Arbitrum-Based Factor Raises $4M on First Day of Token Offering
The much-hyped launch of decentralized asset management platform Factor on Arbitrum’s Camelot launchpad has attracted over $4.3 million from traders in less than 12 hours after going live – with some expressing caution.
Factor, which is offering 10 million FCTR tokens on Camelot, says its product will provide the middleware infrastructure that will allow developers to aggregate decentralized finance (DeFi) products and spin up on-chain asset management services.
Camelot is a suite of decentralized contracts built to support Arbitrum native builders, offering trading, initial coin issuance, and lending services to users and developers.
On Factor, developers will be able to create, manage and offer a combination of tokenized baskets, yield pools, or derivative offerings to community users. Depositors to these Factor-created products will rake in the upside created by those developers, who earn a cut of fees in turn. This creates a win-win situation, at least in theory.
The initial coin offering for FCTR on Camelot started with a $10 million raise target for Factor, fixing a $0.1 floor price for FCTR, and has increased after the first $1 million was been raised. The tokens, which are currently non-tradable, are said to be in a price-discovery phase as of Tuesday – where the token price will continuously increase at every purchase.
The raise will run on for three more days, after which the final pool of money will be equally distributed with the total number of issued tokens to determine the initial price of FCTR in the open market. In this manner, every participant will get FCTR tokens at the same final price.
The value accrual mechanism for Factor’s native FCTR tokens is creating hype, and value, for the tokens among traders.
Factor will take a percentage of the deposit, withdrawal, transaction, vault management, and performance fees and redistributes 50% to FCTR stakers, and 50% to its decentralized autonomous organization (DAO).
FCTR stakers will, therefore, earn yields on staking their tokens as liquidity to the platform, while the platform will use the increased liquidity to offer even more products to potential users.
At writing time on Tuesday, FCTR tokens have reached a total market capitalization of $14 million, giving each token a current value of 14 cents.
Meanwhile, some interested users are waiting out the initial days in favor of purchasing the tokens on the final offering day. “Surprised people are in so early. Don’t see any incentive to put in until the end when you know the price,” one Crypto Twitter user tweeted.