Big Fundraising, High Price? Not Necessarily on SidraDEX

atos007
Sept. 14, 2025
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    Members 82 posts
    Sept. 14, 2025, 11:04 a.m.
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    GPC raised big but fell after listing

    Big Fundraising, High Price? Not Necessarily on SidraDEX

    Many SDA contributors on SidraStart assume: the bigger the funds raised, the higher the project’s token price when listed on a DEX. That logic sounds reasonable, but in reality, DEX pricing works differently. Let’s break it down with real examples.

    Investor SDA Expectations

    For many contributors, the calculation is simple:

    • Project X raises a huge amount of SDA (e.g., millions).
    • This signals high community trust.
    • Therefore, the token price must soar at listing.

    Unfortunately, reality on DEX is more complex.

    How Prices Are Set on DEX

    On SidraDEX (like other DEXs), token prices are determined by the liquidity pool (LP).

    • Anyone can be the first LP to create a new pair.
    • Initial token price is set by the deposit ratio between the project token and SDA.

    Simple example:

    • If someone deposits 100,000 GPC + 25,000 SDA, then 1 GPC = 0.25 SDA.
    • If deposit is 100,000 GPC + 1,000 SDA, then 1 GPC = 0.01 SDA.

    Meaning, a big fundraising does not automatically mean a high price, because the funds don’t directly set the LP ratio.

    Real Case: GPC

    • Fundraising: 8.7 million SDA
    • Expectation: high price at listing
    • Reality: after initial distribution (10%), many investors sold immediately. Thin liquidity and freedom for LPs to set the initial ratio → GPC price actually fell.

    Compare with FREEt

    • Fundraising: ±2.5 million SDA (smaller than GPC)
    • Initial price: below 1 SDA per FREEt
    • Now: around 4.15 SDA per FREEt

    Why? Because FREEt has a utility strategy:

    • Anyone who wants to be a freelancer or client on the platform must hold at least 200 FREEt.
    • This rule creates organic demand → tokens are used, not just held for resale.

    Lessons for SDA Contributors

    1. Big fundraising = confidence signal, not a price guarantee on DEX.
    2. Initial price is determined by the first LP and liquidity depth.
    3. Large liquidity stabilizes price but doesn’t guarantee high value.
    4. Real utility (like FREEt) is far more important for long-term value.

    Conclusion

    Don’t fall into the trap of thinking, “the more SDA raised, the higher the token price on DEX.”

    GPC vs FREEt shows the opposite:

    • GPC (big raise) → price fell
    • FREEt (smaller raise) → price grew steadily

    In the end, what sustains price is not fundraising size, but utility strategy, liquidity, and project execution.