First and foremost, I encourage everyone to read this to understand how the cards are stacked against you in many ways in our industry, but I am going to also comment on this post as there are quite a few things I vehemently disagree with. Please allow my zig-zagging here, as I'll jump from one place to another.
To start: Most of crypto has an inorganic approach where the goal isn't to benefit the many, but to have the many contribute to benefiting the few.
Over the past few years I've done advisory for quite a few projects, some that have been run exceptionally, and some that have been run with intentions that I didn't fully align with (if I don't align at all, I flat out refuse to work with a project).
In my work, I've always done everything I can to offer a playing field that is as fair as possible to all involved parties, without hurting the chances of the project succeeding.
It's almost been 3 years since
@GatesOnChain @monaco_pnl and me ran the CTO for
$TOSHI together with a few people that left very early on, and a few people that joined/left a bit later on.
On the day I decided that I was going to do this I told my wife and myself; I expect that I will be the last person that will remain involved in this project out of the group that is involved today.
That may read as me thinking the others were soft, losers, or just in it for a quick pump.
But no.
Before I explain the reason, I'd like you to know that even though neither of them are as involved in the day-to-day operations of the project anymore, Gates has not profited from Toshi yet till this day, and Penn has been supportive of the project through his various channels, and is still holding a sizable position till this day. Neither of them are or were obligated to do any of that.
If I'd call them today to do ANYTHING for the project, they would.
So why did I believe they'd not remain around, while thinking I would? Because I sometimes am clinically insane and don't mind working through pain to prove others wrong. Probably some stuff left over from childhood.
That is just me though.
So why did I think everyone else would abandon ship at some point? Because running a memecoin is for the clinically insane.
You get attacked every single day, no matter how well the token does. If the token goes up like crazy, you're a demigod, it goes back down, you're the devil and you deserve to burn in hell. Well buddy, I already experienced hell a few times over in my life, that doesn't faze me one bit.
In 2021 I knew multiple of the leads of the most successful memecoins. To my surprise, after making their bag they all decided to abandon their projects and leave. Their take? 10-50 million USD per person. Why walk away with that money, why not invest a fraction and try to build something impactful, significant?
Because on the one hand they didn't care, they had launched 10s if not 100s of memecoins, and were just looking to take as much from the ecosystem, but in some cases because they were getting death threats, doxxed, calls to family members threatening murder etc.
The latter would make me walk in an instant as well, and likely move to a place nobody knew to find me - which some of them did.
Now frankly speaking, some of them were horrible people that basically robbed the bank and are walking away a free man, but in some cases people didn't even make a penny from running a project for a long time, yet still got told they were about to die - a few times a day.
So why mention all of this?
I think the white whale stepped into unfamiliar territory with an outcome that I basically expected. Not because he's a scammer or bad person, but because leading a memecoin can be brutal on ones self, and on ones health (which I can tell you lots about - both mental and physical)
The white whale wanted to do right by a project carrying his name - the reason unknown to me but let's assume it was for all the right reasons as I haven't seen a wrong reason from him so far.
Why do I think he chose the wrong approach, and why did I warn my friend who invested a bit too much into the project (while not investing in
$TOSHI when I took over??? lmao) against holding his investment?
I will try and lay that out in a simple way.
Toshi WAS and IS completely organic. When I say organic, I mean that from every single angle.
We had no marketing, no influencers, no organized pushed.
We had no supply control, nor did we ever try to accumulate supply to even remotely get there.
Gates invested personal money at the start of the CTO to try and salvage the project, with no outlook on a return on a single dollar.
I lent the project around 7 figures of my money, not with the expectation of receiving that back really.
We spent around 7 figures on the chart, money that was never returned, yet the tokens acquired have all been used towards partnerships and other fun giveaways etc.
We fought tooth and nail to have every dollars we spent be effective, while also offering the people that lend their time to Toshi a livable wage, allowing them to grow in life.
We don't do AI art, we pay a studio. We've said no to many AI collaborations, even ones that would've brought us growth, because it felt like it didn't fit the brand, or we wouldn't remain control over our brand.
This isn't me patting ourselves on the back, this is me explaining why I don't believe in CTOs that don't want to crime, yet want to get supply control.
Supply control is owning 98-99% of a 100M token, effectively making it a 1-2M circulating market cap token, yet only needing to sell a fraction of your tokens at said market cap to break even on the less than 1 million dollars invested to get it to that 100M market cap.
