Yet again, we’re waiting for the Debitum Network crowdsale to start. Round B will begin in less than 15 days, so I feel I need to explain why we have changed the Debitum Token / ETH ratio.
Just before Round A, I wrote a blog on why we were not going to peg to USD. https://medium.com/debitum-network/to-peg-or-not-to-peg-98df9b05c740 I still stand by my arguments and logic, however, the ever developing crypto market has forced us (and many other projects) to further consider how to act in regard to tokens / ETH ratio.
For the beginning, we feel we should change the total hard cap yet again. Ether has appreciated in value so much that our existing hard cap would force us to raise the amount of funding by more than is needed for our business development plan, based on our Round A Crowdsale. We fully believe some room for fluctuation might be left, however, based on the current developments within crypto markets that room is getting way too large.
However, this time it’s different. How? We have already created DEB tokens – there is a fixed amount of those and we can’t burn part of them now. One reason – state monitoring institutions believe that ‘burning of a token’ indicates that it possesses ‘security like characteristics’, making it more feasible to conclude that a token is a security. We do not want this, as we fully believe in the utility of DEB tokens.
As we need to decrease the hard cap, releasing the same amount of DEB tokens means we are forced to change the DEB / ETH ratio. That is exactly what we are doing for Round B. We can still adjust the Round B ratio before launching the Round B smart contract.
What about Round A participants, you may ask? Round A contributors need to be additionally compensated in DEB tokens to ensure that their DEB / ETH ratio provides them with the bonuses promised earlier. Each Round A participant will receive 4950 DEB for each ETH contributed, in addition to the initial 3750 DEB tokens, totaling 8700 DEB tokens for every ETH. Tokens for round A contributors will be distributed within 15 days after the crowdsale.
Additionally, we have updated the bonus structure for Round B:
I hope this gives you a better understanding of our reasoning behind the latest changes introduced to DEB / ETH ratio during the crowdsale. Join our Telegram discussion to ask follow-up questions and find out the latest news on the crowdsale and Debitum Network development.
Co-founder / Visionary