Company Update | December 15, 2018
“What’s been happening with Simmitri? Why has Simmitri been quiet? Why has the price dropped? Is this a legitimate company? Why, what, where and when…?!?” These are the types of questions we are receiving — and for good reason. It’s true, Simmitri has been quiet for a little while on the marketing and announcements front.
There’s a few reasons for being quiet. For one, we needed to bring on legal and corporate identity advisors to help us navigate the choppy waters for creating and using our own branded digital asset. We are a US-based company and we wish to keep it that way instead of opening up an operation in Malta or somewhere else just to ignore the regulatory agencies here. The primary reason we did not conduct an ICO or raise any private funds is to play it safe. We’re still playing it safe by communicating with our attorneys and advisors on what we should or should not do. We are under the impression that all US-based companies who create digital assets — that also have a value translated in fiat — are being observed quietly. But to be clear, no regulatory agency has reached out to us.
The second reason for not being outspoken is that we have taken a good look into our own tokenomics model and we are preparing for changes. When we created the Simmitri (SIM) Token, we did it as an ERC20 standard token mainly because of the use of smart contracts. The issue we are having now as we develop our platform is that ERC20’s still have limitations within our own business model. ERC20 tokens are Proof-of-Work that is very energy intensive. The concern was raised internally on how we are going to embrace blockchain technology when the ERC20's protocol (POW) demands so much energy. The reasonable answer was to switch to a Proof-of-Stake (POS) model that does not demand very much energy at all and replaces physical mining rigs with online validators. So, as we keep an eye on Ethereum Casper set to come out in 2019, we will be switching to a POS token as well as becoming a masternode. Please know however, that if Casper still does not meet the individual needs of Simmitri, we may set out to just create our own blockchain. More details on all of the tokenomics will be described in the next version of our whitepaper.
With having said that, allow me to be thorough while I answer the questions many of the current token holders may have at the moment…
- Why have I not received my airdrop SIM tokens?
- What is up with the circulating supply on CMC?
- Why has the price dropped so much?
- What will Simmitri do to survive this market?
- What is the latest development?
- Will Simmitri do any marketing soon?
Why have I not received my airdrop SIM tokens?
What started out as a great strategy for us to get off the ground and build a community around the token eventually grew into a big headache. The goal was to reward tokens to individuals who join our social media and extra incentives for those who get friends to sign up. Easy enough, right? Wrong.
Here’s how it really went down.
We set up the campaign on a platform that’s set up for social media sharing and that could also count points (represented in tokens) of how many each person earns. The issue became apparent after-the-fact that this particular method was a playground for scammers, and bad apples ruined the whole intention. What was supposed to be an automated, simple solution turned into a VERY manual, complicated process as we combed through the thousands upon thousands of entries.
We now have the scrubbed list of the believed participants who joined our community. We have one more chunk of tokens to get out before we completely resolve this issue and if you have not received your tokens, you will be directed to our support center to submit a ticket to receive assistance.
What is up with the circulating supply on CMC?
We understand that there is a discrepancy between the 897,653 SIM listed on CoinMarketCap.com and the 175M listed within our whitepaper, CoinLib, and other places. First, we disagree with CMC that there are only 897,653 SIM in current circulation. What happened is we told CMC that we have earmarked 175M to be in circulation and 175M locked up in reserves for future Simmitri clients. We explained the primary wallets holding SIM tokens and CMC determined that the entire market only had 897,653 and we are working on fixing that quickly to reflect the true number.
This is what happens when you have a company that does not conduct an ICO and is releasing tokens to get to the point of 175M in circulation. When we told CMC that we did not conduct an ICO or raise any private funds, they took it upon themselves to dedicate their own circulating supply. They made the claim that they have an automatic grading rubric to publish the circulating supply, but if you’ll notice, the supply has remained 897,653 for over a month now even though we have tested against it and it remains static.
Additionally, during our tokenomics review, we have concluded that we need to maintain a higher amount in reserves for platform users which will cap the circulating supply at 100M, giving us a budget to distribute more tokens to the public through marketing campaigns, contests and other means to get to the point of 100M total tokens in circulation. After we have the 100M fully distributed, we will request CMC to make the change to reflect that.
Why has the price dropped so much?
There are a few factors for this. For one, most of the individuals who receive SIM tokens in the airdrop simply dump them on the market. We see this all the time with people who get tokens for real cheap during an ICO or for free during an airdrop just to make a quick profit. There’s nothing really wrong with that but it will take some time for the price to recover in this long and painful bear market.
Which brings me to the market conditions that we are in. Not only has the entire market cap of the cryptocurrency market fallen over 90% over the course of 2018, but even more painfully, in these last few days we have seen an even greater drop. When a market has an incredible amount of sellers over buyers there is panic. We have seen this happen over the last several years but this one hurts us because we now have our own market and there’s a double pain point here because companies who launch their own digital asset in an environment such as this need to show true strength to survive.
What will Simmitri do to survive this market?
When the market began to really turn south at the beginning of the year, we said, “Only those who have a real business with a real product with real purpose will be the ones who have a chance to rise from the ashes of a market crash.”
It’s true. The strong will survive. The fact is, Simmitri is well established as a real business with a real purpose. We are working diligently on a working product that reflects that purpose and there has been huge progress. So as frustrating as current token values are at this point, we need to rest assure that business deals are being made to create adoption for Simmitri.
Only through adoption will we flourish. Fortunately, we already have a customer base of thousands of homes that we will have adopt our new economy and we have made huge progress on making partnerships or alliance deals with other companies to embrace the SIM token as a method of currency in a 3rd party ecosystem. Those companies will be announced soon.
What is the latest development?
Simmitri’s new energy token economy is becoming a reality and we are more excited than ever before. We are not only testing a real-life scenario with our Denver smart home remodel, but also have been testing smart home applications and datasets to see results. We’ve identified several technology solutions that allow Simmitri to both monitor and control devices inside the nanogrid to determine the most efficient methods of increasing building performance through a balance between automation and occupant command overrides.
Here’s a list of some development highlights;
- Identified compatible energy devices for monitoring and control
- Deep discussions and negotiations with potential partners and exchanges
- Opened up and have a fully functional Denver office
- New partnership with RGS Energy to distribute integrated solar roof tiles
- Brought on a new team for community management and support
- Brought on a new team for installing and building smart homes
- Updated training manuals and documentation for new staff
- Integrated with crypto portfolio management platform, Blockfolio
- Testing user dashboard to launch minimal viable product (MVP)
Will Simmitri do any marketing soon?
Things are moving fast. We have been focusing on our internal business as well as technology for the future. As we progress into 2019, we will be starting a PR schedule to release more information on the relationships and developments we complete.
As you may or may not know, John McAfee officially joined Simmitri as Senior Advisor and will playing a larger part in our marketing efforts. We have been working with Team McAfee over the past several months and we all agree that we need to be somewhat quiet as we work toward an MVP, but McAfee will act as a large support to not only get the word out about our company but also connect us with industry leaders as time goes on.
Through McAfee, we have secured media slots throughout the entire year of 2019 to be on television for a TV series called “Exploring the Block” which Simmitri will be interviewed to discuss the company, vision and progress which will air on networks such as Fox News, ION, Bloomberg, NASDAQ and other local business news channels. We’re excited to go mainstream!
If you haven’t seen our latest video, please take a quick look at our project in Denver to see what we’ve been up to.
