What is the Downside Protection?
Downside Protection allows token holders to sell their tokens back to Blackmoon Crypto if the price goes down. This protects contributors from potential dumps and decline in the price of BMC token. This offer is active for 24 months from the end of the token distribution period. The company will allocate 30% of the crowdsale as a reserve for this. Effectively it is a put option granted to the token holders by the company.
How does it work?
Blackmoon Crypto will put aside 30% of all funds raised in the crowdsale. These funds cannot be used for the next 24 months for any purpose other than the buy-back of BMC tokens. The buyback is set at 80% of the initial Distribution Rate.To put it simply, holders of BMC tokens, who are willing to sell their tokens in the next two years, could do so at $0.8 per token. Blackmoon Crypto will buy back these tokens using the reserve created after the crowdsale. All purchased BMC tokens, if any, become the property of the company.
In other words, should the price go down below $0.8, Blackmoon Crypto will step in to buy back the tokens at $0.8 from anyone willing to sell. This will protect investors from potential dumps in the market and also serves as our vote of confidence in our solution.
Transparency of the reserve
The reserve will be created from the proceeds of the crowdsale and stored in the diversified portfolio of major cryptocurrencies. The information on this portfolio will be publicly available on our website to provide investors up to date information on its value and structure.
The reserve will be held for 24 months. After that, the funds will be returned back to the company to fuel its development.
The defensive nature of the BMC token
BMC tokens receive proceeds from the funds that operate on the platform. Thanks to the wide variety of investment funds with different investment objectives on the platform, such proceeds will be highly diversified, since the funds will invest in both crypto and traditional assets. Because of this underlying value, BMC token is considered to be a defensive asset, resilient to the declines in the crypto market. Please, follow the link to our CEO’s article to get more color on that.
Handy links:
- website: blackmooncrypto.com,
- whitepaper: blackmooncrypto.com/bmc_whitepaper,
- teaser: https://goo.gl/iGWQ5N
- telegram chat: https://t.me/blackmooncrypto,
- parent company website: blackmoonfg.com.
Blackmoon Crypto token sale starts on September 12 and it’s poised to sell out pretty fast. We are also gathering pre-orders at account.blackmooncrypto.com.
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