Token Price Action and Long-Term Sustainability

Despite the recent community blogs about BET’s price I’d like to share advanced point of view on BET token price action and also few words about long-term sustainability which anyone (and especially active network participants) should be aware off.

1. General principle of speculation.

Following rules are general and applies not just to the BET token. Keep those in mind while buying crypto, expensive goods or national bonds.

Rule number 1: You are never alone in the market

• Whenever you are buying someone is selling
• Whenever you are selling someone is buying
• If this is not true then it means the price is zero (if you sell and noone buys) or infinity (if you buy and noone sells).
• Remember this rule while getting rid of the cheap tokens

Rule number 2: Market is a zero sum game

• Your lost is always a fraction (or eventually a sum) of others gain
• Your gain is always a fraction (or eventually a sum) of others loss
• There is no market in the world where everyone is in the gain. There is always someone who “pays the party”. This is inevitable in any market!

Example 1:

• You buy from someone a Ferrari (or Lambo, lol) - a technology of racing car covered in the fancy brand with lack of supply which allows the seller to charge you much more than what you would pay for similar that has no brand and unlimited supply. What you paid on top of the real car value is your accepted loss which is equal to sellers gain.
• The rule is confirmed, however you won’t probably even think about sellers profit. It is because of accepting this market principle when buying goods on the market. That’s why trade is executed and noone complains about his loss, however it exists!

Example 2:

• You buy a Bitcoin – virtual unit in the blockchain with no initial value. Based on the rule 1 you had to buy from someone – a Miner or other holder who realized Profit or loss.
• Price moves and then you have oPnL (open profit and loss). No matter if your oPnL is Positive or negative number there are 2 approaches:

A) HODL principle

• Means you bought the Bitcoin as a show of trust to the technology and the community
• The intention is to hold not to gain. The decentralized finance storage is a Bitcoin service.
• Means the PnL is a cost for usage of Bitoin as a service that distributes among all holders
• Once more users like you appears the price rises and you have positive oPnL.

B) Speculation principle

• You bought because you see a market inefficiency that allows you to sell for more later
• Good speculator stabilizes the market – buy cheap (price doesn’t fall too deep), sell expensive (don’t let the asset become overprice). Goof speculator is remunerated with closed PNL from others market participants that were less effective.
• Bad speculators create spikes and being punished by market as their PNL is negative.
• Average purchase BTC price is around ½ of market price which means there is oPNL equal to 50% of the market cap. It is impossible for everyone to close this PnL just now!

Above mentioned principles applies on BET token as well. If the market is over-speculated it is a question of time when first smart speculators closes the PnL and others end up with negative oPNL.

We are building a long term project that delivers the vision. We don’t build a magical scheme that makes rich every speculator as it is not possible!

2. Sustainability

No matter how deep the correction goes, once we have sustainable interconnection between technology, community and tokenomy the long terms growth arise just when users and holders will be stronger than speculators.

See the bellow explanation of key nodes of Betfin sustainability

Technology

• Once technology is demanded and brings utility to token can be considered as sustainable
• Betfin already shown that technology works is used and utility model is provably working
• Development and potential partners dealings that should bring more players are ongoing

Community

• Is the only marketing tool betfin has (that is why there is no fight with negative PR and bullshits on the internet by betfin core team. This is a affiliate/leaders responsibility).
• Community represents 3 types of members
  • Members – passive users who just play and/or stake
  • Affiliates – members that becomes active and recommends Betfin to others
  • Leaders – members who actively promotes and represents betfin
• Therefore there are 4 ways how to get BET tokens: Buy, Win, StakeEarn or AffiliateEarn
• There is up to 49% tokens allocated for the Affiliates and Leaders (see in tokenomy).
• Once 49% is distributed among active member it means that:
  • a) affiliate participants are the biggest holders and/or
  • b) Staked tvl is giant (as otherwise affiliate is not paid)
  • c) majority of the demand is generated by players otherwise stakers would not stake
• That means the current stage of the project is a game to get as much tokens as possible
• Leaders and Affiliators have the biggest gain potential, biggest exposition and therefore should care about the project public relation and education.

