Why MediaRich.io’s Private and Presale Token Pricing Model Is Beneficial For Buyers
One of the most frequently asked questions the team at MediaRich.io hears is: Why aren’t private/presale sale tokens being sold at a fixed price? I want to know exactly how many tokens I’m getting! The answer is far less complicated than you might imagine. MediaRich.io’s model will help shield the token buyer from post-presale market volatility.
Throughout the private and presales, we are selling “value” which will be converted to tokens after the token price has been set by the market. This is done through an easy to follow auction process, whereby a large number of buyers vote on the price. How is this done? At any moment during the pre-sale, the token price can be computed by taking the total amount of value purchased until that current date and dividing by the total number of private sale tokens which is slated to be $500 million.
Buyers will then be able to calculate the amount that has been bought at each moment and will be able to calculate the current token price thus far. Our intention is to present this information in a participant accessed dashboard during the presale event. As more buyers join the project, the token price will steadily increase.
Upon the conclusion of the private sale, once all funds have been totaled, the computed closing token price will be equal to the greatest amount that the market will bear: no higher and no lower.
This equates to great news, especially for the early buyer as it doesn’t matter what the exact token price is. The incentive of fair-market driven pricing is significant. Here are some additional considerations:
• The final closing price will be the result of a large number of participants acting and deciding together in a live market auction.
• Given that the bonus levels in the private sale are at 50% and the presale at 25%, which then declines to 5.5% over a 14-day period, the earlier an investor participates, the larger the bonus they receive, regardless of the final market price.
• Early buyers will receive tokens at the same price as presale buyers as well as bonus tokens.
Conversely, if MediaRich.io were to set the price instead, what are the possible consequences? There are two highly likely outcomes, both of which we aim to shield from occurring.
• The token price is too low: This would leave a lot of money that could be better utilized to fund a successful project.
• The token price is too high: Although this could result in more capital, the market could quickly disagree with the token valuation. The end result would be a token price that is vulnerable to plummeting during the main event sale. This would mean negative consequences for buyers and could substantially harm the project.
Once the ICO is completed, over time, as the project grows, and adoption increases, MediaRich.io may consider the possibility of increasing pricing of its services. Additionally, MediaRich.io may decide, periodically, to burn Dyncoin in order to manage fiscal policy with the cryptocurrency. These factors may support an increase in Dyncoin pricing over the long term.