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What is the context of this research?

The cryptocurrency and blockchain space is very new especially in the area of research and academia. There are hardly any quantitative and scientific experiments on the behaviour of this market particularly. The space provides white papers focused on the technology but hardly any papers that focus on the market. It already has been observed that token holders are invested in the tokens rather than holding tokens to gain access to the product (misalignment). The market is creating a bubble therefore, a more sustainable model is needed by attaching value to fundamentals. To further back this claim, the project aims to provide quantitative proof to provide better recommendations for the market and work with regulators by keeping in mind the right balance.

What is the significance of this project?

The cryptocurrency market has reached an overall value of $100B dollars with companies raising millions of dollars in a few minutes. Aragon raised $25m, Qtum $15.5m, Bancor at $150m, Golem at $8.6m, Status at $250m with new ICO projects coming out 4x a week. The token market carries alot of potential in terms of reducing costs associated with security and eliminating middle men. Although it increases liquidity for a secondary markets, investors do not understand the risks involved. We want to fill in the gaps by providing quantitative analysis. Backing the tokens with fundamentals such as equity, which can create a linear compensation model for the team, and protection for investors create a less volatile environment for token holders.

What are the goals of the project?

Our mission is to provide recommendations for the current unsustainable token market backed by numbers. The goal is to be able to push for a better method of issuing blockchain tokens by backing it with equity. The project should prove that backing an issuance with fundamentals provides less volatility but provides the upside of issuing tokens on the blockchain.