We have been getting some questions about our low raise and how it will impact our roadmap goals. We did not expect to hear this many questions about our hardcap of $1.12 million. Maybe it’s because some cryptocurrency investors are used to astronomical raises. Or maybe it’s because some lost sight for long-term strategies and assume everything must be paid for with ICO funds.
From the project’s perspective, we remain as confident as ever that our token sale structure is a great fit for the current market conditions: A low cap with a low float, not based on artificially suppressing the supply, but by making this the cornerstone of our entire structure.
In this article, we explain why Ferrum Network will thrive with the “low” hardcap, and how all the individual pieces of our token sale strategy come together to support our vision.
The Best Are Built in the Bear Market
They say the best projects are built in a bear market. For us, we had to learn to survive on a small seed round by managing a burn rate of approximately $10,000 per month.
We already achieved a lot with a little: Kudi Exchange is live with customers and growing daily, UniFyre Wallet is in development with v0.1 to be released soon, we grew the community with proven guerilla marketing tactics, and even got decent influencer coverage. We also signed various partnerships with top crypto projects like Gemini, Fusion, Hydro just to name a few.
Plan for the Future
After the token sale we will not only have more funding available, but we will also have access to future financing through the The Reserve Model, an innovative structure that allows us to raise less, but still have access to funds down the road as we gain traction and hit our goals (more on The Reserve Model will be released soon…)
After our raise we plan to hire more developers, which will obviously increase our burn rate. The burn rate is projected to be around $20,000-$25,000 per month after the token sale with a bigger team. This is still a relatively low amount for tech, but means we can develop the products and network for years with only the amount raised in the utility token offering, even with deducting the costs for an initial exchange listing and general operational costs .
After one year The Reserve will start to unlock and will give us additional resources for the continuous development of Ferrum Network. On top of that, we have allocated some tokens for marketing purposes and for ecosystem development that can also support these endeavors.
Moreover, there’s always the option to conduct an equity raise in the future based on the revenue generated by Kudi Exchange. This revenue also means we will have a proper cash flow to continue our development.
Hopefully you now see that based on our track record, Ferrum Network does not need outrageous funding to be successful. In our last Metrics Series Article Utility Tokens Arent Dead, The Old Structures Are we wrote how even reaching a bigger exchange will be possible with our financial planning…
Our funding is enough to realize the vision of Ferrum Network and its applications, while also having enough money to pay for necessary operational costs and scale properly.
We can only repeat what we said earlier. Take a look at what we achieved with the seed funding and then imagine what’s possible with 8 times that amount.
Very truly yours,
The Ferrum Network Team
Bitcoin Talk: http://bitcointalk.ferrum.network