The DeFi super application space is facing headwinds following the Infinex token generation event (TGE) in January, but despite adverse market conditions, Yearn Finance founder Andre Cronje is launching the public sale of Flying Tulip (FT) next week.
Flying Tulip confirmed the sale date on Saturday and the prediction markets give the platform a 50-50 chance of trading above a fully diluted valuation (FDV) of $400 million, albeit on low volumes.
Flying Tulip FDV Opportunities – Polymarket
By comparison, Infinex’s INX token trades at an FDV of $121 million, leaving ICO participants with a 60% loss against the ICO’s valuation of $300 million.
Flying Tulip looks to fill a similar niche to Infinex, offering users a single platform to tap into some of DeFi’s most popular applications, including perpetual derivatives trading, spot trading, and lending.
However, Cronje has emphasized that the “Flying Tulip FDV is not a standard FDV.” In a traditional model, FDV corresponds to the total supply multiplied by the token price, while the FT token contains an underlying put option, making it “closer to a NAV valuation than FDV.”
The protocol raised $200 million from the likes of Brevan Howard and DWF Labs in September, followed by a $25 million raise at a $1 billion valuation in January, $55 million via Impossible Finance and $10 million via CoinList last week.
Flying Tulip is the YearnFi founder’s latest DeFi project after Fantom, the Layer-1 blockchain rebranded as Sonic. Although Sonic started off well, the token has struggled over the past year and is down 96% from its launch price, with an FDV of $160 million.
SONIC – CoinGecko