What drives the price of crypto? Skeptics say nothing, enthusiasts list features at you. What really is the most important is supply and demand.
Now, under what context would you maximize the value of a coin the fastest? If we found a stash of gold that doubled our supply, it would consequentially halve the price. If half of our gold got stolen by leprechauns and whisked off to the fairy realm, gold would double in value.
Deflation of supply is the BEST thing possible for the value of a currency. Scarcity drives profit.
In terms of supply vs demand, scarcity and deflation creates a never-ending shortage and will drive up price according to the demand.
Now, this is the important part. Coins/tokens with a buyback policy will ALWAYS have demand.
Moreover, Demand will be driven by both the entity doing the buybacks, and buyers from the open market.
Do you see the point yet? Perpetually fewer tokens, and perpetually at least one large guaranteed buyer.
So let's take a look at the top 3 deflationary tokens right now
- Already well bested, but has room perhaps for marketcap growth above a $1B if adoption continues
- Iconomi offers two primary 'products'
- ICNX - ICONOMI Cryptocurrencies Index - [this list](
- ICNP - ICONOMI Performance Index - managed account - 20% of realized profit used to buyback ICN tokens from open markets.
- DAA - digital asset arrays, crowd managed indices, similar to Prism by Shapeshift
- ICNX - ICONOMI Cryptocurrencies Index - [this list](
- Quarterly reports will demonstrate earnings on assets and repurchasing done
- Long term, if the coin can reach $2B+ in marketcap, and the supply gradually decreases towards half of it's original issuance - the price of a coin will reach towards $100 - my estimate for that price would be Q2 2019
- Very similar type of buyback program as Iconomi, but focused on profits realized from mining/forging
- Phase I:
- Up until 1000 BTC in value have been mined
- 30% of profits from mining will be used for buyback of APX tokens
- Phase II:
- After funds reach 1000 BTC
- 40% of realized profits committed to token buybacks
- They operate on the UBIQ blockchain, which is derived from Ethereum Classic, but won't be impacted by transaction backlogs.
- Pricing on this token on the market is still very low. If you want 100x, this is the place. (Yes, $8 is still low considering that the current supply is only 877,394, which is 1/100 the supply of Iconomi or Ethereum, which have nearly 100,000,000 tokens)
- If their market cap hits $1B and the supply reaches 500,000, the unit price will be somewhere around $2500
- They are offering a 'liquidity pool' and risk management for building portfolios, so their proposed product has a lot of value.
- They also will offer buybacks ( "Destruction" ) of their tokens, but do not name the terms
- Their social media presence is god awful and their whitepaper is very sparse
- A lot of red flags so far, but if they pull their act together and publish / polish their public image, it could be a very solid offering.
- at $0.3 a token, and a $23M marketcap, they are in a similar position as ICONOMI was in January
- Tweet at them to make a better public presence, and buy in if their value proposition is good.
- If the supply diminishes by 25% and the market cap hits $100M, the coin will reach close to $2, which is 6x return, achievable within 6 months depending on performance
- An "older" coin (2016), not a token, with a proven (history of buybacks)
- Profits realized from their decentralized exchange, OpenLedger-Dex, are used to fuel the buybacks
- Fiat portals direct for OBITS are available on OpenLedger.
- I'm still doing research on this one - ultimately I think price performance depends on either tapping into other exchanges or driving real whale size user growth on OpenLedger.