Will the company buy its tokens off the market?
We're offering to buy back up to 10% of a holders tokens each fiscal quarter at a price that cannot be lower than the initial ICO price + added platform/casino profits. So it's not exactly a dividend but as our profits grow, we'll be able to offer much higher token buyback prices than the exchanges.
I have a small confusion here,why would you purchase the tokens at a much higher price than in the exchanges,every business looks for profit and why would you plan to do when you could acquire from the market and keep the buy back process moving forward with a lesser cost that would hurt a portion of your profits.
Hi,
I've touched on this above and I quote;
Not at all. This is more of a "safety net" that we provide and a commitment to our investors. It's going to come out from our end. Let me explain.
The idea is that the token price stays at OR above the original ICO price (which is locked in as the buy-back price) and then we'll add a % from our total profits for the fiscal quarter. So it's kind of like a dividend but not really.
If the token price sky-rockets on exchanges it will obviously make a lot more sense to sell it there but in the case that the price drops lower (which we don't believe it will that's why we're confident in offering this) we'll buy back 10% of your tokens each quarter. So, in any case, you can sell your tokens at the same or higher price than you originally bought them for if you just hold on to them for the long term. The early investor bonuses (40%, 20% etc...) are basically instant profits when you think about it as you'll come out ahead regardless.
Again, we're only matching and locking in the ICO pricing + % of overall quarterly profits. It's not going to be much higher when you consider that fact that most holders will want to hold and NOT sell their tokens, as per our system. The buy-backs are NOT going to occur indefinitely as the price of our overall profits, token price and market cap grows. As mentioned this is more of a safety-net for early investors more than anything else.
If the project is not doing so well, you'll be able to make back most of your original investment which in turn motivates us, as developers, to perform at the highest level and achieve high market valuation and growth. If the project is going well it will make more sense to sell your tokens at a regular exchange, which is what we're ultimately aiming for.