Re: [ANN][PRE-SALE] MEERKAT - A utility token designed for local merchants
Hello,
I like the concept as I am deeply involved in the industry myself. Happy to see more projects targeting the masses of tourists with such tech. However I have a brief question about the FIAT exchange for merchants. As i understand you basically buy their tokens back in case of a price decline? Isnt it a high risk for the firm ? I mean I understand that youre willing to eliminate volatility but am trying to understand the economics behind it.
I like the concept as I am deeply involved in the industry myself. Happy to see more projects targeting the masses of tourists with such tech. However I have a brief question about the FIAT exchange for merchants. As i understand you basically buy their tokens back in case of a price decline? Isnt it a high risk for the firm ? I mean I understand that youre willing to eliminate volatility but am trying to understand the economics behind it.
Hi there! Thanks for dedicating your very first comment to us.
Assuming youre not working for a competitive project there is no secret I can tell you. Because there is no secret in our token economics. Our company the Have Fun Corporation is basically a tourist guide and advertisement services agency. To keep it short with concrete numbers a usual merchant pays roughly 3000 USD per month for our advertising spaces both in our quarterly magazine and downloadable app. So as you can imagine we make a reasonable income on merchant contracts. Therefore we are not worried to buy back our tokens if necessary. As it is emphasized in the whitepaper our business model is based on the idea that price volaitlity can not be a problem for a merchant. Otherwise they just refuse to accept crypto and thats it. Volatility is a real barrier for crypto and it has to be address honestly for businesses. Hopefully our project can contribute to that.
