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Investing in initial coin offerings (ICOs) or even already launched and listed tokens that have a low market cap is getting increasingly risky as time goes on. A volatile market that’s already saturated with various types of projects is not a very forgiving space; for this reason, many who cannot afford to lose their investments are simply steering clear of most ICOs. My Freedom Coin is a project that removes many of the worries that retail investors have when they’re looking into new and upcoming tokens: by introducing a floor price for tokens through an innovative smart contract system, there is no fear that your investment will go to zero.
How Does the Floor Price Work?
The smart contract that holds all of the funds generated by Coin Offerings is called the BUSD Treasury, abbreviated to BUSDT. It also ensures the existence of the Floor Price, which is calculated as BUSD divided by the circulating number of My Freedom Coin (MFC). When Peer-to-Peer fees are charged, which is always 0.5% of the transaction total in MFC are taken out of circulation, which ensures that the Floor Price increases as time goes on.
The Peer-to-Peer fees are not the only fees on the platform, but every other type of fee works the same way as well, by having a percentage of it removed from the Treasury in order to increase the Floor Price. For example, to be able to trade on the platform, you will need to pay for a Trading License, which ranges between USD 5 and USD 50, depending on how quickly you onboarded — unless you got very lucky and were one of the first 10,000 users of My Freedom Coin, in which case your Trading License is free. 10% of the Trading License value is taken out of circulation as well, while the remaining 90% is added to the community program in order to enable referral bonuses, which makes it come back full circle to the customers.
A third way that fees takes MFC out of circulation and ensures the Floor Price goes up is through collateralized loans. If you want to collateralize your MFC holdings and take out a loan against the Treasury, you’re charged 0.98% interest a month. The loan term is 12 months, but is renewable any time before this deadline runs out with a 0.5% fee for loan renewals.
But Does This Make the App Expensive to Use?
In short, no. If you have no intention of trading on the exchange during a given month, you have no obligation to pay for the Trading License. Additionally, if you’re among the early adopters, your Trading License actually comes quite cheap or even free! The app itself, which is available both on Android and iOS systems, is free to download as well.
Plus, the unique economics are what make this project less risky than others currently available. With a Floor Price, there’s no risk of going to zero. This also ensures that if you take out a loan, there is zero risk of liquidation — which is unfortunately not the case for many crypto lenders, as recent events have shown.
Additionally, with all of the dues you pay going either into the value of the coin itself or into a community program, you are still gaining on many levels. This can make MFC your rock in the stormy seas of volatile crypto markets — something that not even stablecoins have been able to prove on a consistent basis. After all, this is more than most other types of assets, crypto or traditional, can claim for themselves.