I was holding TenX tokens but had no idea how it all worked, what the value might be and what would be the demand which might lead to my investment making a decent return.
So I looked into it and found it quite interesting. Here I share my findings with you.
Lets start with the basics. TenX, crypto currency are Etherium tokens with the symbol 'PAY'. At the time of writing they are valued at $0.66 each.
TenX has an app, like a wallet where you can send BTC to it. Notice, you don't send TenX token to it. You send Bitcoin. You can also order a Visa (or maybe Mastercard?) through the app. I have not done this yet.
Once you have BTC in the App/Wallet, and you have received your debit card, you can walk into any shop that accepts Mastercard/Visa and spend your BTC. It will get charged in your local currency, and deducted from your BTC balance.
Being able to spend your BTC anywhere in the world is pretty cool. The shop does not have to accept BTC.
However, I was wondering what any of this has to do with my TenX tokens???
Well, when anybody uses a Mastercard or Visa (not just a BTC one) the shop pays a fee. Lets call it 2%. Some of it goes to Mastercard/Visa and some goes to the card provider (in this case, TenX).
Now, to thank and reward the people who helped fund TenX by buying the TenX tokens, TenX will share 0.5% of all sales with TenX holders. Split between how many TenX tokens you have. So more TenX tokens equals more share of the 0.5% of all purchases made via the card.
The 'rewards' do not come in TenX, they come into the App as Ether. You can think of them as dividends from the company.
So, as long as I hold TenX tokens, I will receive the dividens when people use the cards. As the growth of the use of the cards increases, so will the size of the dividends. The more TenX tokens you have, the bigger the dividend.
These dividends, that increase in size as card use increases could well increase demand for the TenX token, driving the value of the token up, but if the price of TenX token stays low, one could purchase more tokens in order to increase the size of the dividend payment.
I think if the card got widely adopted, things could get exciting. For now, I will HODL my TenX and see how it goes as card usage takes off.
Note: This is my personal understanding having done some research. It may or may not be accurate. It's my first SteemIt post, I hope you enjoy it. I'd be happy to write about my other coins if you'd be interested, just upvote this post if you would like to read more. Thanks!