The growth of tokens depends on several factors:
1. successful economic development of the issuing company;
2. payment of dividends;
3. repurchase of tokens from the market;
4. The potential for rapid growth of the company.
After the end of the ICO, when the issue of tokens is no longer possible, at the first placement on the exchange, according to trade practice, tokens of real companies immediately grow at a cost of at least 2–3 times the final price of the ICO. We expect that CTX will grow at least 4–5 times in the first month after the ICO and placement on the exchanges. The basic trading model will be supplemented by the facts of double payments of bonuses to the holders of the tokens.
The cost of CTX tokens grows due to two factors:
1. Tokenholders are awarded bonuses in the total amount of 25% of the profit of CarTaxi.
2. For the other 25% of profits, CarTaxi conducts a planned repurchase of its tokens on exchanges.
What is the bonus amount for tokenholders for CarTaxi?
According to the development plan for CarTaxi, the bonus (dividend) payments will be $ 75 million as early as 2020, and in 2021?—?$ 150 million. For example, $ 48 million was invested in ICO. Thus, for each $ 1 invested, the tokenholder receives a bonus payment of $ 1.5 , that is, 150% a year in 2020, and in 2021 it’s $ 3, or 300% a year?—?a very high figure for those who play “long”. Let’s remember this for the calculation of the minimum value of CTX in the future.
So, in addition to earning on the stock exchange, the CarTaxi asset will bring to early investors every year 150% and 300% per annum in 3 to 4 years. Already at the very start of the first bonuses in September 2017, the tokens showed a bonus yield of ~ 29.5% per annum. Given such a token’s profitability, immediately after placement, a broad mass of investors will appear, ready to buy a promising asset, which has already consistently brought ~ 30% per annum, in addition to the opportunity of earning by trading this asset on exchanges.
What is the minimum cost of tokens for which they will be bought on the exchange?
Let’s estimate what the most minimal cost will be, for which tokens will be bought on the exchange, relying only on the stable income part of the asset.
Let’s remember the estimated value of bonus payments from the previous paragraph?—?$1.5 for each $1 investment.
To ensure that the asset (CTX token) has a stable profitability (for example, 10%) besides a high potential for price growth, it is enough to buy it for $1 during ICO (or $ 0.55 for a Pre ICO), but for $15 ($1.5 / 10%). Thus, the growth of the token by 15 times by 2020 (and not less than 30 times in 2021) is provided only by the bonus program of the operating business, not including the trade component.
Additional growth will be provided by speculation on the token exchange. The demand on exchanges will be strongly fueled by the purchase of tokens by the company for 25% of profit. And these are quite impressive amounts, which will ensure high liquidity of the CTX tokens. Accordingly, at least $ 75 million worth of tokens will be repurchased in 2020 and $ 150 million in 2021.
Growth in 2017–2018
Since the issue of tokens will be terminated immediately after the ICO and they can be purchased only on exchanges, the value of the tokens will increase immediately. A small initial decline is possible due to the fact that participants of the bounty program will sell tokens on a one-off basis. But such tokens only take up 2.5% of the full amount. Only a small amount of short-sighted holders will sell assets at the very beginning of growth.
The chart above accurately shows the periods of a sharp multiple increase in the value of the token following each payment of dividends. A strong motivating factor for the acquisition of the asset will be information support for payments. We selected a monthly bonus type to steadily increase the value of the STX.
Growth in 2017–2021
On a smaller scale, one can see a sharp trend towards a multiple increase in value by 2019. This is due to the fact that following the results of 2018, impressive results from the expansion of the service in the markets of the US and China (and a number of other countries) will yield profits. 25% of it will be used to buy tokens on the market. We project that repurchase will cause explosive growth in the value of CTX. So, in 2020, more than $ 75 million will be used for repurchase, and in 2021?—?more than $ 150 million?—?this is very high liquidity for the token market, which will give at least a twofold increase in the value of the dividend mechanism. As a result, the minimum amount of token growth is at least x30 and x60 in 3 to 4 years.
For CarTaxi, repurchased tokens are an additional source of revenue, because they reduce the volume of tokenholders, and the bonus payments for purchased tokens are indirectly received by the company itself. This has a positive effect on financial results and entails an increase in the dividend payout. And this, along the chain, is spurred by the growth of the value of the token.
Thus, we are introducing a unique model of positive feedback, which allows us to steadily increase the value of our CTX tokens in a multiple volume!