Particl For Investors #10 – Particl Token Exchange Summary & Valuation

Tai Zen: What’s up guys. This is Tai Zen again. We’re broadcasting from New York City.

Behind me is one of the oldest exchanges stock exchanges in the world. It’s called the New York Stock Exchange.

It’s pretty much a museum now. People don’t trade there anymore because everything is electronic now.

The reason why we’re here is to do an update for you about the Particl Token exchange when the Particl community decided to rebrand the Shadow Cash token into the Particl Token.

With me today is the honorable grandmaster LeonFu.Com.

Before we get started here, I want to do kind of a quick summary of the Particl Token exchange. Then afterward, we’ll bring the oracle of crypto in and talk about things from his investment perspective.

From the token exchange perspective, let’s look at the reason why they decided to rebrand the Shadow Cash tokens into Particl.

They wanted to make sure that they were legally compliant when they released the Particl marketplace that they’re going to build into the anonymous and private sector, which is the main a key to the success of Particl.

In order for them to do that, they had set up a legal framework to make sure that everything is legal in most of the major countries.

There are legal teams advising them that they had to set up a Swiss foundation and make sure it’s all legal and everything.

Now, they need to raise the money during this first seed round in order to set up all the legal stuff before they released the Particl blockchain in the marketplace.

There were 3 milestones that they needed to hit. Each one of them was $250,000.

The first milestone, which has been already done, was to cover the seed period, development salaries, the legal expenses for the Swiss foundation creation, the initial business consultation expenses.

The second milestone was to allow for additional developers onboarding and the professional PR and marketing budget.

The third milestone was the third party code audit to make sure their software gets reviewed and audited to prove that it’s clean and there are no security bugs in there.

In addition, in this milestone, they want to open a grant with the university research department for a cryptographic advisory service.

They hit all 3 milestones because they raised a total of 590 Bitcoins from 1,660 participants or contributors.

They all contributed their Shadow Cash tokens, so the community converted 5.1 million Shadow Cash tokens, around 77% of the total Shadow Cash amount, into Particl Tokens.

For updated news, they have already tested the Particl blockchain out. I talked to the guys in the community, Paul Schmitzer, They said they were testing that in the Mainnet and were ready to launch.

The only thing holding them back is they’re waiting for the Swiss foundation legal stuff to finish. After that, the Particl Mainnet will launch and people start getting access to it.

Paul also said that right now their goal was to launch the Particl blockchain within 4 to 8 weeks after the token exchange was completed.

Now, as we’re making this video at the end of May, it appears that they are on track. He said that their goal is to get the legal stuff done and have the Particl Mainnet launched an in the middle of June.

After having all these numbers and statistics, the thing that you want to know is how this applies to investors and how we make life-changing money from this.

I’m going to turn it over to the LeonFu.com.

Tai Zen: Go over some numbers and what they mean in USD profit.

Leon Fu: Let’s just go over how many Particles there are right now. There’s 8.600,000 Particl, but out of those 8.6 million the community,  we hold 7,100,000.

In other words, the community will hold a raw 82.5% of the total number of Particles.

Tai Zen: For the people that are new to crypto investing, the community means all the people that put their money, Shadow Cash tokens or Bitcoins into the token exchange.

Leon Fu: The other 17,5% is owned by the foundation by the developers.

Tai Zen: I think like 6% of it is reserved for the foundation. The 11,5% is locked up in the future in case the foundation needs that to do a second seed round.

Leon Fu: For the other 11,5%,  their plan is to sell it after 6 or 9 months down the road and they hope to get a higher valuation they got right now.

For those 7.1 million Particles, community-contributed 5,100,000 SDC and an additional 590 Bitcoins. All of that was at an average price of $1.50.

When you get in, some people will pay more and some people will pay less. For me, I’m just using the average number.

Tai Zen: We did the calculation with Paul Schmitzer, the communication manager for the Particl community. We concluded that if you take everyone who contributed whatever they paid, the average was around $1.5

Leon Fu: Whatever you paid, you can replace that dollar to use in the same methodology that I’m using now.

At the moment, I just use the average price of Particl to calculate the value of this project.

We will multiply 5.1 million tokens by $1.50, which means they raised $7,650,000 for 82,5% of the Particl.

Tai Zen: If we do some maths here, as we’re standing right now in May of 2017, the entire project is worth $9,200,000.

Leon Fu: No. I’m not going to say what the project is worth. I’m going to say what the market determines the project is worth.

We paid the equivalent of $9,000,000 worth in this project at $9,000,000 valuation. That’s our cost basis on average.

