81 Bored Apes + Mutants are potentially about to be sold by the 3rd largest holder @ApeDao_, pending an ongoing divided & heated community vote to liquidate the DAO.
Here's the insider scoop 🧵
Here's the insider scoop 🧵
Context:
ApeDAO is a DAO of NFT collectors that was formed last year by prolific NFT collector KyloRen from his personal collection of Bored Apes and female crypto punk
The mission was is be the single largest holder of BAYC's, and they swept the BAYC floor on several occasions
ApeDAO is a DAO of NFT collectors that was formed last year by prolific NFT collector KyloRen from his personal collection of Bored Apes and female crypto punk
The mission was is be the single largest holder of BAYC's, and they swept the BAYC floor on several occasions
The DAO is governed by a token $APED, which represents voting rights within the DAO and fractionalized ownership of the DAO's treasury
A conservative estimate of the DAO's NFT treasury (using collection floor prices) is 11,562 E, or around $30,061,200 at the time of this writing
A conservative estimate of the DAO's NFT treasury (using collection floor prices) is 11,562 E, or around $30,061,200 at the time of this writing
Using this estimation, the price of $APED should be around ~$16.16. Which was about 2x higher than the average trading price of ~$8.
The last DAO community fundraise in August 2021, was at a valuation of $10 a token. Which was meant to get more funds to buy more Bored Apes + other blue chips.
Since August, BAYC has gone from a 20E floor to a now 100E floor. A 5x increase in price. At the same time, the price of $APED has dropped from the fundraising valuation of $10 to $8.
As a result, many $APED holders have been vocally upset about the price differential.
As a result, many $APED holders have been vocally upset about the price differential.
Due to DAO coordination issues, the speed of development did not meet the expectations of the token holders. The price reflected that.
The DAO recently had a proposal to hire a professional team to actively run and manage the DAO
This was struck down by the community
The DAO recently had a proposal to hire a professional team to actively run and manage the DAO
This was struck down by the community
Last night, a community member proposed to liquidate the DAO's assets and have the ETH proceeds to each token holder pro-rata (proportional based on their share of tokens)
That proposal is currently active with an overwhelming majority of the community voting towards liquidation
That proposal is currently active with an overwhelming majority of the community voting towards liquidation
Proposal: snapshot.org
Since the initiation of the proposal, the price of $APED has skyrocketed, as investors anticipate liquidation.
This move blind-sided Kyloren, the DAO's founder.
In response, he has removed the majority of liquidity of the $WETH/$APED liquidity pool on Uniswap to prevent more people from accumulating at a "discount".
In response, he has removed the majority of liquidity of the $WETH/$APED liquidity pool on Uniswap to prevent more people from accumulating at a "discount".
What happens next?
Assuming the vote passes, the DAO would "officially" have to liquidate.
Assuming the vote passes, the DAO would "officially" have to liquidate.
However, the DAO's treasury is locked behind a multi-sig wallet with four signers.
One of the signers has voted towards liquidation. The other 3 have not voted yet as far as I can tell.
Multisig: @apedao/docs/%2FVL4_sW6WQGuBHYEU0ZvipQ#Longer-answer" target="_blank" rel="noopener" onclick="event.stopPropagation()">hackmd.io
One of the signers has voted towards liquidation. The other 3 have not voted yet as far as I can tell.
Multisig: @apedao/docs/%2FVL4_sW6WQGuBHYEU0ZvipQ#Longer-answer" target="_blank" rel="noopener" onclick="event.stopPropagation()">hackmd.io
Even if the liquidation vote passes, there is always the possibility that the multi-sig signers do not proceed with the actions.
Web3 isn't perfect and we still need humans-in-the-loop. Delegation of actions to multi-sigs is one of them.
Web3 isn't perfect and we still need humans-in-the-loop. Delegation of actions to multi-sigs is one of them.
For now, all we can do is wait and see what happens.
This scenario is reminiscent to a trad-fi concept called Corporate Raids, where investors buy up ownership of a company and use voting power to force liquidation of the assets for a profit
en.wikipedia.org
This scenario is reminiscent to a trad-fi concept called Corporate Raids, where investors buy up ownership of a company and use voting power to force liquidation of the assets for a profit
en.wikipedia.org
Disclosure: I was a member of ApeDAO from July 2021 to December 2021. I am not longer involved with the DAO and have not participated in the current discussion or voted in anyway.
The DAO also owns a Crypto punk, MAYCs, Chromic Squiggles, Kongz, and many other blue chip NFTs.
Entire treasury: apedao-assets.vercel.app
Wallet 1: opensea.io
Wallet 2: opensea.io
Wallet 3: opensea.io
Entire treasury: apedao-assets.vercel.app
Wallet 1: opensea.io
Wallet 2: opensea.io
Wallet 3: opensea.io
Web3 truly in its Wild West moment right now. This is a shining example
Seeing how ApeDAO navigates through this decision will be a learning lesson and great case study of decentralized coordination of millions of dollars between strangers, with conflicting interests
Seeing how ApeDAO navigates through this decision will be a learning lesson and great case study of decentralized coordination of millions of dollars between strangers, with conflicting interests
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