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Topic: Alpha5 (A5T) Investment Value Analysis (Read 20 times)

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March 01, 2021, 09:34:00 PM
#1
Introduction
Alpha5 is a one-stop cryptocurrency derivative trading platform. By drawing on the Chicago Futures Commodity Exchange’s (CME) “Implicit Order”, it helps users to find arbitrage space between different products based on the spread of the futures price.

Alpha5 mainly provides professional products and liquidity for risk hedging through the quick matching and depth of aggregation, whose goal is to become the “CME” in crypto, providing a trading platform for institutions and individual traders.

Alpha5 currently offers contracts and options trading services for BTC and ETH instruments.

Tokenomics
The current total supply of A5T is 50 million:
-10% is used for sales, 5 million AST
-4% is used for marketing, 2 million A5T
-14% is allocated to the core team, a total of 7 million A5T, locked up for 545 days
-12% is allocated to investors, a total of 6 million A5T, locked up for 545 days
-60% is used for liquid mining, totaling 30 million A5T

A5T adopts a deflation supply model. The token will be repurchased in the market every month and burned. At the same time, an insurance fund mechanism will be introduced to enhance the deflationary value of A5T.

20% of the monthly income is used to repurchase the market A5T and burn it. As of January 31, it has been repurchased and burned 3 times, and a total of 420,484 A5T have been burned; the insurance fund part of the allocated amount is 12,3951.52 USDT. When the insurance fund pool is greater than 500,000 US dollars, 0–2% of the circulating A5T will be repurchased from the market at the price of the insurance amount/total issuance for destruction every month.

Fundraising

At present, Alpha5 has received a total of 4 million US dollars in financing, led by Polychain and followed by other institutions including FBG Capital, Axia8 Ventures, Oasis Capital, SNZ, Altonomy, CMT Digital, Lvna, Migration, Bollinger, ZBG, YOUBI Capital, Nima, Delpha, CDI etc.

Practical Value Analysis
The main value of A5T is to distribute the rewards for trading on the platform, the interest of A5T holding users to share insurance funds, the increase in the total amount of insurance funds brought about by liquidation and the repurchase deflation. The reasons behind A5T sells are the possible unlocking and cashing out of investors and the core team.

60% of A5T is used for mining. In order to prevent the selling pressure of those who got the token from mining, Alpha5 has designed a lock-up limit for all A5T generated by mining. When a user received the locked A5T, every time he trades another 5,000 USD, an A5T will be unlocked. The unlocked part of the trading volume can also be seen as part of the mining to get new A5T.

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