Feedback on the Bitbon Crypto Currency. Simcord Development. Review and Predictions for 2019–2020
Content
History
How the Bitbon System Is Set Up
Examples of Use
Prospects for Investing in Bitbon. Predictions for 2018–2019
History
The Bitbon crypto currency itself or, according to developers a digital asset, should be viewed in the context of the entire Bitbon System because Bitbon was created to operate in it.
Simcord company, headed by a businessman Alexander Kud, is the developer of the Bitbon System.
This infrastructure product is a Blockchain platform for Contributing. In its turn, Contributing is a new type of safe investment, where all projects are checked not only at the crowdsale stage, but also after its completion.
The concept itself was announced at the annual event, Simcord Innovation Technologies, which was held in Kazakhstan (Almaty), in September 2017.
The Bitbon System crowdsale was held in three stages: pre-sale, internal crowdsale and public crowdsale. According to general statistics on the results of three stages, 18,583,711 Bitbons were sold to 28,998 users. Due to the laid down exponential pricing formula, the initial price for 1 Bitbon was $1, and it was registered at $6.45235 at the end of the crowdsale stage.
The amount received over the entire crowdsale period constituted $88,464,449.
How the Bitbon System Is Set Up
Basic functions:
- Management of rights to assets;
- Evaluation of property rights to assets;
- Transfer of property rights;
- Organization of fundraising process;
- Organization of investing into promising projects.
Main distinguishing features:
- Legal support in the form of the so-called Projectbon Public Contracts;
- Ability to manage the rights to assets, which means the right to acquire property rights to assets, rather than the right to transfer assets;
- Audit of businesses and business ideas before they are offered to investors;
- Stage-by-stage payment of funds raised during crowdsale;
- Controlling the fulfillment of obligations to investors at each stage;
- System participation in the project financing and making profit, which is distributed among all Bitbon owners.
Examples of Use
Asset Management Activity
Let us suppose that one person owns a certain asset, for instance, an apartment. He/she needs money and agrees with another person on the loan in the form of Bitbons, which is the right to acquire property rights to assets. All loan terms are listed in a special legal document similar to the offer — the Projectbon Public Contract. In other words, if the borrower does not give anything back, he/she will have to sell the apartment, buy the borrowed amount of Bitbons and return them to the creditor. Let us note that the creditor does not become the owner of the apartment but, according to the terms and conditions of the contract, the borrower must return the borrowed funds because he/she ensured the fulfilment of obligation by his/her assets.
Contributing is the main activity in the Bitbon System. This is a new type of investment offering unique ways of protecting the investor’s capital. Bitup-Agencies are the main participants in the process of regulating relations between business owners and investors. These are special organizations, whose members are qualified in the fields of finance, business activity and law. Thanks to their professional competence, they can correctly evaluate the validity of each project, which requires financing.
Let us consider a simple example: an entrepreneur needs money for implementation of his/her brilliant business idea. He/she turns to the Bitup-Agency. Specialists evaluate the project according to a number of criteria: asset backing, entrepreneurial skills, business idea validity and investors’ benefit. Then, the project receives the Projectbon Public Contract, which contains all terms and conditions for attracting financing and obligations to the investors. Financing is carried out in stages, and the Bitup-Agency monitors the implementation of each stage.
Projectbons, which are purchased for Bitbons by an investor, guarantee the fulfillment of obligations. At the time of paying dividends, the entrepreneur will have to buy back Projectbons from investors by paying out Bitbons.
This investment model will be perfect for the real sector of economy. But you should take into account one thing — a speculative component. What does a businessman have to do if the Bitbon price increases before the obligations are fulfilled? And then the developers solve the problem by implementing a mechanism of additional financing from the System Fund. What should be done if additional financing is required due to force-majeure, or there is an idea for improving the current project, which requires additional financing during its implementation stages? Such opportunities are also envisaged by the System. What to do if not all raised funds were used, and there is money remaining in the wallet? In this case, all remaining Bitbons are distributed among all participating investors according to their shares.
Prospects for Investing in Bitbon. Predictions for 2019–2020
As we see, all downsides of the existing ways to carry out crowdfunding and crowdinvesting campaigns were taken into account while developing the Bitbon System. If all plans are realized, we will be able to predict confidently a significant increase in the price of the crypto currency.
We will certainly follow the development of the project and inform you on the Simcord company’s progress in achieving its global goals.
Written by: Mattew Crag
This story is published in The Startup, Medium’s largest entrepreneurship publication followed by +417,678 people.
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