Important Update on ApeSwap + Knoknok Partnership
ApeSwap’s business development team would like to provide users with an update on ApeSwap’s partnership with Knoknok (token symbol: $KKC). Unfortunately, ApeSwap encountered some miscommunications with the Knoknok team, which resulted in ApeSwap cancelling a portion of the engagement with Knoknok. However, the business development team wants to assure users that ApeSwap remains aligned with Knoknok on a path forward and will continue to work with them in a different capacity.
As a Launch Bond client, Knoknok was expected to meet a certain level of demand, but due to inaccurate user count reporting and undisclosed token promises, they fell short of ApeSwap’s expectations. This caused the Launch Bond to underperform, requiring ApeSwap to pivot and lift the token embargo that was initially put in place to ensure ApeSwap was the sole provider of products that allowed access to KKC tokens.
Users may recall from the Knoknok partnership announcement posted to Medium that no KKC tokens were supposed to be released into circulation besides the ones set aside for the Knoknok Launch Bond, Reserve Bond and UniV3 liquidity positions on ApeSwap. This will no longer be the case — KKC tokens will be released into circulation outside of ApeSwap’s exclusive launch products.
In light of these developments, the business development team has decided to shut down the Knoknok Launch Bond and convert Knoknok to a normal Liquidity Bond client, allowing ApeSwap and Knoknok to move forward in a more sustainable and transparent manner. Tangibly, this means the Knoknok Launch Bond will be changed to a Liquidity Bond and be tagged as such on the ApeSwap Bonds page. The Knoknok Reserve Bond will remain available, and all tokens in the UniV3 liquidity positions for the KKC token will be removed. The initial $400k of UniV2 liquidity will remain locked until three months after the launch date.
The remaining tokens will be given back to Knoknok to use as they see fit. This will result in 129,251,507 KKC tokens being sent back to the team that are unlocked that could be put into circulation.
ApeSwap DAO will be offering OPTIONAL refunds to anyone who purchased either the Knoknok Launch Bond or Knoknok Reserve Bond before this announcement for the next 7 days:
- If you purchased a Launch Bond: ApeSwap DAO is giving the option to receive the original amount of KKC-USDT LP tokens used to purchase the bond. Please note this is not necessarily the same USD value, due to impermanent loss. If you choose this option, you must forfeit the ApeSwap Bond NFT via transferring it back to ApeSwap DAO. If any vested tokens have been harvested from the bond NFT, it is optional to return those, otherwise ApeSwap DAO will deduct the proportionate amount of LP to return.
- If you purchased a Reserve Bond: ApeSwap DAO is giving the option to receive the original amount of USDT tokens used to purchase the bond. If you choose this option, you must forfeit the ApeSwap Bond NFT via transferring it back to ApeSwap DAO. If any vested tokens have been harvested from the bond NFT, it is optional to return those, otherwise ApeSwap DAO will deduct the proportionate amount of USDT to return.
If you would like a refund, please complete the following form by May 17, 2023 at 22:00 UTC. If you choose not to exercise your option for a refund, your KKC tokens will fully vest 60 days after purchase as normal, you’ll keep the NFT, and Knoknok will keep the LPs/USDT paid for the Bond. All refunds will be processed by May 22, 2023, at 22:00 UTC.
It’s worth noting that ApeSwap’s models for the Launch Bond product worked exactly as expected, based on Knoknok’s commitment to ApeSwap that it would have a complete embargo on the emission of KKC’s tokens. However, the inaccurate reporting of user count and undisclosed token promises affected the key underlying assumptions of supply and demand. First, the “flywheel model” of reciprocating demand for Knoknok’s Launch Bonds failed because the assumptions were modeled on inaccurately reported user counts. Second, the extra KKC tokens that were promised to be put in circulation (but not reported to ApeSwap) changed the overall supply projections and negatively affected the model. As of today, the KKC token price is still above the initial launch price, which provides confirmation that ApeSwap’s Launch Bond product setup model is still working as intended. The ApeSwap business development team wants to emphasize their commitment to transparency and integrity, and will always strive to make decisions that are in the best interest of the ApeSwap community.
Moving forward, ApeSwap will be releasing the remaining unlocked tokens back to Knoknok. They plan to list on multiple CEX’s and execute their approach. They have various airdrops, KOL marketing, and in-app token utilities that are all pending them getting their tokens back!
The business development team understands that this news may be disappointing to some, but feels this is the best middle ground going forward for all parties involved. ApeSwap will continue to work with Knoknok in this updated capacity and wishes them the best of luck in their future endeavors.
Thank you for your continued support — if you have questions about the Knoknok Launch Bond or Reserve Bond process, please contact ApeSwap on Telegram or Discord.
