“Many ICOs right now fail to promptly deliver tokens to their investors.
You have to be really quick to get your coins,
or else you risk waiting for hours and hours because of the Ethereum blockchain overload. Moreover, every daytime ICO launch in Europe is a deep night ICO launch in the USA, which is totally inconvenient for US token buyers. It would be a good idea to implement some booking of tokens before the actual token sale. To deal with it, there is no better solution than issuance of options in advance of ICO.”– Konstantin Gladych (CEO and co-founder at Changelly, Genesis Vision adviser)
ICO (Initial Coin Offering) is a convenient, fast and open-for-everyone way to get support for a project quickly. Because of this, ICOs are blooming right now, attracting giant amount of capital from all over the world. Take FIleCoin ICO, which recently attracted nearly 200 million USD in less than an hour. And lots of great ideas are raising comparable sums of money that way. However, these ICOs have impeding flaws that make coin sale buggy, slow and unreliable. And all of these problems can be easily solved by introduction of ICO token options.
(source: https://www.coinschedule.com/stats.php?year=2017)
In finance, option is a right, but not an obligation, to buy or sell a financial instrument or goods in the future at a price that is agreed upon today. Traditionally, financial instruments were common stocks and bonds. However, with advance of the economic system, the list of financial instruments expanded to ETFs, pension funds, index funds, security packages and many other more sophisticated investment vehicles. All of them are subject to an option nowadays. It is obvious that cryptocurrency and token market needs options as well in order to be more efficient and free, and here’s why.
Options gained momentum during the years because they simplify trading daily investors. The can go long or short on an option contract without actually owning its underlying asset. Another important characteristics – call option guarantees that its owner gets the underlying product in the future. This offers tremendous advantage for investors when it comes for instance to hedging strategies.
Options can be useful in ICO campaigns, as well. Let’s assume a typical ICO process. Status ICO, which took place in 2017, raised 90 million dollars from investors. While this can be considered a successful attempt to raise capital, ICO caused many inconveniences to investors, as well as ordinary Ethereum network users. Usually, ICO generates overwhelming interest on the first days of launch and during this period token sale transaction number could reach millions within few hours. This giant queue of transactions is sent directly to the Ethereum network, clogging Ethereum blockchain, which causes massive transaction delays and transaction fees to skyrocket, making the network unusable for hours. In case of Status ICO, this overload forced developers to pause the distribution of tokens, making many investors dissatisfied as they had to spend a lot of time waiting for their tokens to arrive.
This problem of network clogging can be easily solved with options, which act like “token booking”. This will lead to smoother spread of ICO transactions. But network flooding is not the only reason why ICOs need options. What if you are still reluctant to buy more coins, or don’t have the funds necessary to acquire a desired coin amounts at the moment? Well, in that case, options will be of a great use. You can just buy an option for a fraction of the actual token price, then you can, if you wish, exercise your right to buy tokens at an option strike price, e.g. 1 dollar.
Options can also solve a number of other ICO flaws. For one, people who have been following the project for a long time can simply be late to invest money. Options will allow early supporters to book their tokens in advance at a price they consider fair. In addition, the very time of ICO launch may be inconvenient for the investors – due to the geographical dispersion of investors, participation for many of them maybe complicated by the fact that the launch of ICO falls on a deep night in their timezone. In overall, early investment bonuses are often given not to actual first supporters, but to those who managed to be the first to carry out a transaction in the blockchain. Implementation of the smart contract-based token option solves all of those problems.
For day traders, the bottom line is that with options in place token longs and shorts will require many times less capital than actually buying and selling tokens at a current market price.
Genesis Vision ICO will offer ICO token options, and the open sale will start a month before an actual ICO. With ICO token options you can analyse and investigate Genesis.Vision project, and decide for yourself which amount you are willing to buy now, or buy an option that will allow you to buy tokens later for a price that you deem necessary today. It’s worth mentioning that you are not obligated to exercise this right – you don’t have to buy tokens later on if you don’t want to.
Genesis Vision option guarantees the right to acquire GVT tokens at a specified price during the ICO. Genesis Vision option token is based on ERC20 Ethereum token standard. The option price is 5% of the desired amount of investment. Options will also give additional bonuses for tokens amount. Options for the first 20% of the maximum options cap guarantee their holders a 30% bonus. The next 30% receive a 20% bonus, and the remaining 50% receive a 10% bonus. 20% of GVT will be available for purchase by Genesis Vision option program.
In order to make option sale effective, on the first day of ICO, tokens will be sold to option holders only. When option holder purchases GVT during the ICO, his option (or a part of the option) is exercised: option tokens are burned and a corresponding amount of GVT is acquired. If investors didn’t exercise the option on the first day of the ICO, they can do it on any other day, but in this case the option will be exercised only if the ICO pool has enough tokens. If option holders do not exercise their options during the ICO, the options will be canceled. Options can be exercised partially.
ICO market is still in its infancy, and it is constantly developing. Offering ICO token options works as an extra layer of security for those investors, who are considering to participate in Genesis.Vision’s ICO. They do not need to jump in following herd mentality due to time limitation, but have the time to assess, analyze and review the opportunity from every single aspect in order the come up with the most profitable investment solution. Thus, the addition of options to the ICO process will make it more convenient and reliable for all participants.
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