Topic: 8 Hard Questions you should be answering about your token sale (Read 135 times)
Excellent post.If more projects would be thorough and ask themselves more questions like these we would have so much more quality in crypto space, more trust and consequently more investors and healthier market.
Hello, these are really important questions. And if all the developers will answer them before you start ICO project, the number of second-rate ICO projects will be much less. Starting an ICO project, many developers see it as just a way to earn, and no practical application of tokens or the project as a whole. Thank you.
Nicely summed up,i wish more teams ask themselves same question,we would have far less shitty projects so money would go to good ones.
Amongst all the ICO releases on a daily basis, i found an article that every ICO starter should read:
In June of this year, Matt Dibb, founder of Picolo Research & Astronaut asked 8 hard questions he thought every token sale entrepreneur should be able to answer to remove the initial red flags for buyers to ensure they bought the right tokens.
Thank you for those questions, Matt. Here at ReMoneta we like transparency and so we answered these questions below to save our buyers the time to research them.
1. “How did you get into this? What were you doing before hand?”
Matt advises you to check the management team were not flipping burgers previously, but doing something relevant. For us, ReMoneta is a natural evolution of our previous work. The two leading founders, Hadley Barrett and Harijs Svarcs certainly have the experience and have been both seasoned blue chip executives and entrepreneurs.
Hadley has been involved as a founder, owner and developer of companies in real estate, energy and technology, managed over €1bn GDV in developments as well as been chairman and non-exec of different organisations across Europe. He received an MBA form Oxford University and has lead new companies, private investment vehicles, and even emerging industries comparable to the cryptocurrency market. For instance, he was a leader in the disaggregated solar industry in the UK at the emergence of the market, and established the second largest UK dial up network before the internet was popular.
Harijs has been a leader in the Latvian central bank, chairman of Swedbank’s investment committee, managed over €3bn in assets, and founded his own €80m investment fund in real estate. He received a distinction from Cass in the UK.
The rest of the team and advisers together have long term experience in ICOs, technology, real estate, finance. They have been involved with successful fundraising, ICOs, and managed international businesses.
For ReMoneta, deep and detailed years of knowledge and experience in the markets it is operating is important.
2. “Why does your business model/venture need to be decentralized?”
The idea here is that if the business could be centralised or do better with another non-decentralised structure then it should not be using blockchain.
Probably true. The ReMoneta model is inherently decentralised and could be no other way. Only recently has the exact technology emerged to let us do what we are now doing — combining currencies, blockchain, land, and finance. ReMoneta has completely stable pricing (using a dual-token solution, long term machine intelligent computer model and stable land backing of the group companies) so it does not fall in value like fiat and is not wildly volatile like cryptocurrencies. It has near enough instant transaction speed at the network level, zero cost transactions and instead directly rewards its community members and retailers for their actions. It allows micropayments - opening up a new payment industry, is more secure than anything else around with additional features such as a “follow-the-money” solution, and introduces shared positive values into our everyday actions as well as stabilising global commerce (so it makes the world better)… among other benefits.
This all requires a new development of blockchain technology that did not previously exist, and to work legally and operationally, it is lead and driven by the community who are by definition a decentralised group.
3. “What is the use of the token? i.e, as a consumer, developer etc. , how, when, and why will I use it?”
Rather than most current tokens that have all kinds of different uses, almost none related to actually being a currency, that is exactly what ReMoneta is — a currency. Crypto technology for Bitcoin was originally created for a new type of currency. As we see, all fiat and other cryptos have many problems which means they are not doing their job right.
Few fiat and cryptocurrencies, if any, are a real store of value, which is one of the fundamental aspects of a currency. Actually most of them fall in value over time or are as volatile as a roller coaster. They are not stable, they have no true determinable value or real backing, many are not even used as a currency and/or have little reach and practical use due to their volatility, security issues, uncertainty, and variability. Extra fees are paid to use them, transfer them or buy them. They are subject to individual country or company problems, changes of leadership and geopolitics. Many are subject to regulations, rules or controls, and can be difficult to buy. They do not add stability to the global system. They do not add positive shared values or improve the system. You cannot build a business, platform or service with them.
ReMoneta was designed to solve all these problems and even gives additional benefits.
4. “Do you have any competitors that are centralized, and if so, what is stopping them from doing the same thing?”
No. As above, this could not have been done previously and we are doing it first. We are also doing it in a way that gives more benefit. We are providing a solution for consumers and retailers and an alternative to crypto currencies such as BTC, ETH, and fiat currencies such as the Dollar, Euro, Pound, Yen, but without all the problems and with many additional features.
5. “Your fully diluted market capitalization is $150m. Do you think you can be a $1.5b company to achieve investors a 10x return?”
