Why zero commission is an utopia?

in #ico3 years ago

Though many blockchain-based services promise zero commissions for all transactions made on their platforms, WONO is going to take 1–5% of payed tokens from each deal. Why so? Because we are pretty sure that a truly commission-free service is actually an utopia. Because any work which is done right, must be well-paid. The question is — how exactly.

Most of the “zero commission” services declare that they would earn as their tokens’ price will rise. Sell tokens, get fiat money, invest in your platform development and user acquisition — looks easy. But if the service doesn’t get any commission, when will it get tokens for sale? You got it right, the operators need to buy them from current token holders on the exchange.

We’re not accusing anyone of anything, but this scheme is an ideal breeding ground for a scam. Imagine: you start a new project holding 25–30% of token supply, promise everyone a commission-free service and attract users. Token’s price rises.

Then you instantly sell, say, 20% of the tokens on the exchange. What happens next? Token’s price collapses, private investors hurry to sell it… The price is at the bottom. Time for a buy-back and a new hyped-up collapse in several months! The scheme can be repeated twice or more times but finally investors won’t believe you anymore. A pity, but at least you’ve earned a bunch of fiat…

Actually, exactly the same can be performed by a service which gets commission. But there’s no need in it. If you have a stable source of income and play a long-term game, you don’t need to cheat on investors. Collecting commission, we not only earn tokens for sale in the future, we recall tokens from circulation, slightly pushing demand and price. In a transparent way.

But if there’s no income source except for token speculation — you’ll be forced to do it someday. Or leave your platform without means of support and close business.

That’s why zero commission is an utopia. Or, more likely, a scam.

Andrey Chepelev, COO at WONO