Arbitrum-Based Factor Raises $4 Million in First Day of Token Offering
The much-hyped launch of decentralized asset management platform Factor on Arbitrum’s Camelot launch pad 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 of these factor-created products will collect the upside created by those developers, who get a cut of the 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 raising goal for Factor, which set a floor price of $0.1 for FCTR, and has increased since the first $1 million was raised. The tokens, which are not currently tradable, are said to be in a price discovery phase as of Tuesday – where the token price will increase continuously with each purchase.
The raise will last three more days, after which the final pool of money will be equally divided by the total number of tokens issued to determine the starting price of FCTR in the open market. In this way, each participant will get FCTR tokens at the same final price.
The value accumulation mechanism for Factor’s original FCTR tokens creates hype and value for the tokens among traders.
Factor will take a percentage of deposits, withdrawals, transactions, vault management and performance fees and redistribute 50% to FCTR players and 50% to its Decentralized Autonomous Organization (DAO).
FCTR players will therefore earn a return on putting their tokens as liquidity to the platform, while the platform will use the increased liquidity to offer even more products to potential users.
At the time of writing 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 first few days in favor of buying tokens on the last day of the offer. “Surprised people are in so early. Don’t see any incentive to deposit before the end when you know the price,” one Crypto Twitter user tweeted.
