Look who is stopping Unibright raise more than 0.16 USD on long term
Unibright questions about price barrier

Look who is stopping Unibright raise more than 0.16 USD on long term

By VNFC | crypto sessions | 15 Apr 2020


Premises

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I found recently about this project and it got my attention, so I started to study about it - usecase, tokenomics, it's place in blockchain world, partnerships, etc

I will not insist about what is Unibright, you can see many more other info here: what is Unibright and here: Unibright website.

or you can find some thought about it in the video below:

 

After this short introduction,

Let's remind us a little price history of Unibright:

UBT price chart 1y - 15 apr 2020

So, from a flat evolution for almost an year comes this astonishing raise that took place since late january 2020, it is time to wonder how far it can go?

For this, I started to understand their mechanics and the philosophy behind getting their token in the middle of client's attention.

I found this article which is the base of my statement:

Unibright token model

 

According to it, at point 7:

7: If we sell the tokens back to the customer this will be at “our” price, so the 0,14 USD per Token we valued our Utility prior to the ICO. Any client can (but does not have to) sign a contract that ensures him the option to buy back his tokens for 0,14 USD per Token for the run time of the contract. HE HAS AT LEAST TO WAIT FOR 30 DAYS UNTIL HE IS ALLOWED TO BUY BACK USED TOKENS. This ensures, the customer initially buys at least enough tokens for one month! This strategy helps the customers so that they do not have to care about a changing market price.
Remember: Integration processes are long term processes, and most enterprise clients would rather go for a fixed price, than checking every month how the market price developed.

So,

  • if the market is low, let's say — 0,02 USD — the user who wants UBT can buy 7 times more than his yearly needs and in this way he will have a very low cost framework usage.

if after this period the market is growing to 2 USD, what can restrain him to sign with UBT a 36 months contract for the token price of 0,15 USD?

  • according to UBT statements, if the price market is above the 0,14 USD/token, the user could buy the necessary for 1 month and after that will sign a 36 months contract (for example) at a cost of 0,15 USD/token. This will get a token cost average of around 0,16 USD.

And if this is happening for anybody, in the both cases, then the market price doesn’t have a real reason to grow too much above 0,15 USD, because it will be broken by the fixed price from the UBT framework business (which is understandable).

 

Conclusions:

If the token model is in the way I just showed, it could be a great barrier to defend to 0,15 USD limit. A better solution could be the QNT token model, which is offering a flat FIAT price for customers, but converted in QNT coins which are fewer from an year to another.

 

Disclaimer: this is not a financial advise. If you see some mistakes in my suppositions, I'd be glad to know it.

 

Have a nice day!

 


VNFC
VNFC

Pragmatic style. Love Science Fiction, Sports, Music and Dance, Travel and Movies. Hit me with AMA and I will try to make a good solution.


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