What I understood from the offer is if I buy now at 100m=1 ETH I would be able to sell them through smart contract at X20 more expensive. I am not technical or trading person but don't get the idea how this is possible or who will be that who will be willing to buy at such expensive rate later from me if I have some tokens to sell.
NrXThanks for the question, we will explain about pricing.
It can be divided into two stages during the TSO and after the TSO, no pre-sales, contract deals, etc. All participants are in equal conditions.
Step 1. TSO. On the start of TSO we set the exchange rate of the coin 1M SNTR = 0.01ETH. Total issue is 1000 000M STNR (such huge volume coused by the requirement for flexibility of service pricing).
Assume that someone payed 1ETH. He receive a 100M SNTR. We recalculate the exchange rate based on the realized SNTRs (the algorithm is based on the linear function - for more details, please read WP and code on github), the price rises and becomes 1M SNTR = 0.0101 ETH, i.e. each participant buys tokens little bit more expensive than the previous one, at the same time the price depends on the previous requests (following the ideology of the blockchain business .
)). At a certain point, the purchases stop at the point of the market appreciation. In addition, we have limited exchange rate of 1M SNTR = 0.2ETH when ICO automatically stops.
Step 2. After the TSO. There is a moment before start in commercial mode, the price is determined by the market, depending on the results of the team. We are intrested to reduce this period as much as possible. For the convenience of the holders, we will try to list our tokens on the exchange.
After start of commercial mode the service uses a smart-contract that changes the tokens (from all holders pro rata) at the rate of 1M SNTR = 0.2ETH.
Thus, your benefit is to exchange ETH for SNTR at a rate of 1M SNTR = [0.01; 0.2)ETH and sell SNTR at a fixed price of 1M SNTR = 0.2ETH, i.e. 1:20 to the start price. At a certain point, all of your tokens will be exchanged. Note that the revenue of the service is formed in USD and your benefit is in % expressed in the ETH is as more as less is the ETH rate, but with the increase of the rate it still not remains to equal zero, so this is a specific hedging instrument.
There is only question that where the contract will take so much airtime to exchange tokens for this course?
Where will the Ether come from?Answer - We devetoped service for a wide use, most of our users don't know anything about cryptocurrencies. The main revenue will be generated in fiat cirrencies, on agent-SPV accounts, and SPV will purchase the Ether to pay for the service by smart-contract buyback mechanism.
