Hundreds of cryptocurrencies are emerging in the crypto industry today, some of them may implement useful functions and principles. However, 95% of them most likely, will not live till the end of 2018. The problem is that token and cryptocurrency developers are trying to catch a hype and use the Blockchain to impose to their projects distributed ledger technology functions that they really do not need. As a result, these product are useless on market and fail.
Let’s take a look at the example of the project that was originally designed for the needs of cryptocurrency holders and utilizes their main function – payments.
In the real world no seller will agree to ship the product before a customer pays for it, and customer prefers to be confident about quality of product and decency of the seller before he transfers funds.
Qilin.Market solves that problem. It uses blockchain to allow buyers transfer funds to smart contract, which releases funds to seller only when the goods are delivered and accepted by customer that is verified with the help of Oracle. All transaction take place directly between the customer and seller, without commissions and bureaucratic intermediary barriers.
In order to work without disputes Qilin.Market use special Qilin Tokens (Qt.) to maintain deposits between parties. Acting like a returnable fuel for transactions that is a perfect example of what a 100% utility token should be.
We have completed a little checklist that you can use to check any token to determine how much risk it may contain.
1. No more fake-utility Tokens
You should clearly understand which functions does the Token serve. Do you really need it to maintain transactions. If that can be replaced by another cryptocurrency – well, it’s okay. There is nothing bad project founders would like to add value to their own Token. Much worse if project and run without any token at all or may use fiat money instead.
2. Isn’t it a loan, equity or a buy-back obligation
Any single aspect of this characteristic makes coin a security, which it should not be. That means generally no chance to be listed on exchanges or be used in crypto economy for a long time. Take a look at Qilin Tokens fulfilling the only important purpose of cryptocurrencies – making the whole process autonomous decentralized, without single center to influence its real value. Users need tokens just for actual purposeful use, not intended for speculation.
3. Token must have a clear goal for its existence
Many projects issue tokens without any real justification for their need. Mostly, just to collect money to cover development costs. In contrast to them, Qilin Tokens are created in such way that they organically and continuously fit and circulate within the “Qilin Market” ecosystem, involving all transaction participants: sellers, buyers, delivery services, and merchants.
4. Can token holders influence project development?
Voting rights frequently stump project development and provide an opportunity for speculative manipulations. Qilin Tokens are strictly utilitarian and do not give holders voting rights.
5. Does third party actions needed to fulfill tokens purpose?
If the token handling system depends on the actions of third parties, then this means that they are not fully functional and their use will carry risks for users. Qilin Tokens making the new layer on existing e-commerce model just depends on the actions of platform’s users, which are united by a smart contract. Without any intermediaries and third parties.
6. Are key functions of the project available only to Token holders?
If specific token functions are available only to holders, then this acts as an encouragement to buy them in order to gain access to these functions, and not for speculative purposes.
All Qilin.Market participants will need Qilin Tokens (Qt.) in order to fulfill their part of the transaction through the smart contract: sellers will need QT., in order to confirm sales and reward merchants; delivery services will need Qt. to make a delivery deposit; merchants will receive Qt. as a reward from sellers; buyers will receive discounts in exchange for Qt.
7. Do Token owners get equal earnings?
In Qilin.Market, keeping a Qilin Token does not represent any earning or profit for holder. The more benefits they bring to the community, the more benefits does their Token represents. This helps the development of the entire project and the community around it.
8. Does the team have experience in its niche?
One of the most important points. A strong team with relevant experience always has more chances of creating a project which will flourish in the long run.
The team of Qilin.Market has already achieved a lot of success in its niche. Denis Ivannikov is the founder of ApiShip – the next-generation protocol for delivery services, which is used today by thousands of online stores.
“We believe that the main purpose of cryptocurrencies on a long distance is to make on-line payments, mainly for buying goods and services. It solves the barriers of international funds transfer process and fragmentation of national payment methods.” – Denis Ivannikov, CEO and co-founder of Qilin.Makret – “We hope that current lack of legal framework for regulating cryptocurrencies will be solved in the near future and “Qilin.Market” will become the primary engine driving crypto-commerce market.”
9. Is there a limited amount of Tokens?
Qilin Tokens can be obtained only during token distribution event, no new Tokens would be ever minted. They will be distributed in batches, with the price increasing based on a hyperbolic logarithmic progression for every next batch. This means that every new token shall cost a little bit more in order to be stable and non-volatile as needed by e-retail.
Qilin Tokens closed preorder starts on 11th December, 2017. There is still an opportunity to join whitelist for early bird bonus.
More information on the project:
This is a sponsored press release and does not necessarily reflect the opinions or views held by any employees of The Merkle. This is not investment, trading, or gambling advice. Always conduct your own independent research.