How Do XRA Tokens Work? What Can We Expect From the Markets?
It has been a few days after our listing on Bitfinex, one of the top 5 crypto Exchanges. Now, let’s deepen our understanding of token features in order to better understand growth potential that will occur in the next months.
As everyone knows, there are different players in markets with different characteristics and targets. A project value follows the fundamental dynamics led by a basket of numbers (customers, revenue, ebitda, new markets, new products…).
The diagram above is the price graph of Apple from 2005 to date. The red median line shows the average price, according to the real value of the company in the long term.
What are the other fluctuations around the trend line represents the true value of the company? They are emotions or the different targets of the market players. The latter ones can be summed up to:
- Short term profit motivation: short-term selling for fast gains;
- Fear and Greed: when prices go down, the individuals who hold tokens at high prices are worried that prices will keep falling so they sell to mitigate losses; on the contrary, when prices quickly go up, market players are worried that they could miss a great opportunity so they buy at prices not commensurate to intrinsic value;
- Information asymmetries: many players do not have a firm grasp of project fundamentals and they sell as they are ignorant of maturity periods of their investments.
How does our token economy work? Why will there be an increasing need of XRA?
Xriba is the first standard designed for bringing accountability into the blockchain: a unique protocol created to add transparency to corporate cash flows, making them available on the public blockchain. During our Initial Coin Offering (ICO), 108 million XRA tokens were sold for a total of 13 million dollars. Let’s deepen our understanding of what our tokens technically are and what their function is.
As you can see on the image above, XRA tokens are “utility” tokens and they have a precise use within the platform. Their main function is to power the Xriba protocol and services use, unlocking them and distributing them to customers.
Xriba tokens are the means of payment for services offered by Xriba protocol. If customers do not use XRAs (acronym for Xriba tokens), they will not be able to procure these services because they have no access to blockchain information.
Services built on our protocol can be used for writing or for reading.
The first of these services is MastroBook (and its different by country versions) and the XribaPay app.
It’s important to underline two points that will influence the demand and supply of XRA tokens, ie.:
- From October, thanks to the start of fee-charging services, XRA tokens will be requested by the customers; creating an internal demand that drives value growth. For the technicians, It means that there will be bid price market orders in the XRA/USD book;
- New customers after the official launch will add on to an existing 10k client base and products will be distributed by a sales team that has sold services for more than 6 million euros in 2018.
From these features, the question is: “do Xriba services have enough impact to drive demand?”. Markets players should study the fundamentals of an organization to fully understand how much a project can grow without being affected by emotions or short-sighted profit numbers.
In particular, what potential do Xriba services hold?
The numbers are elementary; Let us assume that Xriba will not have any new clients in the next year (extremely improbable); If these 10 000 existing customers bought 3000 XRA apiece, there would be an aggregate demand of 30 million XRA; but if the price of XRA went down and these customers bought the same real value for the services but at a lower price, so we can assume that every client would buy 10 000 XRA. In this case there would be a demand for 100 million XRA.
An estimate demand of 30 to 100 millions of XRA between now and the next 18 months is an extremely conservative figure that is based on Xriba not have any new customers post-launch. We have to add three multiplying factors for a more realistic view:
- Customer numbers are bound to increase thanks to ongoing, aggressive marketing;
- Xriba’s business strategy includes many partnerships in the near future to boost customer acquisition;
- Thanks to volume increase on the XRA/USD book, many market players that are not involved at the moment will want a slice of the pie.
With these factors into account, the demand demand of XRA tokens should increase by 100 to 200 million XRA.
This is the foundation in understanding that when protocol services are increasingly visible and shared by an increasing number of companies, there will be a growth of clients that will need XRA tokens whose popularity will, at the same time, increase among market players.
Thank to this and to market cyclicity, there is an unprecedented opportunity before us: the chance to buy XRA at a favourable price and wait for October to arrive when buy orders of our customers begin to flow in.
Now that XRA tokens are on exchanges, do you want to know more about buying them?
If you really understood our token economy, the potential of the project at full strength and Xriba services, and you would now like to buy XRA, we can guide you on the process!