While Incent’s ongoing ICO is going to get us nicely out of the gate, to achieve its potential Incent must scale and this is going to take resource. Securing this resource from traditional finance will require that we demonstrate a product-market fit, so that investors can have confidence that they are financing a proven concept. And like many startups before us, the best location in which to prove that fit, is in a local market — and for us that is Sydney Australia.
With this in mind we built our business development strategy around what we know Australians really like to do — because doing so inevitably uncovers the tightest markets with their participants hungriest for the sort of competitive edge that Incent offers.
And where this is concerned what we know Australians like to do is shop online (we sit 9th globally), gamble (around 70% of the population enjoy a flutter), sink a beer or three (enough said), enjoy a night on the town and sharpen up with a coffee in the morning.
With this determined we crunched the numbers in an attempt to understand how Incent’s operating variables (such as reward issuance, redemption discount) would play and what sort of sector penetration we would have to secure to support demand for the token and prove our market fit. And its the results of this work that I want to share with you here because they are startling.
I’ll let you have a gander at your leisure but let me summarize by saying that at a penetration bar set at just 1% of our local market, across the 6 sectors studied, we will personally be generating new net demand for Incent at a rate of $48,500 every 24 hours, against a transaction volume of $137,700. That’s just under $1.5 million of fresh commercial demand for Incent and a total transaction volume of just over $4.1million, every month. Alone and assuming no other market participants.
To put these figures into some sort of perspective we looked at other altcoins in circulation to see where ours might fit amongst them. What we saw here was equally interesting.
Our Infrastructure partner Waves, for example, have 100 million tokens in circulation and generate an average daily transaction volume of $30,000. The price of a Waves token is around 20 cents, their market capitalization is over $20 million, and they sit at No 16 in the altcoin league table.
Another example is Steem. With a circulation of 169.4 million tokens and a daily transaction volume of $204.5 million, each token is worth 30 cents, market capitalization is a shade over $52 million and they sit at No 9 in the altcoin league table.
By contrast, even if Incent’s ICO hits its funding cap of $5million, circulation will be around 85 million with the average price of each token sold at ICO just 7 cents. Based on the examples I’ve just provided, what do you think is going to happen to the value of Incent once the commercial product goes live?!
So its like this, if you don’t think we’ll manage to put Incent into 3 local bars, 3 liquor stores, a handful of cafes and one local taxi company, you should stay well away. If you don’t think that building plug-ins for just 3 eCommerce platforms (WooCommerce, Open Cart and Magento own 47% of the Australian market) will enable us to secure interest from even 1% of the eCommerce market, then don’t touch us with a barge pole. And if you don’t think we can secure a partnership with a single one of Australia’s ubiquitous gambling concerns, then you should leave Incent well alone.
But if, on the other hand, you think that this is entirely do’able, then the broader market is already telling you which way the price of Incent is going to move. And for the next few hours you can buy one for just 7 cents. Still here….?!