Obviously, some of you are in a lot higher or a lot lower, but the community as a whole can just run that with $9,250,000 plus or minus.

Tai Zen: To make it simple for the people that are new to cryptocurrency investing, if you go out there and buy a house that’s worth $9,250,000…

Leon Fu: or whatever fraction of that house

Tai Zen: you’re hoping that that house increases in value. That increase in value will be your profit. Therefore, how does that make us life-changing money?

Leon Fu: Warren Buffet has a really good cliche. He says the price is what you pay and value is what you get. What does that mean?

Well, we don’t know what the value is going to be because they’re working on it, but we know what the price we paid.

We paid $9,250,000 at the time we did the token exchange. Once Particl token is released, the market will re-evaluate what the Particl team has done up to this point in the future.

Since Particls are not traded yet, we don’t know what the market is going to pay for it. That’s going to be determined by the progress of what Rhino and his engineering team have done.

Tai Zen: For anyone new to the crypto community, Rhino comes out of South Africa and he’s the lead developer of the project.

Leon Fu: Yeah. It’s also going to be determined by how well the rest of the team does in communicating their vision to the community.

As investors, we paid $9,000,000 for this project. That’s what we paid collectively or your percentage of that.

Therefore, whether or not we make or lose money here, it depends on both what the future investors are going to value what the Particl team is doing or has done.

It’s not only just what they are doing or what they have done. It’s also the roadmap they have going forward.

Remember the market price is in what’s known and it discounts the future, so it’s not only what they’ve done, but also what the community believes they’re going to do in the future.

Tai Zen: When you said that the market price is in what’s known and it discounts the future, for the people that are new to cryptocurrency investing, what does that mean?

Leon Fu: Let’s say we know that they plan to release the marketplace 3 months into the future.

If that information is already known, it’s reflected in the price today. If everybody knows about it, it’s not going to make you money. You’re already paying for that information. Whatever that information is, it is discounted into the future

Tai Zen: When you say discounted for the future, that means it’s already included in there.

Leon Fu: Let’s say it is worth $10, but it’s not going to come until 6 months in the future. What that $10 in the future worth today is $9.50.

If you want to sell that token at $10 in the future, you’re going to have to pay $9.50 today because it’s going to be worth $10 in 6 months from now. That’s the term “discounted rate of the future”.

Tai Zen: We also want to put a disclosure here. What you were saying that it’s worth in the future is not going to come true. We’re just using those numbers as an example.

Leon Fu: Yeah. To be a successful investor, you have to anticipate what is going to happen in the future as well.

Tai Zen: You’re saying that right now before the Particl Tokens are released, the market is valuing it $9,250,000.

Leon Fu: No. That’s not what I said. I said we paid $9,650,000 million. That’s a fact.

Tai Zen: We don’t know what the market is going to value it until it gets released.

Leon Fu: When it gets released, it’s open for trading and that is the purpose of marketing, which is price discovery.

Tai Zen: Let’s talk about how we looked at the coinmarketcap.com listing of all the cryptocurrencies.

Leon Fu: At the time when Shadow Cash was doing their token exchange, I think they were valued at somewhere around $10,000,000 to $15,000,000.

Tai Zen: It got to as high as $40,000,000.

Leon Fu: Once again, we ended up paying $9,600,000 today.

Just to give you an idea whether $9,600,000 is a lot or a little for a crypto project on coin market cap if you’re project is valued at $9,600,000, you are not even on the first page.

Tai Zen: They normally list the top 100 cryptocurrencies by the size of the market cap.

Market cap is simply multiplying the total tokens they have by the value of each token. That’s the value of the entire project.

You’re saying that what we pay for Particl at this moment would not even show up in the top 100.

Leon Fu: It would not be even on the first page

Tai Zen: From an investor’s perspective, is that good, bad or neutral news?

Leon Fu: What you want is to pay for it as level as possible.

Tai Zen: Based on your opinion, you were saying that the price that we paid is very low compared to all the other ones.

Leon Fu: At the time we paid, it seems about average, but now it’s cheap because the market has run so much.

Therefore, at the current standing, we paid a very low price compared to what looks like today.

Tai Zen: For the new cryptocurrency investors, let’s say if you buy a house at $9,250,000, you were saying that the entire neighborhood has increased in value now. Therefore, the Particl house actually has the lowest value in the neighborhood.

Leon Fu: It would it be you were shopping for a house in the neighborhood and you overpaid a little bit. Let’s say at that time, the house was worth $100 and you paid $115, so you paid a little bit higher than the market.

