Warning : This article is brought to you by the company EvidenZ. Crypto investments are risky by nature, do your own research and invest only within the limits of your financial capacity. This article does not constitute an investment incentive.
The $ BCDT token in a few figures
As we mentioned in the previous article, to ensure the authenticity of these documents and diplomas EvidenZ uses blockchain. The project has its own token, the BCDT.
Launched in January 2018, it has a total supply of 40,835,044 tokens. A strange number but which can be found in the amount needed by the team to complete their project.
Originally launched on the Ethereum network as ERC-20, the token is also available on the Binance Smart Chain as BEP-20.
The allocation of a token is essential for any project with a long-term vision. Too many tokens allocated to the community and it’s a sure flop. Too many tokens for the team? Decentralization loses its meaning and the risks of seeing the team flee with the cash register increase …
EvidenZ being a long-term project, it must have a logical distribution, as here.
We can see that nearly 66.7% were sold during the ICO which therefore validates the primary purpose of this token: to finance the start of the project. It is also proof of decentralization because unlike other projects, the team does not have a large part of the supply, only 3%, or around 1.2 million tokens.
An amount which, like a company’s shares, encourages the team to raise the price of its token for both itself and its investors. A win-win that also takes its place in the deflationary economy of the token.
Yes, unlike many other cryptocurrencies, the $ BCDT is not inflationary but deflationary. To date, more than 1.5 million tokens have been permanently destroyed (we are talking about burn), or 3.67% of the total supply!
The reserve and the community are there to allow the company to forge solid partnerships at low cost or to reward its most fervent supporters, such as the liquidity providers on BSC or Ethereum.
“Look, numbers are cool, but what is the $ BCDT for? Besides, what are the conditions that trigger burn? ”
Patience reader, you are about to find out.
Contracts, burns, companies and investors: the interests of BCDT
A token certifying the existence of the diploma
Whenever a company or an academy wishes to publish a diploma on the blockchain, the EvidenZ smart contract asks in exchange for tokens. This voracious monster, once these tokens have been swallowed, will in exchange give certification credits to the future issuer. When new documents are stored on the blockchain (Ark, Ethereum, Binance Smart Chain), thus becoming tamper-proof, these credits are consumed.
Everyone thus has proof of the issuance of the diploma and therefore of its tamper-proof nature.
A token designed for its users …
As you will have understood, the $ BCDT is a utility token. The fundamental difference with other projects is its design taking into account its users.
Let me explain, the majority of projects with a utility token start from a simple principle: “To use my service you must pay a fixed number of tokens”. In this specific case, it will be profitable to buy the tokens at the lowest possible price to minimize the cost of the service.
Although this logic holds in theory the road, the practice is quite different.
Indeed, blockchain and by extension cryptocurrencies are still in their infancy. Buy ETH or BNB to pay gas charges. Making a swap to obtain BCDT and then interacting with the solution seems easy for us, but we cannot expect traditional organizations (companies, academies) to reason in this way.
By doing so, a project locks itself in a purely speculative logic because restricting its market to connoisseurs of cryptocurrencies.
It is by taking into account the realities that other projects follow a hybrid logic: “You have to pay a fixed amount in fiat (euro / dollar) but only with our tokens”. Although more realistic, this reasoning comes up against other barriers: do companies want to buy said asset? Do they even know how to do it? How does the declaration of this action take place at the accounting level?
EvidenZ takes its problems into account and offers a very simple solution: 1 diploma costs, say 2.5 €. This amount must be paid in euros / dollars to the team which will then take care of buying the $ BCDT necessary to supply the smart contract and produce the diplomas.
Customers never have to touch cryptocurrencies, even knowing that they are involved.
Investors meanwhile …
and for its investors!
Well these are aware of the existence of $ BCDT and can take advantage of it to make money. How? ‘Or’ What ? Quite simply by building on the large-scale adoption of the EvidenZ project. Indeed remember, for a diploma to be created, the team must redeem $ BCDT, which becomes increasingly rare over time due to burn.
Unlike other assets, the price of $ BCDT is therefore intrinsically linked to the product. More diplomas created means more $ BCDT to buy and therefore more $ BCDT to destroy and therefore $ BCDT to buy higher over time for new diplomas and therefore… you understand the principle.
But in a world that tends day after day towards hyperinflation, is this deflationary system sustainable?
A model designed to last
“But wait, according to Coingecko the token is currently at 0.095 euros. So if we follow the logic of burn, knowing that there are 39,326,998 left in circulation, the team will only be able to create 413,968,400 certifications! If we assume that their project which according to their site already has 1 patent and another in progress is a success .. it is clearly not viable! ”
Oula calm. So firstly bravo for this little calculation and for this curiosity about the patent of the solution. Second, I never said that all of the $ BCDT needed to get post credits was burn.
In truth, only a percentage of the total amount is burnt. So out of the 2.5 € that a diploma costs, 0.8 € of BCDT are necessary, the rest of the amount used among other things to pay for gas, servers, service, support, etc … In the end 0.2 € of BCDT will be burned for each diploma put on the blockchain.
“Okay, that already adds more viability, but if tomorrow the company is a worldwide success, in a few years the model will no longer be viable 0.2 € or not. Knowing that the team will be able to achieve this figure but in return will risk upsetting these investors… again this is not tenable ”.
Indeed, the reduction of 0.2 € is an assumption but, one element seems to have escaped you dear reader. Regardless of the price of $ BCDT, the price of diplomas does not change! So, even if over time the value of $ BCDT increases due to its scarcity, the number needed to pay for the order will be mathematically lower and lower. The burn will therefore also be increasingly low.
We can find a similar model in the issuance of Bitcoin via the principle of difficulty and halving which tirelessly slows the creation of new Bitcoin. So although 18.71 million, or nearly 90% of the supply has already been mined, it will be necessary to wait until 2140 to mine the last Bitcoin.
Moving away from the blockchain, this concept is found in the famous paradox of “Achilles and the Tortoise” stated by Zenom of Elea. Although Achille runs faster than the turtle, he can never catch up with it.
In our case, Achille represents the number of diploma or certificate to be issued, the turtle representing the number of certificates issued thanks to the $ BCDT.
Thus, although the purpose of “There is no longer enough $ BCDT for the solution to work” exists, it will take an infinitely long time to reach it.
Microsoft, Binance, 105 institutions and yet .. the price seems to be true to the turtle
Here there will be no question of financial advice. But let us observe this legitimate question as an investor. If you have followed the procedure you will notice that the more the price increases, the more the number of tokens destroyed decreases. So, if you have a long-term view, isn’t it better to thank the work of the team which removes as many tokens from circulation as possible, in the early days of its existence? I let everyone see their answer.
In just 3 years of existence, the French company has intelligently taken advantage of the capabilities of the blockchain. If you want to know more about past and future advancements, I refer you to this small summary document and do not hesitate to join the Telegram group. I wish you good luck and never forget that: fraud is taboo, we will all come to the end of it.