Why MEGAX is the most undervalued ICO this October

MEGAX is in it’s pre-sale currently giving out 15% bonus tokens. I saw some interesting conversation on how MEGAX will be maintaining the flow of coins on telegram and actually thought this is something bigger than I had in mind.

Assuming MEGAX raises USD$10M, creating a total supply of USD$14.29M of MGX coins in supply, USD$10M worth in circulation, USD$4.29M in reserves. Though that seems like a lot of money to raise for a company, that will hardly make a dent in the retail ecosystem, but that is where the value will be for investors here, as like any small cap coin.

Invade one of the companies in MEGAX and the event organisers for the largest turnout in Singapore — Artbox which saw a crowd of more than 600,000 people over 2 weekends back in April, that’s about 100,000 people a day!

Now if MEGAX were implemented for the next event, and assuming there are incentives for consumers to use MGX during the events, i mean given enough sponsorship or partnerships. And mandating the use of MGX for 100% adoption impossible? Concert wristbands with credit functions, banning cash for events is nothing new.

Let’s just assume mandating 100% adoption is a strategy too aggressive, too ideal, fine. Assuming there’s a 15% pick up rate for the digital wallet, and assuming the average user buys USD$30 worth of MGX tokens, MEGAX will need to be selling already USD$2.7M worth of tokens.

I can’t say for sure what are the policies or allocation of that $4.29M worth of MGX in MEGAX’s reserves, so let’s assume it’s split evenly among iFashion and MC Payment subsidiaries for the sake of this analysis, each one will probably only get $860K worth of MGX tokens. Invade in this case needs to purchase a balance of $1.84M of MGX either from it’s partners, most likely at a mark up, Or attempt to buy MGX from the market, to get enough MGX to start selling to consumers. This represents a buy volume requirement of 18.4% of all MGX in public circulation. This is the case for only 1 business unit, 1 instance under iFashion.

I foresee the companies putting up buy orders to keep the coins actively redistributed for it’s commerce. As adoption progresses, MEGAX will be required to purchase more MGX and sell the coins for a higher price to consumers. Creating more value for coin holders and ICO purchasers.

Ironically due to the nature of its business, MEGAX selling lesser coins during its ICO means higher potential profits for investors, the risk is if the coin is held in the hands of few, MEGAX will be paying a premium for their own coins, but then again they’d be selling to consumers who will be spending it on the day and won’t care too much of MGX’s value. Heck, MEGAX can even offer refunds (or buying back) at the same rate as the consumers would have already spent majority the tokens.

Join the pre-sale here using my link!