An Analysis on the “T Model Gain Right” of Hoo.com — A Chance to Make Profits with No Risks

Hoo.com
5 min readAug 30, 2019

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This article will make an analysis on the “T Model Gain Right”, a new initiative by Hoo Labs — which is also a good chance for investors to make profits with no risks.

Let’s take a look at the earnings for the past two fundraisings:

  1. MTV: A rate of return of 20% in 49 days (The fundraising started on August 23 on a first come, first served rule. Min investment: 100 USDT; Max investment: 600 USDT)
  2. UNI: A rate of return of 18% in 45 days (The fundraising started on August 23 on a super invest rule, with a max investment of 85 USDT)

Judging from the investment period, risks and rate of turn, the T model can be seen as a financing product with a high short-term profit.

Contents of this article:

1. What is Gain Right

2. The nature of Gain Right

3. Gain Right rules of Hoo.com

4. Summary

What is Gain Right?

The definition of Gain Right from Hoo official:

When a blockchain company issues a token, the T Model of Hoo Labs requires them to issue an option token at the same time. The option stipulates that the user holding the token can return it to the project at a certain price in the future. It will also be circulated in the trading market. The user can exercise his/her refund right in the future if he/she holds one token and one option token.

Which means that when you participated in the fundraising of a project, you will obtain their token as well as the refund right of the token, which guarantees your right to refund the token in the future. What’s more, the refund right token is also a token that can be circulated in the market.

The T Model has been conducted for four projects: TALGO, TCOCOS, TMTV and TUNI.

ALGO is a project that grants the investors refund rights. While Hoo.com tokenized its refund right according to the market demands and launched TALGO the first time, allowing the token to be circulated in the secondary market.

Of the four tokens, TALGO and TCOCOS are Refund Right tokens while TMTV and TUNI are Gain Right tokens.

The so-called Gain Right can be understood as an upgraded Refund Right. The biggest difference of the two lies in their price.

Refund Right: the price of refund right token is usually lower than the fundraising price, which guarantees part of the right of the investors. The token is like an insurance which lowers your loss. For example, TALGO grants investors a refund right at 85% of the fundraise price. The dealing price for the first round of bidding was 1ALGO=2.4USD. The investors have the right to apply for refunding with a price of 2.04 USD before August 9, which minimizes the loss to 15%.

Gain Right: the price of gain right token is usually higher than the fundraising price, which guarantees the gain of your assets. For example, TMTV grants investors a refund right at 120% of the fundraise price (0.005USDT). On the day of gain right execution, investors can be refunded with 1MTV+1TMTV=0.006USDT, making a profit of at least 20%.

The nature of Gain Right

The most profitable investment this year are the IEOs on exchanges. And the Gain Right we are talking about is the variation of IEO who have the same nature in effect: to surrender part of the profits for traffic.

So, what are the differences in Gain Right compared to IEO?

1. There are two forms of IEO: one is the discounts/big sales for non-new projects; another one is the IEO for newly launched project, which require the IEO price be much lower than the price of private sale. Therefore, Gain Right grant the new users with benefits while not harming the benefits of old users.

2. The token price often goes up quickly after IEO then goes down for a long term, so the investors tend to sell the tokens after opening quotation on the exchange. While Gain Right requires the investors to hold the tokens longer and gain the profits in a comparatively longer period of time, which reflects the strength and confidence of the project.

3. The Gain Right tokens can be viewed as a variant right of the token, which are tradable before the execution day. It is a put option of the token, propelling the trading enthusiasm.

Gain Right rules of Hoo Labs

Most of the fundraising are done with USDT since Hoo.com doesn’t have their own token yet.

About the fundraising rules on Hoo Labs:

  1. MTV: The fundraising of MTV was done on a first come first served basis with a target amount of 500,000 USDT. Each user can invest in minimum 100 USDT and maximum 600USDT.
  2. UNI: The fundraising of UNI was done on a super invest basis, which means that the process ends when the time dues instead of when reached the target amount. 467,000SUDT was raised with a target amount of 100,000USDT, meaning that each investor got an average of around 85 USDT.

The past two fundraisings were done with a small quota, which is more like an experiment of Hoo.com.

There are basically three ways to deal with the gain right tokens:

1. If the token price goes up and exceeds the profits you can make by refunding, you can sell them on the day of refunding and get your rewards.

2. Refund the tokens on the refunding day

3. Token and the gain right tokens are both allowed to circulate in the market. Take UNI as an example, suppose the price of UNI+TUNI<118% of the fundraising price, you can buy same amount of UNI and TUNI for arbitrage on the day of refunding.

Summary

The T Model Gain Right is a risk-free investing opportunity overall. You can try to participate if you are holding any USDT by taking it as a financing product.

Sign up on the website hoo.com or get an APP.

Note: This article is an English translation of a blog written by Jin Ma.

Link to the original article: https://bihu.com/article/1205417458

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