Initial Market Cap

Acquiring 40-50% of tokens might sound ideal from a bonding curve optimization, incentive alignment and finance perspectives. Yet, lets look at the initial trading market caps resulting from these transactions.

• 40% → 17k VIRTUAL (~$25k mcap)

• 45% → 20k VIRTUAL (~$30k mcap)

• 50% → 24k VIRTUAL (~$36k mcap)

A market cap of $40k is way undervalued for any meaningful Agent token. You’re essentially leaving money on the table with such figures. Whoever buys between $40k and your fair value ($300k-$3m) is getting in at exceptionally low figures.

Unfortunately, folks who are able to publicly get in at this range are not your future loyal community members. They are sniper bots who will sell at any given short-term upside movement which will hurt the token health and price chart as their exit will enhance volatility.

If you’re sharing upside from such entry levels, why share it with short-term bots who will add no value while you can share it with future loyal community members who will support long term or with KOLs who will help increase visibility & discoverability of what you are building.

Based on the comments above, you might think that launching at fair value would be ideal. You can guesstimate the fair value by looking at Agent comparables on Virtuals. Let’s say you come up with $1m as the fair value.

With that figure, you take the risk that the launch might not go well. What do we mean by that? Basically a chart that is down only. Ideally, you want a chart that is up only as "price go up" is the best marketing in crypto. You want to reward early believers and loyal supporters. You also want to ensure there is a margin of safety between the launch price and the fair valuation to ensure the launch goes well.

From this perspective, you should launch at a 30-50% discount to the fair value to ensure a successful launch. However if you think the fair value is $1m, applying a 30% discount results in $700k and to launch at that initial market cap, you need to invest 47k VIRTUAL (~$70k) which is a high amount for a small startup.