Hello,
I've been asked more than a few times now about the "speculation prospects" of the AGE Token. I'd like to address how a Token can increase in value even when it's not structured to be a currency and it does not represent ownership in a company.
Several places on our website, I point out that we are a service token - one that is intended to be exchanged for services. In the case of The AGE Project: genetic sequencing, blockchain storage of DNA and voting membership in our EOS community.
I've also said that people seeking to speculate on the token may be disappointed since we're amassing a volatility fund aimed at keeping the price to acquire our services as stable as we can in this wacky-crypto-world. These statements were made and actions were taken as an effort to prevent what we've witnessed happen to other projects:
- Early buyers of Tokens acquire them at low cost
- Later Buyers pay substantially more as speculation drives the price up
- The Last buyers (who may not be speculating - but only wish to buy services) pay a super-premium
- Speculators dump their tokens and take profits
- The last buyers are left holding the bag, and take losses covering the speculators profits
We wanted to structure our sale to avoid this as much as possible. I just don't believe the secret to to building a sustainable business is a quick pile of cash based on FOMO - happy customers who get well served by their purchases are.
This has caused some in crypto-space to look down on our token. Even members of our own team have made statements like "If we don't promote this to speculators, we'll never get funded."
Time has come to let the cat out of the bag so to speak and explain how profits can be made without going though the cycle above where someone has to loose in order for someone to gain.
To explain this, I'll need you to glance at a the chart below. Adult Genetic Editing and The AGE Project are working in the biotech space of human genetic sequencing. I daresay this is the fastest advancing technology known to common science. Measured in dollars, you can clearly see that pace of advancement charted against Moore's Law. Moore's law isn't even close to keeping up.
The perspective I'd like to present related to this chart is pretty simple, and its' all about the fractions. As the price to deliver the service falls, the tokens you hodl are redeemable for more and more service... Meaning you can sell off fractions of the tokens to others who want to be sequenced and still preserve much of your original investment.
If you had purchased a genetic sequencing service in 2001 (and misplaced your tokens, then found them again) Today You could gift / sell sequencing for 100,000 people. I'm no chartist and I never invented a derivative, but I find it hard to believe that someone out there can't find a way to turn a profit by making 1 apple become 100,000 apples by hodling it.
I'm certain there is more to this, and calculations that take into account dollar inflation, supply and demand and probably a host of other factors would be super interesting to have a look at.
Maybe I should have titled this post: "Can a Service Token increase in Value without undo Speculation?"
My hope is that someone out there is more able to see how a project such as ours can get bootstrapped using a token sale, and not open the door for hurting people in the market.
My Sincere Appreciation for Your Interest,
Greg Simpson
https://adultgeneticediting.com