This is the age of cryptos. The digital form of currencies has shook up the financial world and has taken the globe by storm. Every day, there are new cryptocurrencies being announced. Each claims to be better than the last and have a revolutionary idea. Each of the digital token or coin is marketed as the next leader in value. The whole marketing campaigns are designed to attract customers on the basis that early investment in the coins will give them great gains in value.
This leads to a very big problem: Hoarding. The coins and tokens are saved by investors and held for long periods of time. Driving force being the lust for value. A disruptive practice, this does increase the value of the coins by artificially increasing the demand to supply ratio, but it is a temporary effect. As the frenzy dies out, the market crashes and people lose a lot of money. This happens to the very best and established coins. Take February’s price drop of Bitcoin. The frenzy a couple of months back caused the price to surge immensely. Later, when the hype was over, it lost nearly half of its value.
The obvious answer to stabilizing price is to model cryptocurrencies in a manner that users and holders are encouraged to spend it. The more frequent circulation of the coin or token is-the more stable the price is and transactional cost go down. As such, TokenChat does it by creating a consumer demand, enabling cryptos to be used in everyday life and stabilizing price fluctuations.