Civic Team Confirms its “Unlocked” CVC Tokens Will not be Sold at This Time

There appears to be a lot of confusion regarding the future plans of Civic. This project, which successfully organized a token sale some time ago, will release additional tokens to the Identity.com venture. However, the concern is how their blog post mentions 220 million tokens are currently unlocked. 

Civic and Identity “Split up”

Token holders of the Civic project will be very interested in what is about to happen over the next few weeks. The decentralized identity marketplace Identity.com has been in the hands of the Civic team for quite some time now. The time has come to make this an independent nonprofit organization that will continue to operate a sit always has. As such, Civic and Identtiy.com will become separate entities, which still serve similar goals and utilize similar means.

Because of this split, the Civic team will release one-third of the CVC tokens to the Identtiy.com team and its partners. This supply is intended to be used to incentivize others to learn more about this marketplace and make full use of it. One interesting note is how some of these tokens will end up on Coinbase Earn, giving that platform’s users a chance to dabble in this ecosystem as well. None of these tokens should be sold on the open market right away.

The Remaining Token Supply

At the start, the Civic team confirmed they would own a total of 330 million CVC tokens. That entire supply is in the hands of the Civic team, but two-thirds of this supply is currently  “unlocked”. It is this exact phrasing that has caused a fair bit of concern and confusion among investors. The word “unlocked” seems to hint at how these tokens will become available on the open market, which could have a disastrous effect on the price. 

However, the blog post also mentions these tokens will not be sold “at this time”. That means none of these 220 million CVC should make their way to exchanges or other trading platforms. Even so, the term “at this time” doesn’t necessarily instill too much confidence either. With $8.4m worth of tokens unlocked, it is only normal some users start asking tough questions. That said, it seems as if there is no reason for concern at this time, albeit one never knows what the near future may bring. 

The Future of Civic

Digitized identity verification and marketplaces once seemed to be a utopian dream. Civic has shown this business model can work, albeit it remains to be seen how Identity.com will perform once it is effectively spun off and becomes its own nonprofit. Their structure also seems to indicate none CVC tokens will be sold on exchanges at this time, which should put a lot of investors’ concerns to rest.  It is understandable where this confusion comes from, but for now, everyone has to take the company’s word for it.