The first FCO (Field Coin Offering)

Sep 10, 2018 · 6 min read

The current crisis shows us that ICOs (Initial Coin Offerings) are outdated. They don’t fit the current need of investors and lack guarantees concerning the use of assets. Worse, many tokens won’t reach the minimum market cap of 300 million USD during the lifetime of the token, considered as the average amount providing the projects enough liquidities for a sustainable use.

Fieldcoin Ltd is introducing the 1st decentralized Eco-system backed by land properties. During the FCO (Field Coin Offering) users will be able to buy tokens and land properties. In exchange for their Ethers, Bitcoins and Fieldcoins (FLC tokens), holders will receive LANDS non-fungible tokens (NFT ERC721) representing agricultural land.

During the FCO, the Fieldcoin tokens will be locked and usable only on the platform. The bonus in Fieldcoins will be released to the early token holders after the FCO and tradable on exchanges or sold on the platform against ERC721 land backed tokens (LANDS).

When Ethers and Bitcoins are used to buy LANDS on the platform, an equivalent amount of Fieldcoins will be kept in the Eco-system reserves and sold during the months following the FCO. However, a discount will be applied to transactions made directly on the platform with Fieldcoins. With growing adoption, the amount of transactions made in Ethers and Bitcoins will slowly decrease.

Fieldcoin Chicken & Egg solution before and after FCO

The FCO will continue at least until the soft cap of 3 million USD has been reached. It will end if all the tokens are sold out or if Fieldcoin Ltd decide to terminate the token sales due to high demand in FLC tokens, giving a 30 days notice to the public. In all cases, the FCO will not last more than 8 months and the eventual unsold tokens will be burned.

Protecting your ERC20 token against bear markets

We have often discussed about cryptocurrencies losing their value during bear markets. How is it possible that some tokens reach 1 billion USD market cap before dropping to less than 100 million USD market cap in a few months when some have a very sustainable business model and already working platform? The answer is simple. Currently, the tokens prices fluctuate all together in the same direction according to more or less rational concerns over the overall acceptance of cryptocurrencies but seldom around a specific business model adoption.

However, when looking in detail companies using issuing cryptocurrencies, there are tremendous differences between one project and another. Some tokens should keep their value because they are backed by a strong industry. In practice, during bear markets, we notice that the Global Market Capitalization of most cryptocurrencies is transferred again to FIATs. In fact, traders are selling huge amounts of tokens in US, Euro, Yen and Yuan to protect their assets during those market dips. But there is a way to avoid this bleeding by protecting the acquired market cap of your token.

Many projects that provide tangible products on their platforms have the opportunity to create a new kind of ICO. For instance at Fieldcoin, we are introducing the first FCO (Field Coin Offering). Considering that agricultural land is the most stable asset over the last 50 years, we are creating a stable instrument for trading on our platform.

The main idea is to have a growing market cap threshold guarantee adequate with adoption and token price increase on exchanges. The solution is to apply a different rate on the platform that guarantees a certain threshold under which the tokens price will not decrease. Fieldcoin token holders will have the possibility to buy LANDS tokens at a certain rate that is fixed and increasing depending on the amount of the assets in the Eco-system.

But here is the point: in case the token value increases on exchange at 3, 4, 10 or 20 times its ICO value, this trade-back effect will be weakened accordingly. So, we need to add monetary mechanisms that will prevent the token prices from dropping and also level up a purchasing price threshold.

The whole concept of the Fieldcoin Token evolves around a Trade Back guarantee and a price inflation mechanism. When the price of the Fieldcoin Token rises, a very small percentage of this increase will be minted and sold on exchanges against USD or EUR. Those FIAT currencies will be used to buy more land in the Fieldcoin Eco-system. Consequently, the threshold guarantee of the Trade Back will increase in time. In case of a bull market and a consecutive bear market, the token will not drop so badly and the market cap will remain relatively stable. We call it capitalization on the upward trend. Currently, the unresolved issue most utility token have is they cannot capitalize on a token market cap increase.

There will be 2 rates

1st, the price of the Fieldcoin platform. It will be formulated on a module. Token holders will be able to enter the amount of tokens they have acquired and access the information concerning the trade back value off their token on the platform.

Once the holder wants to sell, they either have the possibility to exchange LANDS against Fieldcoins directly to the Fieldcoin Eco-system (faster transaction) or wait for a buyer on the platform who will purchase the LAND token at a chosen rate.

2nd, as the token price is fluctuating freely on exchanges like any other utility token, a seller might find it more interesting to exchange their LANDS fast against FLCs and sell them on exchanges against other cryptocurrencies or FIATs. But when the price of Fieldcoins is low on exchanges, the trader may find it more interesting to acquire FLCs on exchanges to buy LANDS asset backed tokens on the platform at a cheaper rate.

Consequently, once the Token capitalizes on the upward trend, the trade back threshold will get higher. If the token price drops on exchanges, it will not stay long under the trade back ratio as arbitration traders will start buying ERC20 Fieldcoin tokens to purchase LANDS, asset backed tokens, on the platform at a cheaper price.

Minted Tokens Rate every 10 minutes

The minted rate of Fieldcoin tokens has been calculated to provide the required liquidities for the Eco-system and grow according to adoption without impairing the increase in the token price.

Example: Token market price positive spread during 24 hours

Current token price: 0.085
Number of Tokens in Circulation: 1 200 000 000 tokens
Total Market Cap: 102 000 000 Millions USD
Minting rate for price increase/10 minutes: 1.4%
Total positive spread in one day +4.89%
Daily minting 0.06846% of the total token supply
Increase of assets in the Ecosystem in one day: 69 829 USD
Tokens in circulation after minting 24h: 1 200 821 520 tokens
Total Market Cap after one day: 102 069 829 Millions USD

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