Subsquid Token Sale on Coinlist: A Comprehensive Review
A new token sale has been announced on the leading platform for ICOs, offering users a chance to invest in SQD tokens from the cryptocurrency project Subsquid.
The token sale is scheduled for January 18th, with only one option for participation. Today, we'll explore the ICO characteristics of Subsquid and delve into the project's details to evaluate the potential returns of joining this event.
A significant portion of the tokens will be locked post-listing, with a detailed coin release schedule available in the infographic:
Subsquid Sale Details
The participation details for the ICO are outlined on Coinlist's official website. The current token sale specifics are as follows:
- Tokens for sale: 1 337 000 000 SQD;
- Price: $0,094;
- Unlock schedule: 20% at listing, not before May 15, 2024, followed by a monthly unlock over six months;
- Allocation range: $100 to $2000;
- Acceptable purchase assets: SQD – USDT, USDC;
- Registration deadline: Monday, January 15, 2024, at 12:00 UTC;
- ICO date: Thursday, January 18, 2024, at 18:00 UTC.
Subsquid Token Sale Details on Coinlist. Source: coinlist.co
Additionally, the platform indicates that an extra 13.3 million tokens (or 1% of the total supply) might be offered in an additional allocation to meet heightened user demand.
The Essence of Subsquid
Subsquid presents itself as a cryptocurrency project developed by and for developers, with the primary goal of facilitating rapid and easy access to terabytes of data from various blockchain networks.
Subsquid is founded on three key principles:
- Speedy indexing capable of processing up to 150,000 blocks per second;
- Open data analytics, independent of third-party permissions;
- Comprehensive data coverage across the entire operational history of any given network or project.
The Working Mechanics of the Subsquid Crypto Project. Source: subsquid.io
In essence, Subsquid is a blend of a cryptocurrency oracle and a decentralized database. The project supports over 100 cryptocurrency networks and more than 50,000 indexers. The protocol is already integrated into 5,000 applications.
According to the roadmap, Solana was the first network for the protocol, with plans to transition to its own network in the second quarter of 2024.
Roadmap for Subsquid. Source: coinlist.co
About SQD
The native SQD token aims to maintain the system's integrity and security and to optimize Subsquid's overall functionality. Here's how the SQD cryptocurrency is applied:
- Rewards for node operators contributing computational resources;
- Token holders managing network nodes to ensure security and stability;
- Staking SQD coins for enhanced data analysis benefits;
- Participating in project governance and improvement proposals through the DAO.
SQD Token Utility Possibilities. Source: coinlist.co
The SQD token's economics are distributed as follows:
- 28% for the treasury;
- 10% for node operator rewards;
- 35% for private and strategic investors;
- 15% for team members;
- 5% for ICO;
- 5% for exchange liquidity;
- 2% for testnet participant rewards.
SQD Token Market Release Schedule. Source: coinlist.co
An article about Subsquid's testnet has been published on our site for some time. As per the tokenomics, rewards start accruing 6-12 months post-listing.
The project's Full Diluted Value (FDV) at the Token Generation Event (TGE) is estimated at $128 million, with an initial market cap of $11 million.
Should You Join the ICO?
Subsquid falls under data storage and processing. Coingecko lists several crypto projects that are either similar or in direct competition with Subsquid:
Subsquid's Competitors and Analogues. Source: coingecko.com
Hoping that the SQD token will immediately surpass market caps of competitors like FIL, BLZ, STORJ might be overly optimistic. The project's market cap is more likely to range between $70-$120 million, assuming Bitcoin's upward trajectory continues.
Under such conditions, public investors might break even on their investment after the first token unlocking, but this remains an optimistic scenario. With five full months until May 15, market conditions could deteriorate significantly, making the return on a maximum $2000 allocation questionable.
Also, note that Coinlist's platform requires immediate funding of the participating account to counter multi-accounting. Reflecting on the previous Bitscrunch ICO, the chance of winning was about 4%. Therefore, a high probability of winning in the ICO would require funding over 25 accounts, which hardly seems like an optimal risk management strategy.
Conclusion
Given all the factors, the Subsquid ICO seems appealing mainly for those with large deposits or those not expecting quick returns. For other traders, smaller token sales, such as IDO projects with low FDV and minimal allocation, might be more advisable.
