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admittedly new to this. have a question about "crypto businesses."
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Date: January 14th, 2018 10:15 PM Author: Brilliant Stimulating Pit
it's my understanding that one of the more typical business models for tokens is that they are to be used as a payments mechanism for a technology or service. e.g. request network, where users pay REQ tokens as a fee to make transactions with others.
what exactly is the benefit of maintaining a proprietary currency for something like this? why not just charge ETH (or whatever becomes the dominant cryptocurrency) as a fee rather than force people to hold a low-volume and inevitably volatile asset to use their service? or even if the customer can purchase a token at the time of the transaction, why expose both him and the business to exchange rate risk by introducing another currency in the middle? seems like an identical service which doesn’t require the use of a proprietary currency is immediately superior to any service that does (so long as the latter isn’t already an established business, which none of these businesses are).
why is this business model anything other than a quick cash grab in the middle of a crypto bubble, or at best an entirely superfluous use of a novel technology for its own sake? what business outside of chuck e cheese uses this business model?
(http://www.autoadmit.com/thread.php?thread_id=3859777&forum_id=7#35157474) |
Date: January 17th, 2018 7:39 PM Author: yellow bbw
you're not wrong, but many altcoins aim to become the "dominant" currency. the speculative bet in these cases is that coin x will become dominant because it is faster, more private, etc than competitors.
there are also other limited purpose models. for ex OST is a white label solution for business that want to tokenize their rewards programs but do not want to develop their own infrastructure to do so.
that said most of the retards trading crypto right now could care less about rational use cases.
(http://www.autoadmit.com/thread.php?thread_id=3859777&forum_id=7#35179200) |
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Date: January 17th, 2018 8:07 PM Author: Brilliant Stimulating Pit
it seems like a lot of the ostensibly legitimate token projects are just aiming to be sustainable blockchain businesses. and yet a proprietary currency doesn't really make sense unless you have absolutely massive scale.
the only way that it could make sense for REQ is if they were to become the next visa. and yet that doesn't really seem like their business model.
or projects like SPHTX which people have been shilling on here - it seems like a sensible project run by well-meaning people, and a good use of blockchain technology. but why do they need a token? its likely potential market isn't big enough to support that. i don't think they're aiming for "dominance" outside of their niche and even then it's too small to support a proprietary currency.
i don't know what the answer would be other than that they're using it as a way to crowdfund/avoid VC costs and to take advantage of market froth. but in doing so they're throwing a wrench in their business model. and if they were to ever rectify it and get rid of the token, do coinholders get left holding the bag? does management try to convert it to equity? what kind of a regulatory mess would that be?
(http://www.autoadmit.com/thread.php?thread_id=3859777&forum_id=7#35179348) |
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