OG Tokens Dip After Airdrop; Flora's Renaming Plans Face Scrutiny
OG tokens, the native assets of the Zero Gravity Chain, have experienced a volatile start following their launch through an airdrop. Initially soaring to $6, the tokens have since dipped to $2.41. Meanwhile, Flora Growth Corp. has announced plans to rename itself to ZeroStack and use OG tokens as its main reserve. However, the actual capital inflow for the OG token treasury has been called into question.
Zero Gravity Labs raised concerns about Flora Growth Corp.'s (FLGC) plans to launch a treasury of OG tokens. Filings revealed that Flora Growth Corp. added only $13.5M from a new group of 80 investors, significantly lower than the claimed $401M. Additionally, ZeroStack raised a mere $13.5 million from external sources for the OG tokens of Zero Gravity Labs, likely due to limited investor interest or strategic fundraising goals.
The OG token valuation was based on independent research and used throughout the structuring of the DAT raise. The DAT also raised another $215.3M on paper, for 8,546,955 pre-funded warrants at $25.19 each. Zero Gravity Labs Inc. added $150M to the investment in the form of a convertible note. Notably, ZeroStack is the first company to use a brand-new token as a treasury asset.
Despite the initial hype, the actual capital inflow for the OG token treasury was significantly lower than claimed. Flora Growth Corp.'s plans to rename to ZeroStack and use OG tokens as its main reserve may face challenges due to limited investor interest. The true value and potential of OG tokens remain to be seen as the situation unfolds.
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