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What is a token and how Easycrypto´s token works. 

To understand how tokens work, consider one of the many crypto currencies on the market today, such as Bitcoin or Litecoin.

They "live" through a distributed and decentralized database (blockchain), and are structured on a cryptographic basis to prevent falsification of the data contained inside the database, and for this reason guaranteeing the genuinity of transactions (somewhat like a banknote when goes from one hand to another).

The counter-value in FIAT (USD, EUR, JPY, ecc..) of crypto currencies is given, like for other goods, through offer and supply. 

The virtual place where demand and supply meet, determining the price, is the exchange. Exchanges are present all over the world.

There are some exceptions to the rule: for example, the crypto currency  called Tether USD mantain its exchange rate paired and constant with the US dollar - 1:1. This is possible because for each Tether USD issued and then purchased, one real US dollar is retained as collateral in bank bank account.

Also the Easycrypto token is an exception: its value is only partially determined by speculative activity (demand and supply).

Like other crypto currencies, at the end of the initial coin offering, it will be possible to buy or sell it through an exchange.

However, unlike many crypto currencies like bitcoin, whose value is solely determined by speculative activity, the easycrypto token has an intrinsic value, which is given by the initial value, which corresponds to a given amount of euro as invested capital, and the surplus determined over time by the profits generated by the four activities that characterize the platform (where 50% is reinvested growing the capital over time, raising the token price). The chart below explains this mechanism.

Let's simplify with an example.

Alice buys EUR 1200 in token, thus earning 1000 tokens.

1000 tokens will allow to invest net 1000 EUR in the platform (the difference is a setup contribution and referral costs).

The EUR 1000 are spent to buy 0.5 bitcoins at the price of 2000 EUR / bitcoin (the numbers here only serve to clarify the example).

At some time, the value of bitcoin rises to 4000 EUR, so the position is closed with a 100% profit.

the initial EUR 1000 will then be re-invested, together with a delta of 50% of the accrued profit .

The investment base is now 1500 EUR. the remaining EUR 500 are released to the token holder through a payout, under the specific conditions for the token that they own.

How much will be worth the token?

  • Initial value: EUR 1,20 per 1 EUR of invested capital
  • Recapitalization: +1,00 EUR (100% gain)
  • Total: 2,20 EUR. 
  • Profit cash out: - 0,50 EUR (sent to wallet of token owner)
  • New token value: 1,70 EUR. 

Now Alice is satisfied with the profit she earned, and wants to sell some of her tokens to get an extra profit.

At what price will she sell them?

Certainly Alice will account for the missed profits deriving from the alienation of that token over time (especially if generous) in proposing a selling price.

Alice therefore decides to sell 100 of her 1000 tokens to 3.50 euros, thus earning a profit of about 300%.

Those earnings must be added to the payouts received, and the earnings from her referral network, which will continue to generate profits even if she sell her tokens, regardless of the number of token possessed, until the platform generates profits over time.


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