Topic: 🚀[ANN] BITSCHOOL pre-ICO: Adaptive Artificial Intelligence eLearning Platform🚀 - page 11. (Read 4443 times)

Hi FunnyAttitude,

I like your BTT ID very much by the way, makes me smiling^^ Yeah, I totally understand the frustration and anger this kind of situation would cause to the investors. But that's not controlled by the issuer, right? The opposite can happen too (and it does) and the issuer has to take that risk. Just one question though, 'exposed to dumping by presale', how can it be dumped after presale? The token distribution would be processed after the ICO is finished most probably....Also as we already have determined the tie between our token and ETH, the situation you mentioned should be taken into account when investors make their decisions, but do you have any good alternative ideas to price the altcoins? Cause I thought about this aspect too, but couldn't come up with a better mechanism other than our Embedded Put Option.

Best,
BitSchool

Thanks for explaining, i am actually referring to investors perspective. For example, i was involved in one ico whereby i invested 10eth when eth was $300 each. So to me, each tokens that i got is $0.10. However, during the crowdsale, the eth price is about $900 and the tokens are still pledge to eth, then those investors participating in crowdsale is very angry because now each token become $0.30 and they are exposed to dumping by presale.

Hi FunnyAttitude,

Totally right, as our BSCH is tied to ETH, that situation can happen and vice versa. But I think this is the same for any financial instruments. For instance, IPOs have the same movement issues and that's why people invest in stocks actually...to capture the upturn. And when the market turns the other way, people loose money. This is why companies adopt hedging mechanisms and that's how investment banks earn their fees. The same logic applies to coins (although whether to treat coin as securities or currency is uncertain in some countries and even those which implement some kind of regulations, they differ) and we will have to plan some hedging mechanisms so that a significant drop in our coin's market value would not negatively affect our development plans. However, as you mentioned, if our coin triples, it might be a possibility that we will have more fund than we need, but it would be better than having less. Also even in that case, like I mentioned, we have to prepare for any potential drop in the coin's value, again, so that it would not hamper our development roadmap. One aspect we implemented to help stabilize our coin value is our Embedded Put Option and the 50% discounts extended to our AI products. When we designed this measure we hoped it would help to keep our coin's value even during times when our token's market value drops significantly. FunnyAttitude, if you have any good ideas to stabilize the coin value, it would be real nice if you could share them with us^^; Would be an interesting discussion.

Best,
BitSchool

Can i also see it in a way that BSCH is affected by the price movement. What if the price of the eth double, aint your BSCH will become more expensive and your total hardcap will double? Or do you have any backup plans if such situation happens. Do take note that it has happened during the 2017 nov to dec period whereby eth increased by x3.

Hi FunnyAttitude,

We will not represent the other blockchain projects that issue their own tokens to be used on their platform as your question concerns every such platform. The purpose of our token issuance is four-fold, let us try our best to explain:
1. We are using the ICO to raise our development fund.
2. By introducing our own token, we can create various token reward programs that will help develop, expand and improve our platform including but not limited to rewarding activities helping develop our AI Database or improving our platform, products and services on our platform. Also we can introduce various discount (like the 50%-off when purchasing our AI products) programs to not only promote our products, but also incentivize the usage of tokens on our platform.
3. By introducing our own token, we can set up the GoGreenFund which is endowing not cash-based scholarships, but our-token-based scholarships, and recipients who have financial difficulties can use them to buy products and services on our platform; hence contributing to equal learning chances.
4. We created an innovative Embedded Put Option through which we intend to incentivize the holding of our tokens and hence stabilize the value of our tokens. How this works? We will fix the value of our tokens when purchasing AI products at Max[token ICO end value, token current market value] So by this formula, the token value when purchasing AI products won't drop below the token ICO end value even if the token's market value drops below the ICO end value. This option combined with our 50% discount for token transactions of AI products will keep the token value when purchasing AI products always above twice as high as the token's market value. This is a bit complicated and for actual example, please visit our webpage's FAQ.

So as you can see these measures wouldn't have been possible without issuing our own token and that's why we chose blockchain and to leverage its token mechanism. Thanks for the great question^^

Best,
BitSchool

You have answer my question, who sets the price of the BITSCHOOL token?

Hi hotcoin1234,

I'm not sure what you're asking. If you are asking about our token price in terms of dollar, our BSCH is tied to ETH and the equation is 1ETH = 6000BSCH, so price fluctuates with the ETH movements. So today we checked and the ETH is about $850, that makes our BSCH about $0.14 worth. Hope this answered your question, if not, let me know anytime. Have a great day^^

Best,
BitSchool  

Hi hotcoin1234,

I'm not sure what you're asking. If you are asking about our token price in terms of dollar, our BSCH is tied to ETH and the equation is 1ETH = 6000BSCH, so price fluctuates with the ETH movements. So today we checked and the ETH is about $850, that makes our BSCH about $0.14 worth. Hope this answered your question, if not, let me know anytime. Have a great day^^

Best,
BitSchool  

I am still confused about the purpose of having tokens in the ecosystem system. The system can just accept eth and btc, there is no need to introduce another new token.

Do enlightening me more. Thanks.