 |
December 04, 2017, 11:38:09 AM |
|
ETHERSPORT'S STATEMENT ON ETH EXCHANGE RATE RISE COMPENSATION
Due to the controversial response of the EtherSport community to our decision to set the ESC token price during 4th ICO stage closer to a fair level, we would like to express the following thorough explanation.
The EtherSport’s ICO white paper contains the rules and algorithm of this ICO. The team was developing it in accordance with expectations of a stable ETH price of no more than $400. All the prices in ETH are outlined using this exchange rate and it was considered as obvious, regarding the then-stable ETH exchange rate. We consider the situation of the rapid increase in the ETH exchange rate to up to $510 a force majeure which brings the prospected token prices out of the reasonable margin. This is why we decided to introduce an additional compensation (i.e. bonus) for those who invest in the ICO without a reasonable token price, to bring the value of tokens they obtain to a reasonable and ordinary range. We only go for such measures for the sake of caring about all our investors and their comfort and to bring EtherSport back to progress. We admit that the EtherSport white paper lacks any interpretation of such measures, but it is still yet a force majeure for us which could not be foreseen with the stable ETH exchange rate during the time this white paper has been developed.
The EtherSport platform is built utilizing blockchain technology and Ethereum smart contracts. We also urge to provide a decentralized system which will not require any KYC procedures required by systems working with fiat currencies. Hence, we are forced to bond all calculations and ESC token to ETH first, instead of bonding it directly to USD and/or other fiat money. We know that most of our investors use fiat currencies for investment, using ETH only as an exchange medium. This is an essential situation for a project that doesn’t only count on cryptocurrency enthusiasts who have ETH naturally, but also targets a wide community of gamblers, lottery players, and bookmakers, who don’t usually have an ETH balance and make all their considerations in fiat money. This is why we say that the ESC price is tied directly to the USD price, and ETH is being used as a conversion medium only. We would love to develop all prices in ETH and skip a lot of unnecessary conversions as well, but as this market is too volatile and it has a USD price, we simply can’t do this.
We have indicated a target exchange rate for ESC tokens in dollars instead of ETH, as a logical value regarding the principles of platform operations and the price of a lottery ticket. Of course, the real value will be decided by the community and the market once tokens hit an exchange, but there should be a target exchange rate used at least for determination of the token price during the ICO and calculations of all future operations within the working platform. And yes, we set this target exchange rate in USD, as 99,99999% of the world base their considerations on USD, and the majority of our investors use fiat currencies in their everyday life and they can comfortably decide the value of their investments without complicated calculations. Of course, when the Ethereum community will grow times more it’s currents size, this bond to USD will become obsolete and we’ll be able to omit it, but now it is absolutely impossible.
In case of the ETH exchange rate changes drastically again, we will implement similar measures based on momentary USD price of ESC tokens. Current 50% bonus corridor we have for the new-coming investors is at 430 to 600 USD per ETH. If the exchange rate falls below, we will cancel the bonus for new investors coming after that moment. If the exchange rate hits the next corridor of 600 to 800 USD, we will implement a further 50% bonus to obtain back the economically reasonable USD price for our ESC tokens.
All these measures are pulled exclusively for caring about all investors, including the latest ones, for the sake of getting the EtherSport community to stable growth and implementing the platform that will pay back our investors as soon as possible.
|
