In a recent internal AMA session on Telegram, BullPerks' co-founders, Eran Elhanani and Constantin Kogan, shared insights into the current equity deal, future plans, and community concerns.
In case you missed the live session, don't worry. Check out the complete AMA recap below!
BullPerks Moderator:
Hello everyone and welcome to the BullPerks internal AMA session.
Let us welcome our Co-Founders, Eran Elhanani and Constantin Kogan who are here to give exciting updates and answer your questions later.
Eran Elhanani (BullPerks Co-Founder):
Hi everyone and thanks for joining us. First, we will discuss the equity deal and later we will answer questions about the deal and anything else. I will let Constantin start.
Constantin Kogan (BullPerks Co-Founder):
Hi Everyone, it's good to connect again.
First comes first, I just to remind our community that the equity deal exit strategy is an IPO. An Initial Public Offering (IPO) is a financial event in which a privately-owned company introduces its shares or digital assets to the public for purchase. In a traditional IPO, the company sells its shares on established stock exchanges, such as the New York Stock Exchange (NYSE) or NASDAQ, enabling institutional and retail investors to acquire these shares.
We will share a few basics about an IPO before jumping into details, feel free to prepare your questions meanwhile.
Conversely, in the realm of cryptocurrencies, an IPO involves a company making its digital assets available for purchase by the general public. Much like traditional IPOs, crypto companies opting for this route must navigate extensive public scrutiny and adhere to regulatory requirements set by governing bodies overseeing public companies. This transition from a private to a public entity is an essential step in their evolution.
Similar to IDOs the specifics of an IPO are initially outlined in a white paper. Subsequently, underwriters or investment banks play a pivotal role, acting as intermediaries between the issuing company and the general public. They assist in determining the asset's price, marketing it to potential investors, and ensuring all legal prerequisites are met before the IPO launch.
Launching an IPO is a laborious and demanding process, sometimes taking years and millions of dollars in expenses which is why many crypto companies favor raising capital through IDO. However, for bigger players like Consensys, the IPO represents a crucial milestone, as it enhances their prestige and attracts heightened public interest.
A notable example in the cryptocurrency space is Coinbase, the first cryptocurrency exchange platform to conduct an IPO in the traditional stock market. In April 2021, Coinbase went public on the Nasdaq Stock Exchange. The IPO's impact on the company's value was evident, with its user base growing from 43 million to 56 million registered users in a matter of months before going public.
Now few words about our selection process.
We only aim at companies that are in their later stage of development: in revenues, product, scale, fundraising, operations, and overall maturity of the business.
Our hope is that a company like Consensys will conduct an IPO within the next year or two but we certainly can't guarantee that.
In case you missed our announcements, please look at their website https://consensys.io.
There are many reasons why we picked this as a first deal. Above all, Metamask is probably one of the easiest to outline.
- With 100 million users Metamask is the most popular crypto wallet to date.
- Around 250k daily transactions.
- Various integrations both off-ramp and on-ramp.
- Most popular chains are easy to import.
- Infura and Linea are 2 pivotal infrastructure tools.
- Truffle and Besu, Teku and Diligence.
- Making Consensys probably the biggest infrastructure provider for Ethereum, which as you all know is still a leader among other blockchains in terms of Dapps built on top of it.
I'll pause here in case @EranEl wants to add few words. We will be happy to answer your questions
Eran Elhanani (BullPerks Co-Founder):
Nothing much to add other than the fact that our offer is a secondary sale and the price is heavily discounted compared to their last round which was estimated at over $7B valuation, which makes our deal very attractive.
So let’s open the chat for questions.
First about the deal and later we can discuss other subjects.
BullPerks Moderator:
Please respect our co-founders and note that any questions irrelevant to the AMA will be deleted. In case of repeating irrelevant questions during the AMA, the users will be muted for a day on repeat offense. I will now be unmuting the channel momentarily.
The chat is now unmuted.
Ikiro Aikawa:
Hello Founders! I see on the deal page that the deal is closing in less than 3 hours. Can we have more time to consider?
Constantin Kogan (BullPerks Co-Founder):
Yes, we will extend it. Thank you for a reminder.
Ikiro Aikawa:
Great! Glad to hear that! thank you!
Facebook[Meta]:
Hello Eran and Constantin. Why are Silver Bulls not allowed to join the equity deal group? I think if lower tier holder get more info about deal, they will have more motivation to upgrade tier and buy.
Eran Elhanani (BullPerks Co-Founder):
So minimum ticket is $1K which we thought was a substantial amount only top tiers could afford based on regular deal allocations.
Also, we want to motivate people to upgrade tiers especially when price is so low.
Facebook[Meta]:
Thanks for the answer. I have another one.
Is it okay to have 2 deals in the range of 2 days? 28 and 30 November? Maybe it is better to postpone one of the deals to a week later?
Eran Elhanani (BullPerks Co-Founder):
While that makes sense we don’t always control the dates and sometimes there are other reasons from projects or exchanges which create these dates
Riya ツ:
Blp was about to expand on the ETH chain and CEX listing. Any update on that now?
Eran Elhanani (BullPerks Co-Founder):
While not relevant to the AMA topic the answer is that yes, both options were reviewed and on the table but with the bearish market we saw no value in it compared to doing it in a more bullish market
Riya ツ:
Ok. Thanks for answering and sorry if the question was irrelevant.
Eran Elhanani (BullPerks Co-Founder):
No worries.
