It takes more than two for lambo | Part 2

Project Proposals
#1

Oh yes, I know it sounded like an ICO, but there is something that I didn’t mention to show why a BTO is different.

If I want to launch a BTO I need to have a service or product ready, not just ask money to build something.

Why? because some people ask for money to build something and at the end they don’t deliver what they promised, it seems more like an excuses factory software once they have the funds. If you want to experiment just say the money is for research and development, but don’t promise results!

ICO vs BTO
(THE FOLLOWING ARE EXAMPLES, I’M NOT ASKING YOU FOR XEM OR ANY OTHER REPRESENTATION OF VALUE BECAUSE THERE IS NOT ANY ADDRESS OR ACCOUNT TO DEPOSIT PUBLISHED IN THIS ARTICLE. IM NOT LAUNCHING MY BTO BY WRITING HERE) [MEANING OF THE WORD EXAMPLE] (https://dictionary.cambridge.org/dictionary/english/example)

BTO: Hello I have this product or service; I want to offer it to you for a good price so you can try it in exchange if you like it you will become a regular costumer, also you will ge giving early access as an investor if you choose to become one. The first goal I want to accomplish is to raise 100.000 xem, all the funds will be in a multi signature wallet, as an assurance that Im serious about my offer the xem from my sales will be there too in the multi signature wallet that I will be not be able to control ,because my signature wont be there or the other signatures are required, so if I don’t deliver what I promise I get nothing, once the 100.000 xem are deposited in the wallet it will be used for legal advice, it will be beneficial to both parties to have a clear legal opinion, once that goal is reached, I will write what Is the next goal to be reached, If you like the results I hope we can build a business relation based in trust and mutual respect.

Results: if you like the product you can get to know better the project (build trust) and decide if it makes sense to invest, if you don’t like it don’t use it. this approach uses risk management for both parties because once the first goal is achieved they now the only way to build trust is by delivering the promised results and is also clear the funds are there to start; IS A WIN-WIN.

ICO: Hello I have the following (product or service) that is the next revolution and you don’t want to miss the boat, here you can read our white paper and clearly see why you have to participate in our ICO, visit our extraordinary web site and the social networks, yes we do have a road map, so because we have all that, now you know you can trust our ICO we are following the industry standards, we just need 100.000.000 xem and that will bring everything forth, remember when each bitcoin costed less than 2 cents? so come with us and jump into the future. the clock Is ticking!

Results: it may vary, some people once they have the funds just used the money for really good salaries and step of delivering the product they deliver why the product is not ready, but hey it takes time and don’t pressure me im doing something really important, and don’t tell me im stealing your money because that’s not true in the white paper I wrote how much is for salaries: So stop crying like a baby be an adult, we have the money now you have to wait.(if this description sounds familiar is just by pure coincidence, I don’t have any kind of investment or coin in any ICO based in nem or any other blockchain or system)

On the other side there is also really good people with great ideas and they deliver what the promise.

So there is a difference between the two approaches, I don’t know if somebody else tried the same concept before, this is just a really small part of my algorithm called BTO, I hope you enjoy this article.

Henry

#2

Henry, how can you hire staff for your project under this model? How can you guarantee them income security? How can you entice them away from their current full-time job with annual salary, benefits etc when you have to wait for the cosig for each payment. What percentage of your 100k XEM are you willing to pay the accountant or other verifier who has to go through your daily/weekly requests?

There are really a lot of issues with this concept or red flags. It would be simpler and save a lot of time for everyone if you make a full proposal that you can defend and in it anticipate in advance some issues that will be raised. Your current comparison between ico and your idea does nothing to elaborate on the mechanics of your ‘algorithm’. I honestly didn’t even read it. It’s begging the question.

#3

Andrew, thanks for your comment. I do agree with what you said, regarding the costs to pay salaries and other expenses, an ICO is a great opportunity to raise funds, but every day there is more regulations because of bad ico’s, the figures that I posted are just examples :grinning: , not an actual figure. The main problem I want to solve is how to have more liquidity and how to protect against the changes of price of xem, ( you get xem for your ICO the value is 500.000 usd and three days later it goes down to 350.000) so your project can be at risk and also your own finances.the reason I’m writing is because I want to have interaction with people in the community, If I just publish my algorithm or solution without previous interaction the answer is just going to be: you came out of nowhere we don’t believe you, but thanks for the algo is good, let us take care of it…

#4

In The previous articles was concentrated on the negatives sides of an ICO, the reason was plain critique. Now I will write positive lines to that aproach: it takes less time to raise capital compared to an IPO and gives more chances for startups that don’t have any other chances of funding.

Every idea to launch a project as an ICO, BTO, STO or whatever you want to call it comes with a big risk, once you get the funds in crypto currency the market can crash the whole project because of price fluctuations, yes sometimes you hold for too long or then change can happen suddenly.

Up next you need to find an exchange that’s it’s willing to list your token plus you need to add other expenses before launching to raise awareness of the exchange, yes there is a nem mosaic exchange, but the problem that you face it’s liquidity, when liquidity isn’t present then is hard for your project to grow. But how can you create liquidity if everybody is facing price fluctuations in both ways: first with xem and second with your mosaic.

There many types of exchanges and all of them complement themselves in a way or another, the best is to give people different venues so they can choose what fits them better, the free market is what brings true value to your project. The best thing about the blockchain is that brings clarity because you can see what’s going on with the transactions, but the exchanges don’t use it to show the real volume of trade.

So as you can see there are things that bring many risks to your start up, because at the end of the day you need fiat money pretty much to pay rent and put food on the table.

But how can that be solved? That the big question, there is stable coins but for them to have value you need to buy them with fiat, you still have the risk of the stable coin company going bankrupt and if I want to start a stable coin and I ask you for fiat money your answer will be I can do the same thing with a mosaic, but you’re going to face the same answer again and again.

So it’s seems that everything is going to be stuck, but it’s doesn’t have to be like that, the first step to solve the problem is to stablish an OTC market or many OTC markets where people can trade using the blockchain to see all the trade volume and decide to trade or not to trade in that market, to clearly see which coins or mosaics are there and see if there is liquidity. Why an OTC because you can trade for far away or in person.

So I’m proud to propose and announce to the community the Magenta OTC, there is going to be more news coming on this forum.

Magenta OTC is a over-the-counter market, where you can list and trade nem mosaics and also trade other crypto currencies even bitcoin.

The nem blockchain is going to be used so you can follow trades, Your funds are not going to held by Magenta OTC.

In the following days I will publish more about Magenta OTC.

Henry