Interesting project. But I have one question.
So there is 5 000 000$ hard cap in token sell and coins are 0.20$ a piece? So total coin cap would be 25 million tokens? However white paper says "During the token sale, 120 million LIVE will be available for purchasing." So that makes me little bit confusing?
Also during first sale, tokes where only 5 cent a piece. (1 million hard cap, so 20 million tokens in the market right now?). I feel this makes 20 cent tokens really expensive. What happens when market opens and those 20 million coin owners want to cash out their 300% gains? Specially if there is 5 million hard cap and only 25 million coins are sold in second phase. Then half of the coins are 5 cent ones.
Project is great, but I'm not sure if I should buy tokens with 20cent a piece.
So which numbers are wrong in whitepaper? (I hope it's 0.2$)
"The token sale (January 2017 - February 2017).
During the token sale, 120 million LIVE will be available for purchasing.
Soft Cap - $ 500,000
Hard Cap - $ 5,000,000
Cost of 1 LIVE = $0.20"
I've had the same question when translating the whitepaper and thought it was a mistake. But I've got an answer from the team and it is not.
Originally their hardcap was $24,000,000 hence the 120 million tokens created.
Now they have changed their hardcap to $5,000,000 so when they'll reached it the remaining tokens will be burned.
During the Pre-ICO, they did not reach their hardcap, I don't remember exactly how much tokens were emitted but it is between 5 and 10 million.
In my opinion, for real profits, you'll have to wait until end of 2018 when the project will be released, until then it would only be small speculation.
Oh OK.. But then it will be probably better to just buy tokens from the open market. Half of the tokens where bought from 5 cents so those probably sell cheaper than 20 cent a piece. 20 million tokens where sold at 5 cent a piece and 25 million at 20 cent a piece. That will make average price per token to be 13,3 cents. well that would be 166% gain for those that bought at 5cents, but over 33.5% loss for those that would buy for 20 cent a piece. I have seen so many ICO's that tanks their token price in open market. When half of the tokens are sold 75% cheaper it makes it really risky to invest. If they don't sell all those 25 million tokens then this situation is even worse.
Company is worth 6 million based on token sell, still tokens are valuated as 9 million (with 20cents a piece). if tokens would be shares they would be overpriced, however everything with crypto coins are nowadays over priced, so it might not matter after all.
We can expect that coins will have good volumes, if site has enough users. Every coin that customers buy and use will be dumped back to market by models. That might make coin price more stable. (It acts more like a currency and not like a stock.)
Other things that people should consider. This is one platform and one site like livejasmin. It's not like ethereum where people can build hundred of business to drive coin price up. Site needs probably 100 000 users who all uses at least 90$ a year to be worth 9 million and that's total sales (most of the money goes for models.). However coin circulation has to be lot higher to justify 20cent price. If only half of the coins are used before models dump them back to the market, then coin prices goes down. I can't really say if coins are worth 20cent a piece. There are multiple factors that might or might not effect the price. Like will models get their payment everyday, once a week or once a month. (how frequently they will dump the coins.)Or how many buying users site has? I'm not financial advisor, but there sure are risks. Sure coins might be worth even more than 20 cents! No one really knows for sure.
I hate the idea where company just moves all the risks to investors. After coin sell they just burn all the coins, so after that coin price doesn't matter to them. They take their revenue from models and their coins will always be with market price. So there are no risks. I start to think that cryptos are perfect way to make a company with other peoples money. You own your company and you don't need to share your revenues. All those investors just have some tokens that might have some random value. if they end up to be worthless it's was just investors money that went to drains.
just wanted to answer you this. the models will get paid in an instant.
and about your last point. yes, this is the new way of kickstarter for companys without being obliged to the investors... so there is a huge risk in investing in all icos. its always the best to make the right researches before investing.