Constantin Kogan (BullPerks Co-Founder):
We have everything ready on the tech side for this but at this market, we decided to wait.
Shyaan:
Can we get 8+ IDOs a month in Bullrun 😉
Constantin Kogan (BullPerks Co-Founder):
We will have a really good pipeline already! Projects are also waiting
Eran Elhanani (BullPerks Co-Founder):
Yes, we have 5-10 signed ones already, and at least the same in the final stages of negotiation and finalizing.
Don’t know about 8+ but I can tell you we’ll be getting pretty busy from mid-November so start saving your stablecoins cause you’ll need it 😉😎
TREvor:
Hi there! I have a question: Let's say Consensys finally launched its IPO. Then, Under what circumstances we will go for an exit?
Constantin Kogan (BullPerks Co-Founder):
There is typically a 180-day post-IPO lockup period in the event of an IPO. So after our partner sells the shares in USD, we then will convert them into USDT and distribute them to investors.
TREvor:
Does this mean that an exit will automatically happen 180 days after the IPO, no matter what?
Constantin Kogan (BullPerks Co-Founder):
No, we can still vote as a group to hold the shares and don't sell them.
From experience, most of the times people prefer to cash out if an IPO does well.
TREvor:
So, it's still up to us to decide if we will go for a exit. like a Voting on Bullstarter to decide?
Constantin Kogan (BullPerks Co-Founder):
Correct, the majority of investors who participated in the deal can make a decision whether to hold or sell.
Dmitro:
Why do we need a separate chat to discuss the equity deal? Why can't we talk about the details here?
Constantin Kogan (BullPerks Co-Founder):
You're welcome to ask questions here. We've been asked to create a dedicated chat since some community members don't have experience with equity deals at all.
Eran Elhanani (BullPerks Co-Founder):
This is not a deal for the entire community but rather only certain tiers and a limited amount of participants and only specific people in that chat can answer all questions and know all details.
If not any other questions in general? We are not here daily so you might as well.
Ikiro Aikawa:
If the final result is that we do not extend this time, what will happen then?
Does that mean all the stakers will have a chance to exit the staking pool without penalty?
Eran Elhanani (BullPerks Co-Founder):
What will happen is simple, tokens will be released and we will open a new staking pool so anyone who will want to continue to participate in deals with us will have to stake there and those who no longer want to be part of our project/community will be able to sell and leave.
Honestly, we are not concerned. With market heating up we doubt how many people will leave and pretty sure buy pressure will be higher than any sell pressure. At these prices and FDV as a top 5 Launchpad, we’re a bargain before the bull run. I’m sure many will want to join or upgrade tiers and we have another plan we will announce soon to drive additional demand
Ikiro Aikawa:
Let's say there is a newcomer who staked in and got a tier to participate in our deals in November. Then, till December he can just unstake and leave.
The locking period is even shorter than the locker…
Riya ツ:
And will it drop the price of BLP because of no extension?
Eran Elhanani (BullPerks Co-Founder):
Highly doubt and yes no penalty in the case of no extension
Constantin Kogan (BullPerks Co-Founder):
We can’t disclose everything but rest assured that we have great projects and partnerships coming up. Our vision is long-term. So as Eran mentioned we aren’t focusing on short-term volatility
Eran Elhanani (BullPerks Co-Founder):
And I know some people are not happy with the community deciding by the majority either way but we are a community-oriented project and we like to listen and consult with the community although we are not a DAO.
Riya ツ:
The last one from my side, BLP will be listed on CEX in the near future. My suggestion will be delay delay delay, but plz list on Binance only ☺️☺️☺️😊😊😊😊😁😁😁😁
Eran Elhanani (BullPerks Co-Founder):
In theory, you’re right… but why would he once he sees the deals and pipeline and understands that it’s just going to get better with the market improving?
We wish, but most likely will have to compromise in the meantime on another good one until we get there hopefully
Ikiro Aikawa:
I mean, our Locker still needs a 3-month inactivity to unlock, but right now it creates an imbalance between Locker and the staking pool.
Constantin Kogan (BullPerks Co-Founder):
We appreciate your feedback and will work on removing this imbalance
Eran Elhanani (BullPerks Co-Founder):
Again, you’re right and if it was in the bear market a few months ago it would be an issue but with the market getting bullish I doubt it’s an issue. If the person is very short-sighted then that’s fine.
Fire Punch:
we should have multiple pools with different lock-up times like other pads do
Eran Elhanani (BullPerks Co-Founder):
We will definitely consider it
Ikiro Aikawa:
I hope if we have a new staking pool, we'll have a similar exit mechanism just like the locker. But a longer lock-up period can solve the problem IMO.
Eran Elhanani (BullPerks Co-Founder):
Lockers don’t give APY so easily. Once there is a pool and staking with rewards it gets a lot more complicated technically.
Srigopal Bhattad ! Hidden Gem:
I don't doubt this. We will be in the top 3 and with the team's hard efforts sometimes i feel we will be top 1 ❤️ just waiting for the right time to prove my message 🙂
Eran Elhanani (BullPerks Co-Founder):
Anyway, thanks everyone for your questions. We do have to wrap up but if you have any other questions just ask the community moderators and if they can’t answer/assist they will raise it to us.
And thanks again for joining us for this AMA
Constantin Kogan (BullPerks Co-Founder):
We really appreciate your support 🫶🏻
Thank you everyone
BullPerks Moderator:
Thank you everyone for joining us today! Thank you Eran and Constantin for your answers and for sharing great news!
