OptiToken, which claims to be a one of its kind “hyper-deflationary cryptocurrency”, recently announced its plans to have its initial coin offering (ICO) go live on April 1.
Unlike other cryptocurrencies, OptiToken seems to be self-aware of the restrictions and issues that it could face as a new cryptocurrency in terms of a constant value. And it does not only acknowledge that fact, but also provides detailed solutions to combat it.
As explained in its whitepaper and through various news platforms that it reached out towards as part of its promotional campaign, the OptiToken describes that it will be utilizing a few mechanisms to drive up its value, and one of those mechanisms will be the usage of trading cycles.
The trading cycles are where the OptiToken will execute trades among a group of cryptocurrencies which will be purchased after the project’s ICO. This will ensure that whenever any profits are created, that OptiToken is bought back from exchanges. This would increase demand for the token and would drive its price upwards.
The second most important mechanism will be for the OptiToken to send a fixed percentage of tokens to an “unspendable” address. This would ensure that while the tokens are viewable on the blockchain, they remain out of reach, and this would be one of the major steps towards creating the “strategic scarcity” which will drive the value for the OptiToken upwards.
The team behind OptiToken is very confident of employing this approach and encourages people to go through its whitepaper in order to understand about the concepts further.