What started as a hoax to celebrate April Fool’s Day has become another sign of a frothy, overzealous market as a baseball cap coupon bond deal sold 468 hats in just a few hours, grossing over $ 100,000 and the price per hat increased $ 3,700.
The Solana-based decentralized financial platform (DeFi) Mango Markets announced this morning the sale on Twitter with the title “ICO ALERT!”, A twist on the previous coin offerings. According to a blog post, Mango’s Initial Cap Offering is all about high fashion.
1 / ICO ALARM! First cap offer: Presentation of the best caps of all market capitalizations.https: //t.co/ArBzr5T1Fo
– Mango Markets (@mangomarkets) April 1, 2021
“Yes, these prices are dynamic, with a limited supply of 500 bonding curves, blah blah blah, but that’s not what this is about. These are just good clothes,” the team wrote.
Despite the carefree, cheeky demeanor, there were numerous buyers with over 400 of the 500 redeemable MCAP tokens sold in the first hour. Demand created some significant UI / UX issues, with failed transactions and users even struggling to get the buy button working. Ironically, shoppers can’t even redeem their MCAP coupons.
“We haven’t finished writing it yet,” admitted Mango team leader Maximilian Schneider from the “redemption” code.
The team didn’t start developing the contracts for the sale until Tuesday, and one team member said he bought a cap for $ 2,600 due to mistakes even late in the sale. However, despite the high price, he remains in a good mood.
“This is a long-term investment,” he said jokingly. “This is for my children.”
Jokes aside, the team made it clear that the merch sale was not meant to be a fundraising tool and by no means should be treated as an investment.
“The motivation was a practical joke,” Schneider said, noting that the Mango community was asking for information about an actual platform token, which led the team to issue a “who token?” Channel on their official discord.
“We did it for the church. We got a lot of support and wanted to build something so that they could have a little fun, ”they said.
The team is currently debating internally what to do with the funds raised from hat sales. The likely outcome is that they will donate the proceeds of the sale.
However, in crypto – where Dogecoin can be a popular currency – it can often be difficult to tell the difference between a joke and an investment. Unisocks, a similar project by AMM Uniswap that allows users to swap SOCKS tokens for a pair of physical socks, is now considered part of DeFi history.
What is amazing is that SOCKS are currently valued at USD 104,000 per token per coin checko.
eGirl Capital member and noted Unisocks investor CL told Cointelegraph that SOCKS has appreciated in value due to a confluence of factors.
“It came out in the early days of DeFi and was the first of its kind. As DeFi and Crypto grew it slowly became part of DeFi and Crypto history,” they said. “It traded tens and hundreds of dollars for over a year before the shortage really hit. The supply is very well distributed because no one thought it was what it is today, so no one is really hoarding a large amount. According to onchain analysis, most SOCK owners only own 1 pair of SOCKS or even a fraction, which of course leads to a massive lower price limit. “
He cautioned that buyers plunging into MCAP expecting similar returns could accumulate in an overbought market and that it is worth playing a longer-term game.
“In terms of price, I think Mango Caps is already a success, but the thesis for the purchase is not the same thesis for SOCKS. Actually, I’m not sure what the thesis about caps is anymore. It mostly seems like short-term hype as you can’t just create a “historical” or “cultural” thing overnight, but if Solana grows year after year it could be worth more later. “
Likewise, Schneider says MCAP’s success is a sign of rampant speculation.
“I think people are really excited and right now everything can have value somehow and there is always someone trying to pay more for it. Even for hat coupons, people are willing to play this game. The general vibe is, that people want to shop. ”