• Traders and investors continue to feel the effects of the ingoing crypto winter
• The Company’s token swap is supported by Binance
•Some people are concerned about the decision to begin day trading ETH holdings
Substratum has announced an update to their token swap and smart contracts. Wedged within the announcement was a quick notification that the team will be day trading their ICO funds to try and mitigate potential losses occasioned by the pinch of the ongoing crypto winter.
Barely Staying Afloat
The Startup made an announcement through a YouTube video where a man called Justin announced the network was opening its doors to a token swap starting Monday, December 17, 2018. According to the announcement that covered the important updates in an almost casual manner, the company’s smart contracts begin before batch transactions happen over the Ethereum network.
As per the notice, the firm will automatically transfer all the remaining Ethereum tokens in their crowd-sale wallet to a new wallet. The switch will happen automatically for users whose tokens are on Binance exchange as the exchange is said to be supporting the move.
For users whose tokens are locked in their wallets, they won’t have to do anything in particular since the switch will also happen in due course. The older tokens will be frozen will become frozen and unusable as the startup transfers the new tokens to the customers’ wallets.
While the overall updates look good as far as the project is concerned, what has surprised most people is the announcement showing that the Substratum team will use a trader to day trade funds to ensure the team can maintain funds that will enable them to continue with the project.
The team says it was forced to cash in some Ethereum from their Initial Coin Offering (ICO) at over $1000. However, Ethereum’s current price of $84 compared to the $250 Ethereum price that SUB charged leaves the project down 70 percent on the remaining funds. On this issue the team said:
“We are going to not cash-in, but begin basically attempting to trade up so we can further our position as long as possible […] we are taking advantage of the trader we have full time and actively trading a portion of the Ethereum so we can trade up.”
With a full-time trader on their staff Substratum says they will continually test Ethereum over the course of time but with the crypto winter persisting it may appear like the startup will have a hard time cashing out, especially if ETH prices fall below the $60 mark. Several people have raised the alarm about the risks associated with the decision to risk investors’ funds to try and keep the ship Substratum afloat.