Insiders selling tokens – Reasons why it is done
There are many reasons why an insider to a business sells stock or in the case of Butterfly Protocol – tokens. Some may sell because they fear that the price may go down and they want to get out while they can. Some may sell because they need to fund other things in their lives. You may have heard that Ripple founder Jed MaCaleb has been selling XRP on a consistent basis and at a high level. It happens and we don’t know the reasons he is doing it, but we do know why it has been done at Butterfly.
First, you must look at the sale that was held in February. The presales and Polkastarter sales raised about $1 million and there were various marketing and sales expenses that dopped the net down closer to $700,000 USD. The community was strongly opposed to additional selling at that time. The published tokenomics showed that over 12 million tokens would be available for supporting business activities for marketing and development. Butterfly is frugal with resources but $700,000 is not a large number for building a tech company.
The tokens being sent from large holding wallets are being used to do one primary thing.
Provide for supportive development with partners. We have active projects with groups like Plato Blockchain and others to accelerate certain build outs of the tech. As these come online, they can be deployed for all Butterfly domains. This includes custom wallets and indexed search across connected decentralized sites.
Nobody likes to sell at low prices and the only way Butterfly can rise is to get more usage and interest. It is upon all the community to spread the word of what Butterfly is. I personally have spent (which were burned) over 510,000 BFLY tokens to sponsor blockchain top-level domains (bTLD). I created a community bTLD and 5 private bTLD’s of which I have used to entice partnerships. I am working closely with those partners to showcase the value of Butterfly.
Plato Blockchain is a key partner and if you review their site, you will see reference to .W3 and the .W3 Registry.
https://platoblockchain.com/ . These are the partnerships that drive awareness to new levels. Realize that only 980 private bTLD registrations would burn almost all the ever-to-be-created BFLY tokens. Imagine the demand on last 100 bTLDs available.
So, there will be some selling. But there will also be building as that is the only way to create sustainable value.
Dana Farbo
For the record – I am not a Founder, nor do I hold any equity or other ownership in Butterfly Protocol as an entity. I support Butterfly without a salary through my actions to help partners build on top of the Butterfly Protocol.
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