ATRIX BUYBACK GUARANTEE
ATRIX 80% Buyback Guarantee
ATRIX developed the digital token which offers compulsory buyback guarantee to its holders at the rate of 80% of the pre-defined token sale price, meaning that the token value is fully backed by funds reserved in a specially designed buyback escrow fund. As the token sale price is fixed at 2,0 USD the guarantee price will never fall below 80%, the initial floor is set at 1,6 USD (floor price), which means minimized risk and highly reduced volatility. Considering this, unless in adverse scenario, it is unreasonable to expect that the value of the token drops below the floor price.
After the end of the token sale 87% of the funds raised will be reserved in our multi sig XAPO wallet and converted to USD. 80% of the amount represents buyback guarantee, while 7% of the amount represents costs for conversion to and from USD for using services on XAPO.
The buyback guarantee will be valid for 5 years from the end of the token sale and will be commission free for all ATX token holders. We believe this is the very essential warranty in favour of early contributors, who are therefore protected in case the promises from the whitepaper do not materialize. Although it is our belief this should essentially become a widely adopted standard in token sales, ATRIX designed the first ever token with such a feature.
ATRIX’s smart contract will be designed to allocate the funds raised in a way that ATRIX token holders will be highly protected. Our strategy provides that the token value is largely immune to activities on crypto exchanges. Moreover, the ATRIX platform will enable a 24/7 oversight over the reserved fund and its outcomes, making our operation transparent to the community and completely trustworthy. The smart contract on ATRIX platform will enable the token holders to withdraw the contributed assets in Ethereum or Bitcoin, at the rate transparently defined on our platform at any time.
Our long-term vision is that traditional banks will recognize the true value behind the ATRIX token and take the ATRIX token as a credit guarantee. We aim to create an environment where your ATRIX token will be considered as a fully useful and secure asset.
BUYBACK AS FORM OF PROFIT SHARING vs. ATRIX BUYBACK GUARANTEE
It is important to separate the ATRIX BUYBACK GUARANTEE from the promised buybacks of many token issuers. Buyback is the instrument of the token issuer. The ATRIX BUYBACK GUARANTEE is the undisputable right of the contributor.
Buyback in the ordinary course of business, means a form of reverse profit sharing. Instead of paying dividends to investors, profit is spent by token issuers for buying tokens on the market. Increased demand for tokens most probably impacts the market price of the token, at least for a short-term. If a token has buyback feature it most probably qualifies as a security, not as a utility token.
On the other hand, the ATRIX BUYBACK GUARANTEE means a protection for the investors in case a project does not evolve according to plans. ATRIX will not spend profits on buybacks. The ATRIX BUYBACK GUARANTEE is the contributors’ safety net and our clear commitment.