Why is XRONOS not a Pyramid?
We should start from afar, more precisely from the creation of a new cryptocurrency. When the new crypto is created, it is usually based on blockchain (albeit modified) and all transactions, emissions and operations are stored sequentially in this chain. If these statements are true, then there must be a zero block formed at first second of its existence, in which there will not be a hash of the previous state of the system.
This block is called “Genesis”, which can be also named ‘origin’. Actually, the history of the cryptocurrency begins with this thing. Typically, this block is written manually or it is generated by the system after its launch. It shows the main parameters of the network and the rules of its operation: they cannot be surreptitiously changed, as all subsequent transactions become “incorrect”. The system just does not accept such changes. This is one of the key features of the cryptocurrency, which allows you to trust the system. At the time of the birth of the primary block, no one has coins, but the network is ready to begin its work. You can proceed to the next stage.
What is a Presale?
Presale is one of the ways to generate interest in the new cryptocurrency. It combines the primary emission of coins at a low price, attracting the first users and testing the functional part of the network.
During the preliminary sale, the first users are offered to buy new “digital coins” at a fixed exchange rate, and pay for them with some other cryptocurrency from those already in circulation. Thus, the new cryptо is backed by old one, which is backed by the usual money, which can be input or withdrawn through the exchange. It turns out to be a kind of a stock of digital gold and securities, which confirms the real value of the new cryptocurrency and creates a kind of trust credit to the system.
If there are no complaints to the rest of the system, everything works as it should, there are no errors anywhere, the network goes to the second phase — ICO.
What is ICO
ICO is a stage of emitting XPO to the global market, warmed up by the interest of the Presale. During ICO stage XPO is sold at a higher price. The system repeatedly offers to buy new crypto-coins for another “crypt”. But the selling price is more expensive now. Users who, at the very beginning, invested in the new cryptocurrency, can earn on the difference in rates and sell their coins to neophytes a little cheaper than the official sale. Thus, participants of the first wave can choose between “instant income” (sell coins during ICO and attract some interest to the currency) and “a long-term” investment (leave money on their own, preparing for a further increase in the Exchange Rate).
Why would anyone invest into new cryptocurrency?
Everything is simple. Bitcoin, of course, has an important role in the formation of crypto-economics, but, let’s face it, it is too detached from the real world. Ethereum and some other coins have made an important step in the right direction — they have laid the system of “smart contracts”, created a market for direct exchange of goods and services, but their value is still formed via speculative method, and the real economy is in no hurry to use the “crypt” as a payment instrument . The market is waiting for a cryptocurrency with a stable exchange rate, which can be used for mutual settlements. It is interest in such technology, which starts XRONOS. And this interest will be the main reason of investing in XRONOS at the stage of growth. And exactly this interest will bring experienced users who clearly imagine the scale of the future market.
Why is it not a pyramid scheme?
Any such scheme as ponzi or a pyramid one is based on two principles: superprofit and new users attraction with no production of any goods. First users get paid with the super-percentages, which come from the second users’ funds. The second ones get paid with the third users’ funds and so on until the number of willing users don’t make the scheme finally collapse.
Actively growing cryptocurrencies do not imply payments only at the expense of the new users’ attraction. Partially the growth of the capital will be maintained with the help of the market interested in a product. In the XRONOS case, it is interested in anonymous, reliable and stable financial tool, which will secure gradual integration of the real sector of economy with fully digitalized one. The formation and fortifying stage is, of course, pretty risky, however it gives more opportunities. And considering refund guarantee at your disposal, there is no need to talk about the risks.