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Cocobay emerged in January 2022 in a Spanish startup incubator (Lanzadera) and is moving forward in its desire to create a virtual world with its own e-commerce and marketplace. In this article, its executives mention its alliance with the video game incubator Madrid In Game and explain how the $COCO token will work, among other aspects.
“One year in Web3 is equivalent to five years in real life,” says the founder of the project. In fact, a few months after emerging in a startup incubator in Valencia, Cocobay was included by the Network of Innovation and Business Development Centers of Spain as a success story in Web3 development.
In 2022, Cocobay started selling the seed stage of their $COCO token and, in January 2023, they sold the first batch of their collection of 1010 NFTs in 90 minutes. Currently, the second batch is on sale and more than 500 wallets are holding at least one Cocobay NFT.
Javier Gonzalez Ferrer –@jgonzalezferrer-, CEO of Cocobay, told SPOZZ Blog: “Mainly, during the last year, we have been working in La Palma (Canary Islands) and Valencia. In April, we will move with part of the team to Madrid, because it is the epicenter for companies and startups in Spain and, in fact, there are already some new developments that we would like to announce, but we can’t reveal at the moment.”
“We will also continue to move forward with Lanzadera in Valencia, because after having sold more than 1700 NFTs, we are a startup that has sales and we are ready to start a next stage that technically is called ‘phase traction’, in which startups already have a product launched to the market and sales, so it is validated and shows the actual operation,” he detailed.
Bruno Fondevila – @BrunoFondevila, CTO of Cocobay, said: “Within the Polygon network, we seek to create a decentralized virtual world with its own economy, accessible to anyone, where users can create, share content and monetize in a hybrid e-commerce and marketplace platform”.
“Since its inception, the company has been working closely with professionals from the video game industry, virtual worlds and content creators from both the Web3 and traditional sectors to show the real and concrete possibilities of creating new experiences in a virtual world,” said Manuel Álvarez – @ManuAF6, COO of Cocobay.
CEO Javier González Ferrer told SPOZZ Blog about the importance of being born in the Lanzadera incubator and the expectations and possibilities that open up from the upcoming alliance with Madrid in Games.
“The advantage of having emerged in Lanzadera is that it gave us access to the ecosystem of entrepreneurs; in turn, that our startup has been validated by Lanzadera has opened many doors and given us many benefits, such as access to free credits from Google Cloud, Amazon, while giving us access to many events with the presence of investors and investment funds,” Gonzalez recounted.
With the new foray into Madrid in Games, the opportunities for Cocobay will increase as Cocobay’s CEO explained, “Madrid in Games is another incubator, also managed by Lanzadera, but specifically oriented to the video game sector and which is also driven by the Madrid City Council, which is currently making a lot of investment in video games and metaverses.”
“Madrid in Games will also provide us with the support we need to move forward in the creation of our metaverse video game, which is part of our vision,” Gonzalez stressed. He added: “In turn, in June, Madrid in Games will organize an event in which around 200 investors will hear about our project, so we are organizing everything for the private investment round.”
CEO Javier González Ferrer commented, “The utility we want the $COCO tokens to have is that they will be the currency of the game, the currency with which you can buy anything in Cocobay, so for us it is important that the currency is stable in the long term.”
“Without a stable currency, it is difficult to have a reference in prices, and this is what is happening in metaverses such as The Sandbox and Decentraland, where their coins have a limited supply and are very volatile,” Gonzalez considered.
Cocobay has devised a model with the intention of creating a coin that will go up in price in its first years and, subsequently, acquire a stable price: “Our coin will be a capitalization opportunity for us and an investment opportunity for those who acquire it early,” the CEO weighed.
According to Cocobay, the design of the smart contract itself has a big influence on the behavior that the token will have in order to maintain the stability, once it reaches the value of 0.18€. They consider that the coin would reach this stable price in two years if the forecasts are fulfilled.
However, the most important factor in the definition of prices is the market, and the big question is how they will manage to increase the value of this token from its seed price.
In principle, according to Cocobay’s management, the price of 18 cents would be achieved if the $COCOCO token reaches a market capitalization of €80 million. Currently, €80 million would be a 300th place on the coinmarketcap.
While this 80 million market cap estimate is made by the project’s own management, they indicated to SPOZZ Blog that this level of capitalization would not necessarily be required, as they would be willing to burn tokens if necessary to help them meet the goal of reaching the 18 cent target price.
According to Gonzalez comments, 2 percent of sales commissions in the Cocobay ecosystem goes to the team in $COCOCOs, in addition to direct sales made by project itself, for example, of NFTs. Likewise, marketing campaigns within the ecosystem will also be paid with $COCOs. From there, then, Cocobay would be generating reserves of $COCOCOs and could eventually carry out burns.
Once the $COCOs come to market and the vesting of private and public investments is released, supply and demand will define the price.
According to Gonzalez, they will help the price curve if there are times when the price falls: “There, financial estimates come into play that will be seen in greater detail when the token is on the market and starts to have volume”.
In the event that Cocobay management’s forecasts come to fruition and $COCO reaches the 18-cent price target, the Smart contract will come into play to prevent it from breaching that price if it continues to increase the token’s market capitalization.
“The supply of the coin will not be limited, but dynamic, so if more and more people buy $COCOs, more and more tokens will be created and the money from their purchase, valued in dollars, will accumulate and a reserve will be generated in the Smart contract,” Gonzalez explained.
In this way, it is clear how the “ceiling” to the currency is generated, so it can never exceed the value of 18 cents. However, what happens if, later, in another potential bear market, the currency’s capitalization fall again. Would it be possible to maintain the parity even in that case?
According to forecasts, the funds accumulated in the Smart contract would cover the drop to 80 million in capitalization. Each person would sell his $COCO and receive dollars from these reserves.
And according to estimates by Cocobay management, after reaching a capitalization of 80 million and even higher, they would have 1.6M $COCOs to burn, which they believe would be helpful in maintaining the 18 cent price.
In short, the more volume the project moves and greater capitalization it achieves, the more reserves they could have for potential flaring.
There is no stated or contractually established amount of burns. This depends on the project’s founders, although it is also possible that if the project exceeds 80 million market cap and never loses that base, it would never need to reduce supply to keep the token stable at 18 cents.
With the token seed sale stage, so far, Cocobay obtained financing for about 60 thousand euros. Meanwhile, the directors expect to accumulate another 20 thousand euros in this stage and the holders of Cocobay’s NFTs will have the possibility to participate in the purchase of the $COCOs in this initial stage if they are interested.
Meanwhile, Cocobay’s founders are working on starting to create the necessary documentation and targets for the private sale, such as, for example, for the round of investors that they will be able to contact in the coming months through Madrid in Games.
Subsequently, they will open the public sale for all users and launchpads, ending in an IDO.
As specified by Cocobay’s CEO, at the beginning there will be $10 million $COCO (sold between the seed stage, the private sale and the public sale.
“Several experts in tokenomics have told us that this model is innovative,” Gonzalez assured. And he indicated, “We worked on the design of tokenomics with Diego Milla, who is our advisor and is also a leading blockchain and designed the tokenomics of MetaSoccer, one of the most important Web3 gaming companies in Spain.”
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This article is informational and does not represent investment advice. Everyone should do their own research and act on their own knowledge, preferences and financial situation.