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1  Alternate cryptocurrencies / Announcements (Altcoins) / Re: [ANN] VANBEX LABS (FUEL) 🎉 FIRST PRODUCT ROCKET 🚀 IS LIVE!☀️ on: June 26, 2019, 07:06:17 PM
I have a suggestion for Vanbex or the new company. According to economic theory, Etherparty had a flaw in the pricing model to the detriment of all. In normal markets when demand is less than supply price drops on a product and the market clears. In Etherparty instead of selling in Fuel, the prices were set in USD. This prevented the market from clearing. In the ICO the stated plan was for the company to sell tokens for no less than $1 which meant that in order to stay in business the price of the token had to rise above $1. This was expected to support the price as users would have to acquire tokens on the market creating demand. The demand never arose for two main reasons. First, many ICO participants intended to spend the tokens in the future. But because these Fuel holders were left with tokens purchased at higher value by the time the products were ready, they were reluctant to spend and crystallize the losses. Instead the user could buy on the market but most would not because this would require new money. Few want to spend with the bad experience of suffering loss.  

Now suppose the products were priced in Fuel. They would have become very cheap creating demand. This would have created a powerful incentive to spend Fuel rather than to dump the Fuel on the market with little demand, driving down the price. If you read Jeff Bezos in the Amazon annual reports, when you have a product which has reduced costs at scale, you should price low to build the market share before competitors. Competitors are reluctant to enter because of the prospect of losses. This allowed Amazon to become dominant by pricing only to gain enough gross margin to grow at the maximum rate possible. Vanbex should do the same with STOs. Why wait for the new company? Price the service in Fuel based on the original $1 token price goal. That act would undo the harm of the exaggerated claims of the and would avoid the costs and risks of moving to a new company.
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