SWYFT BiFrost Merger Valuations Complete
Swyft BiFrost Merger Allocation Justification and Determination
BiFrost & SWYFT are pleased to announce the final valuation of the merger of our two coins and projects.
As part of the process of merging two blockchains into a new and unified chain, a lot of work has gone into examining both projects to determine their relative values in order to provide an accurate and equitable swap rate for current holders.
The dates and terms of the upcoming swap are to be announced in coming weeks, but we thought it would be helpful to provide some transparency into the process.
First, as part of the merge, we are dramatically reducing the money supply from the current combined supply of 30 million coins to a 1 million coin swap supply.
Both projects have suffered from low prices due to oversupply since launching, so this move is being made to get the supply back to manageable levels.
The distribution of the 1 million coins between the two projects has been based on the technical valuation of both projects relative to each other. The details of that valuation are detailed in this article, but the final distribution of coins is as follows:
BiFrost – 320,000 coins
SWYFT – 680,000 coins
The final swap rates, based on these allocations, will be determined by the circulating money supply of each project as the swap process begins.
In the interest of trying to come up with fair value for each project (of the SWYFT BiFrost merger), without manipulating the market, the following was determined as of the date below:
The Snapshot of both projects’ market positions were taken @ 10:25 21/07/2019
Relative project values were based on 3 criterion:
- Market Capitalization
- Full Support
- Buy/Sell Spread & Nearest / Largest Support
These criterion were used to represent the overall percentage addition and the total available of the SWYFT BiFrost merger (screenshots taken) at the time. There is no ambiguity behind the metrics below:
Note – Crex Exchange was discounted as a metric due to no volume for Swyft
First Metric: Market Capitalization
Both projects, on the surface have similar market capitalizations. BiFrost has a larger circulation of coins, therefore for the benefit of fair value, the price of Frost was reflected against the circulating supply of Swyft to determine an on-par market cap value.
This determined the following:
- Frost Market Cap = $218,767 (48% of Criteria)
- Swyft Market Cap = $232,346 (52% of Criteria)
- Total MCAP Value = $451,113
Second Metric: Full Support
All Projects are built on their support not on the last trading price.
On this basis at the time of determination:
- BiFrost had a Total Support of 0.08711260 BTC (equating to $924 at the time) (30% of Criteria)
- Swyft had a Total Support of 0.20608520 BTC (equating to $2188 at the time) (70% of Criteria)
- Total Support amongst both projects was 0.2931978 BTC ($3112)
Third Metric: Buy/Sell Spread & Nearest / Largest Support
This is about how much of the support is held above a certain SAT level which is the difference in support and buy up between the two projects. At the time of determination, the spread from the two projects was very different.
64 SATS was the midway point for BiFrost before a dramatic decrease in price. Swyft had larger support and a closer spread. 64 SATS was used in the process as a base point.
The buy-up difference at the time to compare BiFrost to Swyft is:
0.01422587 BTC 8947 FROST ($151)
BiFrost sell-down to 64 SATS was 45,105 FROST @ 0.02886775 BTC ($306) (17% of Criteria)
Swyft sell-down to 64 SATS was 149,550 SATC @ 0.12792953 BTC (($1357) + (Above) = $1508) (83% of Criteria)
Total: 0.17102315 BTC = $1814
Coin Allocation based on the Above:
BiFrost = Criteria 1: 48%, Criteria 2: 30%, Criteria 3: 17% = Total 95%
Swyft = Criteria 1: 52%, Criteria 2: 70%, Criteria 3: 83% = Total 205%
Combined Total: 300%
Coins Awarded to Each Project:
BiFrost = 32% (320,000 New Chain Coins)
Swyft = 68% (680,000 New Chain Coins)
Swap Determination Process
The swap rate for each project’s coins is determined by dividing the circulating supply at the point the swap opens by the new chain coins awarded to that project.
Example 1: As of this writing, BiFrost has a supply of 15,199,850 FROST in circulation. Dividing this amount by 320,000 new chain coins awarded yields a swap rate of approximately 47.499 FROST to 1 new chain coin.
Example 2: As of this writing, Swyft has a supply of 14,219,323 SATC in circulation. Dividing this amount by 680,000 new chain coins awarded yields a swap rate of approximately 20.91 SATC to 1 new chain coin.
Note – These are examples only. The final swap rates will be set just prior to the swap opening.
Screen Shots of Exchange Data Used in this Valuation
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