Frax Finance Private Sale Unlock

Hello anon,

On 22nd April 2023, Frax Share token ($FXS) unlocked ~211k tokens (worth ~$1.5m) related to private sale allocation

These were sent to 8 different addresses which participated to the private investment round

EXTRA

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💸_{KEY WALLET TO TRACK}

In order to be notified at future unlock dates, you can track the following wallet

• The address which will distribute unlocked tokens to private sale investors is 0x1e84614543ab707089cebb022122503462ac51b3

• When you see this address transferring funds, it means unlock happened and new tokens are ready to be potentially disposed in the market by the receivers; you can see in the Etherscan screenshot below

• As a trick, it is very easy to get notified of onchain movements via the Etherscan alerts here, in the Etherscan account settings

🔓_{VESTING SCHEDULE STRUCTURE}

• 20% – Team / Founders / Early Project Members – 12 months, 6 month cliff. Team tokens are retained for founders and original early contributors to Frax Share

• 3% – Strategic Advisors / Outside Early Contributors – 36 months vesting. Advisory tokens which are allotted for strategic work done in legal, technical, and business advisory

• 12% – Accredited Private Investors – 2% unlocked at launch, 5% vested over the first 6 months, 5% vested over 1 year with a 6 month cliff. The first round in Frax was done in August of 2020 with a small allocation, i.e. ~2% unlocked at launch. The remainder 10% of the round was done individually through private placements and is vested evenly over 1 year, half of which has a 6 month cliff

⛓️WHAT IS HAPPENING ONCHAIN AFTER THE EVENT?

🐋 1/ FXS Whale is the biggest unlock recipient

• Wallet 0xb744b received 47k $FXS (~$400k) from private sale allocation

• He is a $FXS whale and has most of his holding staked (~$20m $FXS staked and ~$1.5m $FXS in wallet)

• Given his size, unlikely will dump the relatively small allocation received (compared to the size of its bag). Seems he has high conviction in the token

• https://etherscan.io/tx/0x60a77b09c6df00a7122193a8af853375cec20c8abb979c155241b873f7a20a96

🐉 2/ Dragonfly capital received $400k FXS but has never sold any of his tokens

• Investment fund Dragonfly capital received 47k $FXS (~$400k) as well from private sale allocation

• They have never sold any of their $FXS allocation (you can see its $FXS balance being up only in the chart below)

• High conviction holder, unlikely they will dump now given they survived the market conditions of full year 2022

🦍 3/ Frax-ape.eth accumulating

• Wallet frax-ape.eth received 47k $FXS (~$400k) from private sale

• Wallet has been accumulating from April 2022 with no major sells

• Holds $2.5m $FXS and some of its allocation is staked via 64227.eth wallet

• Didn't dump in November 2022, unlikely he will dump now

• Also, look at his ENS…

📈 4/ fraximaxi.eth started accumulating in Jan-23

• fraximaxi.eth received ~$300k $FXS from private sale allocation

• Has been accumulating since January 2023

• Has most of its allocation staked

• Would follow the wallet in case he unstakes

🏷️WHAT CAN BE PRICE IMPACT?

• Currently, a $174k sale moves the price by 2% down

• Even if the major investors listed above are unlikely to dump in the short term, it is worth tracking their movements as price is very sensitive to transaction they realistically can do

• As an example, as showed by Lookonchain, a whale transferred 98,525 $FXS (~$1.78m) to Binance on April 9 /for selling, which dropped the price of $FXS from $9 to $8/.6, a drop of 4.44%

👀TL,DR

• Most of the recipients of the recent unlock seem to have high conviction in the token

• However, market depth is quite small and transactions above $170k can move the price significantly

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