A Message from the NAGA Executive Team to the Community:

3 min readNov 20, 2017

We’d like to address the feedback about our announced hard cap of 220M.

Our Goals

First of all, the company’s goal is to raise 30M USD. Unsold tokens will be burned, so there will be no impact on our token economy of having a high cap.

Why We’re Different. Unlike Most ICOs, NAGA is:

Funded: we have already raised multiple rounds of investment including our recent IPO which went up by 400% and a venture capital round from the multi-billion dollar FOSUN Group in China.
Credible: NAGA has the tremendous legitimacy and credibility that comes from undergoing the extreme diligence and regulatory scrutiny that comes from a public listing.
Shipping Product: main product development is complete and we already have a multi-million dollar revenue product. We already have sufficient capital to complete the tokenization of our product ecosystem.

Thus we do not need a token sale to build our product. So why do we need more capital and how much do we need?

We are Creating a Bridge Between the Old and the New

NAGA enables users to move between worlds. NGC is a single token that moves across:

Fiat to Crypto: exchange currency of their choice
Traditional to New: buy public stocks or crypto assets
Real to Virtual: buy real assets or virtual items
Young to Mature: from the Millennial generation to Baby Boomers
Past to Future: from IPO in October to ICO in December

The Next Billion Wallets

But what is more significant are the users who will be crossing this bridge with us. We plan to use token sale proceeds to invite new users to join our community and cross this bridge into the new world.

Use of Token Sale Proceeds

Because NAGA has existing proven products, users and revenue, we feel that we will be able to deploy capital to acquire new users and bring them into this hybrid fiat-crypto economy. Every user who joins us will stimulate our token economy and drive up the value for all token holders.

Our Economic Model

To understand how new capital stimulates our token economy, please refer to our Excel scenario sheet. The core assumptions for SwipeStox´ past KPIs (like CAC, Conversion, LTV etc.) are based on real audited data.

Network Effects

This model gives us confidence that we can create a significant network and data effects that provide Metcalfe’s law exponential growth potential. Every new user contributes to the demand for NGC tokens and this produces the groundswell for increasing the value of the token for all holders. In addition, the application is an inherently social buying app that has both data and social network effects.

This Excel scenario sheet allows our community to apply their own assumptions via a dashboard.

Scalability

As the scalability in our segment is huge the limit should represent the amount that could still be reasonably invested into marketing to grow the user-base and hence token-economy. We hence set the hard cap at an amount at which we can still reasonably scale up (see XLS scenario sheet — containing the KPIs from our audited and listed running business) — taking in consideration the diminishing returns from marketing channels etc..