However, now the price of the house goes up to $200, which makes it cheaper compared to the average price of the neighborhood.

Tai Zen: Are you going to give a projection?

Leon Fu: Yeah, I will. I would say that if Rhino and the rest of the Particl team to do what they’re supposed to do, I’m willing to say this is 3x out of the gate.

Let’s just round up the market cap of the Particl and call it $10,000,000.

I believe if they do what they said they intend to do at the time when we were doing the privacy coin, this is an easily 3x to 5x out of the gate just from the overall market.

Of course, that’s on the condition that the market doesn’t crash If you’re in the real estate market and the entire neighborhood crashes, you’re going to get taken down no matter how good your house is. That’s my projection right now.

I’d say $30,000,000 to $50,000,000 is where I anticipate them an opening. If they actually deliver what they say, that’s what the market is worth.

Tai Zen: It’s based on the condition that they do what they said they were going to do…

Leon Fu: …which we don’t know yet

Tai Zen: That means that the value is bought low. Now, we can expect it to be 3 to 5 times higher according to LeonFu.Com.

When people watch this video, the people that already own the Particl Tokens are going to be happy to hear that.

What about the people that did not know about Particl or did not know about the rebranding?

When they hear this, it’s more than likely they’re going to try to get it the minute that it opens up for a market. What is your risk management? Because I don’t want people to go out there and get slaughtered either

Leon Fu: You got to take this with the caveat that since we’ve made those videos, the entire market has gone up 8x roughly.

If you have been following my twitter, I’m not opening any new positions.

Tai Zen: Because we’re at the top of the market.

Leon Fu: We don’t know where the top is, but it is going up a lot already.

I am a much more conservative. We were just at Token Summit and there was a sense of exuberance in the air. There are so many people that made so much money and that makes me cautious.

Tai Zen: You may already know this rule, which is when the price goes up, it’s not the time to buy.

Leon Fu: My positioning right now sells now and ask question later.

Tai Zen: Ideally, when the Particl tokens are being released, do you want it to be released ideally in a bull market or in a bear market?

Leon Fu: Bull markets because we can make money. I mean very few people make money in a bear market. That’s very, very difficult to do. For reasons, we’ll make a separate video on that.

In long-term, I think a crypto asset can go up to trillions like 10, 20 years out. However, we’ve come so far so fast that it’s time to be cautious. I think it’s time to rebalance your portfolio.

I don’t mean just rebalancing within your crypto portfolio because if you haven’t been rebalancing, you’ve got huge winners. You’re overweighted in your top five positions. I don’t care what you bought. Your top five positions are way out of whack.

Tai Zen: We’ll get to them in a separate video. Let’s just keep it focused on Particl here. Is there anything else to that?

Leon Fu: No. I wished them luck and I hope they succeed.

Tai Zen: When you say wish them luck, we’re wishing luck to the entire Particls and also to the community who took a risk to participate in the token exchange and stuff.

One last thing I want to mention before we wrap up this Particl Token Exchange summary and projection video is there were a group of people who can not convert their Shadow Cash tokens into Particl while the rebranding happened.

The Particl community has made a decision that they will help to make sure that that goes through, so those people did not get stuck with Shadow Cash tokens on the exchange.

In order to do that, if you go to Particl.io/claim, there are instructions on there how to convert your Shadow Cash tokens that you had stuck on the exchanges into Particl tokens because the community wants to make sure that you are treated properly and fairly.

However, there is one caveat to make sure that you are not trying to game the system and take advantage of the deadline.

You have to do a verification video to show the Particl development team and the communications team that you did indeed own those Particl Tokens before the exchange deadline.

The second caveat that you want to understand is when they do the exchange for you, it will not be done at the average cost of $1.50. I think it will be done at the average cost of roughly $3.

Please go to Particl.io to read the instructions there to make sure that my numbers are correct. If my numbers are inaccurate, please excuse me. I don’t have all the numbers here in front of me.

That’s what we covered today, guys.

Thanks for watching this video about the Particl token exchange summary and price projection.

If you like these types of videos, give us a thumbs up. If you don’t like it, give us a thumbs down so we’ll know not to make them.

We look forward to the Particl Tokens being released in the Mainnet in the next 2 to 3 weeks after this video’s done. Hopefully, all their legal stuff gets done.

If you have friends, family or colleagues that are interested in learning how to invest in cryptocurrencies or Particl, please let them know about our channel.

We’ll look forward to seeing you guys in a future video.

 

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