Few days ago, we have informed you about a tweet from Presearch in which Presearch team was asking us to predict the new development of the project.
As we mentioned in our related post, our educated guess was the release of the new white paper. Since the white paper of the project doesn't cover the current scope of the project, they would definitely release a new one, but it seems they need some more time for the completion of new white paper. Thus, the outcome was really very different than what everbody expected.
In the medium article that was published by Presearch Team, it was announced that 500 million PRE tokens of the maximum possible 1billion PRE supply will be burnt until the end of April. More importantly there will be a significant change in the accounting of the tokens of the PRE holders. Previously only 170 million PRE was in the circulating supply and this amount did not include the staked keywords and the tokens that are distributed as PRE but couldn't be withdrawn. In the new accounting system there will be 500 million tokens in the circulation supply and around 400 million PRE will be in the PRE holders accounts.
Before this change, difference between total circulation supply and max possible supply was 830 million tokens, which meant 6x dilution would be possible. After the above changes are applied, due to accounting changes, there won't be dilution possibility. Since this procedure is not reflected in websites like Coinmarketcap or Coingecko yet, we haven't seen the effect on the valuation of PRE token, but it shouldn't take so long for this to be figured out. That's why this might be good times to purchase some low value PRE tokens and HODL.
In terms of market cap, accounting change would also result in huge increase. With more accurate total supply number in calculation, even without any token value change, market cap should triple. Tripling of the market cap would mean that PRE token would rank around 300s or even high 200s compared to current low 500s. As a result, visibility and value of the project would be more noticed.
In conclusion, it shouldn't wrong to tell shiny bright days are definitely ahead for PRE token holders and Presearch users.
Comments
Post a Comment