Hi Impossible Community,
In these few weeks, there has been a tremendous amount of activity given the repercussions of the FTX situation at hand. Unfortunately, Impossible has also been impacted as part of our team treasury and proceeds from our seed round fund raise was placed in the custody of FTX, which are now frozen due to FTX’s bankruptcy proceedings. We are unable to withdraw any of our funds at this point. To that, I wanted to provide a transparent update to our community to clarify the impact on Impossible, as well as inform you all about our contingency plan going forward.
First of all, we will not have any layoffs as a result of the FTX situation. Impossible still has a healthy operational runway, and will continue to work hard on buidling all our products and services. Our team is planning solutions to hopefully redeem a portion of our funds. However, it is expected to take many months and will be dependent on the progress of the Chapter 11 and related bankruptcy proceedings and filings.
Going forward, Impossible will be updating our treasury structure and wallet management. Our investment and finance team is working on moving it to both safer chains and multisig custody. To recuperate some of the stuck funds, Impossible will continue to find other ways to further extend the amount of liquid cash for operations. In the mean time, we will be reducing the frequency and size of investment into other Web3 ecosystem projects and will further discuss with our network partners on how to have some additional operating capital as these opportunities progress.
Furthermore, Alameda Research was also one of the lead investors for our seed fundraising round. However, due to our decentralized design of our fundraise, we accepted over 150 investors into the seed round and limited the check size of each investor. As such, Alameda’s investment represents less than 4% of total funds raised, and less than 0.5% of our total supply, which limits IDIA price exposure pertaining to their holdings. We expect minimal impact of their investment on IDIA’s price pressure.
We’ve been continuing to focus on support project teams in our journey of finding the best opportunities for our users, so we wanted to double down on security and strategic work for project teams to make sure that our incubated projects are safe to use onchain, and be able to help our projects find their niche in the space and focus on solving relevant painpoints in the market with data-driven solutions. As such, to grow the ways we can support projects and also add some recurring revenue for our team in supporting projects at any stage, we ask you to please reach out in the community chats if you are a part of any other communities that may need any of the following services:
Audits - as Impossible is working closely as a BD partner for an audit firm that we often work together for economic research alongside their technical reviews to help better position projects to avoid economic exploits.
Data - Impossible’s research team has been covering data dashboards for many leading protocols and overall sector research. If any of your portfolio are in need of:
Impossible can deploy data and offer a quote of data services within 48 hours of receiving a request.
Quests - As you guys know, Impossible recently launched https://app.impossible.finance/quests to be able to support “learn & earn” campaigns, and quizzing for any project to encourage users to learn about any topic and then be quizzed on it, and potentially earn rewards tied to their authenticated, KYC’d wallet. Please let us know if you have any projects who would be interested in this service.
Impossible definitely wants to do more & update you more frequently, but above all else, we are confident we will continue to operate, with no impact to everyone's focus, effort, and commitment on buidling together. We will be promptly updating the community when there are any other updates or progress on capital recovery. Impossible is positive that the quality of our launches and the unity of our community will prevail, and thank you all for choosing to stick by us during these tough times.
Best,
Calvin Chu & The Impossible Team ❤️