Ten X made some big mathematical mistakes in their whitepaper

in tenx •  last year

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The math on the Tex X whitepaper is wrong. I am sure this is the cause for the dramatic drop in price that is being demonstrated on Bittrex.

In their whitepaper, they state that the token sale will result in the creation of 20 million tokens. They describe a goal of 200,000 Eth, which was achieved, at a rate of exchange of 350PAY to one Eth. 200,000 X 350 = 70 million. Further, a 20% bonus number of PAY tokens were paid to early birds the first day. All was sold on the first day. So this represents 84,000,000 tokens, which represents, according to the whitepaper 51% of the PAY tokens that will be created. So, this means there would be a total of 164,705,880 total PAY tokens. Their Cryptocurrency market cap page shows that there will be 205,000,000 total tokens.

They mistakenly represented in the whitepaper that this total sale would result in 20 million tokens. So, if this were to represent the 51% they represented, that would portend a total of roughly 39 million tokens. The actual number of tokens appear to be approximately five times greater than the number miscalculated in the whitepaper.

Then further toward the end of the whitepaper, They make another miscalculation. They show a "realistic" return of 30% on a $20 million market cap due to the 0.05% reward on the presumed $1.2 billion total transactions on the platform. This would only be an accurate calculation if your acquisition price of the tokens were $0.10. I would assume that since they had assumed the coin sale would produce only 20 million tokens earlier in their calculation, that this was the source of their 10 fold error in this section as well. Therefore, the true return of their revenue example would be more like 3%, certainly not 30%.

All this being said. I still believe that the idea is exceptional; just don't expect the return that was reported in the whitepaper from the 0.05% reward that will be paid out.

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@dantethegreat thanks for sharing!! We all need to read this one.

Wow that seems pretty embarrassing, unless they did it on purpose
Thanks for letting us know

Nice post

Thanks for sharing!

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