In our FEI note last week, I assumed that FEI at $1.01 would result in the majority of Genesis participants to pre-swap. However, this was not the case, with only around 30% of committed ETH pre-swapped into TRIBE. This is primarily because there was a highly profitable trade that whale bots took advantage of (a widespread occurrence in most IDOs). As a result, the majority of retail Genesis participants lost out directly to these players. Watching the pre-swap % over the final hours of the Genesis event, one could probably have seen this coming.
The rough trade overview is as follows:
- Deposit ETH into the bonding curve, paying FEI $1.01 per FEI
- Receive FEI and airdropped TRIBE @ the pre-swap rate
- Sell FEI and airdropped TRIBE from ETH
As long as the TRIBE sold made