What is advantages of Reverse TGE comparison to traditional TGE in terms of investors ?
The blockchain technology is receiving much attention based on the explosive price rise of the cryptocurrency in 2017. The interest has led many people to jump into the blockchain market and this has led to a number of TGEs. These TGEs are obviously differentiated from Traditional TGE and Reverse TGE depending on whether existing companies proceed or not. Then, what kind of TGE would be more advantageous for investors in different TGE types?
The success of blockchain (the rise in the price of their token or cryptocurrency in terms of investors) is ultimately in the formation of a token economy through a blockchain. If the token economy is successfully constructed, the demand for tokens can continue to be created, and this demand could act as one of the biggest factor on the rise of the price of token along with the price stability of the token.
Then, what is the most important element in creating a token economy? The blockchain technology or successful TGE could be important, but the most important are the participants to form the token economy. Since the blockchain is now in the spotlight as a new technology, it is beyond the eyes of the investors to create money through practical use. But in the end, it is very important that the blockchain be a service that people seek when you start to consider it is a form of service provided through technology. Services that people do not seek are eventually culled and disappear into the backdrop of history
Ethereum, EOS, NEO, and other protocol-oriented block chain’s prerequisite for success is how many dapps are created on top of this blockchain. If protocol provide most comfortable developing ecosystem that developer could make a dapp, Much more dapp will be made in the base of that protocol block chains. Therefore, how it is good for developer is most important in success of protocol blockchain. In contrast to this protocol-oriented blockchain, dapp-oriented blockchains determine how many users want to participate in this token economy offered by this DAPP.
Traditional TGE is very dangerous in this respect. Most of the current DAPPs, and most of the DAPPs that will be released in the future, are aimed at developing existing business model in a better way through blockchains. Therefore, they have a structure in which they are forced to compete directly with companies who has same business model but do not use block-chain technology. After all, they are no different from start-ups starting from the bottom. Therefore, in constructing the token economy, they have to compete with the existing companies to bring their customers to token economy.
However, in the case of Reverse TGE, companies that have secured their own customers after stabilizing by occupying a certain percentage in a certain industry sector are proceeding the TGE. Therefore, TGE is used one of the way to broaden their business sector. This means that the users who are required to construct the token economy of the blockchain are already exist in case of reverse TGE. Therefore, when compared with Traditional TGE, Reverse TGE investors who have already proven business models in the market will be more attractive because they already have users who are required to construct token economy.
