Hi investors, today we discuss why Simple Token (OST) could be 2018's investment of the year.
We're back, Dean (@deanliu) and Dan (@tradealert) are teaming up again to bring you the very best projects in the cryptoverse. The project we would like to introduce today is Simple Token which aims at disrupting the current dysfunctional ICO landscape (I) thanks to a simple and elegant solution (II).
I- . ICOs are dysfunctional.
It might sound counter intuitive in these days of insane returns but ICOs are actually very risky propositions for businesses.
First of all, most businesses don't have the expertise to market, develop and make available their own tokens and thus have to rely on costly third parties to conduct their ICOs such as:
- hiring (expensive) lawyers to navigate the many legal red-tapes;
- hiring (very expensive) solidity programmers to code the token, smart contracts, wallets, etc;
- hiring community managers to market the token and manage the expectations of rowdy, greedy investors;
- paying huge listing fees to an exchange to make their token available;
Second, ICOs can go wrong or be hacked resulting in financial loss for the investors and considerable brand damage for the company. It's also very likely that future regulations will hold ICOing businesses accountable for hacks and mishaps resulting in financial losses for investors.
Finally, ICOs create pools of greedy, impatient retail investors whose interests are usually not aligned with the success of the company or the promotion of the brand but rather their own selfish interest and... WHEN MOON?
Simply put, ICOs are a messy and unsafe way for serious businesses to tokenize their brand.
Comes in Simple Token.
II- Simple Token reinvents tokenization.
Simple Token allows any business to issue its very own branded tokens without having to do an ICO.
To do so, a business simply needs to buy OST tokens from the free market and stake those tokens into a smart contract which in turn will issue branded tokens on a custom, fully scalable Ethereum side-chain.
Like we said, its simple, and brilliant.
The beauty of this system is that is solves three very fundamental problems related to ICOs and Ethereum:
- First, it allows businesses to outsource the complexities, responsibilities and costs of issuing tokens to the stellar Simple Token team. Freed from the technicalities of doing an ICO, tokenized businesses can focus on more fundamental aspects of their token economy like brand and community building
- Second and very importantly, it shields branded tokens from Ethreum's scalability issues (volatile gas cost, network congestion, etc.) by issuing branded tokens on custom side-chains equipped with their own, independent consensus model. In this system, the Ethereum network is used only as a consensus layer for transactions between chain (similar to the way the Bitcoin Lightning Network functions). One can for example imagine a side chain where transactions are free or charge for an incredibly small fee making branded tokens very easy to use and transfer;
- Finally it aligns the interests of branded token users, businesses and OST tokens by creating an incredible ecosystem of side-chains which can communicate with each other and easily transfer value across the whole system.
To sum-up Simple Token is a beautiful project with the potential to bring the concept of crypto economy to the masses and which deserves your attention.
The token (OST) currently trades at a discounted price on Binance.
And if you need more information about the project you can head over to their beautiful website, sub-reddit, Telegram channel or YouTube channel.
We also recommend you watch this very informative presentation by the founders of the project themselves:
So that's it for today folks and we hope you've learned something new, don't forget to re-steem, upvote and follow @tradealert and @deanliu if you like our featured content.
Cheers,
Dan & Dean.