Crimelords will do that and exit millions or tens of millions of dollars on your heads when they get successful. Base has had one of those, they crimed their ways onto certain exchanges, and basically got blacklisted from others due to their aggressive selling (50M on a single exchange).
Now the white whale seemingly wanted to create a form of supply control so he could run an effective strategy that would allow the chart to be created as a form of art.
First and foremost, trying to forge a chart is - in my opinion - market manipulation and not the best thing to associate yourself with as I believe it to be extremely illegal.
I don't believe that his intention was to create a beautiful chart so he could nuke his bags on people though, so I do not believe in bad intentions here, but rather a chance to have earlier believers have as much upside as possible.
Now again, why did I believe that this was not going to last, and why did I believe that this would effectively have to lead to a departure from the project for the white whale himself?
Because I have never seen a project survive on market making, chart control, or anything other than buy demand due to the absolute beast nature of the project, such as HYPE.
What I have seen is hundreds of projects, funded with 7-8 figures worth of cash to buy tokens. All are dead or near dead today. In some cases it was a portion of what the team made, in some cases it was all the team could make and more.
So when the white whale says he did more for the CTO than anyone else, I chuckle cause I know what I did, but I also know he is absolutely in the top .01% of CTO leads.
Throughout the past almost 3 years of leading Toshi, I've been approached by tens of CTO leads asking for advice, guidance, or help. As far as I know, none of them are around anymore.
It's hard to CTO, much harder than to launch. It also allows you to keep a certain distance from the project "oh I was just the CTO lead". A takeover isn't much different from launching, but people like to act like it is.
Now, who are the teams still around in some of these instances? In many cases: Teams who extracted 7-8 figures from the project, and are just waiting for another round of extraction.
In some cases: the good ones.
Sadly we live in an industry where bad actors have more incentives than good actors. And that is why I took on Toshi, and why I will remain a steward of the project for as long as I physically and mentally can bear it, and there is no reason at the moment for me to think I cannot at a point in the future, unless the community would like someone else to take the helm, then I'll gladly support that person in all their efforts.
Why do I share all of this? Not to dump on the white whale. But to explain why Toshi was effective, and other CTO's are only temporarily. Because we had organic demand, we built a community of people that cared about the project, not about the time horizon.
It's something most people and projects do not have the patience for, yet it is the absolute best path to success for memecoins, and often also for tech led projects, although they usually cannot survive without rounds of funding.
So let this in many ways also function as a warning, this game is not being played fair. I have also done things over the past 33 months that I sometimes felt sick about, but were the optimal path forward for the project, so I am not holier than thou. But the things I did were never against the community, but for it. No use in asking me about the what, cause I will not share anyway.
At the same time, let this also be a warning about how we all think that growth is hitting certain exchanges (and for Toshi it absolutely looked like many of those instances were our breakout moments). But if you don't have the right trajectory for exchange listings, or even using the right market maker (use
@AcheronTrading and ask for
@jonathan_yark - I will vouch for him with all my built up reputation), you will get crushed.
As the white whale laid out in a way that I couldn't, as I'm not a technical guy, there are forces at play that play against you, against your community, and you don't always know them.
In his case he seems to imply pump, bybit, and unknown players with large bags, but whether it's them or others, oftentimes there are forces at play that you cannot see or control.
This speaks to project leads, but now imagine just being a "holder". You are at the whims of a project lead being
- trustworthy
- healthy
- active and around
- alive (yep)
- able to not turn on his villain arc within the project due to others benefitting and the lead not making a penny
I do not know how yet, but I will find a way to help educated and protect those willing to be part of organic communities against being exploited by those with bad intentions. Yet the latter are the ones pushed the hardest by this industry, because in the end crimelords make the most money.
Personally I've been working on my health, as I found out that barely sleeping for 6 years straight with less than 10 days off, some extremely heavy situations in my personal life, having a kid, moving abroad (and back due to bombs from Iran) etc takes a toll on your health (both mental and physical) that I need to fix ASAP before it gets worse, which will also allow me to find more creativity and energy to blast Toshi forward even harder.
This doesn't mean I'm not working, just more in the background, and currently at a slightly lower pace myself than before, but all the others are doubling down on their efforts.
Many cool things are happening and some things that I absolutely cannot be excited enough for will see the light of day (hopefully in this calendar year).
Wishing you all a tremendous weekend, and wishing the white whale lots of health (both mental and physical), and I hope he didn't lose too much health or money on running a CTO whilte getting more shit than praise for his actions.