Unlike Matt’s examples, we do not only offer a small percentage of the total number of tokens in our public sale, we offer 91%. So we are not “diluted” in the sense that Matt means.
But anyway, without pretense there is a clear path for ReMoneta to become a $1.5bn company. With land being used as the measure of market value (a very real, practical, and testable value today, not a “hot air” future valuation based on intangible promises and market sentiment — which is core to our currency and strength) we only need a 0.005% market share to hit a $1bn target. That is the equivalent of 200 deals of $5m Euro value land plots. The team has the experience to do this and has managed more assets in the past. A bit of work, but the goal is certainly achievable.
6. “Why is your soft cap $5 million but your hard cap is $35 million? Are you saying that you can develop the product for $5 million, but you would take 7 times the amount if you can get it?”
No need to be greedy. Indeed, it’s funny how the market has developed.
We have one target, no difference between hard cap and soft cap. That is what we need to kick-off and then the community can choose what to do next.
7. “Is there a lockup period and when is the TGE (Token Generation Event)”
Matt indicates this is not often clear, the TGE shifts to the same date as the start of the lock-up and so on. In other words, its not thought through and a mess.
For public buyers, our TGE is one month after the close of the token sale in order to give us time to get our admin in order. 10% of the total allocation is distributed directly, then the tokens are distributed in equal monthly allocations across 6 months, to ensure there is not too much supply on the market at the same time. Simple, straightforward, and a goal we can achieve.
8. “How much (USD) are you raising in private sale vs the public sale, and what is the rationale behind it?”
Matt suggests that if the private sale is large compared to the public sale it is not a good indication because awareness and community building are important. We have a slightly more nuanced opinion, but in any case its true that market awareness and community are important for ReMoneta.
So, with ReMoneta this is totally transparent and written in our documentation. To make it even simpler, we do not define the private sale sum as “what is put in”, we define it as “what is taken out”, so token buyers know precisely what the private sale constitutes relative to their own purchase.
Early investors (our equivalent of the private sale) receive 3% of the total allocation. Nothing more, nothing less. The rationale for having early investors is to provide some useful free cash flow during the start-up process. The total private sale value in no way impacts the public sale in an unpredictable manner, because the allocation to early investors is a fixed percentage of the public sale and everyone knows this all in advance.
So, thanks again for your questions, Matt. Our community has thought about various topics and we believe the questions are relevant for our buyers. Hopefully you like our answers.
Finally, we do like challenging questions and welcome new community members to introduce new directions and ideas, so if anyone has anything, please join and ask us on t.me/ReMoneta or via ReMoneta.com. We look forwards to seeing you there.
Original article: https://medium.com/remoneta/remoneta-8-hard-questions-you-should-be-answering-about-your-token-sale-9c9c0f833367
In June of this year, Matt Dibb, founder of Picolo Research & Astronaut asked 8 hard questions he thought every token sale entrepreneur should be able to answer to remove the initial red flags for buyers to ensure they bought the right tokens.
Thank you for those questions, Matt. Here at ReMoneta we like transparency and so we answered these questions below to save our buyers the time to research them.
1. “How did you get into this? What were you doing before hand?”
Matt advises you to check the management team were not flipping burgers previously, but doing something relevant. For us, ReMoneta is a natural evolution of our previous work. The two leading founders, Hadley Barrett and Harijs Svarcs certainly have the experience and have been both seasoned blue chip executives and entrepreneurs.
Hadley has been involved as a founder, owner and developer of companies in real estate, energy and technology, managed over €1bn GDV in developments as well as been chairman and non-exec of different organisations across Europe. He received an MBA form Oxford University and has lead new companies, private investment vehicles, and even emerging industries comparable to the cryptocurrency market. For instance, he was a leader in the disaggregated solar industry in the UK at the emergence of the market, and established the second largest UK dial up network before the internet was popular.
Harijs has been a leader in the Latvian central bank, chairman of Swedbank’s investment committee, managed over €3bn in assets, and founded his own €80m investment fund in real estate. He received a distinction from Cass in the UK.
The rest of the team and advisers together have long term experience in ICOs, technology, real estate, finance. They have been involved with successful fundraising, ICOs, and managed international businesses.
For ReMoneta, deep and detailed years of knowledge and experience in the markets it is operating is important.
2. “Why does your business model/venture need to be decentralized?”
The idea here is that if the business could be centralised or do better with another non-decentralised structure then it should not be using blockchain.
Probably true. The ReMoneta model is inherently decentralised and could be no other way. Only recently has the exact technology emerged to let us do what we are now doing — combining currencies, blockchain, land, and finance. ReMoneta has completely stable pricing (using a dual-token solution, long term machine intelligent computer model and stable land backing of the group companies) so it does not fall in value like fiat and is not wildly volatile like cryptocurrencies. It has near enough instant transaction speed at the network level, zero cost transactions and instead directly rewards its community members and retailers for their actions. It allows micropayments - opening up a new payment industry, is more secure than anything else around with additional features such as a “follow-the-money” solution, and introduces shared positive values into our everyday actions as well as stabilising global commerce (so it makes the world better)… among other benefits.
