Why Is GPC Price Falling, and What Does It Mean for SDA Contributors?
The GPC project on SidraStart successfully raised 8.7 million SDA from contributors. This large number created strong expectations that the GPC price would be high once listed on DEX. However, in reality, after the initial 10% token distribution, the price of GPC has been steadily declining. This situation has caused disappointment among many SDA contributors.
Contributor Expectations: More SDA = Higher Price
For many contributors, the logic was simple:
- If 8.7 million SDA was raised, it shows a high level of trust in GPC.
- With such strong trust, demand on DEX should also be high.
- If demand is high, then the GPC price should rise.
Unfortunately, the market doesn’t always follow this expectation.
Why Can the Price Fall Despite Strong Fundraising?
Several factors explain why a token like GPC can still lose value even after raising significant SDA:
- Fundraising ≠ DEX Liquidity: SDA raised is used for token allocation and project development, not all of it goes into the liquidity pool. The price on DEX is determined by the GPC/WSDA ratio in the pool, not by the total SDA raised.
- Initial distribution (10%): many contributors tend to sell right away, creating selling pressure that outweighs buying interest.
- Thin liquidity: with low TVL, even small trades can push the price sharply down.
- Market psychology: some contributors are long-term believers, but others only seek quick profit. If sellers outnumber buyers, the price inevitably falls.
FREET’s Strategy as a Comparison
The FREET project (Freelancium) applied a different strategy to maintain its token value:
- Anyone who wants to become a freelancer or a client (employer/partner) on the platform is required to hold at least 200 FREET.
- This rule creates organic, utility-driven demand for FREET.
- As a result, there is always a natural need to buy and hold FREET, rather than simply waiting for distribution and selling.
Lessons for SDA Contributors
- A large SDA raise reflects strong trust, but it does not automatically guarantee a high token price on DEX.
- The actual DEX price depends more on the pool ratio, distribution mechanics, liquidity depth, and token utility.
- Strategies like FREET’s — where tokens are required for real usage within the ecosystem — help create continuous demand, encouraging holding and supporting long-term price stability.
Conclusion
It is understandable that SDA contributors feel disappointed seeing GPC’s price fall. However, it’s crucial to recognize that fundraising size is only the beginning. The long-term value of GPC will depend far more on utility design, liquidity strength, and project execution, not merely on the total SDA collected during fundraising.