The launch went ahead smoothly and on schedule. There were some good deals scooped up within the first few hours, but the price stabilised at around $0.04 fairly quickly.
COSS’s exchange model is to distribute 50% of all fees paid back to holders of the COSS token, so for the last few months all COSS token holders have been earning CFT. This CFT was previously not sellable on the exchange, meaning a large amount of CFT has been building up in the wallets of COSS holders.
With this in mind, many expected the market price of CFT to plummet after launch, due to many looking to cash out.
CFT Initial Price and Volume Movements
As expected, the price of CFT did drop below its IEO price of $0.10, but not as low as many predicted. The price of CFT has been fluctuating between $0.03 and $0.05 across the BTC/ETH/COSS pairs. From 24 hours worth of data, there seems to be a slight upwards price movement.
Trade volume of CFT peaked at around $28,000 and has now settled closer to the $9,000 mark.
Initial markets were CFT/ETH, CFT/BTC and CFT/COSS with CFT/USD and CFT/USDT becoming available the next day. Currently ETH and COSS pairs have the highest volume.
Why CFT Price Doesn’t Really Matter Anymore
All fee split allowances earned since the introduction of CFT have used the $0.10 price point to determine the dollar value of the FSA, which recently has been around $2 per 10,000 COSS.
This means that anyone selling their CFT for the current spot price is losing half the value of their FSA. Which is an unfortunate loss in FSA value for the past few months.
The FSA distribution that occured on the same day as CFT trading had some people confused as it included roughly the same amount of CFT as the previous week, but he dollar value of the FSA had halved. This of course, was due to the price of CFT now being pegged to the market price, which has halved.
Despite this, CFT opening for trade is a good thing. With the price being lower, more CFT is now required to pay trading fees. Almost double the amount of CFT is now needed to pay fees compared to before.
With double CFT being used for fees, this means double the amount of CFT will heading in to the wallets of COSS holders, which of course will make up for the drop in price. The FSA dollar value should therefore go back to around $2 per 10,000 COSS from next week.
With CFT being open for trade, there is no more uncertainty on its value – the price is determined by the market. Without uncertainty, we may now see more people willing to purchase CFT for trading fees, but also for the upcoming incentives of holding CFT, such as air drops.
CFT Tokens Held By COSS
The previous plan was that COSS would keep selling the CFT they hold in the price pools that were open during the IEO, they were:
- 20,000,000 CFT @ $0.10
- 15,000,000 CFT @ $0.12
- 15,000,000 CFT @ $0.14
- 10,000,000 CFT @ $0.16
- 10,000,000 CFT @ $0.18
- 10,000,000 CFT @ $0.20
- 10,000,000 CFT @ $0.22
- 10,000,000 CFT @ $0.24
When trading opened, these 10 million+ walls had been replaced by smaller 50-100,000 walls at a wider spread of prices. This should allow the price of CFT to rise faster .
To the right is an example of what the order book looks like now on CFT/USD for a simple comparison. You can see the smaller walls will allow the price to rise more smoothly, rather than reaching $0.12 for example and getting stuck there until 10,000,000 CFT sells as well as the other sell orders placed by users.
Also worth noting is that the walls go all the way up to $0.50 now instead of stopping at $0.24. This is the same across all CFT pairs.
Also worth noting that the CFT monthly burn took place on 1st April, reducing the supply by 1M to 238M. You can check the total supply on etherscan. Also promised was the burn of any unsold tokens set aside for private trades. This has not occured yet, but is planned.
CFT Trading Promotion Live
The CFT trading promotion opened alongside the launch of CFT trading. All trading volume on any pairs counts towards your rankings in the promo. With such a large incentive for trading and lower prices of CFT, this could help drive the demand for the token on the exchange.
It would be interesting to hear what you think will happen to the price of CFT over the next few days/weeks/months. Do you think this is the price it will stabilise at for a while, or do you think we are due some more volatility?