An Important Update from Coin
I want to take this opportunity to address a number of outstanding questions, issues, and challenges related to actions that have caused dissatisfaction with Coin, the Coin team, and me personally as the CEO of Coin. In my role, it is my responsibility to be accountable for the business of Coin and any related decisions that positively or negatively affect our business, investors, customers, partners, and our advisors. I sincerely apologize for my decisions that have led to the upheaval in our community, the vitriol, insults, rudeness, and the venom that has been used to ruthlessly attack members of our team, as well as other members of this community. There is a common level of decency and decorum that has been lost here as a result. This has been an obviously painful experience for us all and one that we hope to never revisit again in the future. It is up to each of us to help restore the simple human-to-human connections that we have shared in this channel with a common goal to return value to each of us individually and collectively.
There has been speculation from various members of the community that the key decision to adjust the liquidity pool from Uniswap, was made in concert with members of the Coin team and specifically with prior knowledge by Kelly. This is 100% inaccurate. I want to completely absolve Kelly and any other members of our team from any involvement and/or responsibility related to my decision as the leader of this company. This decision was made directly by me in accordance with the previously mentioned reasons provided in the Telegram and Announcements channel.
I have previously spoken about utilizing the liquidity (that currently resides on a competitor’s network) and our corporate treasury for network and corporate operations. Additionally, we would and have replenished the liquidity back into Uniswap. I understand the impression that these actions may have caused to those that were not aware or privy of this information or our communications.
For clarity, the corporate treasury is being used as follows:
- Adding more liquidity into the Coin network and removing liquidity from a competitor’s network
- Engineering and Operations: Exchange listing, market making, liquidity on the Coin network, payroll, and more
- Marketing: Influencer, display ads, promotions, and more
For reference, here are a few examples of costs for these types of services:
- Centralized exchange listing requirements: Tens to hundreds of thousands (10K — 100K+) per listing as well as tens to hundreds of thousands separately for marketing with the exchange
- Market maker: Hundreds of thousands (100K+) for working capital and a monthly service fee
- Influencer marketing: Thousands to tens of thousands (1K — 10K+) for a post or video
- Display ads: Thousands to tens of thousands (1K — 10K+) for a campaign
- Payroll: Our team has expanded to fifteen resources
These expenses, when added up, collectively become very costly and require capital in order to meet our goals and objectives. Therefore, managing our corporate treasury is highly critical as the network currently has limited revenue. Funds are required and will continue to be used in order to grow the network and company further. My hope is that this provides further clarity to these actions, the allocation of funds, and why they were taken.
I also want to take the time to address what appears to be a clandestine attempt to classify this as a scam, rug pull, or any of the other adjectives/adverbs used to describe this action. For those who are yet willing to listen, the reality of our actions is far from what has been described as such. Again, as the leader of this company, I acted alone in my decision for reasons that are in good faith for the company and without ill-intent against anyone.
We are aware that a few investors have decided on a course of action that includes pumping up the price of Coin, selling their positions, and subsequently damaging (irreparably) the Coin company, team, and brand on their way to their next project. To provide more context and visibility to the entire community, below is a snippet from that group. We are aware of who you are in our community and have our legal team involved in following your activity, planned actions, and more.
From where I sit, this is problematic on several levels considering that our company has always operated with the best of intentions for the company and token holders themselves. There are undoubtedly sound reasons to be angry, frustrated, and disillusioned given the actions, the performance of the Coin token in the market, and the overall performance of the Coin team. However, I am at a complete loss to understand the necessity to damage Coin, team members individually, the Coin community, and your own individual holdings. This with the full understanding that this action will have a negative collateral effect, causing loss and damage to other token-holders, investors, users, and the like. Is this what some members of this community really want? There have been discussions of reporting Coin to the SEC, FINRA, and other governing bodies with clear intent to do real harm to real people. Our relationships with all governing bodies in the US (which began with registrations with the SEC) and our company actions are healthy and include continuous guidance from our legal counsel. I can only hope that this level of anger and mean-spiritedness resolves itself without the need to harm any member of this community. Should it not resolve itself, we are prepared to take action alongside our legal counsel to handle these matters. I highly advise that each of you reconsider these planned actions. Let’s work on helping meet our collective goals together without malice.
Next Steps and Short-Term Roadmap
Per a previous poll conducted with the community, it was voted to adjust the ratio of the Uniswap to a price over $.50. After further investigation of the poll results, many of those votes were directly provided by the same actors that intend to hurt the company and other token holders negatively. To that end, we will not enforce this poll. Rather, we will reset the pool to the original price prior to removing liquidity on the 26th at $.20. This will occur in the coming weeks alongside our updates to Coin Wallet and the Coin Swap release in December. During this time, the release of Coin Wallet will include the debut of the AI assistant. Coin Swap will debut with decentralized swap functionality for Bitcoin, ETH, and Coin.
In January and beyond, both Coin products will include additional token support and liquidity. The AI assistant’s neural engine will increase and handle more intents to scenarios. Coin Swap will include AMM user liquidity pools, farming, and staking. These releases will be complemented with marketing, a CEX listing, and market-making. We are refraining from releasing exact dates at this time as some of these activities are in the control of the centralized exchange, influencers, etc.
We obviously have a lot of work to do. A lot of damage to repair. A mountain of trust to regain with this community and our investors. We are committed and resolved to this purpose including the continuation of creating value for our token holders and network. We only ask to be treated with decency and respect as we navigate through these challenges. I appreciate those of you who are still with us. I also appreciate those who remain and stand strong with us. Let’s please all work through this together.
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