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RE: 205 Steem Dollars Writing Contest- My Entry (No financial or crypto background required for reading)
Excellent review @ejgarcia
I was just wondering. It seem to me that MOBU is one of very few ICOs that are completly launched as security token. I wonder why. Wouldn't it be better to come up with some utility to their tokens and launch ICO as a utility token?
And also how will they maintan the price? Does MOBU offer Masternodes or POS to attract hodlers? If I cannot use those tokens and on top of that if there is no POS/masternodes introduced into their structure ... then what would make price go up or at least stay on stable level?
Obsiously upvoted :)
Yours
Piotr
Sorry for the very slow answer, I don't have internet on the weekends.
Let me explain a bit, MOBU tokens in itself are utility tokens, and the MOBU platform is for easing the creation of security tokens.
Their main objective is in the partnership with the big shareholders. Stocks and forex move trillions, while cryptos move only billions (as of today). While I was reading the whitepaper I noticed that they're very focused on companies and not on the average investor or the normal crypto user. The method for maintaning price isn't mentioned, or at least I didn't find it; but it's certainly an interesting point that I considered to "avoid" during writing. The fact is that MOBU tokens are utility tokens, but if they don't stabilize the price, they could transform into security tokens due to SEC regulations; at that point it would defeat the very purpose of the platform. I also didn't want to go into too much technicals to make the post more accessible to everyone; but to answer the very last question you made from a trader's viewpoint:
Prices are always decided by two factors:
If the MOBU platform itself grows and tons of security tokens are created by means of the platform, then the token's value will go up, since you can access more services by using it (unless the company uses a stratagem to fix price). As many people start using the token and it becomes more accepted and supply diminishes, it's value will increase.
Finally (sorry for the long and roundabout answer), if you're thinking whether to invest in their tokens or not; the short answer is no, price movement in their tokens would be deadly for them. The platform itself needs the tokens for operation, so if you want to purchase security tokens made using the platform you'll need them.
I hope I explained at least a bit of what I understood when searching for info; feel free to reply again if you want more info, though I'll probably need to reference the whitepaper again for it :D
Hi @ejgarcia
Im very sorry for such a late reply. Somehow i've missed it and just read it a moment ago.
Thank you so much for your time and the fact that you're willing to share your knowledge with me.
Yours
Piotr