TenX has been a phenomenal project. It has a great idea, product, leadership, team and so on and so on. It is the leader in its field of a debit Visa or Mastercard to use Cryptocurrency at places that accept Visa or Mastercard. It is ahead of its competition (Monaco, TokenCard) as well and they have a beta working product.
But don't stop reading there!
TenX PAY tokens carry a huge risk for people buying with a FOMO mentality. The way that PAY tokens provide incentive for holders is that they will pay out 0.5% (half a percent) of the transaction amount that goes through their service. So now, we will use existing data to guess what TenX's transaction volume will be (not for PAY tokens traded on crypto exchanges) through their service.
2017:
- PayPal has a volume of upto $400 billion a year (~$100 billion per Quarter).
- Square has a volume of upto $64 billion a year (~$16 billion per Quarter).
- Mobile Payments made in-person in the USA has a volume of about $16 billion a year (~$4 billion per Quarter).
So if TenX were getting a volume of what the above 3 are getting, the calculations of "dividends" from holding PAY tokens are below.
There are 104,661,310 PAY tokens available and no more will be made.
I am calculating the value of PAY tokens at 20 times its forecast annual dividends, making the dividends about 5% of the value of the tokens.
Same volume as PayPal
Calculation > $400 billion x 0.5% = $2 billion dollars in dividends to all the token holders.
Calculation > $2 billion / 104661310 = 19.11
$382.20 Per PAY token, you will expect to get $19.11 worth in annual dividendsSame volume as Square
Calculation > $64 billion x 0.5% = $0.32 billion dollars in dividends to all the token holders.
Calculation > $0.32 billion / 104661310 = 3.06
$61.20 Per PAY token, you will expect to get $3.06 worth in annual dividendsSame volume as Mobile payments made in-person in the USA
Calculation > $16 billion x 0.5% = $0.08 billion dollars in dividends to all the token holders.
Calculation > $0.08 billion / 104661310 = $0.76
$15.20 Per PAY token, you will expect to get $0.76 worth in annual dividends1 Billion dollar annual transaction volume example (going to be a huge milestone if they ever reach it)
Calculation > $1 billion x 0.5% = $5 million dollars in dividends to all the token holders.
Calculation > $5 million / 104661310 = $0.048
$0.96 Per PAY token, you will expect to get less than $0.05 worth in annual dividends
The current price of TenX ($3.60 USD) can be used in the calculations above.
This puts it at a dividends of $0.18 a year. Which when calculated is expecting an annual transaction volume of about $3.7 billion. This volume target will not be reached within a year and perhaps will take 3 or more years to reach. It is a long term project with many competitors and it is foolish to be bullish on the value of PAY tokens without knowing how its value is going to be determined, as soon as more people become aware of this.
I had bought PAY (TenX's tokens) when they were ranging from $2.00-$2.10 or around 0.0067 ETH and when I saw them go up, i put in a sell order to get rid of them at around $5.00 or 0.0166 ETH. This was good for me, but I held 25% of my PAY tokens and have been watching them dwindle and making me research. My research has led me to believe that the previous rally in price to above $5.00 per PAY was reached because of people buying from FOMO and should not be reached again as more people figure out the true market value of the tokens. It is not a currency like many other cryptocurrencies on coinmarketcap. It is a product that services a niche market.
As mentioned about the great team, product, etc., Julian Hosp as the Chief Visionary Officer (CVO) has been doing a great job maintaining the hype around his company with his energetic personality. He and the team have a lot of PAY tokens between them and Julian even upped his holdings personally at a cost of about $0.60 (he said so in an interview himself). He speaks on behalf of the team when he says they are in it for the long term of a few years at the least. They are hoping that mobile payments made in-person will increase rapidly in the next 3-5 years. They are also hoping that TenX will be the market leader in processing crypto mobile/card payments in this rapidly increasing arena of payments.
-not financial advice-