The Oxy-Fi launch: What really happened
- A steep rise of $OXY following our recent launch was caused by:
- A highly successful pre-launch awareness campaign; and
- Considerable congestion on the Fantom network, which prevented nodes created by holders (which are required to sell $OXY) from being registered on the network.
- The steep fall of $OXY immediately after this spike was caused by:
- Fantom congestion clearing, registering all pending node creation and sale transactions at the same time
- The sale of a considerable amount of tokens accumulated by our smart contract, which is programmed to sell a chunk of accumulated tokens when someone creates a node.
Anyone who was charged the 99% pre-launch tax for $OXY purchases following the contract’s announcement will be provided a refund.
Following our recent launch, the price of $OXY spiked and plunged dramatically in the space of 20 minutes. The events that led to this cliff have caused some concern in our community, and this article seeks to address the rumors and clarify the situation.
Oxy-Fi is committed to transparency. We have investigated the events, and have set out a detailed account of our launch below.
Shortly before launch:
As an anti-bot measure to protect our community, we announced there would be a 99% tax on all $OXY purchases made before the official announcement. This announcement was made on several occasions on our Discord channel and medium. Despite the announcements, a number of individuals made a high volume of purchases, meaning high amounts of tax were sent to our smart contract wallet.
Note: There were a minority of purchasers who were charged the pre-launch 99% tax when purchasing $OXY following the launch announcement. Anyone who was charged the 99% tax for purchases following the announcement of our launch will be provided a full refund.
We launched $OXY on three different chains: Avalanche, Fantom, and Ethereum. Recognized as an exciting new project in the DeFi space, Oxy-Fi’s launch received a lot of attention and therefore buying pressure within the first few minutes.
The price spike:
Following the launch, there was a considerable spike in the $OXY price. There were two main causes:
- A successful pre-launch awareness campaign that led to high demand and buying pressure.
- To sell $OXY, holders must create an Oxy-Fi node. Due to the extreme volume of traffic on the Fantom chain, there were considerable delays that prevented node creation (and therefore sale) transactions from registering. This dampened sell pressure, causing the price to fly.
The price plunge:
Moments after the spike, the price fell off a cliff edge. There were two key causes for this price fall:
- The congestion on the Fantom chain cleared, and consequently, all pending node creation and $OXY sale transactions were completed simultaneously. This backlog of sales all happened at once, driving the $OXY price down.
- The Oxy-Fi smart contract is programmed to sell a considerable amount of its accumulated tokens when someone creates a node on the network. As detailed above, our smart contract had accumulated considerable amounts of tokens from the 99% pre-launch tax. That means, when the nodes were finally created after the delays on Fantom, our smart contract dumped a large amount of $OXY tokens — driving down the price.
The steep rise and fall of $OXY following our launch was an unfortunate combination of the Oxy-Fi smart contract fundamentals, high demand, and the resulting congestion on the Fantom network. Although not a perfect start, it has absolutely no effect on the plans, prospects, and ambitions of this project. In hindsight, this will be considered a minor blip on our long journey of empowering our community to reap the full benefits of their assets.