You wrote in your article
Their ambition is quite high, and their raise compared their ambition is quite small. Next to that their exchange is almost live, which means an immediate use case for your investment in the $BXY token including liquidity and volume. For me this is a no-brainer, sure there is a lot of competition, but there is room for multiple exchanges to succeed.
3M USD is not a small amount in exchange for just some utility token. As far as I understand developers retain 100% of exchange ownership and profit to themselves. So in fact the private investors invest not in the project or the company, but just buy some utility token with expectations of a fast profit. During the public sale (where the tokens will be 2-4 times more expensive, than they were for the private 'whale' investors), those private investors will sell their tokens for 2x-4x immediate ROI, so I am sure the token could be bought from the market much cheaper than for $0.41 the company is going to sell it. Maybe $0.2 in average, taking into account that most private investors entered considerably cheaper than that.
In any case I would not consider the token being a good investment at the current price of $0.2. If the exchange would share the part of revenue with the investors, or use the part of profit to buy back and burn some of the coin from market, that would be quite different story.
That could be the reason why investments are not flowing in at the moment, and project funding is not going
that well.
So first let's start with the3M USD is not a small amount in an exchange. Do you have any idea how much it costs legally to get all the paperwork for FIAT in the EU and USA, that alone costs millions. After that they have to developer a whole exchange, set up customer service, marketing etc.
I have seen exchanges raised much more and offering way less, so based on all those comparisons, I would say its a fair amount that Beaxy is raising.
I didn't say 19M in general is a small raise, I stated that for what they want to achieve (their ambition), 19M is a fair raise.
As with almost any ICO, an investor invests in the token and not in the company, unless you buy equity. So I don't get your point on that, that's pretty standard, that's every single ICO.
The utility token has an important role to play in the exchange though, so that creates the value for you as an investor in the token. So when you invest in an utility token, you have to check what utility it gives you and what the chances are that it makes you profit next to the speculation part of the token. In almost every other utility token you would invest you only buy it for speculation, because next to exchanges there is almost no utility token that brings value to the token right away. Most of them are years away from adding utility to their token, because they need adoption etc.
You have to read better next time, because you mention if the exchange would share the part of revenue with the investors, that would be quite a different story. Well that's exactly what they do. As mentioned in my article:
Beaxy chose to use an alternative token for their Loyalty Rewards Program, the PLUS ($PLS) token. The $PLS token will apply to be a registered security token in applicable jurisdiction.
$PLS tokens may not be transferred or sold to a third-party but can be exchanged for $BXY tokens at a 1:1 rate. It will not be a part of the Token Sale process. Important to note is that due to regulatory uncertainty, $PLS will not be available for United States citizens.
So how does the program work? Qualified holders will receive a percentage of transaction fees collected based on the duration the $PLS tokens are locked, and the percentage of each user’s share among all locked $PLS tokens.
Up to 1 month: receive 15% of fees collected
1–6 months: receive 20% of fees collected
Beyond 6 months: receive 25% of fees collected
This is a very innovative approach that could mean that a lot of the $BXY tokens are of the markets and as a staker, you can earn a nice amount of fees if the Beaxy Exchange is a success.
So Beaxy is sharing 25% of their fees collected with their stakers. This is next to their discount in fees you get with paying in the BXY token.
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