Tokenomy

• The most crucial sustainability node if well interconnected with community and product.
• Tokenomy defines who has tokens for what.
• The biggest inflationary force in betfin is the 49% affiliate pool however it has strict rules
  • The pool is being unlocked only based on new acquisition
• The math behind is publicly available and the outputs are
  • Users can not claim more than about 44% of what the bring in binary tree
  • It is not expected that 100% of the tokens will be dumped
  • If 100% is dumped then affiliate has to bring 44% bigger demand on each cycle
• Holding tokens earned in affiliate has a same rules as explained above

See the table:

Lets have a fixed stake of 120$ in fully filled binary tree paying 8% week leg (can be counted as 4% each leg in average while we have the full binary of 12lvl x 2 members)

• There is a limitation of 12k usd maximum claim.
• It is not possible to build more than 11 levels without reaching the maximum gain of 12k $
• In such moment you either earn less then 44% or you are limited by the max payout.
• This math is considered as sustainable as this max payout is paid to users who maintains perfect community service!

• Binary level 1 | 2 Users | 240$ Staked | 4.00% Distributed | 9.6$ 1st user payout
• Binary level 2 | 4 Users | 480$ Staked | 8.00% Distributed | 19.2$ 1st user payout
• Binary level 3 | 8 Users | 960$ Staked | 12.00% Distributed | 38.4$ 1st user payout
• Binary level 4 | 16 Users | 1920$ Staked | 16.00% Distributed | 76.8$ 1st user payout
• Binary level 5 | 32 Users | 3840$ Staked | 20.00% Distributed | 153.6$ 1st user payout
• Binary level 6 | 64 Users | 7680$ Staked | 24.00% Distributed | 307.2$ 1st user payout
• Binary level 7 | 128 Users | 15360$ Staked | 28.00% Distributed | 614.4$ 1st user payout
• Binary level 8 | 256 Users | 30720$ Staked | 32.00% Distributed | 1228.8$ 1st user payout
• Binary level 9 | 512 Users | 61440$ Staked | 36.00% Distributed | 2457.6$ 1st user payout
• Binary level 10 | 1024 Users | 122880$ Staked | 40.00% Distributed | 4915.2$ 1st user payout
• Binary level 11 | 2048 Users | 245760$ Staked | 44.00% Distributed | 9830.4$ 1st user payout
• Binary level 12 | 4096 Users | 491520$ Staked | 48.00% Distributed | 19660.8$ (exceeds 12k)

The most important relation between tokenomy technology and community is the culture and education that helps to maintain the balance between extensive and decentralized model and its adoption via community members.

What we build is “proof of affiliate” tokens mining which motivates the affiliate network to build a sustainable community of holders and ambassadors that share the same vision.

3. Conclusion:

• It is very important to understand the philosophy of native token in decentralized protocol.
• The strongest community is a community of holders not speculators as majority of speculators always end-up with negative PNL few ones!
• Project is build on community which is backed by strong technology and sustainable tokenomy.
  • No matter what price does the fully working sustainability triangle is long term prosperity.
  • It is always better to enter with a small amount and enjoy the community game to get the maximum tokens than to speculate with a big amount for a short term speculation.
• Share this article and discuss our thought of building a community of small sustainable holders instead of big greedy speculators.
  • Study the sustainability and the principle and duplicate this to turn speculators into community members!
  • Share the stories of those who earned. But don’t build the community on price hype!
• Betfin Core team is just another holders with the same interest of long term growth.
  • We don’t stop and continue our work.

Thank you for reading the article and for your trust&support. We all have the same interested to build world respected decentralized gaming¨ technology that empowers the BET token growth.

MAGNUM, betfin.io founder & core team member