Full transparency: Why does the CHNG price start at 0 & how does this impact our users?
Continuing with our full transparency article series, today we’re going to address one of the most burning questions our users have had over the past several weeks: What will the CHNG token price be?
As previously explained in one of our earliest medium articles about the CHNG token economy, the actual CHNG price starts from 0 & holds no value before listing. This is something largely known in the financial world as price discovery. The price discovery process is the process of determining the price of an asset on the market through the interactions of buyers and sellers. This is a widely spread model throughout the blockchain industry, and was applied to various currencies including Bitcoin (at the time of launch in 2009, 1BTC was $0)
We announced 0.000001 as the starting price because the system does not support division by 0 thus, CHNG must have a starting price >0 and 0.000001 is the smallest piece of USDT.
Now let’s dive into the details of what this means for our users.
No ICO. No private sale.
Chainge, unlike other projects on the market brings along huge advantages and empowers its final users to the max. Numerous currently available projects have a private sale or initial investment from private entities; which automatically implies that the starting price for a token cannot be too low because this would mean that the initial investors would lose money. But having these large amounts of coins in the hands of private sale participants also means that retail traders are at great risk so this does not work in the advantage of regular users. If one of these so called “whales” decides to sell all of his assets then the price will plummet instantly and all other holders will lose money.
With Chainge, that is impossible. No one will lose money. Simply because no one has CHNG allocation; not even the Chainge team. Chainge basically hands over the right of price discovery and determination to the entire community. And we believe this to be the true spirit of the blockchain industry, with no advantages for the rich. A fair and equal opportunity presented to all who can see the potential behind the Chainge app.
What do our users have to say?
In a 7600 participants study (through voting on our official Telegram channel), we discovered the following:
6% would sell their CHNG tokens when it hits 0.001 USDT
1% would sell when the price hits 0.01 USDT
5% would sell at 0.1 USDT
23% would sell at 1 USDT
24% would sell at 10 USDT
the majority of 41% would sell when the CHNG price reaches 100 USDT
Buy back and price fluctuation
Chainge will quarterly buy back CHNG using 25% of the company profit, which means the more successful the company is, the more value the CHNG token has. This is again a unique aspect of the Chainge project. The more you promote and use its features, the more you will gain through the CHNG price increase.
The principle on which the CHNG price is thought out is to transparently reflect the balance of demand and supply. If more people sell, then the price will go lower. If more people buy, then naturally, the price will go higher. So, for anyone who wants to know what the CHNG price will be, the answer is that you get to determine it. If you want to sell CHNG for 0.000001 USDT then it will surely be bought at that price by users who want to invest in the app’s capabilities and the future. Plus, we’ll be happy to buy them at that price as well because it means we’ll get to buy more of the supply (with the 25% profit allocation previously mentioned), which in turn will benefit the true believers!
Bottom line, if you don’t want to sell at the price of 0.000001 USDT, then the price of your CHNG will be higher. It’s up to you to decide.
Buying the whole CHNG supply
We also heard this quite a lot. Which is funny and did make us giggle but is fortunately 100% impossible. No one will be able to buy the whole supply for a couple of logical reasons.
1. Once listed, the price will rise. Don’t fool yourself, because you won’t get to buy too much CHNG at that low of a price.
2. We can’t believe we have to say this but the whole supply is not for sale. To begin with, we’ll have in circulation the exact number of tokens that the users have managed to gather through their activities (which currently amounts to just 10% of the total supply!) and it will be up to them how much they want to buy or sell of it.
3. We’re not going to have any private sales or off-book sales. The tokens you’ll be able to buy/sell will only be available from users, for users, in the app & exchanges.
We hope this article shed some light once more on our CHNG token economy and the way it will run. For quick-win airdrop hunters who aren’t really interested in the true power of Defi, this is probably not exactly what they wished for; but true Chaingers, for those who believe in us and in the strength of the financial revolution that Chainge is starting powered by Fusion and its amazing capabilities in the blockchain sphere, this is exceptionally good news.