How the Exenium crowdsale works

How the Exenium crowdsale works | Ecency

The Initial Coin or Token Offering (ICO, ITO) has recently become a very popular way for blockchain startups to raise money — a new form of crowdfunding. This is how they work: A company receives payment in popular and highly liquid crypto currencies such as Bitcoin and Ethereum, and in return they give their own token to the contributors. These are called “utility tokens” and they must have a certain function in the product which provides an incentive for users to buy and use them. Due to this, the token is expected to rise in price.

However, many projects struggle to find a natural way of integrating the token in their product. Often this results in artificial barriers, which force the users to buy the token even though it shouldn’t be necessary. This makes the product harder to use, and it scares away potential clients who are not expert cryptocurrency users.

The opposite problem may also occur with the token simply being useless, and providing no incentives for the users to buy it. As a result, potential ICO contributors are not interested in funding the project.

Exenium solves this problem by creating the XNT token on the Ethereum platform, which is accepted as payment for the exchange’s fees such as trading and listing fees, giving a 10% discount. It is still possible to use other cryptocurrencies or fiat money for this, but our services will always be cheaper when paying with the token.

Also, all XNT that are used to pay for our services are removed from circulation, meaning that XNT will be a deflationary token. The rise in demand and decrease in supply ensures that each single token will increase in value as time goes on.
Most projects provide bonuses for early donors, giving for example 50% more tokens to those who join on the first week. They also set up promotions such as the bounty campaign, where the participants are rewarded with tokens for reposting project news in social media, and other helpful tasks.

Giving bonuses is a very important point, but if it’s done incorrectly it can have negative consequences.
For example, some projects set the price of their token in Dollar terms. Considering that crypto currencies generally rise in value over time, a person could simply hold their Bitcoins and Ethereum, and buy the tokens at the last possible moment. This means that they will receive more tokens for the same initial amount of money, negating the bonuses for early contribution.

Exenium solves this by setting the base price of its token at 0.05 ETH, so that no matter the dollar price of Ethereum, 1 ETH will always be equal to 20 XNT.

All of this ensures that our bonuses will be as fair as possible for the first contributors. You can see them below:

Another possible issue is that after the end of the ICO, the contributors who received large bonuses will want to immediately sell their tokens to fix their profit. This could mean a significant decrease in value from the ICO price, penalizing those who contributed large sums of their money.

Exenium solves this by creating XNTB, or Exenium Bonus Tokens. During the ICO, all of the additional rewards will be credited in XNTB. Just like XNT, it will be accepted as payment for our services, but the token will only exist inside the exchange, not as an Ethereum smart contract.

When our ITO is over, a pool of XNT will be generated which covers all existing XNTB. Then, 10% of this pool will be used each week to exchange XNTB for XNT in a special trading pair available on our exchange.

This means that in 10 weeks, all of the XNTB can be redeemed for XNT, ensuring that the value of XNT will remain stable in the weeks following the end of the ITO and launch of the exchange.

Here is a short video explaining how to participate in our ITO: