As many of you will know, there have been delays to our original plan to move into the second round of fundraising. Whilst this has meant a delay to our round 1 investors receiving their tokens, there has been a significant positive impact for both round 1 participants and Timpi itself.
During these delays round 1 participants have been able to protect themselves from the market conditions. The price at which they bought the tokens is still the same. Whereas the market has lost over 80% of its value since the first round, Timpi has lost 0% in this period and when we launch, we will be doing so at a positive price increase to our first round. Also let’s not forget about the 10% APY round 1 participants will receive during the delay. More on this later.
There have been 3 core reasons for the delay to the second round
- Market Conditions
- Change in fundraising strategy
- Development of Strategic Partnerships
Due to market conditions, we have made the decision to seek funding from venture capital. This has taken us on a very enlightening journey and one that has now put us in the amazing position we are in now.
However, in order to initiate conversations with VCs and other strategic partners, we needed to register a business in a crypto-friendly place so that they have an entity to which to do their due diligence against. For the crypto side of the business, we have now registered in Vanuatu, with the holding company being held in New Zealand. We have formed an organisational structure now that works for the short-term and also the long-term global rollout of Timpi. See update below on the business structure for more information on this.
A substantial amount of work needs to be done preparing for conversations with VCs. They are looking for high-calibre projects that have a great product, team, and future. It has been our job to show that we have all of this and much more. The VC raise is underway, and we have already had commitment of funds. This is growing every week as we talk to more VCs. The response we have had is overwhelmingly positive, and we have the attention of some very influential VCs that will be able to bring a lot to Timpi, not just from a funding perspective but also skills, resources, and partnerships.
When is the Token Generation Event (TGE)
Our previous plan to launch this quarter will be delayed due to the aforementioned items above. The time frame for TGE is significantly dictated by the duration of the time VCs need to make decisions. Typically, this can take anywhere from 2 to 6 months.
We started our conversations with VCs 1 month ago and have already had commitment of funds. We expect that we will be raising funds over the next 2 to 4 months. This will align nicely with our release plan for the search engine, Joerg will be releasing an update on this in the next couple of weeks.
10% Reward for delay
Because of the delays we have experienced, we are pleased to be able to reward our loyal supporters from round 1 with a 10% APY on the tokens they have not yet received. This will continue for the duration of the delay.
Token Distribution before TGE
As there is a delay in TGE we would still like for our round 1 participants to take ownership of their tokens. Because of this, we will be looking into distributing the tokens before we TGE. These tokens will be distributed to participants’ wallets. Please note they will not be tradable or transferable until TGE.
Valuation and Supply
When we first reached out to Venture Capitalists, all had the same feedback firstly, that we are significantly undervaluing ourselves and secondly, that we should look to raise more funds to ensure the ongoing success of Timpi entering the market.
In order to address these points, we are increasing our supply from 200m to 400m. This will enable us to ensure that we have the liquidity to raise the funds that we need and set our valuation to one that is in line with market expectations.
The first thing to point out is that round 1 participants WILL NOT BE DILUTED. You will receive 2x your original amount due.
The TGE price will be set once we have finalised the VC round in conjunction and with consensus with all the VCs that have come onboard. What we can say is that there will still be at minimum the effective 15% above round 1 price.
Summary for round 1 participants:
- You will receive 2x your tokens which is aligned with our increased token supply.
- You will continue to receive 10% APY for the duration of the delay to TGE.
- TGE price is still at a minimum, targeted for effective 15% above round 1 (includes dilution).
- You will receive your tokens ahead of TGE, but they will not be transferable until TGE.
Business Registration and Structure
There have been significant delays in our ability to move forward with strategic partnerships, mainly due to the business registration of Timpi Ltd in Vanuatu. This has taken over 3 months to register but has now been fully formed. In contrast to the holding company (Timpi Holding) that is registered in New Zealand and took us just 2 hours to register.
We appreciate the overwhelming support we have had for the decisions that we have made over the last few months. However, we do also understand that there are a few that bought tokens relying on the fast launch that we originally planned, and this is why we made the decision for the 10% APY.
Please consider that we need to make decisions that are for the betterment of Timpi’s future and our token holders. Sometimes this means making hard decisions that we know not everyone will support, but we cannot make business choices that we know will impact the token and business negatively. We believe in what we are doing and the impact that it can have on the global stage, so will continue to make those hard decisions to ensure Timpi becomes a reality for everyone here.
With the crypto market having suffered significant losses over the last 6 months and bad players coming to light every week, Timpi is holding strong and will be seen as a shining light within the crypto market very soon. We will endure the winter and continue to go from strength to strength. Be strong and continue the fight for information freedom.