Utility Tokens — UPROSE Finmart Use Case
Why investors in 2019 need to be find the hidden value in Utility Tokens
Cryptocurrency coins in 2019, can be divided into three distinct subgroups: Cryptocurrencies, Security Tokens, and Utility Tokens.
Coins like Bitcoin are true cryptocurrencies, in that they are explicitly designed to be used as alternatives to traditional currency. Conversely, security tokens (for the most part) are ICO coins which help businesses raise startup capital.
Theoretically, security coins appreciate in value, as funds raised from token sales help startups launch. However, investing in security coins is increasingly high-risk.
Security Token Investment Risks
In 2018, startups raised over $11.4 billion through initial coin offerings. However, many ICO investors didn’t realize any return on investment.
Over 50% of ICOs failed to reach fundraising targets
Several projects failed to return profits to investors as their coins had no use case post listing and were only used for speculative reasons
Startups have no obligation to compensate or return profits to investors, as ICO coins give no rights to investors in the same way that shares do.
Lack of investment security had made many investors wary of investing in ICO coins in 2019. Smart investors are, therefore, investing instead in utility coin offerings.
What is a Utility Coin?
A utility coin is a digital asset which is designed to increase in value after ICOs complete. This is thanks to the fact that unlike security tokens, utility coins are intended to be redeemed at a later date, for real blockchain goods and services.
When Bitcoin was brought to market in 2009, it arrived as a cryptocurrency with a definite use case. Bitcoin could be used as a store of wealth, or as an alternative to fiat cash. However, many new coins arrive on the cryptocurrency market as nothing more than fundraising tokens.
ICO fundraising coins are coins which investors buy to help new businesses raise startup capital. Other than that, though, most serve no purpose. Thankfully, utility coin offerings change this. Specifically, by allowing investors to invest in coins with a proven use case in in-demand industry sectors.
The UPE Utility Token by UPROSE Finmart
What is UPROSE Finmart?
UPROSE is a multi-asset trading platform, designed to pair cryptocurrency trading with FX trading, stocks and international commodity market trading. When launched, the UPROSE platform will allow users to exchange coins like Bitcoin for other altcoins, foreign currencies, and even commodities like crude oil.
Like with other ICOs, investors who buy UPE tokens help UPROSE augment the project plan. However, UPE coins also serve an ongoing purpose.
All trading commissions on UPROSE will be settled using UPE coins
Financing of ICO-campaigns in UPROSE will be carried out only through UPE tokens
UPE coins on UPROSE will be the authorized method of payment for trading bots and UPROSE white label products
Payment for listing new ICO coins on UPROSE, will be made exclusively in UPE tokens
The above and several other monetization features, mean that when the UPROSE ICO has ended, UPE coins will still have value as an in-demand platform assets.
UPE and similar utility coins are more investor-friendly than standard fundraising ICO tokens. Coins are not equivalent to shares in utility token projects like UPROSE. However, they continue to increase the use case after ICOs complete, thanks to real market demand for tokens.
To find out more about the UPROSE project, click here.
