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Will exchanges be the whales of Songbird?


Seoulite
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Seems that Polkadot developers have chosen a different path for launching Kusama - at least that what the listing on major exchanges suggests.

https://coinmarketcap.com/currencies/kusama/markets/

It would furthermore dilute SGB value if Flare transfers SGB to all the participating Spark airdrop exchanges, whether they participate in the SGB airdrop or not.

Anyway, Flare Network doesn't owe anyone anything. Hugo Philion, even though he's most likely pissed due to all the criticism on Discord right now, might think of something.

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9 minutes ago, panmores said:

Seems that Polkadot developers have chosen a different path for launching Kusama - at least that what the listing on major exchanges suggests.

Someone earlier posted this video and it explains fairly well what and how Polkadot did their Kusama launch.  One thing about it is that it shows there likely ARE issues in any new network so the canary network is a pretty good idea.

 

 

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3 hours ago, panmores said:

Anyway, Flare Network doesn't owe anyone anything. Hugo Philion, even though he's most likely pissed due to all the criticism on Discord right now, might think of something.

What kind of criticism is there? 

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7 hours ago, BillyOckham said:

Flare have already shot themselves in the foot a couple of times as you alluded to above, do they really need upset exchange users ?

I think your proposal might be good, but I think upsetting the exchanges is more dangerous than upsetting the exchange users.

Anyway let’s see. I don’t have that strong feelings either way, as Songbird is not the main event. I was far more animated by the governance vote distribution stuff. 

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So I agree with @BillyOckham that in principle Flare could have basically made the same rules as the FLR airdrop and said that exchanges are excluded by default and have to opt in.

My guess is that in practice they looked at their position and said they're already late and have probably cost exchanges a ton of extra customer support with people asking about the airdrop, and Flare themselves is trying to rush this out and probably doesn't want to deal with it. On top of that, I suspect the reason for the desperate attempt to change the distribution by governance vote rather than just doing it unilaterally before launch was because when Flare tried to sell it to the exchanges, they got a lot of pushback. I'm guessing Flare just decided they were already on thin ice and it wasn't worth it to try to push this. Exchanges can do what they want

Another way to look at it is, how many of us had heard of Kusama before this week? This is a big deal for the few us of who are really dialed in. Most people aren't going even going to know that Songbird exists.

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15 hours ago, Seoulite said:

This is how I knew @brianwalden most likely self-custodied despite being a fan of Nexo. 

I'm actually not a self-custody maxi. My position is more like self-custody by default, but use custodial wallets if you have a reason to do so. For some people, they're their own biggest risk factor, and they're probably better off letting an exchange keep their keys for them.

The real reason I self-custodied for the airdrop is because I was in crypto hibernation and didn't even know that it happened. But if I was on Nexo at the time, I would have moved my zerps back to my own wallet for the snapshot. I wasn't even thinking about the way exchanges are kicking customers off, left and right. I think my concerns at the time would have been that there would be a delay or something and I wouldn't get my FLR right away.

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4 hours ago, brianwalden said:

So I agree with @BillyOckham that in principle Flare could have basically made the same rules as the FLR airdrop and said that exchanges are excluded by default and have to opt in.

Brian bought up customer support as a possible cost and reason exchange’s might be reluctant…. I hadn’t considered that.  Yeah… it places a different complexion on it.  But anyway I think we have pretty well covered all that stuff now but on a slightly different note…

 

 In practice excluding exchanges is probably not as easy as it sounds.

So I suspect there will be some huge Flare whales that are mid-sized exchanges who claimed,  but weren’t detected as an exchange by Fkare.  So they will get their collective users worth of Flare and won’t have to distribute it.  And so…. whales.

There are an awful lot of exchanges, and their cold wallet storage addresses will not all be known to Flare.  So I haven’t seen it mentioned much but that is likely going to create Flare whales and hence Songbird whales when the airdrops happen.

Whales are an unfortunate, but apparently unavoidable,  part of all crypto it seems.

 

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3 hours ago, panmores said:

Some interesting Hugo Philion thoughts on the matters shared on Discord. 

hugo1.png

flareproposals02.png

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“If SGB is useful, supported by the community and robust then exchanges have no reason not to distribute the token.”

That is an incredibly naive or deceptive statement, not sure which.  

Um, er, Hugo….  the fact that the tokens are worth money, perhaps a lot of money if you are a exchange with a big bag, would be a very big reason for them not to distribute the token.

Deceptive or naive?  Either is a worry.

 

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6 hours ago, BillyOckham said:

“If SGB is useful, supported by the community and robust then exchanges have no reason not to distribute the token.”

That is an incredibly naive or deceptive statement, not sure which.  

Um, er, Hugo….  the fact that the tokens are worth money, perhaps a lot of money if you are a exchange with a big bag, would be a very big reason for them not to distribute the token.

Deceptive or naive?  Either is a worry.

 

Hugo has many balls to juggle.  I like his answers, but as you say perhaps the exchanges will simply keep the tokens and sell them onto the market after they have gained value, rather than give them to their rightful owners.  But we are users of the exchanges will note which ones are honest and which are up for quick profits at the expense of their customers?  In any event the SGB does eventually get distributed

Edited by Julian_Williams
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I do not get one thing, what on earth Flare team wants to test by basically giving SGB at exchanges mercy? What scale they want if most % of people will be out of equation until exchanges realize there was airdrop? Was exchages instructed?

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