Off The Grid’s GUN Token Launch Triggers Controversy Over Confidential Letter
The shooter game Off The Grid has received mixed reactions due to a confidential letter sent to investors by Gunzilla Games regarding its GUN token, which became tradable on Binance this week. Key points include:
- GUN launched with a market cap of $68 million but has dropped to $40 million.
- The letter discussed a Simple Agreement for Future Tokens (SAFT), where investors provided funds upfront for future token issuance.
- This letter was publicly shared on X and criticized by a trader, highlighting potential changes in tokenomics.
- Initial agreements promised 5% and 2% token unlocks for seed and strategic round investors, respectively. However, the current public whitepaper indicates 0% unlock at launch for strategic investors.
- Tokens from Private A and B rounds will remain locked for over a year due to a 12-month cliff.
- Speculation exists that changes may be linked to funding for the Binance listing, though this remains unconfirmed.
- Binance stated it does not charge listing fees, emphasizing refundable deposits to protect users.
- Opinions on GUN's tokenomics vary, with some criticizing the initial allocation while others support longer vesting periods to prevent immediate sell-offs.
- Gunzilla’s Director of Web3 acknowledged uncertainty about the letter's legitimacy, confirming confidentiality clauses were included.
Further comments from Gunzilla are pending.