A market maker is taking a custodian to court over tokens that were supposed to stay locked.
đ What happened
Per CoinDesk, DWF Labs units DWF Maas and Falcon Digital sued BitGo in London's High Court, claiming BitGo sold discounted $FF and ESPORTS tokens before their three-month lock-ups ended. The headline figure is $141 million, while the filing seeks about $114 million in damages.
đ Why it matters
âą FF slid from about 8 cents in early March to about 7 cents by late April
âą ESPORTS fell from about 28 cents to about 7 cents by early June
âą Lock-ups are a key promise behind discounted token deals, so this tests how enforceable they are
đ What to watch
âą BitGo's response; neither side commented right away
âą The counterpoint: many factors move small-cap tokens, so proving the sales caused the drops may be hard
đŹ Do you trust token lock-up promises when you see them?
#DWF #Tokenomics
đ What happened
Per CoinDesk, DWF Labs units DWF Maas and Falcon Digital sued BitGo in London's High Court, claiming BitGo sold discounted $FF and ESPORTS tokens before their three-month lock-ups ended. The headline figure is $141 million, while the filing seeks about $114 million in damages.
đ Why it matters
âą FF slid from about 8 cents in early March to about 7 cents by late April
âą ESPORTS fell from about 28 cents to about 7 cents by early June
âą Lock-ups are a key promise behind discounted token deals, so this tests how enforceable they are
đ What to watch
âą BitGo's response; neither side commented right away
âą The counterpoint: many factors move small-cap tokens, so proving the sales caused the drops may be hard
đŹ Do you trust token lock-up promises when you see them?
#DWF #Tokenomics