It is a common problem for TGEs to preserve value that is being gathered. Volatility may provide beneficial or detrimental results to the TGE process.
Imagine you are gathering TGE funds during a period of several days in ETH. On the first day the value of ETH may appreciate by 5% and the team is excited they are doing better than expected. The very next day it drops by 15% and everyone is far from happy. Later on, after funds have been raised, the problem persists and TGEs can expect even much greater uncertainty and confusion from price swings.
START DATE, DURATION, SIZE
Every TGE plan is unique. Yet in simple terms there are three basic factors by which TGEs differentiate between themselves – start date, project duration and size.
These three factor influence how much and for how long TGEs will be subjected to potential negative risk arising from crypto market volatility. For example, if the start date fits optimally into the market cycle, TGEs can generate additional speculative value. However, if you have a serious project and you happen to choose your start date right when the market looks prettiest but then makes a major peak and turns downwards, you don’t want to start worrying and let it take priority over your focus and work, unless you’d rather speculate.
Fortunately, for TGEs this dilemma can be resolved in such a way that it does not compromise on how it can fit different types of TGEs, even those that are less risk averse.
X8X TOKEN FOR YOUR PLAN
In a tokenized business model of the X8currency the utility token X8X lets any holder qualify and get access to the stable currency function up to the level of their reserved allotment and then use it without limit with zero fees. The advantage of this principle is that once the TGE has achieved the access they need, they can use it at will and precisely according to their individual mandate.
X8X tokens need to be bought only once. TGES can calculate how much X8X they need based on the formula X8X = √X8C and present it together in their budget and plans. It lets any project utilize the stable X8C at any point and very quickly during the project and because of the nature of the formula it allows TGEs with high or very high maximum caps to access protection for that without prohibitive or disproportionate up-front costs. As a result, this principle is ideal for TGEs because they can prepare and include it more easily prior to their start date.
Because such access to a stable currency function provides a TGE with a lot of flexibility about how and when it can be used, it means that many different types of TGEs can utilize it. The text below describes two cases on the opposite sides of the spectrum.
A project can choose to use X8currency as its fundraising currency and raise 100% of the assets in this stable currency from the very beginning. This is the safest option. It is most appropriate for serious TGEs which rely a lot on predictable contribution cost levels for project execution.
For example, if there is a lot of gradual investing into real production assets during the project’s lifespan or if the project wants to calculate its plans very precisely and wants strict control over operating margins, then a stable underlying currency is critical for achieving that. These types of TGEs are more sensitive. Currency fluctuations can significantly change how much IT hardware they can buy and what production capacity they will be able to achieve. The greater the share of such and similar expenses in the plan of the TGE, the more mandatory it is for them to protect themselves completely against crypto market volatility.
On the other hand, not every TGE is like that. If we look at the ones that operate like crypto market portfolio investment vehicles, they can even work with different crypto tokens and can change allocation between them frequently. They want to have investment exposure in the crypto market as they are a crypto investment type of project.
The beautiful thing with X8X tokens is that this group can utilize X8currency in increments to various degrees in their portfolios regardless of how many currencies or tokens they are involved with. The percentage of X8currency in a portfolio can be adjusted quickly. They can decide how much safety they want to use for any period of time and they can use X8currency for the entire portfolio when they want. And it is not just about stability. Even with very speculative TGE projects the case for a stable cryptocurrency is strong, because they also need liquidity. With the X8X utility token they can attain access to both.
The X8X utility token is the solution for TGEs to secure their highest quality access to the function of a stable currency. The token enables any TGE to raise their entire funds in a safe cryptocurrency and to remain flexible for the entire duration of the project.
The solution covers a wide array of various types of TGEs that can benefit from this system and the concept supports them from a very early stage. Almost every TGE can find a case for implementing the X8X utility token for their access to the ultimate safe and stable X8currency.