Savvy investors often ask: how do you explain that investing in EXMO Coin will bring benefits? In this article, we aimed at explaining the logic and calculations behind the EXMO Coin financial model.
Why will the EXO token value constantly increase?
To get a better taste of the EXO token growth forecast you may use the investor’s calculator on EXMO Coin website, which is there to showcase how the token’s value will grow over time.
The EXMO Coin calculator is essentially a reflection of our business plan. It uses the key indicators for measuring the effectiveness of EXMO business processes.
As you may already know, the EXMO Coin crowdsale is being launched in order to enable a significant financial buffer for margin lending on EXMO platform. All token holders will also receive 50% of EXMO’s profits from margin lending distributed among them on a monthly basis.
The profit from margin lending will depend on the following factors:
• Average sum per user;
• Quantity of closed deals;
• Frequency of the service use.
The higher the above indicators, the bigger profits will EXMO be entitled to with the launch of margin lending, and therefore, the more will EXO holders benefit from owning the tokens. Also, the EXO exchange rate is expected to grow accordingly.
How did this forecast come about?
To calculate the possible earnings, we took into account the following factors:
1. paid dividends rate of return
2. risk indicators
3. the alternative cost of capital, i.e. the expected rate of return when investing capital in an asset — 20% for EXO token (based on the criteria for the typical asset evaluation)
4. risk-free rate of return, i.е. the guaranteed profit that the company provides to the investor — in case of our token, 5% (as stated above, based on the criteria for the typical asset evaluation)
5. number of closed margin loan transactions
6. average amount of used margin loans per user
There may be only two cases when investors would not be able to receive their dividends:
1. The EXMO exchange ceases to exist — which is quite unlikely, as it is growing exponentially like never before
2. Margin lending will not bring any profits — which is also unlikely, since no matter what there will be people wanting to use it on our platform.
What are the advantages of this model?
Margin lending is only one of the services by EXMO, and the overall well-being of the company does not depend on it. The platform already has enough funds to launch margin lending even without the crowdsale. But by attracting investors in the course of the crowdsale, we’ll give the participants in the crypto community the opportunity to use our tools for centralized issuance of margin loans to users and gain profit from it.
Other platforms offering margin lending mostly serve as an intermediary between their customers who lend each other the required funds. We are on the road to bring the whole new experience and convenience to our customers.
By investing in the EXMO Coin crowdsale, our potential token holders will essentially acquire a portfolio of assets — in a sense that they will benefit from a whole system of loans on our platform.
What’s next?
The EXMO Coin crowdsale will be held from September 10 to October 10, 2018.
By the start of the crowdsale, margin lending will be already operating on the EXMO platform for several months. Thus, we will be able to carry out the public audit of both the service itself, as well as the investor payment model. This will be made in order to inspect the profitability model for all the EXMO Coin holders, as our customers will be able to verify the accuracy of our calculations regarding the EXMO Coin.
For more information on EXO tokens check out our Whitepaper, and follow our updates on the EXMO Coin Telegram channel, Twitter and Facebook!
