In this article I discuss iRespo approach to long term token price increase based on token scarcity and existing real-world product and compare it with a naive approach in which market feelings dominate the price.
Have you ever wondered why the price of Coca-Cola remained stable in your favorite vending machine all year long, while EOS Token varied 1–6–0.5–22–5 USD at the same time?
Even though the question may look silly, my point is that companies are able to stabilize the price of goods high even during the times of low demand. You cannot buy the jacket of Hugo Boss for a dollar even if the whole collection remained unsold. The fact is that some companies prefer to burn the unsold items than to sell them at a discount, and no matter what we think about those practices they are successful to keep their goods scarce.
In iRespo we share this approach. In crypto-space too many tokens are completely worthless, which is visible even more during bear market we have now.
Our intention is to have a long-term price increase of our token and the only question is how to achieve that.
No Airdrop and (almost) no bounty
First of all our project as the first on EOS decided to run an ICO and not an airdrop for its fundraising. At the time of announcing the decision it was quite controversial, as all the projects before decided to airdrop. However, with time more projects including the most renowned ones decided to do an ICO or at least combine the promised airdrop with some form of fundraising.
One of the reasons to not to airdrop is human psychology. You simply do not value something you get for free. Moreover, during bear market you are more eager to sell the free tokens, as they always represent your gain.
The same way we did not have extensive bounty programs. 200 first users got a total of 30,000 IRESPO tokens and additionally for our partnerships and bug bounty progra...