This all requires a new development of blockchain technology that did not previously exist, and to work legally and operationally, it is lead and driven by the community who are by definition a decentralised group.
3. “What is the use of the token? i.e, as a consumer, developer etc. , how, when, and why will I use it?”
Rather than most current tokens that have all kinds of different uses, almost none related to actually being a currency, that is exactly what ReMoneta is — a currency. Crypto technology for Bitcoin was originally created for a new type of currency. As we see, all fiat and other cryptos have many problems which means they are not doing their job right.
Few fiat and cryptocurrencies, if any, are a real store of value, which is one of the fundamental aspects of a currency. Actually most of them fall in value over time or are as volatile as a roller coaster. They are not stable, they have no true determinable value or real backing, many are not even used as a currency and/or have little reach and practical use due to their volatility, security issues, uncertainty, and variability. Extra fees are paid to use them, transfer them or buy them. They are subject to individual country or company problems, changes of leadership and geopolitics. Many are subject to regulations, rules or controls, and can be difficult to buy. They do not add stability to the global system. They do not add positive shared values or improve the system. You cannot build a business, platform or service with them.
ReMoneta was designed to solve all these problems and even gives additional benefits.
4. “Do you have any competitors that are centralized, and if so, what is stopping them from doing the same thing?”
No. As above, this could not have been done previously and we are doing it first. We are also doing it in a way that gives more benefit. We are providing a solution for consumers and retailers and an alternative to crypto currencies such as BTC, ETH, and fiat currencies such as the Dollar, Euro, Pound, Yen, but without all the problems and with many additional features.
5. “Your fully diluted market capitalization is $150m. Do you think you can be a $1.5b company to achieve investors a 10x return?”
Unlike Matt’s examples, we do not only offer a small percentage of the total number of tokens in our public sale, we offer 91%. So we are not “diluted” in the sense that Matt means.
But anyway, without pretense there is a clear path for ReMoneta to become a $1.5bn company. With land being used as the measure of market value (a very real, practical, and testable value today, not a “hot air” future valuation based on intangible promises and market sentiment — which is core to our currency and strength) we only need a 0.005% market share to hit a $1bn target. That is the equivalent of 200 deals of $5m Euro value land plots. The team has the experience to do this and has managed more assets in the past. A bit of work, but the goal is certainly achievable.
6. “Why is your soft cap $5 million but your hard cap is $35 million? Are you saying that you can develop the product for $5 million, but you would take 7 times the amount if you can get it?”
No need to be greedy. Indeed, it’s funny how the market has developed.
We have one target, no difference between hard cap and soft cap. That is what we need to kick-off and then the community can choose what to do next.
7. “Is there a lockup period and when is the TGE (Token Generation Event)”
Matt indicates this is not often clear, the TGE shifts to the same date as the start of the lock-up and so on. In other words, its not thought through and a mess.
For public buyers, our TGE is one month after the close of the token sale in order to give us time to get our admin in order. 10% of the total allocation is distributed directly, then the tokens are distributed in equal monthly allocations across 6 months, to ensure there is not too much supply on the market at the same time. Simple, straightforward, and a goal we can achieve.
8. “How much (USD) are you raising in private sale vs the public sale, and what is the rationale behind it?”
Matt suggests that if the private sale is large compared to the public sale it is not a good indication because awareness and community building are important. We have a slightly more nuanced opinion, but in any case its true that market awareness and community are important for ReMoneta.
So, with ReMoneta this is totally transparent and written in our documentation. To make it even simpler, we do not define the private sale sum as “what is put in”, we define it as “what is taken out”, so token buyers know precisely what the private sale constitutes relative to their own purchase.
Early investors (our equivalent of the private sale) receive 3% of the total allocation. Nothing more, nothing less. The rationale for having early investors is to provide some useful free cash flow during the start-up process. The total private sale value in no way impacts the public sale in an unpredictable manner, because the allocation to early investors is a fixed percentage of the public sale and everyone knows this all in advance.
So, thanks again for your questions, Matt. Our community has thought about various topics and we believe the questions are relevant for our buyers. Hopefully you like our answers.
Finally, we do like challenging questions and welcome new community members to introduce new directions and ideas, so if anyone has anything, please join and ask us on t.me/ReMoneta or via ReMoneta.com. We look forwards to seeing you there.
Original article: https://medium.com/remoneta/remoneta-8-hard-questions-you-should-be-answering-about-your-token-sale-9c9c0f833367
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