[Proposal] - SGTM 001: Converting $5M GTC to Stables

This proposal is now live on Snapshot

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I have to vote against this proposal. I don’t believe it is in the best interest of the DAO in it’s current form.

Of course I support measures of treasury diversification, but I would personally rather see more efforts towards creating utility and demand for GTC, and then promoting those efforts to strategic partners and sell them GTC OTC, than see us, as a DAO, publicly signal to the market, that we intend to dump GTC.

Before this post, the price of GTC was $1.76.

Less than 2 days after this post, the price dipped to $1.13

Imagine if the post said:

We have big plans for the GTC token, and want to move 5M GTC to the foundation to make OTC deals with strategic investors for stablecoins.

How different would things have been… hard to say of course, lots of confounding variables.

THAT SAID:

I don’t have much voting power and it looks like the coinbase approach will probably win… If so PLEASE do not hold funds on Coinbase or any other centralized exchange.

A wise man once said, “Centralized exchanges are like public bathrooms, go in, do your business and get out. Don’t linger!”

Only send what you want to sell to the exchange and then withdraw. You never know when Coinbase’s compliance crew decides that DAOs selling their own currency is a sketchy thing and then freezes it, not to mention all the other obvious issues that can arise.

Also, there is 2x-10x more liquidity 6 other exchanges (at the time of posting this), so it would be wise to not commit to one exchange but to play the market and use several exchanges to avoid slippage.

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Any specific reason for choosing Coinbase, it can be any reputed establishment !

EDIT / UPDATE:

See this:

I think that @griff post already triggered some action, so well done you ser!

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Good point Mars. It did coincide with some major market downward movements (BTC down ~15%), which make it hard to solely attribute the GTC dip (of ~35%) to this post. So I will concede that point.

I hope that the other points don’t get lost in my comment tho:

  1. We should put more effort into creating utility for GTC so OTC deals can be easier to close.

  2. Hopefully we don’t store funds on CEXs longer than it takes to execute the trades.

  3. Coinbase is is not the most liquid CEX, we should use multiple CEXs.

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