As per data from CoinSchedule, a total of 447 ICOs have launched in the first two quarters of 2018. More will pop up by the time this article is published on Medium. We all know ICOs are popular and we also know why people invest in them. Yet, how do you decide which one to skip and which one to choose?
There are numerous considerations: from the core idea to the stage of development, the business plan, the team, the advisors and so on and so forth. A chief consideration is what is the return you expect on your investment, given that the project passes all the other tests.
It’s true that to some extent, this is all speculative and chance plays a big role in whether an ICO succeeds. But fortunes are not built on chance, lest we forget that fortune favors the brave. And brave here doesn’t mean being foolhardy, but innovative and ambitious.
Your returns depend on the simple looking principle of economics: supply and demand. If with time, the demand of the token you invested in increases, so will its price. Looks simple, right? Well, the way it unfolds in the real world isn’t simple at all. Token utility is crucial to its demand and so is a well maintained supply. Let’s see the case for the IDAP token and understand why it is a good idea to choose idap.io:
The circulating supply: A total of 1 billion IDAP tokens will be generated, of which 75% (750 million) will be sold to public in different rounds of sale. Now the actual circulating supply will be lower than the 750 million tokens sold, on the account of ICO contributors HODLing the tokens as they wait for the price to increase. Over time, the circulating cap may increase but this rise will still be quite limited.
Token burning: 20% of all the IDAP tokens received as trading commissions and other platform fees will be removed from circulation and burnt at regular intervals till the total supply reaches 500 million. Lower the supply, greater the demand.
Utility for users: A curated supply alone cannot help the demand for a token. At its core, the token should hold benefits for the user of the platform. With a 50% discount on all trading fees paid in IDAP tokens, users will flock to accumulate tokens and secure their discount.
Advantages for ICO investors: Participants of the various rounds of token sale will not only get discounts on their purchases, but also benefit from added benefits. An ICO investor that holds 20,000 tokens or more will never have to pay trading fee on the idap.io platform. ICO contributors buying 1.25 million tokens or more will get to use a Master Account for free. Given the deal to not just profit from value increase of tokens but to never pay any trading fees, a significant portion of the tokens of ICO investors will stay blocked, further maintaining the circulating supply.
Reference Pricing Model: Till the end of the ICO, IDAP tokens are valued at $0.03 per token (without any discounts). However, in interest of ensuring that no ICO contributor ever bears a loss while paying trading fees in IDAP tokens, we will be using a reference pricing model. Once the IDAP token gets listed, the reference price will be fixed at 1.5 times the ICO price, i.e. $0.045. If the spot price falls below this value, this reference will be used to calculate the trading fees owed in IDAP tokens, otherwise the market spot price will be used. Thus, as the exchange goes live, the price of token will automatically see a price increase of 50% as the users start trading.
With the introduction of the first crypto derivatives ecosystem, idap.io is transforming the crypto assets market. Coupling a wide variety of investment and trading instruments with innovative platform features, a diverse customer base will be attracted to not just come to trade on the exchange, but stay on as loyal users. By incentivising the use of IDAP tokens and ensuring a slow and steady demand growth, the price potential for idap.io’s tokens is tremendous. It will not be long before that secondary markets see IDAP tokens being traded at a value manifold their current worth.
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