Crypto investment with a real world return! Would you invest? #investment #growth #profit

in #investment3 years ago

It has been a while since i last posted here on steemit. But i am now back with an interesting question for you.

Would you invest crypto in a real world business?

Many crypto holders #stake their coins/tokens in pools and hope to gain returns but would you invest in a pool that relies on a real world business. Would you invest/stake/ crowd fund a real brick and mortar business such as a cafe/restaurant/other small business? Understandably users wouldn't see such aggressive #growth however it could be a stable way to invest in companies you believe in. Especially smaller companies who have difficulty in raising initial funds.

Example of a real world business using crypto funding.

A basic example would be.

John would like to start a coffee shop, John has a real passion for coffee and would like to #startup a small coffee shop but he lacks the initial investment and cannot raise funding. John has the know how, the passion, business knowledge and also has many years of experience in the hospitality sector. John creates a business plan and has set it out in a white paper for you to invest, but how would you invest?

Inital token offering? with buyback

John create "johns coffee" token. For example he needs $100,000 and will release 100,000 tokens. Tokens will be offered for $1 usd each and once they are all sold the $100,000 would be invested into the business. Since John had a good strong business plan and made some great decisions, his company soon takes off. Once the company has started to make profit - the profits would then be pooled into a buyback pool buying back the tokens in relation to the pool. so for example the company makes $10k the tokens would be worth 10x less ie $0.1 which seems like a bad investment.

Johns coffee continues to make a profit and he keeps on adding the profits to the buyback pool and in a few years he has made a huge $1,000,000 profit making each token worth 10x more than the initial investment.

What makes this idea even more interesting? burning tokens.

johns coffee has been very successful but not all of the token holders have iron hands. Some of the holders sold their tokens back to the buyback pool between the prices of $10,000 (10x loss) and ($1,000,000) x10 gain. Each token (100,000 issued) would only get 1/100,000 of the buyback fund. Once tokens are sold back to the buyback pool they are burned, destroyed forever but the profit from johns coffee would still be invested into the buyback fund until all shares are burned.

Example of a deflationary buyback scheme

David invests $1000 usd and recieves 1000 tokens/shares in johns coffee out of a possible 100,000. He waits 1 year and the buyback pool is doing great standing at $100,000 he sells his 1000 tokens for a break even price of $1000. However there are now only 99,000 shares to buy back.

Matthew also purchased $1000 usd and received 1000 tokens but he waited longer. Others sold but he decided to wait it out until 20% of the tokens has been sold back to the buyback pool. He waited to sell his share in the company the buy back pool has doubled in value at $200,000 but as there are only 80,000 tokens available he will receive 1000/80,000 of the $200,000 giving him $2,500 more than double the original investment even though the buyback pool has only doubled. This would be great especially if the buyback pool was held in a stable coin such as usdt or busd. But could be made even more profitable if the buyback pool was linked to something such as ETH which has seen huge growth. You could see huge rewards more than just the increase of ethereum you would also have physical cash being injected into the buyback pool possibly leading to exponential gains.

Thank you for taking your time to read this article and please let me know your thoughts (good or bad)

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