April greater fools: Apes pile into ‘joke’ hat voucher Unisock clone

What began as a joke to rejoice April Fools Day has change into yet one more signal of a frothy, overeager market as a bonding contract designed to promote baseball cap vouchers offered 468 hats in only a few hours, elevating over $100,000 and bumping the value per hat to $3700.

Solana-based decentralized finance, or DeFi, platform Mango Markets introduced the sale on Twitter this morning with the caption “ICO ALERT!”, a twist on the Initial Coin Offerings of yore. According to a blog publish, Mango’s Initial Cap Offering is all about excessive vogue.

“Yes, these are dynamically priced, with a limited supply of 500, bonding curve stuff, blah blah blah, but that’s not what this is about. This is just straight-up good clothing,” the workforce wrote. 

Despite the cavalier, tongue-in-cheek angle, there have been consumers aplenty with over 400 of the entire 500 provide of redeemable MCAP tokens offered within the first hour. The demand led to some vital UI/UX issues, with failed transactions and customers even having problem getting the “buy” button to work. Ironically, consumers can’t even redeem their MCAP vouchers but.

“We still haven’t finished writing it yet,” admitted Mango workforce lead Maximilian Schneider of the “redeem” code.

The workforce solely began growing the contracts for the sale on Tuesday, and one workforce member stated that attributable to bugs he himself purchased a cap late within the sale for $2600. He stays in good spirits regardless of the steep value, nevertheless.

“This is a long-term investment,” he stated jokingly. “This is for my children.”

Buying crypto tradition 

Jokes apart, the workforce made it clear that the merch sale was not meant as a fundraising instrument and positively shouldn’t be handled as an funding. 

“The motivation was as a practical joke,” stated Schneider, noting that the Mango neighborhood has been clamoring for details about an precise platform token, main the workforce to create a “Wen token?” channel on their official Discord.

“We did it for the community. We’ve been getting a lot of support, and we wanted to build something for them to have a little fun,” they stated.

The workforce is at present debating internally what to do with the funds the hat sale raised, with a probable final result being that they’ll donate the proceeds of the sale.

However, in crypto — where Dogecoin can be a popular currency —the distinction between a joke and an funding can usually be tough to augur. Unisocks, the same challenge from AMM Uniswap that permits customers to change SOCKS tokens for a pair of bodily socks, is now thought of part of DeFi historical past.

Bafflingly, SOCKS are at present price $104,000 per token, per Coingecko.

eGirl Capital member and famous Unisocks investor CL advised Cointelegraph that SOCKS appreciated in worth attributable to a confluence of things.

“It came out during the very early days of DeFi, and it was the first of its kind. As DeFi and crypto grew, this slowly became a piece of history of the DeFi and crypto,” they stated. “It traded at tens and hundreds of dollars for a over a year, before the scarcity really kicked in. Its supply is very well distributed because no one thought it’d be what it is today, so no one really hoard a large amount. per onchain analysis, most SOCK holders only own 1 pair of SOCKS or even just a fraction, thus naturally providing a massive price floor.”

He cautioned that consumers dashing into MCAP anticipating comparable returns is likely to be piling into an overbought market, and that it’s price enjoying a longer-term game.

“Price wise, i think Mango Caps is already a success, but the thesis for buying it is not the same thesis as SOCKS, actually, I am not sure what the thesis on caps yet, it mostly seems like short term hype, since you can’t just create a “historical” or “cultural” thing over night, but if Solana grew year by year, it could be worth more down the road.”

Likewise, Schneider says that MCAP’s success is an indication of rampant hypothesis.

“I think people are really excited, and right now somehow everything can somehow have a value and there’s always someone trying to pay more for it. Even for, you know, hat vouchers, people are willing to play this game. The overall sentiment is, people want to buy-in.”