST. The project will make available up to 7.5 billion MON tokens, representing approximately 7.5% of the initial total supply for the token sale.

The fixed price for each MON token during this ICO is established at $0.025, based on an implied fully diluted value of the Monad Network, which stands at $2.5 billion with an overall supply of 100 billion MON tokens.

According to the disclosures, a significant 27% of the total token supply is allocated for the project's team. This allocation comes with lock-up and vesting conditions, typically spanning 3 to 4 years based on when team members became involved in the project. Initially, team tokens will be locked for one year after the launch of the Monad Public Mainnet, with release starting on the anniversary and continuing over the following three years.

Meanwhile, 38.5% of tokens will be directed towards ecosystem development; unlike the team tokens, this portion will be available immediately upon launch. Investors will receive 19.7% of the tokens, while 4% will be reserved for the Category Labs treasury, previously known as Monad Labs. Additionally, about 3.3 billion MON tokens (approximately 3.3% of the total supply) will be allocated for an airdrop aimed at Monad Community members and broader crypto enthusiasts following the ICO.