Our CEO has released a statement to address $DAG launch and market volatility:
https://medium.com/constellationlabs/dag-distribution-addressing-market-event-pt-1-775c8c17f602
Hello Constellation Community,
DAG launched yesterday to unexpected market volatility. It became quickly apparent what the issue was. In the spirit of transparency and community collaboration, we’d like to inform everyone and address what transpired.
Soon after token distribution a strategic investor with a large allocation unexpectedly sold their stake causing the dip in value. We had a huge amount of interest during our private sale and we took time vetting and building relationships with our partners. We wanted to ensure they shared our long-term vision and passion for the space and technology we’re building. Unfortunately, one specific investor did not make their intentions clear, like the community we are shocked, disappointed, and ultimately feel let down. It’s especially disheartening that someone with the privilege and capital to be an early round investor in Constellation would operate in such a way. The sad reality is this lack of professionalism is all too common in our industry at the moment, something that Constellation as a company is battling to change.
The individual in question has been contacted by myself. The reason behind his actions were a result of our refusal to give him early distribution and privileged information on exchange listings. We take this kind of behavior seriously as it is insider trading. We will continue to uphold these standards regardless of whether it puts us at risk from actions like this. We are seeking legal advice on what remedial steps we can take with the individual and will keep you updated on this.
Our price has stabilized and we’ve been in touch with our strategic investors to normalize and address the situation. We’d like to thank the community for rallying to our support (you know who you are) during this minor blip. We’ve said it before but we’ll say it again — we’re in this for the long-term. Anyone who takes the time to read the whitepaper, research the team and review our content knows that.
There were accusations in Telegram yesterday that indicated that the volatility was a result of founder tokens being sold. Let me be very clear and concise — we will never undertake any selling of tokens on exchanges. We have large institutional OTC partners that these types of sales will be executed with if and when they happen in the future. This includes any tokens sold to cover the employee and founder tax liability with the IRS for April 2019. In an effort to maintain transparency here is a current audit and balance matrix showing liquid supply and upcoming token movements. We will send an announcement when we are going to move token balances in cold wallets and the reason behind the move well before they happen from now on.
The final circulating supply of $DAG tokens will be:
628,341,430.42
This is until the first unlocking period the takes place on December the 1st, 2018.
Constellation Token Balance Audit (in Google Sheets):
https://docs.google.com/spreadsheets/d/1WKcl6z3APqP-VT7uBIKB7NtWI2pUaJBbBBrnV5e7lZU/edit#gid=0
We will follow up in the next 48hr with more detailed lockup timelines for the next 10 years to the market can understand how the liquidity will increase over this time.
Many thanks for all of your support and we will be releasing more product updates in the next 48hrs, including a demo of our testnet.
Kind regards,
Brendan
