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Jupiter Founder Meow Addresses $JUP Liquidity Pool Criticism – Crypto News

Published

1 year ago

February 2, 2024

Dripp

Following the Jan. 31 launch of Jupiter’s $JUP token, founder Meow faced criticisms about the tokenomics—particularly with regards to its liquidity pool— and has sought to restore confidence with his responses.

The concern was around a DLMM pool, or “Dynamic Liquidity Market Maker” pool, which the team plans to be in place to support the price of the token for seven days.

Observers like OSF were concerned that because the team said these tokens would be sold to raise capital at the end of the seven-day period, it seemed like a classic rug pull—removing liquidity from the token and running away with the profits.

“I am a big fan of JUP and everything you have built, but do you not think a “fairer” way of funding would have been to explicitly state that you guys planned to sell $250m worth of tokens ahead of time? Not trying to be combative, just trying to understand,” he posted on X.

Hi @weremeow – I am a big fan of JUP and everything you have built, but do you not think a “fairer” way of funding would have been to explicitly state that you guys planned to sell $250m worth of tokens ahead of time? Not trying to be combative, just trying to understand.

— OSF (@osf_rekt) February 1, 2024

He was not alone in expressing concern. “Gave 50% of token to themselves; it was not their first token

Used their own platform, which also paid self

-Pulled liquidity from the pool in cash

-Gave a cut to the dev team

So cash out $30m day one with no lockup and still own 50%?

Shitty antics throwing away reputation of what could have been a *very* successful business long term,” Adam Cochran said on X.

So
-gave 50% of token to themselves, it was not their first token
-Used their own platform which also paid self
-Pulled liquidity from the pool in cash
-Gave a cut to the dev team

So cash out $30m day one with no lockup, and still own 50%?

Shitty antics throwing away reputation… https://t.co/HlSFzjHIL0

— Adam Cochran (adamscochran.eth) (@adamscochran) February 1, 2024

Meow responded with a full-court press of threads on X and media appearances, including on OSF’s show, The Nifty, and the show of top crypto journalist Laura Shin.

It turns out that the entire short-term pool is not being sold—it’s the team treasury, which they’re using as price support for the initial period, then moving into other purposes. The tokens are locked for seven days, then, if the price is over 0.40 USDC per token after that time, they will be able to sell 2.5 percent of the supply to fundraise for Jupiter Exchange.

“Important clarification again to counter the insane wrong fud. There is NO SELLING AFTER 7 DAYS. We will take the LP pool (usdc/jup) as is into the team treasury and for other LP purposes,” said Meow on Feb. 1.

Hi @weremeow – I am a big fan of JUP and everything you have built, but do you not think a “fairer” way of funding would have been to explicitly state that you guys planned to sell $250m worth of tokens ahead of time? Not trying to be combative, just trying to understand.

— OSF (@osf_rekt) February 1, 2024

“It is 250 million tokens supplied in a DLMM pool. The value will not be determined til the 7-day lock ends. If the price is below $0.40 at the time, they will have sold zero tokens (but collected fees),” explained supporter FenrirCap—with Meow confirming this explanation as accurate.

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