What is the USP of this project?
In last two years there were many different models introduced by crypto exchanges. The binance model was most innovative when it was introduced as they introduced their own token. Traders received 50% discount if they traded using BNB as base currency. Plus Binance used some of their earnings to buyback binance coin to share value with their token holders. And no doubt within a year Binance became number one crypto exchange with its current market cap at 2.7Bn USD. In the beginning of 2018 their business model was criticized that they are inflating trading volume artificially similar to how bitfinex has been criticized for tether saga in 2017
FCOIN - in early 2018 introduced further innovation of above two models by introducing Trans-Fee Mining (TFM). According to their model the fee that you pay to trade on their platform is reimbursed to you in their native token called FT which will remain locked for one year.
Below is the price evolution of FT from coinmarketcap:
On average it is showing consistent and stable growth. The FT token is ERC20 token with total supply capped at 10Bn. Below are some key numbers of the FT Token from their website link
Total FT =4,904,299,593.45 FT
Secondary market FT in circulation = 642,757,261.03 FT
Current Daily Mining OutPut = 1,342,012.89 FT
Yearly Accumulated rewards (not distributed)=116.3BTC
Total balance in Financial accounts(BTC)=8126.41
Current Price = 0.09244 USD
Current Market Cap = 453,157,282.4 USD
Financial Ratio's
Yearly Accumulated rewards = 593,130 USD
Total balance in Financial accounts = 41442600 USD
Value of All the assets = 42035730 USD
Current BV = 0.0857 USD
The growth parameters are not easily available for the token. And token is only traded on FCOIN exchange. In that case the growth for token can be guestimated from its own traded volume growth which is shown in below chart:
The token has stabilized around in the beginning of this year. So the volume growth over last 4 months is aprx from 5mn - 40 mn. Therefore, projected annual growth = 3*(40-5)/5= 21 times.
So the projected revenue at the end of next year = 21*116.3BTC= 2442.3 BTC
Apprx Average mining output each day = 1,000,000 FT
Additional tokens to be issued in one year = 365,000,000 FT
Total token Next Year = 5,269,299,593
EPS in BTC = 0.00000046
Assuming a price of 10000 USD for BTC next year EPS in USD = 0.00463 USD
So one year forward PE for token is 0.09244/0.00463= 19.96
Again buying an asset which has annual growth rate of 21 times with one year forward PE of 20 is a good investment.
Risk factors:
- Fcoin model is being projected as a ponzi scheme. Fcoin has to counter it by increasing the transparency of their functioning by providing more information.
- There are now nearly 10 more exchanges that have introduced Trans-Fee mining model. So again listening to users and addressing their concerns will play a key role in keeping the traders and users.
- For traders - their FT rewards are locked for one year.