Article: A Characteristic Feature of ICOs Feed Price Fluctuations

[hasanacar]

In the bitcoin world, which has increased its market volume since January 2017, the newly produced crypto coins continue to emerge at an increasing pace. Investors are changing these new crypto coins with bitcoin or ethereum. Generally, the target of investors is to change these new crypto coins with more bitcoins, which may increase in price when they are traded on stock exchanges. Unfortunately, this situation is moving a wide range of price fluctuations. The economic system we will describe below is a proposal for reducing price fluctuations.

Refund System
If a reimbursement system can be offered at the public offering stage of the crypto coins, a set will be taken to prevent price fluctuations and investments being wasted. The most important point of the take-back system is the withdrawal from a price that can meet the amount of sales that can be excluded in the token sale stage. Let's embody our idea with an example:

A real example: Global Network Token (GNET - www.gnet.work)
Total items: 50.000.000 (limited)

Sale: 40.000.000

Not sold: 10.000.000

Sales price: 0.00015000 satoshi

Revenue: 6000 BTC

Return price: 0.00012000 satoshi

Refund price formula: Total pcs / Acquired Income (6000 / 50.000.000 = 0.00012000 satoshi)

So how will the project finance be provided if all the Refund System is allocated?

We are sure you will like the answer: in its own currency. Since the minimum price is determined in the crypto coins with the refund system (in our example, 12000 satoshi), it is not a problem to make project finance with their own money. On the contrary, it is encouraged to do so. It would be a good initiation to start using crypto coins purchased in Token sale stage in this way.

Benefits of Refund System
The last point where the price may fall is obvious.

Depletion of deposited money is prevented.

The amount of bitcoin locked in the Refund system will reduce the amount of bitcoin circulating in the market. It will make a positive contribution to Bitcoin's price fluctuations.

The interest shown to ICOs will increase. The amount risked in investment is lower than the probability of gain. For the probability of winning two or three times a quarter can be lost.

The prestige of the Altcoins will increase.

In ICOs that can attract investors, spending will be limited.

An opportunity will be given to those who want to regain their investment.

We do not think that crypto money managers will be willing to implement the system mentioned above. This change can only be achieved by the demands of the investors. We want you to share this article in order to raise awareness among all investors.

In the example above, we had to talk about our own project. Because many things in the world of crypto money have been misformed, we could not open a space in this environment. While ICO promotional activities turn into activities that need to be evaluated in the "spam" category, we hope to introduce ourselves to investors through this article.

[cryptocrusher]

You can't have ICOs being able to offer refunds at the exact price they sold the tokens for initially. This will create a perfectly safe investment for investors which should never exist. ICOs going below their sale price is acceptable and to be expected a large majority of the time, it's up to investors to take time and try find the ones that don't go below ICO price. Your example also only works if not all tokens are sold.

[hasanacar]

In our example, ceiling sales (15000 satoshi) and base purchase (12000 satoshi) prices are different. This difference is for meeting all the token amount that can be circulated. I suggest you review the system.

[davis196]

In our example, ceiling sales (15000 satoshi) and base purchase (12000 satoshi) prices are different. This difference is for meeting all the token amount that can be circulated. I suggest you review the system.

There is nothing to review.This "system" is just a fantasy.No ICO project owner will offer 100% refund.
A better idea is to create a "middle-man" crowdfunding platform that will gather all token purshases and redistribute the coins to various projects,based on their level of popularity,trust,reputation,team and number of supporters.Such platform might offer a refund system or the ability to guarantee the token purchases.

[hasanacar]

We show with our project (gnet.work) that refund system is not a fantasy. Also, as you will observe very soon with a demo in S-ICO section  that we will support ICO's which have "Refund System".

[cryptocrusher]

In our example, ceiling sales (15000 satoshi) and base purchase (12000 satoshi) prices are different. This difference is for meeting all the token amount that can be circulated. I suggest you review the system.

Even an 80% refund is far too generous. If all ICOs took this approach then a lot of the negative side of investing would be removed. If the most you can ever lose is 20% you only need to find 1 100% increase in every 6 ICOs you invest in, that's far too favorable of an investment situation and completely unsustainable. The unfortunate fact of any market is that in order for someone to profit from something by trading then someone needs to be on the losing side of things. Right now a lot of ICOs are beginning to trade at 50% or less of ICO price but still people are flocking to them because they know if they hit the one good ICO it would outweigh the negative ones. You also need to consider that the primary purpose of an ICO isn't to profit immediately on token listing, it's a fundraising event and most investors have a longer term outlook.

[hasanacar]

Thank you for the feed. “Refund System” is a completely sustainable and non-manipulative economic system. There is no way to disrupt the system. Because the refund price is arranged to repay all tokens that are put on sale and not issued. As can be seen in the article “Token Sale”. In the following link, 1 GNET is the only way to get into the market by purchasing 0.00015 BTC. The reason we open this title is to see whether there is a “bug” in the economic system you are considering.

[Renaldi blackspadeteam]

The prestige of the Altcoins will increase.

This is sure to happen, many new cryptocurrency projects create a sense of prestige for every project, but if you look positive this is good to increase the spirit of making crypto money that is useful in the real world.

[hasanacar]

The prestige of the Altcoins will increase.

This is sure to happen, many new cryptocurrency projects create a sense of prestige for every project, but if you look positive this is good to increase the spirit of making crypto money that is useful in the real world.

More projects reveal more new ideas and also it makes new people to join the world of crypto money. Preserving the prestige of the Altcoins and increasing the number of the Altcoins is very important for the crypto-money world. For this reason, the S-Ico section of our site will support projects that are not vague in the economic system.

