Who issued the Centrifuge(CFG) currency?

Centrifuge AG, a Swiss-based company, issued Centrifuge (CFG) tokens through an Initial Coin Offering (ICO) in 2018, distributing them among the team, investors, the community, and the Centrifuge Foundation.

Dec 17, 2024 at 12:39 pm

Who Issued the Centrifuge (CFG) Currency?

Centrifuge is a decentralized finance (DeFi) platform that enables real-world assets (RWAs) to be tokenized and traded on the blockchain. The platform's native token, CFG, plays a crucial role in facilitating these transactions. This article delves into the details surrounding the issuance of CFG, exploring the entities involved and the processes governing its distribution.

Issuing Authority: Centrifuge AG

Centrifuge AG, a Swiss-based company, is the entity behind the issuance of CFG tokens. Centrifuge AG, founded in 2018, is responsible for developing and maintaining the Centrifuge platform. The company is composed of a team of experienced professionals in the fields of finance, technology, and law.

Initial Coin Offering (ICO)

Centrifuge AG conducted an ICO in 2018 to raise funds for the development of the Centrifuge platform. During the ICO, a total of 1 billion CFG tokens were issued and distributed to participants who contributed to the funding. These tokens were sold at an initial price of $0.10 per token.

Token Distribution

The distribution of CFG tokens followed a detailed plan outlined by Centrifuge AG. The tokens were allocated as follows:

• Team and Advisors (20%): 200 million CFG tokens were allocated to the Centrifuge team and advisors as compensation for their contributions to the project.
• Investors (50%): 500 million CFG tokens were distributed to investors who participated in the ICO.
• Community (20%): 200 million CFG tokens were reserved for future community initiatives and ecosystem development.
• Foundation (10%): 100 million CFG tokens were allocated to the Centrifuge Foundation, established to support the long-term sustainability and growth of the Centrifuge ecosystem.

Tokenomics and Utility

CFG tokens are designed to serve multiple purposes within the Centrifuge ecosystem:

• Transaction Fees: CFG tokens are used to pay transaction fees on the Centrifuge platform. These fees cover the costs associated with tokenizing and trading RWAs.
• Staking: Users can stake CFG tokens to earn rewards and participate in the governance of the Centrifuge platform.
• Collateralization: CFG tokens can be used as collateral to obtain loans from lenders on the Centrifuge platform.

Token Supply and Scarcity

The total supply of CFG tokens is limited to 1 billion tokens. This fixed supply ensures the scarcity of the token and its potential for value appreciation.

Regulation Compliance

Centrifuge AG has taken steps to ensure the regulatory compliance of CFG tokens. The ICO was conducted in accordance with the guidelines set forth by Swiss financial regulators, and the tokens are classified as utility tokens rather than securities.

Market Performance and Adoption

Since its issuance in 2018, CFG tokens have gained significant traction and value in the cryptocurrency market. The token's price has fluctuated over time but has generally trended upwards, reflecting the growth and adoption of the Centrifuge platform.

CFG tokens are listed on several major cryptocurrency exchanges, including Binance, Coinbase, and Kraken. The token's liquidity and market capitalization have grown steadily over time, indicating its acceptance and use within the wider cryptocurrency community.