Time to Protect $UNCX & Liquidity
Dear $UNCX community & stakeholders,
We hope this post finds you well despite the recent events we have all witnessed across the industry. We obviously are very sorry for anyone impacted by this unprecedented liquidity crunch and CEX collapse (namely FTX — if you missed it, we recommend reading this section on Coindesk).
Without further due, it is time for us to communicate about the impact & measures taken on our side.
Company impact (outside of $UNCX asset)
We were using FTX as a minor corporate exchange account.
We opened an FTX account as a third backup less than a year ago so as to not have all operations depend on a single/two platforms.
So far, we have been using the exchange account to settle supplier invoices on a monthly basis. Our balance there has permanently remained low. The impact is therefore non-existing from a company treasury & expansion perspective.
Let’s just say we got mini REKT 🤡 reminding us all of the capital importance of self-custody in the blockchain space pending further transparent regulation. Nonetheless, this whole FTX saga invited us more than ever to concentrate our liquidity on top of on-chain protocols (AMM pools) as stated in this Tweet.
$UNCX — Risk Mitigation & Liquidity protection
Now, let’s discuss the $UNCX utility token!
🚫💸 No ICO, No VCs, No potential impact.
Let’s start with a reminder worth being shared these days. The $UNCX utility token has never been invested in by venture capitalists nor held various token sale rounds.
This means, in other words, that any FTX-impacted investment fund, venture capitalist, etc. will not (can not!) impact the $UNCX token.
Information about funds and companies' FTX exposure is not out yet publicly, but as an industry actor, we foresee announcements and news in the upcoming weeks on the market.
💱 $UNCX Pairs Summary
Currently, the $UNCX utility token is being traded on 4 main pairs & exchanges.
⚠️We also have a UNCX/ETH pair listed on Bilaxy, but we highly recommend not using or interacting with this pair. Our team has never been in contact with this provider, it is a ‘rogue’ listing. Exercise extreme caution️.
📊 $UNCX Market-making, liquidity, and self-custody decisions
As a company, we currently are partnered with a market-maker, namely Flowdesk (PSAN Regulated).
Our service agreement with them allows us to provide liquidity on our CEX pairs as well as the necessary funds to hedge/balance our PancakeSwap V2 pool.
If you are reading between the lines, it essentially means we operate & work with a market-making-as-a-service provider while providing the liquidity ourselves.
Massive shoutout to the Flowdesk team for the support provided and the reaction time these last days. Happy to insist this collaboration has been a blast since we ever started. 🥳🚀
In light of the recent events and in order to protect the $UNCX community as we ever did — and we believe everyone in our community knows of our quality standards, we have taken the following decisions:
DEX Pairs: No changes, the liquidity/market cap ratio is top 1% across the entire crypto space.
We are more than happy to continue providing such depth to our $UNCX token community. For now, our native utility asset will remain pegged respectively to ETH and BNB on UniSwap and PancakeSwap pools.
CEX Pairs: We have withdrawn EVERYTHING until further notice (UNCX & USDT)
Yes, you heard it right. We have asked our market-making partners to remove all pending orders on both sides (buy/sells) and have removed (withdrawn) all our owned liquidity from both Gate.io and MEXC.com corporate market-making accounts.
️This means on UNCX and USDT sides.
It is worth noting here all our USDT positions have been instantly swapped for USDC positions, which we feel more confident about.
We understand the potential delisting risks of performing such actions on these exchanges as our pair volumes will decrease by a lot.
However, our most important will is and remains to protect the $UNCX token & community rather than protecting a ‘CEX listing fee’.
💡 Anyone holding $UNCX tokens on these exchanges can withdraw funds normally (ERC20 support). We recommend withdrawing from there to obtain less slippage/best price if you are planning to trade your assets.
💡 Related to the usage of the withdrawn liquidity (which was company reserve UNCX tokens/propietary USD turnover ), tokens will remain stored on chain pending our next action in regard to CEX listings/liquidity down the line. We will communicate accordingly.
On behalf of the entire UniCrypt Network team, I would like to share once again our support for anyone impacted by this recent cascade of events (CEL, LUNA, and FTX to name a few) over the last few months.
We are committed to secure code delivery and excellence at ours and it will remain this way. The team will also be able to share an updated roadmap with some of the upcoming milestones we are working on as we approach 2023.
Internal and external developer teams we are collaborating with are FULLY booked for the next few months. Off the record, I can tell we never had so many products being worked on all at once. However, no point in leaking anything, especially under these market conditions.
Internally, we call this the ‘dev dungeon mode’ and stay focused on our priorities.
👀 Last note, we will also be able to share some public news about a company equity investment we performed… right in a middle of a bear market, yes. Stay tuned, a Medium post will be detailing the above very soon — before EOY (2022) for sure.
Have a wonderful week everyone!
Chav 👊 on behalf of the passionate UniCrypt (growing!) team.
🐦 Twitter: Unicrypt Network
🥏Discord: Unicrypt Network