The Issue With Most Cryptocurrencies
During our last AMA, many of you expressed concern over how Affyn will handle the volatility of cryptocurrency and how Affyn might tide over the bear market.
Approaching these concerns requires an understanding of why these incidents are even happening. Most cryptocurrencies have no real world use cases yet. Hence we see many buyers buying the tokens for speculative reasons instead of buying the tokens to use them.
The crypto world can be full of unpredictable situations every day. Even with big companies such as PayPal entering the market of cryptocurrencies, there are still few reasons to justify the value of using cryptocurrency over fiat currency to pay for products and services. The majority of people will sell their tokens before a bear market because there isn’t much value in holding on to them.
This is a seasonal cycle and we aim to disrupt that.
How Affyn Tides Over A Bear Market
Affyn will not focus on price volatility; we have no control over that. What we have control over is creating actual real world usage for our tokens. On top of that, we are aiming for non-crypto users as our target market.
Most Play-to-Earn games are targeting just the crypto and gaming market, but we want to go beyond this group of people. We want to engage non-crypto users to adopt crypto through the utility of our token. Affyn is more than just a game. We are creating a platform that encompasses everyone’s lifestyle. Without widespread adoption, cryptocurrency’s utility will probably remain limited and speculative where users are primarily looking for opportunities to unload the tokens on the exchange.
“We can’t promise the change in prices but what we can say is, we will focus on delivering value to the end user and our community. If we can deliver our promise to the end users, people will come in to buy the token to use. We will tide through the bear market through user adoption instead of speculative reasons.” — CEO, Lucaz Lee.
Mass Adoption Of Crypto Users
Due to volatility of prices, cryptocurrencies are rarely used as a means of exchange in the real world. Additionally, merchants do not want to be exposed to price gyration since it will affect the amount of revenue generated. Apart from this, other factors such as lack of scalability in the blockchain network, complexity in blockchain that creates a skill gap, and limited infrastructure support are key hurdles to mainstream adoption.
The issue of price volatility will be addressed by Affyn by providing incentive for both users and merchants.
Users must see the benefits of using FYN tokens over fiat currency to start adopting FYN for its real world application. We will be partnering with various merchants to provide substantial lifestyle services with our FYN tokens.
Ranging from travel and shopping to dining and events, users will be able to use FYN to enjoy special privileges with their favorite merchants. Users can enjoy exclusive access, special benefits or privileges when they participate in entertainment activities at our merchant partners with FYN.
We have come up with a Lifestyle Economic Flow which describes the economic model that shows the flow of FYN through the lifestyle platform.
By creating an inclusive environment for the merchant, it incentivizes merchants to offer discounts on their goods and services and to promote Affyn’s brand. Users will also be incentivized to buy FYN to get discounted goods and services.
Each merchant has an option to receive the fiat equivalent for each transaction made by users on the lifestyle platform while Affyn accepts FYN directly from the users. As Affyn’s ecosystem matures, we will move into the next phase where Affyn stabilizes the value of FYN by introducing a stablecoin that pegs to the price of FYN. This process helps to eliminate price gyration and induce merchants or service providers to accept FYN as an alternative to fiat. Price stability will be the crucial first step to mainstream adoption while we also work collaboratively with merchants or service providers to bridge the technical and knowledge gap on blockchain use.
With a closed-loop economy, Affyn can attract both users and non-users of cryptocurrency and empower them with real world applications to drive mainstream adoption.
Highlights from the Ask-Me-Anything (AMA) session: https://youtu.be/2Z8Otmy_D7Y