The first FCO (Field Coin Offering)
The current crisis shows us that ICOs (Initial Coin Offerings) are outdated. They don’t fit the current need of investors and lack guarantees concerning the use of assets. Worth, many tokens won’t reach the minimum cap of 300 million USD that would provide the projects enough liquidities for a sustainable use.
Fieldcoin Ltd Is introducing the 1st decentralized Eco-system backed by land properties. During the FCO (Field Coin Offering) users will be able to buy tokens and land properties. They will receive in exchange of their Ethers, Bitcoins and Fieldcoin ERC20 tokens, NFT (non-fungible tokens) representing an agricultural land.
During the ICO the Fieldcoin tokens will be locked and used only on the platform. The bonus will be released to the early token holders after the ICO and be tradable on exchanges or sold on the platform for ERC721 land backed tokens.
When Ethers and Bitcoins are used to buy land on the platform, an equivalent amount of Fieldcoin tokens will be kept in the Eco-system and released during the months following the ICO.
The FCO will continue at least until the soft cap of 3 millions USD has been reached. It will end if all the tokens are sold out or if Fieldcoin Ltd decide to terminate the token sales due to high demand in FLC tokens, giving a 30 days notice to the public. In all cases, the FCO will not last more than 8 months and the eventual unsold tokens will be burned.
Protecting your ERC20 token against bear markets
We have often discussed about cryptocurrencies loosing their value during bear markets. How is it possible that some tokens reach 1 billion USD market cap before dropping to less than 100 million USD market cap in few months when some have a very sustainable business model and already working platform? The answer is simple: the token prices fluctuate according to more or less irrational concerns over the overall adoption of cryptocurrencies.
However, when looking in details of the companies using Blockchain Technology, there is tremendous differences from one project to another. Some tokens deserve to keep their value because they are backed by a strong industry. In practice, during bear markets, the market capitalization is transferred again to FIAT currencies. But there is a way to avoid this bleeding by protecting the acquired market cap.
Many projects that provide tangible products on their platforms have the opportunity to create a new kind of ICO. For instance at Fieldcoin, we are introducing the first FCO (Field Coin Offering). Considering that agricultural land is the most stable asset over the last 50 years, we are creating a stable instrument for trading on our platform.
The main idea is to have a growing market cap threshold guarantee in adequacy with adoption and token price increase on exchanges. The solution is to have a different rate on the platform that guarantees a certain threshold under which the tokens price will not decrease. Fieldcoin token holders will have the possibility to buy ERC721 tokens at a certain rate that is fixed and increasing depending on the amount of the assets in the Eco-system.
But here is the thing: in case the token value increases on exchange at 3, 4, 10 or 20 times its ICO value, this trade-back effect will be weaken accordingly. So, we need to add monetary mechanisms that will prevent the token prices from dropping and level up the threshold.
The whole concept of the Fieldcoin Token evolves around a Trade Back guarantee and a price inflation mechanism. When the price of the Fieldcoin Token rises, a very small percentage of this increase will be minted and sold on exchanges against USD or EUR. Those FIAT currencies will be used to buy more land in the Fieldcoin Eco-system. Consequently, the threshold guarantee of the Trade Back will increase in time. In case of a bull market and a consecutive bear market, the token will not drop so badly and the market cap will remain relatively stable. We call it capitalization on the upward trend. Currently, the unresolved issue most utility token have is they cannot capitalize on a token market cap increase.