Why xx coin Will Have a Lockup Period Before Trading
Learn about the operations, finance and user logic behind the xx coin lockup period.
Posted on: March 17, 2020
One of the questions we get asked most frequently is why we decided to lock up xx coins following our token sale, and why xx coins won’t be immediately available on exchanges. So, we’d like to explain the careful reasoning behind the xx coin lockup period, and share how it’s a crucial part of our long-term growth strategy for the xx network.
When it comes down to it, the lockup period for xx coins is designed to support the progress and the public launch of the xx network, and to create a healthy, liquid market for the xx coin.
Throughout our public token sale, we’ve focused on making the xx coin available to the largest number of supporters possible, not just a few people or private venture firms. We’ve also avoided encouraging speculation that could create short-term volatility. We believe this is crucial to the project’s long-term success.
Over the years, we’ve learned from the challenges of other token sales. We dedicated a significant amount of time and thought to ensuring the xx coin token sale would improve upon past sales by taking our own innovative approach.
With many token sales in the past, often a small number of private venture firms would buy up a large number of deeply discounted tokens before the tokens were made available to other users at an inflated price. This is not the case with the xx coin. The xx coin sale has already grown to more than 500 participants, including a handful of crypto pioneers. We offered a minimal discount to a few of our earliest backers, who’ve supported the project dating back two and a half years. Our token pricing model has been fair and transparent throughout. And by making the token available to a broad number of supporters, we’re able to achieve our unique governance and voting model, an integral part of the overall xx network ecosystem.
We’ve also observed that many projects put their tokens on exchanges before their token demonstrates any real substance or value, and that’s something we wanted to avoid. Instead of following this path, we established a lockup period of one year for xx coins, to allow time for the Beta launch and the public launch of the xx network.
As more and more users see the utility of the xx coin within the network, we’ll be strongly positioned for long-term growth. And because we do not want to put the entire supply of xx coins on the market at once, certain randomly-selected tranches of xx coins will have additional months added to their lockup period. This will give the market the opportunity to absorb additional supply, and will allow the xx network achieve growth, scale, and maturity before the token is publicly traded.
While some may say xx coin’s lack of immediate liquidity is an inconvenience, we see it as a benefit to both token sale participants and the success of the project. The lockup period protects the value of the xx coin and the xx network. It gives us time to release our open-source code and demonstrate performance capabilities. It also gives us time to introduce governance measures and grow the platform.
We developed the xx coin with a careful strategy to drive successful operation of the xx network, and support secure messaging, distributed applications, and private payments. Not only is the xx coin a vehicle for early supporters to participate in the growth of the network, it also facilitates payments, acts as a store of value, and supports node incentivization across the xx network. The xx coin is crucial to the platform.
Our lockup period helps the community avoid using xx coin as a speculative asset before the launch of our MainNet. We believe this will protect the long-term value of the xx coin for all participants in the community.
We hope you’ll join us as we launch the xx network and begin revolutionizing our digital lives. For more details on the lockup dates or to participate in the token sale, please visit xx-coin.io. The length of lockup periods will vary by purchase date and by the random addition of extra months to certain tranches. If you have any questions, please reach out to us at [email protected].
The xx coin is available to non-US persons.