A warning : This article is provided to you by the company EvidenZ… Crypto investments are inherently risky, do your own research and invest only within your financial capabilities. This article is not an investment incentive.
$ BCDT token in multiple digits
As we mentioned in the previous article, EvidenZ uses blockchain to verify the authenticity of these documents and diplomas. The project has its own BCDT token.
Launched in January 2018, it has a total supply of 40,835,044 tokens. An odd figure, but it can be found in the amount the team needs to complete their project.
Originally launched on the Ethereum network as ERC-20, the token is also available on the Binance Smart Chain as BEP-20.
A token allocation is essential for any project with a long-term vision. Too many tokens have been allocated to the community and this is a sure failure. Too many tokens for a team? Decentralization loses its meaning, and the risks of seeing the flight of a team with a cash register increase …
EvidenZ is a long term project, so it should have a logical spread like here.
We see that almost 66.7% were sold during the ICO, which confirms the main purpose of this token: funding the launch of the project. This is also proof of decentralization, because unlike other projects, the team does not have a large part of the supply, only 3%, or about 1.2 million tokens.
An amount that, like the company’s shares, prompts the team to raise the price of their token, both for themselves and for investors. A win-win that also holds true in a deflationary token economy.
Yes, unlike many other cryptocurrencies, $ BCDT is deflationary rather than inflationary. To date, more than 1.5 million tokens have been irretrievably destroyed (we are talking about burning), or 3.67% of the total!
The reserve and community exist to enable the company to build strong partnerships at low cost or to reward its most ardent supporters such as liquidity providers on BSC or Ethereum.
“Look, numbers are cool, but what is $ BCDT for? Also, what conditions are causing combustion? “
Patience reader, you will soon find out.
Contracts, Burns, Companies and Investors: BCDT Interests
Token confirming the existence of a diploma
Every time a company or academy wishes to publish a diploma on the blockchain, the EvidenZ smart contract requests an exchange for tokens. This insatiable monster, as soon as these tokens are swallowed, will provide certification credits to the future issuer in return. When new documents are stored on the blockchain (Ark, Ethereum, Binance Smart Chain) and become tamper-proof, these credits are spent.
Thus, everyone has proof of the issue of the diploma and, therefore, its unconfirmed nature.
Token dedicated to users …
As you already understood, $ BCDT is a utility token. The fundamental difference from other projects is the design taking into account its users.
To be clear, most projects with a utility token start with a simple principle: “To use my service, you must pay a fixed amount of tokens.”… In this particular case, it will be profitable to buy tokens at the lowest possible price in order to minimize the cost of the service.
While this logic is theoretically true to the road, in practice it is different.
Indeed, blockchain and, by extension, cryptocurrencies are still in their infancy. Buy ETH or BNB to pay for gas. We find it easy to exchange for BCDT and then interact with the solution, but we cannot expect traditional organizations (companies, academies) to reason this way.
In doing so, the project closes in on a purely speculative logic, since it limits its market to cryptocurrency connoisseurs.
Taking into account the realities, other projects follow the hybrid logic: “You have to pay a fixed amount in fiat (euro / dollar), but only with our tokens”… While this is a more realistic reasoning, it runs into other hurdles: Are companies willing to buy the asset in question? Do they even know how to do this? How is this action declared at the accounting level?
EvidenZ takes into account his problems and offers a very simple solution: 1 diploma costs, say, 2.5 €. This amount must be paid in EUR / USD to the team, which will then take care of the purchase of the $ BCDT required for the delivery of the smart contract and the issuance of diplomas.
Clients never need to touch cryptocurrencies even knowing they are involved.
Investors meanwhile …
and for your investors!
Well, they know $ BCDT exists and can use it to make money. How? “Or” What? Everything is very simple, based on the large-scale implementation of the EvidenZ project. Indeed, remember that in order to create a diploma, the team must buy back $ BCDT, which becomes less common over time due to incineration.
Unlike other assets, the price of $ BCDT is inextricably linked to the product. Creating more diplomas means more BCDT dollars to buy and therefore more BCDT dollars to destroy, and therefore more BCDT dollars to buy over time for new diplomas, and so … you get the principle.
But in a world that tends to hyperinflation day after day, is this deflationary system sustainable?
“But wait, according to Coingecko, the token is currently worth € 0.095. Therefore, if we follow the logic of burning, knowing that there are 39,326,998 certificates remaining in circulation, the team will only be able to create 413,968,400 certificates! If we assume that their project, which according to their site already has 1 patent and another is under development, is successful … it is clearly not viable! ”
Oula is calm. So first, bravo for this little calculation and this curiosity about the solution patent. Second, I never said that all the $ BCDT needed to get postage credits was burned.
In truth, only a percentage of the total is burned. Thus, out of the 2.5 euros that are on the diploma, 0.8 euros BCDT is needed, the rest of the amount is used, among other things, to pay for gas, servers, maintenance, support, etc. Ultimately 0.2 euros BCDT will be burned for every diploma placed on the blockchain.
“Okay, that already adds vitality, but if the company succeeds globally tomorrow, the model will no longer be viable in a few years. 0.2 euros or not. Knowing that the team can achieve this figure, but in return risk upsetting these investors … again, this is untenable. “
Indeed, the 0.2 € drop is speculation, but one element seems to have eluded you, dear reader. Regardless of the cost of $ BCDT, the price of diplomas does not change! Thus, even if the value of $ BCDT increases over time due to a shortage, the amount required to pay for the order will be mathematically less and less. Thus, the burn will also be less and less.
We can find a similar pattern in issuing bitcoins on the principle of difficulty and halving, which tirelessly slows down the creation of new bitcoins. So while 18.71 million, or almost 90% of the supply, has already been mined, it will have to wait until 2140 for the last bitcoin to be mined.
Moving away from blockchain, this concept is found in the famous paradox “Achilles and the Turtle” declared Zenom Eleisky… Although Achilles runs faster than a turtle, he will never catch up with her.
In our case Achilles represents the number of the diploma or certificate that will be issued, and the turtle is the number of certificates issued thanks to the $ BCDT.
Thus, although the goal is “$ BCDT is no longer enough for the solution to work” exists, it will take an infinitely long time to reach it.
Microsoft, Binance, 105 institutions and yet .. the price seems to be true to the turtle
Financial advice is out of the question here. But let us, as an investor, observe this natural question. If you followed the procedure, you will notice that the more the price increases, the more the number of destroyed tokens decreases. So, if you have a long-term vision, wouldn’t it be better to thank the team that removes as many tokens from circulation as possible in the early days of its existence? I let everyone see their answer.
In just 3 years of existence, the French company has competently used the capabilities of the blockchain. If you would like to know more about past and future achievements, I refer you to this short summary document and feel free to join the Telegram group. Good luck and never forget about it: cheating is taboo, we will all come with it.