Founder of Criticized Altcoin Explains Why They Made the Controversial Move

Infinex founder Kain Warwick made statements on social media regarding the INX token sale amount and the reduction in fully diluted valuation (FDV).

Warwick stated that fundraising events need to be attractive enough for investors, adding that the previous pricing was too high under current market conditions.

Warwick stated, “Fundraising events need to be attractive enough. If the price feels too high or the conditions don’t align with participants’ interests, it can easily create a negative perception. The current market environment is already rife with negative sentiment.”

Warwick stated that Infinex’s primary goal in launching the Sonar round was to offer the community an opportunity to purchase INX tokens prior to the Token Generation Event (TGE), recalling that the initial announcement set the FDV at $300 million and stipulated a one-year lock-up period for the tokens. However, he noted that feedback from the community indicated this valuation was not considered realistic under current market conditions, and that market conditions confirmed this view.

Accordingly, the Infinex team, in response to community feedback, decided to reduce the FDV to $99.99 million. Warwick stated that the one-year lockdown period was implemented to weed out participants who were only aiming for short-term selling during the TGE.

Accordingly, 5% of the total token supply will be offered to investors in the sale. With this change, the target fundraising amount has been reduced from $15 million to $5 million, and the FDV from $300 million to $99.99 million. User registration is planned to open on December 27th, and the sale is scheduled to begin on January 3rd. It was also stated that an additional 2% of the token supply will be sold to Uniswap CCA.