$CHANGE ICO is open — hard cap reached, oversubscription, and the way forward

The CHANGE ICO reached its hard cap quota of $2.4M in just 25 days last Friday! This goes to show that the ChangeX project has extremely strong fundamentals and its future potential is only matched by the speed with which the hard cap was met.

The ICO remains open for everyone until May 31, the only difference being that we are already in the oversubscription phase.

Here’s what this means for CHANGE subscribers and newcomers in the remaining two months of the ICO.

The oversubscription scenario

As we expected from the very beginning of the project, the ICO was met with strong enthusiasm and interest from retail traders, thus reaching the hard cap quota in a mere 25 days. When we say “retail traders”, we mean it — a separate batch of 50M CHANGE tokens is reserved for institutional investors, so meeting the hard cap this early is a big win for the community.

Now, with the hard cap met and the early-bird phase completed, the ICO enters into the oversubscription phase.

Oversubscription is a widely-used mechanism in both IPOs and ICOs alike, and is a strong bullish indicator for every project. Oversubscription simply means that demand for the project’s initial offering (shares, tokens) is greater than the actual volume of what is being sold, in the case of ChangeX — CHANGE tokens. This is a green signal for the project’s future, its development, and its investors.

With oversubscription now a reality, the additional CHANGE purchases that go over the $2.4M hard cap enforce a quota reduction mechanism for all subscribers, reducing the total number of tokens they will receive after the ICO ends.

For example, in the case of a 400% oversubscription — when investors subscribe to buy a total of 600M tokens, while only 150M tokens are actually for sale — each subscriber would be able to get 4 times less tokens than what they have initially enrolled for.

Elaborating on the example above, an investor who pledged to buy $10,000 worth of CHANGE will only get a quarter of the amount, or $2500. You, as an investor, can choose to protect your investment from such a reduction in tokens by using self-vesting — a mechanism that locks up your tokens for a certain time period, where every month provides you with 2.5% reduction protection.

Our blog post on Medium explains this mechanism in detail.

Now, why is oversubscription good and what does it mean for you.

Strong foundation and a new phase for ChangeX

With oversubscription, as we said earlier, all subscribers will receive less tokens than what they initially pledged for, and that depends on the amount of oversubscription at the end of the ICO. This is beneficial for several reasons:

1. All subscribers will receive less tokens, but the sheer number of holders will be much larger. This in turn will contribute to the stability of the project via token allocation — 150M tokens will be distributed among a much larger number of investors, creating a solid foundation to build on, and this immediately brings us to the next point;
2. A token allocation spread out thinly among a much larger pool of investors reduces whales’ influence, bringing further stability to the project. This is further reinforced by the 6,250,000 enrollment cap per investor which equals ~4% of the total ICO supply per one investor, providing additional security against fluctuations;
3. Bullish — CHANGE has already exceeded expectations, beating the hard cap and flashing a strong green signal of confidence for what’s coming up ahead. This will in turn attract new investors, further strengthening the economic core of the project and its future;
4. An oversubscription means security for the initial stages of the project — with the hard cap reached, the team has secured the funding necessary for development and marketing purposes;
5. Oversubscription is strong leverage for talks with future partners, launchpads, and institutional investors, providing a solid foundation of trust and economic stability.

With this design in mind, there is also what we like to call the “corner case”. If we reach a 33x oversubscription, which, considering that all subscribers have already paid their initial 3% deposits, would meet the hard cap requirements, then we will stop the ICO before the final deadline.

With our early-bird phase over and the hard cap met, the ChangeX project now enters a new phase — that of streamlining product development and road-map completion. Exciting times are coming.

Meanwhile, you can follow us on Twitter or join the conversation in Telegram.

Thanks for reading,

The ChangeX team