YGG goes down 49% even after Yield Guild’s epic $12.5M token sale

YGG goes down 49% even after Yield Guild’s epic $12.5M token sale
Photo by Jack Moreh on Stockvault

Key Takeaways:

  • Yield Guild Games recently launched its community cryptocurrency, YGG.
  • The initial DEX offering lasted all of 31 secs, as YGG raised $12.5 million in its initial DEX offering.
  • However, YGG prices fell by 46% in less than 12 hours before gaining again.

NEW DELHI (CoinChapter.com) — Yield Guild Games, a decentralized gaming guild of players and investors, completed its initial DEX offering on July 28. The offering raised $12.5 million in less than 31 seconds. However, YGG’s prices dipped by 48.99% from July 28 (08:30 PM) high of $1.89 to July 29’s (09:00 AM) low of $0.964.

Though prices rallied upwards later in the day, YGG was still down by 29.62% at 06:00 PM on Thursday.

YGG Price Chart

Following its offering, YGG was listed on SushiSwap, OKEx, and MEXC, which support YGG/USDT and YGG/ETH. The DeFi-based community cryptocurrency started trading at $1.89 on July 28 before prices declined.

YGG price movements. Source: YGG price chart on coingecko.com
Yield Guild Games price movements. Source: YGG price chart on coingecko.com

YGG lost nearly 49% of its value in less than thirteen hours, as it reached $0.964 on July 29. However, prices picked up on Thursday as the cryptocurrency recovered some of its losses during the day. YGG distributed 2.5% of the project’s 1 billion tokens in its offering. However, many investors ended up disappointed as 32 wallets exhausted the allocation.

Also Read: Clover Finance’s CLV swells 60% following high-profile crypto exchange listings.

The investor’s disappointment may be a reason behind the lack of bullish interest in the Guild’s cryptocurrency. Moreover, a spat on the community’s discord server was also reported. As a result, the founders issued an apology for the behavior of the discord server’s moderators, where frustrated investors came to vent.

As per the released statement, the moderators ‘said some unduly harsh things in the heat of the moment.

Though the token is gaining, it will require support from investors for a sustained bullish rally.

Gone With The Whales!

Yield Guild Games completed its offering via SushiSwap’s smart contracts platform Miso. Although only a handful of investors bought the entire offering, analysts speculate some of the wallets probably represent community members who had pooled in resources to get a larger share.

After the sale, the company announced that its DAO (Decentralized Autonomous Organization) launch is underway. The statement also shared that the company would distribute tokens to reward early participants of the YGG community.

YGG co-founder Gabby Dizon mentioned in the announcement that community mining of YGG would begin soon. Mr. Dizon thanked the community for its support, adding that they are “looking forward to kicking off our community airdrop.”

In addition, the co-founder stated that he expects the YGG scholarship program to grow. YGG launched a scholarship program, ‘Sponsor-A-Scholar’ in May 2021, which gives scholarships to NFT gamers in the form of SLP, Axie Infinity’s native crypto.

The company will slowly distribute the 45% reserved supply of its crypto over four years, with the first allotment via airdrop to the early members of its Discord community. In their second public statement, released July 28, the company founders apologized to the members who missed out.

Also Read: Blockchain gaming boom sees Small Love Potion (SLP) rise 179%.

Additionally, the founders also explained their choice of using the Dutch Auction method for the offering, stating that it was the best way to avoid overinflation of YGG prices.

In March, Yield Guild Games had raised $1.3 million from crypto Venture Capitalists, including Delphi Digital, Scalar Capital, BlockTower Capital, and others. With the latest addition to its coffers, the company may soon become the play-to-earn blockchain gaming world leader.

At the time of writing, YGG was trading at $1.57, down 6.4% on the day.

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