Break Down of COSS's ICO Potential ROI
COSS or Crypto One Stop Shop is doing an 'Coin Swap', which most people will still call an ICO. Now I really liked the idea of owning part of the revenue of a crypto exchange. So given that enough data was present on their ICO page I decided to crunch some numbers on the potential ROI of the exchange and tokens.
Now keep in mind these points:
- Potential revenue from their Point Of Sale clients not included (no basis)
- Speculative token value can't be accounted for
- Purchase of COSS is within first 5 days for 15% bonus
- ETH price was factored at time of calculation: $270
Now lets begin. Here is the spreadsheet screen cap, I'll talk it through below.
The Run Down
So assuming the exchange does well, draws in a lot of customers and achieves a daily volume of $100,000,000 USD. Which I think is doable over a year or two but not early on. But, lets pretend it does. Based on that daily volume we are able to factor in the rest.
100m Daily x 7 Days = 700M Weekly (COSS DAO pays token owners weekly)
700M * .2% = 1.4M in Exchange fees for the week @ .2% trade fee
1.4M / 2 = 700,000 (COSS token holders only receive 50% of revenue generated)
700,000 / 200,000,000 = 0.0035 USD per token per week (200,000,000 total COSS tokens eligible for payouts)
With me so far? Ok, now lets assume we 'Swap' 100 ETH for 69,000 COSS; 1 ETH = 600 COSS + 15% Early Bird Bonus.
69,000 * .0035 = $241.50 Weekly
$241.50 * 52 weeks = $12,558 Yearly
Weeks to ROI?! 111.8 Weeks
More complexity??
Now this is all speculation so I figured I would add another layer. I have noticed a trend with crypto type funds that pay a set percentage back to the token holders. The trend is that they lack the speculative price discovery that cryptos like ETH, NEO and WAVES have. I think this is because cryptos that repay value to token holders have a ROI kind of hard coded in them giving people the ability to calculate the token price based on what the market is generally returning. I think I will cover this theory in another article but that's the jist.
Well I hope you enjoyed this quick math run through on COSS. If you are wondering at all, I am not affiliated with COSS and I am also on the fence about 'swapping' a hundred ETH for COSS given ETH potential to surpass its All Time High soon.
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Peace,
Thor
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