Falcon Finance's price halved on its first day: Public offering exceeded fundraising by 28 times, and the core team holds 60% of the tokens

Falcon Finance, a synthetic dollar protocol backed by DWF and the Trump family, saw its public offering oversubscribed by 28 times, raising $112.8 million against a $4 million target. However, its token $FF's price halved on its first day of trading across multiple major exchanges.

Protocol Core: It uses a dual-currency model with USDf, a synthetic dollar, and sUSDf, an interest-bearing token. USDf's circulation surpassed $1 billion within four months, supported by over-collateralization.
Tokenomics: The $FF token has a 10 billion fixed supply. At launch, 2.34 billion tokens entered circulation, with nearly 60% allocated to the ecosystem and foundation.
Listing Strategy: $FF launched simultaneously on several major exchanges, including Binance, Bybit, and Bitget, to maximize exposure and liquidity.
Price Volatility: Despite initial hype, the token price dropped roughly 50% shortly after listing, as the market digested selling pressure from early participants. Long-term value is expected to depend on the protocol's ability to sustain yields and revenue.

By JAE, PANews

Leveraging the expertise of renowned market maker DWF and the backing of World Liberty Financial, a Trump family investment project, the synthetic dollar protocol Falcon Finance has garnered significant market attention since its launch. In its recent public offering, the project achieved an astonishing 28 times the subscription amount, generating overwhelming community interest. However, this star project saw its price plummet by half on its first day of trading on several major exchanges. What are the reasons behind this polarized market?

Using a synthetic dollar dual-currency model, USDf has exceeded 1 billion in circulation in four months

Falcon Finance is dedicated to converting digital currencies, fiat-backed assets, and RWAs (Real World Assets) into on-chain liquidity pegged to the US dollar. By connecting on-chain and off-chain financial systems, the protocol provides institutions, protocols, and capital allocators with a stable and profitable way to unlock the liquidity of their holdings.

The core of Falcon Finance is its synthetic USD dual-currency model. USDf and sUSDf respectively serve the functions of infrastructure and income strategy, providing high capital efficiency and institutional-level returns.

USDf is a synthetic dollar based on an over-collateralized mechanism, offering the advantage of accepting a wider range of collateral. Users can deposit eligible assets to mint USDf, including major stablecoins, blue-chip cryptocurrencies (such as BTC and ETH), and selected altcoins. To mitigate potential risks arising from price fluctuations in collateralized assets, the USDf protocol enforces and maintains an over-collateralization ratio of 115% to 116%. This serves as a necessary buffer against the risks of a "universal collateralization" mechanism (which accepts more volatile assets).

Since Falcon Finance first issued USDf in April 2025, its circulating supply has exceeded the $1 billion mark in just four months. This explosive growth has quickly made it a strong competitor in the stablecoin market.

Another key component of the Falcon Finance ecosystem is the interest-bearing token sUSDf. Users can mint sUSDf by staking USDf and participate in the profit distribution of the protocol.

Compared to other synthetic dollar protocols, Falcon Finance's distinguishing feature lies in the diversity and sophistication of its yield strategies. Officially, it goes beyond traditional strategies like blue-chip basis arbitrage and funding rate arbitrage, integrating institutional-grade yield strategies, including Delta-Neutral and liquidity allocation. To maintain stable and competitive returns even during market downturns, all strategies are backed by a team of quantitative engineers.

The sustainability of sUSDf's high yield is a key concern for the community. If crypto market volatility decreases or basis arbitrage opportunities narrow, maintaining high yields will become challenging. Failure to maintain high yields will lead to user liquidity withdrawals, further impacting the protocol's TVL and the long-term value capture of $FF.

Nearly 60% of tokens belong to the ecosystem and foundation, and the public offering is 28 times oversubscribed

As the governance and utility token of the Falcon Finance ecosystem, $FF has a fixed total supply of 10 billion. During the TGE (First Token Generation Event), approximately 2.34 billion tokens entered circulation.

$FF's utility mechanism focuses on incentivizing long-term participation and capital efficiency of the protocol: 1) Governance and voting rights: Holders can vote on proposals such as protocol upgrades, collateral acceptance standards, and ecosystem development; 2) More favorable economic terms: $FF stakers enjoy more favorable economic treatment, including improved capital efficiency of minting USDf, reduced collateral conversion ratios, and lower transaction fees; 3) Increased returns: Stakers can obtain enhanced returns, such as increased staking returns for USDf/sUSDf, thereby effectively converting users' speculative demand into long-term liquidity of the protocol.

In terms of token distribution, the largest share belongs to the ecosystem (35%) and the foundation (24%), which are used in key areas such as RWA integration, cross-chain integration, liquidity provision and CEX cooperation. In addition, 8.3% of tokens are allocated to community airdrops and Launchpad public sales to reward early supporters of the protocol.

It's worth noting that Falcon Finance's pre-$FF TGE community sale generated significant market interest. On September 24th, the initial $4 million fundraising target on BuildingPad attracted $112.8 million, achieving a 28-fold oversubscription.

Amidst the intense market enthusiasm, the fully diluted valuation (FDV) of Falcon Finance's $FF token, $FF, is pegged between $350 million and $450 million. Furthermore, the protocol offers a subscription discount based on a $350 million valuation for investors who meet certain collateralization requirements (such as locking at least $3,000 USDf/sUSDf in Boosted Yield). This differentiated pricing, combined with the Falcon Miles Program points system, converts short-term speculative interest into locked liquidity within the stablecoin ecosystem, laying the foundation for the protocol's TVL.

Launched a siege-style listing strategy, and the price of the coin was halved on the first day of listing.

To maximize market exposure and initial liquidity, Falcon Finance adopted a "siege-style" listing strategy. On September 29th, $FF simultaneously launched spot trading pairs on several of the world's leading CEX exchanges.

The most strategically important aspect is Binance's support. $FF was selected as the 46th Binance HODLer airdrop project and launched on the spot market, supporting multiple trading pairs including USDT, USDC, FDUSD, BNB, and TRY. Binance's official endorsement and HODLer incentives provide $FF with high market recognition and deep liquidity.

On the same day, Bybit and Bitget also announced the launch of the FF/USDT trading pair and launched a Launchpool campaign, incentivizing users to stake $FF, $MNT, $BGB, or $USDT, offering a total prize pool of 13.54 million $FF. Falcon Finance leveraged the vast liquidity of the CEX ecosystem to efficiently complete the cold launch of $FF.

In addition, CEXs such as HTX, Gate, KuCoin, and MEXC also announced the listing of $FF around the same time. Falcon Finance's strategy of listing across multiple exchanges simultaneously ensures that $FF receives maximum exposure and trading depth in the secondary market.

It's important to note that despite the enthusiastic market sentiment during the community sale, $FF's price has fluctuated significantly since its launch. CMC data shows that its price peaked at $0.67 before rapidly declining, dropping approximately 50% in the past 24 hours, indicating that the market is digesting the selling pressure from Launchpad participants and airdrops.

It can be seen from this that $FF's long-term price trend is unlikely to sustain the initial listing enthusiasm, but instead depends on the protocol's ability to generate sustainable revenue through its institutional-grade yield strategy to support its valuation starting at US$350 million FDV.