The challenge of launching Flying Tulip with the promise of 'not breaking the capital'
The new token Flying Tulip (FT), launched by decentralized finance developer Andre Cronje, quickly attracted market attention after its price dropped below the initial offering price of $0.10 shortly after the launch.
The price fell to around $0.0989, contradicting the promotional claim of the project that it provides capital protection under the slogan 'it will never break', raising questions about the ability of its stability model to withstand real market fluctuations.
The design of Flying Tulip includes a mechanism called ftPUT, which is a permanent redemption feature allowing investors to exit at the value of their original investment, triggering automatic buybacks when the price drops.
However, the early drop of the token has put this guarantee under scrutiny, as investors closely monitor whether the reserve-backed buyback system will be able to restore the baseline price level and maintain confidence in the project's ambitious protection model.
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