Acudeen Successfully Lists ACU Token on BTCEXA Exchange; Gains 26% on First Day
Compliments to Acudeen for a commendable first day.
We have been working with Acudeen since the beginning of the year to establish their ACU token ecosystem, economics and funding for the ICO. To view the full in-depth report on Acudeen, click here.
Last Friday, Acudeen successfully listed its ACU token on the BTCEXA Exchange at an initial list price of US$0.005. On the first day of trading, the price closed at 0.0069 — representing a 26% gain. With 10 billion tokens on issue, this gives Acudeen a total market capitalization of US$69 million.
The BTCEXA Exchange is a new digital asset trading platform that launched in July this year. It is a member of the Exchange Alliance (EXA) that utilizes a 3rd-party clearing system to secure and encrypt transactions with a dedicated team monitoring the stability of operations. This listing — the first of several planned — brings the Company one step closer to achieving its goal of providing blockchain-enabled invoice financing through its Assetchain Core platform.
ACU Token — Blockchain-powered Financing for SMEs
Acudeen’s ACU token provides an opportunity for investors to benefit from growth in blockchain-powered lending to small and medium enterprises (SMEs) across Southeast Asia. While large companies are easily able to obtain financing when waiting for client invoices to be paid, most SMEs face a nerve-wracking cash flow situation when they must wait for customers to pay invoices.
Acudeen aims to solve this problem, expanding the market for SME short-term lending where traditional banks have failed thanks to the creation of a peer-to-peer (P2P) invoice finance ecosystem called AssetChain Core. AssetChain Core will be powered by blockchain and an innovative cryptocurrency-based incentives system.
Underpinning this entire SME financing ecosystem will be the ACU token as the only means of payment for services, and as a mechanism for incentivizing and rewarding all participants. In the graphic below, we provide a user journey example showing how the ACU token is an integral part of the Acudeen platform.
ACU Utility Value of US$0.05 Once Platform Goes Live
To calculate the utility of value of ACU tokens, we first quantify the value generated when users hold the ACU token. This is done by analyzing the Acudeen staking mechanism, which enables users to accrue significant discounts & privileges when holding large stakes of ACU tokens.
We have provided below a table showing the benefits provided by Acudeen’s proposed staking mechanism at different stake levels. As shown below, there are multiple tiers of user benefits, with the lowest at 10,000 ACU and the highest benefit of Consortium Partner if an entity is holding 100 million ACU.
Based on the table above, future user value per token of ACU can be calculated as a function of how much fees users can save if they hold ACU tokens. For example, holding 1 million ACU tokens (US$5,000 worth of ACU at ICO price) will entitle users to 50% fee discounts. A 50% reduction in fee prices would translate to ~US$10,000 per year in fee savings assuming US$1,000,00 in transaction volumes (US$250,000 cycled four times in a year financing invoices).
Taking the example of US$10,000 in discount benefits for life (from a user staking a million ACU tokens), we can value the ACU token’s fair value as a perpetuity.
Assuming an extremely conservative 40% discount rate, a user holding 1 million ACU tokens, would have US$25,000 in fair value ($10,000 discount benefit/ 40% = US$25,000). This implies an ACU fair value of US$.025.
We used a 40% discount rate in the earlier example, which we believe is apt as the Acudeen platform is still under development and bears several uncertainty risks. However, once the platform goes live, we estimate a 20% discount rate would be more realistic, and in-line with standard token valuations.
Using the same example above at the 20% discount rate level, we arrive at a fair value of US$50,000 on 1 million ACU tokens. This implies a fair value of US$0.05 per ACU token once the platform goes live — 10x the ICO price of the token.
For the full in-depth report, click here.
BlockSpeed is a cryptocurrency and token economics research firm bringing increased transparency, understanding, and institutional research to the cryptocurrency market. For more information visit: https://blockspeed.com/