I am writing this blogpost as a precursor to gather ideas for a whitepaper for the launch of new cryptocurrency.
I created Tagcoin in 2013 as the world’s first Rewards cryptocurrency with an additional feature that allows the user to earn 5% interest per year on balances in their wallet. There are currently 5.8 million coins available with a further 120,000 coins added per month. It has traded for a long time, but in the last few months it has gained popularity in China resulting in an increase from about 2 cents to more than 80 cents in the last two months. Trading volume varies between USD$200,000 and USD$1m every 24 hours.
Aside from trading in China, Tagcoin has been used by the TAG Group to give rewards for actions (purchases, games, etc). Merchants can buy Tagcoin to give out rebate rewards for spending money with them. It is more effective than cash, can be done in tiny amounts, adds novelty for the user, and avoids many problems with regulations in different countries.
The TAG Blockchain is also being used for development of modules in Digital Identity, Giftcards, backing closed loop currency, logistics, digital notarization, and more.
I am now interested in creating a new cryptocurrency for use in a decentralized app store, raising funds to create or modify existing apps to include in the store and cut out the middleman for payments and advertising. This also involves the use of smart contracts for advertising. For example, you would look for contracts with Cost per Install, or Cost per Engagement and when the criteria is met, the payment is made automatically. In app purchases or purchases of the app would be made using the coins and the publisher receives 100% of the funds.
Over the last couple of years, sales of new coins (also known as Tokens) have been used as a method of raising capital. The better the use case of a coin, the more interest in it. Of course, buying the coins is speculative but it helps that the coin has some purpose. Usually these new coins are paid for using Bitcoin or Ethereum but cash can also be used.
Launching a new coin
We are looking at the possibility of launching a new coin as a Token Sale and using the funds raised to invest in startups that use apps which integrate the coin.
A foundation would be created in China, where most trading in Cryptocurrency happens. The Token sale would be promoted, and opened at a specific date. Something like 10 billion coins would be issued, at a face value of 1 US cent to give a market capitalization of USD$100 million.
The funds would be held in multisig wallets (needing 2 or more signatures for it to be valid and spent) controlled by foundation members here in Philippines and in China. New projects for startups would be submitted and discussed publicly on the a forum, and voted on for the funds to be released to the startup, and the money dispersed via Bitcoin. Voting would happen by sending coins to a burn address, either to vote an idea up or down - the more sent the higher the vote count.