Z-Z•Z•Z•Z•Z•FEHU•Z•Z•Z•Z•Z

Z•Z•Z•Z•Z•FEHU•Z•Z•Z•Z•Z Rune #1

Is Rune No.1: ZZZZZ.FEHU.ZZZZZ a Buy?

For those unfamiliar with the story of Rune Number 1, a clever developer managed to etch the first publicly available Rune. They named it ZZZZZ.FEHU.ZZZZZ and pre-mined 99% of the supply (110 million tokens), leaving the remaining 1% (1,111,111 tokens) to be minted at a rate of one per transaction.

Initially, this seemed either ingenious or suspicious. With high transaction fees following the Bitcoin halving, some minted their 1+ Fehu tokens for $100 or more in fees, while others waited for fees to drop. Regardless, the total minted supply has cost holders significantly, marking it the largest amount minted for a Rune token so far.

Potential Average Cost Basis of Mints:

• At $20 sat v/b per Mint: $22M
• At $30 sat v/b per Mint: $33M
• At $40 sat v/b per Mint: $44M
• At $50 sat v/b per Mint: $55M
• At $60 sat v/b per Mint: $66M
• At $70 sat v/b per Mint: $77M

Currently, one Fehu is priced around $30 plus fees (totaling about $35 each). Given the high fees during the minting process, the price is unlikely to drop significantly unless the developer starts selling the pre-mined tokens.

Market Cap Calculation:

• $30 x 1,111,111 tokens = $33,333,330 for the minted tokens.

The Billion Dollar Question: What happens with the remaining 110 million tokens in the pre-mine wallet? The community largely calls for the anonymous developer of Fehu to burn all the pre-mined tokens. They presume the developer has, or will, buy some tokens from the market if they didn’t mint more.

The developer seems uncertain about the next steps, hinting at possibly airdropping tokens to holders and those who attempted to mint but failed due to low fees. This situation is complex and could affect the token’s future significantly.

Possible Outcomes:

1. Burn the Pre-mine:
   • Extremely Bullish.
   • 1,111,111 tokens remain. Price could increase to $1000+.
   • Market Cap: $1 billion minimum, potentially $3 billion+.
2. Burn Most of the Pre-mine, Keep Some (e.g., 10K or 100K):
   • Very Bullish.
   • Price target: $500 – $1000.
3. Airdrop a Large Supply (99% of the Pre-mine), Keep 1%:
   • Bullish but Messy.
   • While generous, this could complicate the token’s distribution.
4. Mixed Activities (Airdrop Some, Burn Some, Allocate Some for Listings):
   • Mixed Signals, Slightly Bearish.
   • Depends on the amount kept for the developer’s use.
5. Keep or Sell a Large Portion of the Pre-mine:
   • Extremely Bearish.
   • This would likely cause a mass exit of holders and tarnish Rune No.1’s reputation.

Advice for the Developer: To immortalize themselves and the Fehu Rune No.1, and to secure a substantial and ethically clean profit:

• Option 1: Accumulate tokens from the market and announce the burning of the entire pre-mine into Satoshi’s wallet.
  • Profit: Number of tokens held x $1000+.
• Option 2: Keep a small portion of the pre-mine and burn the rest.
  • Profit Scenarios:
    • Keep 10,000 tokens: $10,000,000+.
    • Keep 50,000 tokens: $40,000,000.
    • Keep 100,000 tokens: $50,000,000.

  Keeping more than 100,000 tokens is not advisable as it would represent nearly 10% of the new total supply (1,211,111 tokens). A smaller retention would be better received by the community, given the costs and effort involved in securing Rune No.1 and managing the process.

Is Fehu Rune.1 a Buy? The answer is highly speculative and depends on the developer’s next moves. It’s a high-risk investment with significant potential upside or downside.

I currently hold a small amount and am closely monitoring the situation.

Information on Rune Number One:

• Luminex Rune No.1: ZZZZZ.FEHU.ZZZZZ

Article author: @AltCoinSpec