Masa: A New Token Sale on CoinList
Following the successful listing of bitsCrunch (BCUT), the leading ICO platform CoinList is gearing up for its latest offering – Masa Finance. Let’s dive into what this newcomer brings to the table.
Registrations will be open until March 4th,12:00 UTC, and the sale is set for March 7th.
Key Aspects of the Token Sale:
- ICO Token Quantity: 63,554,660 MASA (4% of total supply);
- Token Price: $0.079;
- FDV (Fully Diluted Valuation): $125,000,000;
- Purchase Limit and Method: $50 – $2000, using USDT or USDC.
Additionally, the project may offer an extra 47,665,995 MASA (3% of total tokens) for sale at its discretion. Users who invest the maximum of $2000 in MASA can also qualify for an extra allocation of $100 – $2000 (determined randomly).
A quarter of the ICO-allocated tokens will be available to users after MASA’s listing on a centralized exchange (expected around April 11, 2024). The rest of the MASA tokens will undergo a linear vesting process over the following six months.
To join the ICO, CoinList users must complete KYC verification and have the desired amount of USDT or USDC ready for the purchase.
What is Masa?
Masa is a network for decentralized personal data, allowing projects to access user interaction statistics and rewarding network participants. It utilizes zero-knowledge proof technology to guarantee data confidentiality.
Masa is based on Soulbound Tokens (SBT), as per its whitepaper, making it the first protocol to employ SBT. Masa has also introduced zkSTB – privacy-focused Soulbound tokens.
Use Cases of SBT Tokens. Source: nftnow.com
The Soulbound concept, introduced by Vitalik Buterin in January 2022, represents one of the most promising crypto trends. SBTs are unique, bound to a single address, and fulfill roles like:
- Validating compliance with specific criteria;
- Serving as user identity authentication;
- Proving community membership.
Masa users create usernames linked to their “soul” by appending a “.soul” domain. It's the first project to integrate SBTs into the Ethereum network. Masa also supports Base (.base) and Celo (.celo).
Masa's economic model mirrors those in the DePIN sector. Users contribute data, which projects purchase using MASA tokens. While token trading isn't yet operational, users can earn through:
- Quests: Projects on Masa post tasks, rewarding users for completion. Successful examples include Meta Apes, TopGoal, and QuickSwap.
- Airdrops: Masa likely has already taken a blockchain snapshot for airdrop eligibility. Tokens will be distributed among active network users and those who completed the MASA Airdrop Quest.
As of February 2024, Masa has 780,000 unique users and over 30 million data submissions (trades, liquidity provisions, NFT mints, etc.). The network has integrated 70 projects, such as zkSync, QuickSwap, and Injective.
Tokenomics
MASA is the governance token of the Masa network, created as an ERC-20. It will initially be available on Ethereum and BSC during the TGE (Token Generation Event), and later integrated into Avalanche, Polygon, Base, Celo, and more.
MASA Token Functions:
- Incentivization: Data-contributing users receive MASA tokens as rewards.
- Staking: Node operators stake a portion of tokens as collateral for consensus algorithm participation, earning MASA fee shares.
- Service Payment: Projects pay for platform services using MASA tokens, distributed among oracle nodes, validators, user wallets, and DAOs (Decentralized Autonomous Organizations).
- Governance: MASA holders can create and vote in decisions about network updates, integrations, partnerships, etc.
MASA’s token distribution is unconventional compared to other CoinList sales. Normally, projects set one vesting rule per category, but Masa’s token holders have varied vesting within a single group.
MASA Tokenomics. Source: coinlist.co
For those speculating in the ICO, the post-sale fate of the tokens is less relevant. So, let's focus on the number of MASA and its holders at TGE.
Simplified, the tokens will be allocated as follows:
- Team – 25.58%, with a token lock-up of 3 to 12 months (likely depending on position and department);
- Partners and Advisors – 7.13%, with a lock-up of 3 to 12 months;
- Private Funding Round – 26.55%, with a 12-month lock-up;
- CoinList Community – 7%, with a quarter available at TGE and the rest distributed linearly over 6 months;
- Community Rewards – 10%, fully accessible a month after MASA lists on a CEX (Centralized Exchange);
- Oracle Staking Rewards – 4.15%, distributed linearly over 2 years post-Masa Oracle launch (expected Q4 2024);
- Ecosystem Development – 19.5%, with a quarter available post-CEX listing, and the rest over 2 years.
Teams typically receive tokens later and over a longer period than other categories. This approach should indicate a commitment to long-term product development rather than a quick cash grab.
However, in Masa's case, most of the team will receive tokens just 3 months post-ICO, while investors wait 12 months, raising concerns about the team's intent to sell early.
Masa Analytics: Investors, Social Media
Masa conducted two funding rounds — May 4, 2022, and January 23, 2024, raising a total of $8.9 million. According to Cryptorank, no Tier-1 funds are involved in Masa. The major VCs participating include Digital Currency Group (DCG) and GoldenTree Asset Management.
Masa Investors. Source: cryptorank.io
Based on the tokens allocated for investors and the total investment amount, we can estimate the initial purchase price for MASA by the funds. Calculation: $8,900,000 / 421,864,898 MASA = $0.021. Remember, the ICO price for MASA is $0.079.
It's also important to consider the proportion of funds' investments versus ICO participants. Masa plans to sell 4% – 7% of total tokens at $0.079 each. The minimum funding will be $5 million, with a maximum of $8.7 million. Thus, investors' contributions would account for 35.9% – 49.4% of the total project funding. The lower this number, the better.
Masa's following on X (formerly Twitter) stands at 209,000. Despite frequent posts and 40 – 50k views, they only attract 50 – 100 likes each. TwitterScore rates Masa's account at 19 points, with optimal values above 50.
Conclusion
For Masa's ICO participation to be profitable, the token price needs to quadruple from its initial offering. This would allow sale participants to recoup their investment while receiving the rest of their tokens according to vesting rules.
To understand the potential success of this upcoming ICO, let's compare it with bitsCrunch (BCUT), which had its sale on CoinList on December 14, 2023, and became tradeable on February 20, 2024. BCUT's TGE price was 6.23 times higher than its ICO price, with a maximum ROI of 9.38x.
Comparative Analysis of MASA and BCUT:
- Funds Investment Amount: BCUT — $6.75 million, MASA — $8.9 million;
- Number of Tier-1 Funds: BCUT — 2, MASA — 0;
- Proportion of ICO Participants' Investments to Total Funding: BCUT — 33%, MASA — 35,9% to 49,4%.
It remains uncertain if MASA can achieve the same profitability as BCUT. While Masa is pioneering with its use of Soulbound Tokens, its tokenomics appear imbalanced.
The crypto community is divided on the potential success of this ICO. Therefore, participants should consider the risks and conduct thorough personal research before investing.
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