ICOs used to give people way above 200% margin of return upon initial launch until not so long ago. Let's give BAT(BasicAttentionToken) for example. BAT gave more than 8x of return when it reached the all time high of about 28 cents per token. But now, looking at bancor or even status, these tokens have not made much of return in profit compared to couple of months before. And yet again, TenX is going through the same path at the moment as the price keeps coming down quite rapidly. With PAY priced at 92 cents per token as of July 9th, it almost seems like there is merely no price gain since ICO.
Investors in for a quick profit
One major reason could be investors wanting to cash out soon as token gets listed on exchanges. Trends before the recent ICO boom used to be that when a cryptocurrency gets listed on exchanges like bitrex or poloniex, the prices of those newly listed tokens usually saw high price increases. But these days, it seems that many investors look for initial profit out of initial coin offerings. Just looking at the sell wall explains how much people look to get out as soon as possible.
Dividends too good to be true for now
TenX offers 0.5% return of profit for token holders. This is calculated based on amount of transaction volume x (0.005/total supply) x number of tokens holding. Just doing basic math, TenX would require tens of billions of dollars of transactions in order for it to give noticeable return to token holders. And this would definitely take at least couple of years.
Too many competitors
Let's face it. There are already bitcoin debit card companies that started from Hong Kong, Israel and more. If comparing with token creating companies, Monaco and TokenCard are already at existence even though Monaco often gets called as scam. These two tokens held ICO just a little bit ahead of before this huge recent ICO boom started so that's probably one of the reasons why their market caps are sitting much below TenX.
Although looking at the white paper from TenX certainly stands out with advantages compared to other tokens, there is just no certainty on which one will survive yet.
What about Visa & Master Card
Will the future hold for these new start up companies to overcome huge credit card companies like Visa or Master Card if these companies join to develop their own block chain? My simple answer is a no. These cryptocurrency debit card offering token companies have already partnered with Visa or Master Card in card issuance. But what if these start up ideas starts to become successful and major credit card companies decide to hop on the bandwagon coming up with their own technology? There exists too much gap between company reputation, ability, and funds when it comes to mega million companies and start up companies. We already know Visa can come up with the same, if not better, technology in no time. All these debit card service for crypto currencies could actually face risk of failing if any major credit card company decides to join blockchain network.
Overall, I believe that Singapore based company TenX also has trustable people behind the token. It even has Vitalik and Bo Shen as selected investors backing TenX. And more than just the people, I believe the product itself will also prove its worth over the time if the roadmap is executed as planned.
On a personal note, I hope at least one of TenX, Monaco, TokenCard will succeed. Just imagining of being able to use cryptocurrency debit card in normal stores or anywhere online already sounds so exciting. Going abroad would never require anything more than just one card or these token wallets inside of smartphones.