1. News
  2. News
  3. Giant Crypto Fund Makes a Critical Offer: That Altcoin Jumped!

Giant Crypto Fund Makes a Critical Offer: That Altcoin Jumped!

Giant Crypto Fund Makes a Critical Offer: That Altcoin Jumped!
Giant Crypto Fund Makes a Critical Offer: That Altcoin Jumped!
Share

Share This Post

or copy the link

A critical offer came from Thanefield Capital, a crypto fund with an interest in the GNO token. The giant crypto fund has proposed a buyback program for Gnosis DAO’s native token. The proposal aims to distribute $30 million for regular buybacks of the token over a six-month period. Gnosis co-founder Martin Köppelmann supported the proposal with the caveat that the buyback should be linked to a growth program. Following this proposal, the altcoin price saw a vertical rise in a sluggish market.

Thanefield Capital’s attractive offer for altcoin project!

The proposal came from Thanefield Capital, a crypto fund with an interest in the Gnosis (GNO) token. The proposal involves the DAO distributing $30 million from its treasury over a six-month period. Furthermore, the proposal claims that this would realign GNO’s market capitalization with its true book value.

Thanefield Capital has claimed that the current market capitalization based on GNO’s circulating supply is undervalued. It compared this to Gnosis DAO’s total assets of $730 million, which includes $630 million in non-GNO liquid assets and $100 million in venture capital investments. In comparison, he noted that the circulating supply of Gnosis tokens is 1.53 million GNOs. He also noted that this is worth approximately $424 million. This figure is much lower than the data on sites like CoinGecko. However, the fund claimed that the 1 million tokens belong to the Gnosis DAO and therefore counted them outside the circulating supply.

Gnosis

Gnosis co-founder approves the proposal

The proposal has so far received preliminary support from community members. So far, 12 out of 14 voters in the governance forum have supported the proposal. Gnosis co-founder Martin Köppelmann endorsed the proposal, stating that the token buyback should be tied to a “growth program”. In response, Köppelmann said:

I support this proposal if it is tied to a growth program where the GNO from the buyback is ultimately used to attract more users.

Altcoin

The proposal includes a two-pronged strategy

If Thanefield’s proposal is approved, the implementation strategy for the proposed buyback program will consist of two approaches. The first is the TWAP strategy, which involves the allocation of $15 million to purchase GNO tokens. This method utilizes a time-weighted average price technique over a six-month period. According to the proposal, the six-month TWAP will result in an estimated $83,333 daily buying pressure for the altcoin. The second approach is optional and involves an allocation of $15 million. However, it allows for optimization of purchases according to market conditions. The buyback will be managed by karpatkey, an on-chain asset management project.

Altcoin price reacted positively to the development

The Gnosis DAO oversees the Gnosis Chain, a side-chain that runs parallel to Ethereum, and the CoW Protocol, a decentralized exchange. Safe, the most widely used multisig provider on Ethereum, also transitioned from Gnosis to its own DAO. As you have been following on Kriptokoin.com, the market has been quiet today. However, the altcoin’s price saw an increase of up to 20% following the offer. The token price jumped from an intraday high of $294 to $320. However, the token then lost some altitude. However, it was still trading at $311 with a daily gain of over 5% in a sluggish market.

Altcoin
GNO daily price chart. Source: CoinMarketCap

Follow us on Twitter, Facebookand Instagram, and join our Telegram and YouTube channelto stay up to date with breaking news !

Giant Crypto Fund Makes a Critical Offer: That Altcoin Jumped!
Comment