[cryptocrusher]

Thank you for the feed. “Refund System” is a completely sustainable and non-manipulative economic system. There is no way to disrupt the system. Because the refund price is arranged to repay all tokens that are put on sale and not issued. As can be seen in the article “Token Sale”. In the following link, 1 GNET is the only way to get into the market by purchasing 0.00015 BTC. The reason we open this title is to see whether there is a “bug” in the economic system you are considering.

The point then to notice is while it is feasible from a short term perspective it's not sustainable in terms of the overall market and the invisible hand. If projects started doing this then it may work for a while as only the best would offer it but with time people would only look to invest in such projects because there expected returns are much higher. That would lead many other projects needing to offer a similar system in order to receive funding, even if they were not of similar quality. You'd then have a situation were poor projects are using this system and the 80% refund is being triggered too often, the project then has a choice either to honor it or to withhold funds given that they expect their own project to fail.

[naidray]

I guess it is still giving quite close price. $12K is remarkably close to $15k, which means for every refund they are basically only gaining $3k of the token back. Now I am not saying it is a bad idea I am saying this amount is just too close, maybe something closer to $7.5k which is half is still better.

Have the option to give out half and over time like maximum of x amounts per week which would result with the ICO owners giving back every week at a certain amount if requested. That way they could also use that money to something they need and hope to get it back somehow and pay the investors.

After all, you do not want to give the funds back to investors and you just hope the price of your token gets higher which would make the investors happy and you already have a lot of the token yourself as ICO owner as well which would make you double the money both in ETH (the investor funds) and the token.

[hasanacar]

Our sole purpose to set 12000 sat price is to provide “the refund system” for 40 mil GNET which is circulated after token sale and 10 mil GNET which is reserved to be used for payments to the employees. By this way, we, ourselves, will be using our token in real life. Employees will willingly accept GNET, which has a BTC cash cover without a doubt, as payments. We intend to transfer all the reputation of BTC for payments to our GNET.
We will set the refund buying order at DEX and through all other exchange markets (of course allocating by volume). We will issue buying order for every each GNET sold as soon as possible in order to re-buy to reserve most of the investment. Payments for the advancement of Project will be made by GNET. Team members or employees who provided services for the project will be paid by GNET and those can exchange their GNET to BTC at the lowest price as 12000 sats.
According to us, incomes gained from ICOs and also reserved amounts are used for pump and dump in the exhanges. We assert that the implementation of our system would definetly restrict such behaviour. You can also read this brief article of ours: http://gnet.work/can-the-owners-manipulate-crypto-coins.html


As you know, investor and trader are two different things. Investor is the one who participates the project at the begining and pay the amount demanded. On the other hand, trader is the one who almost always buys and sells coins in a short time period. We offer to protect the investors’ investments by our refund system. But of course we have a room for traders in our system, such as, there would be traders who think that there will be someone who bought GNET at 15000 sats, then wishes to sell regardless from the project, so those traders will order to buy GNET at a price such as 12001. We do not think such situation as a danger to our economic system. As a matter of fact, this is very positive for our refund system and we acknowledge this situation as a support to our refund system.  We foresee that we will be facing this during our token sale and we will see so many buying orders (as in amounts) above the circulating supply.

[Miriasean02]

It's a too perfect business model to be true. I'm not against it, just pointing out that ICOs won't follow this strategy since the return isn't substantial.

[Glaleng09]

The business model is unbelievably perfect. But I do have a question in mind. Since the bitcoin price flactuates a lot, how come you can stick to a fixed revenue?

[Ocoremar06]

That would be pretty hard to initiate as ICOs sipmly wont be able to repund at the initial price of the tokens. It will be one the investor to not invest in a proper ICO as that lead to the downfall of his/her investment.

[Oleriwyr21]

There is no ICO project owner who will provide 100% refund. It is to be expected that most of the time ICOs will fall below their sale price and thats why doing proper research before investing to find a good ICO is a must.

[The_Tick]

In our example, ceiling sales (15000 satoshi) and base purchase (12000 satoshi) prices are different. This difference is for meeting all the token amount that can be circulated. I suggest you review the system.

There is nothing to review.This "system" is just a fantasy.No ICO project owner will offer 100% refund.
A better idea is to create a "middle-man" crowdfunding platform that will gather all token purshases and redistribute the coins to various projects,based on their level of popularity,trust,reputation,team and number of supporters.Such platform might offer a refund system or the ability to guarantee the token purchases.

This would be a great idea.. an AI service that would essentially give you the best possible investment portfolio while taking all variables into consideration. I still don't think a refund system would be possible but if this were ever created, its value would be unparalleled.

In any case, machine learning will definitely change the investment landscape..

https://www.jpmorgan.com/global/cib/research/investment-decisions-using-machine-learning-ai

[hasanacar]

The business model is unbelievably perfect. But I do have a question in mind. Since the bitcoin price flactuates a lot, how come you can stick to a fixed revenue?

The investor might have bought Bitcoin for $ 500, maybe $ 5,000. We are exchanging with BTC. We do not warrant any currency other than Bitcoin.

[jacafbiz]

Why in the world do you want a refund from ICO, unless the project end up being a scam. What people fail to understand is that not all ICO investment will bring returns/profit, even in the traditional market prices of shares fall below the IPO price. What I believe is that provided the project is sound the long term gain would outway the short term, and this is the sole focus of most people in the space, the space is changing fast and we need to adapt

[hasanacar]

Why in the world do you want a refund from ICO, unless the project end up being a scam. What people fail to understand is that not all ICO investment will bring returns/profit, even in the traditional market prices of shares fall below the IPO price. What I believe is that provided the project is sound the long term gain would outway the short term, and this is the sole focus of most people in the space, the space is changing fast and we need to adapt

We want a deep review, whether our project is scam or not.