At this point, we are all calculating our chances with CakePop and evaluating if we should exchange Cub for a new token. I think that a closer look at the project may provide some answers to those questions.

General Overview

From the information that is available on their social media channels, we can see that CakePop aims to replicate what Kitty Cake accomplished. These are the numbers according to the website.

Over $2 Million in Cake tokens is a lot of money but that is just one part of the story. If we look at the price chart we can see that not everyone had a pleasant experience with this token. Only those that got in at presale price managed to break even and get some extra Cake on top.

According to the data we have here, it is best to be either first or last when it comes to investing. Lets' just remember that and move on.

Tokenomics

Max Supply: 1,000,000,000
Initial Dex Offering (IDO): 250,000,000
25% Liquidity Lock: 250,000,000

7% Marketing Partnerships: 70,000,000

8% Giveaways & Hype-Based Marketing: 80,000,000

35% Locked Team Treasury: 350,000,000

CAKEPOP Mechanics:

7% Rewards Tax: 7% Tax on CAKEPOP TXs Used to Buy $CAKE and Distribute to CAKEPOP hodlers
1% Marketing: 1% Tax on CAKEPOP TXs Used to Fund Ongoing Marketing Campaigns to Spread the CAKEPOP Brand and HODLER count

Taxable transactions are OK in my book as long as the tax is at a reasonable level. I personally feel that 7% is a bit over the top because of simple math.

If I purchase $1k of CakePop at presale and then for whatever reason move it to a different wallet I would have $930 left. One more transaction and I'm already down to $865. If staking the token also includes a 7% tax on the transaction you can see where this could lead.

The good news is that the token will be sold and listed at a price of $0.0005 which puts the fully diluted market cap at $500,000. A fair valuation for a project like this as far as I am concerned.

Social Media Presence

If we are to expect CakePop to gather new investors outside of the Cub ecosystem they would need to have some social media presence. So far, the numbers aren't very impressive.

Twitter - 250 Followers

Telegram Announcement Channel - 17 subscribers

Medium - 2 Followers

Leo Finance - 20 Followers

At the moment, the project doesn't seem very marketable but BSC is the Wild West and with propper announcements getting more attention shouldn't be that hard.

Also, since 1% of the taxes goes to marketing efforts they should have enough funds for a propper campaign. If all tokens get transacted only once they will have $5K to start with. A small number but this is just assuming that everyone transacts their tokens only once. On top of that 7% of raised funds will go to "marketing partnerships". If used correctly it can bring a ton of new people in.

Roadmap

Post IDO we should see the CakePop platform launched, as planned by their roadmap. Step one indicates that the website is already built out actually.

1). Pre-Launch Platform Checklist: ✅ Website and Earnings Dashboard for CAKE ✅ CAKEPOP Token Contract Deployed on BSC ✅ Official CAKEPOP Launch Announcement — Today! August 24th ✅ CAKEPOP Tokenomic Details Released

I have no idea why they wouldn't launch it now and set a countdown timer though...

The Good

The roadmap seems fairly reasonable since there aren't any super ambitious plans for the future. The plan is very straightforward and already used by other projects so we can at least learn from history.

I have a lot of confidence this will not be a quick cash grab as I put a lot of trust in the Leo Finance team. You would expect them to take a closer look at a project before giving it the green lite for an IDO.

The Bad

I see no room for long-term success if we are to be completely honest. Looking at other projects that offer dividend payouts you can clearly see that the utility of the native token depends on how many new people they can bring in. On one hand, you are incentivized to hold but in order to get funds for dividend payouts, people need to actually use the token.

I wrote about Singular recently which has similar mechanics and dividend payouts. If you are trying to understand how launches of these tokens unfold there is a lot of data to analyze in that one.

Final Thoughs

I was hoping to see a bit more information about the team behind Cake Pop and the contracts they will be using. I found no links to documents or GitHub anywhere on their social media channels. Went to ask on Telegram but the channel is announcements only so that was a dead end as well. I may have missed an announcement where they were mentioned so sorry if that ends up being the case.

All in all, I am still willing to give this one a go. Getting in early seems to be the way to go with taxable tokens but I am still not sure how much I am willing to risk.

I'll post the investing strategy in a new article as soon as I'm done with doing the math.

Jerry Rating 6.5/10

There is a lot of room for improving token utility and incentivied usage. Lacks creativity but still smells like a good investment.

Posted Using LeoFinance ^Beta