The Flying Tulip (FT) token became transferable and started trading today, February 23, to mark the token generation event (TGE) for the latest DeFi project linked to Andre Cronje, a systems architect best known for building early DeFi protocols Yearn Finance and Fantom.
Data from CoinGecko shows that despite an initial dip to around $0.08, FT has traded sideways around $0.10 in the first few hours, implying a fully diluted valuation of around $1 billion.
FT public sale, explained
Flying Tulip’s public sale price was set at $0.10, but it was not a standard token sale. The project’s tokenomics make $0.10 approximately a floor price for trading assets on the open market, as participants in the public sale have the right to break even on their investment at any time.
In addition to receiving regular tokens, early buyers also received ftPUTs, which are non-fungible tokens with a built-in perpetual put option, which under certain rules gives holders the right to redeem their tokens at the public sale price of $0.10, rather than having to sell them on the open market.
As Cronje explained in an X-post earlier this month, given the project’s tokenomics: “Flying Tulip FDV is not a standard FDV.” Normally, FDV is calculated by multiplying the total token supply by the current token price.
But Flying Tulip deviates from that model because each FT token is only created if it is backed by a corresponding put option, leaving no path for unbacked supply to enter circulation. When tokens are redeemed, they are also removed from the circulating supply.
That tokenomics design means each token is effectively backed by its own $0.10, bringing the system “closer to a NAV valuation than FDV,” Cronje pointed out, adding: “This is something new and aligns participation much more than any previous model.”
Flying Tulip is positioned as a DeFi ‘super app’, aiming to bring spot trading, perpetual derivatives and lending into a single interface.
Prior to launch, Flying Tulip was not short of cash. The project had already raised $200 million from the likes of Brevan Howard and DWF Labs last September, and then added tens of millions more through subsequent rounds and public sales on platforms such as Impossible Finance and CoinList.