Today it is rather obvious that the sentiment about TGEs is not what it was some months ago. There is no scarcity of TGEs, quite the opposite, but the excitement has subsided. No more irrational exuberance, to use a more economic term. To some, the controversies surrounding Tezos, the world’s largest ICO to date, heralds the turning point in how TGEs are regarded. If traditional finance was the source of doubts surrounding token crowdsales before, today we can expect to find such an attitude among some members of the crypto world as well.
Has the TGE bubble already burst or is it about to? How does this new environment of growing caution and diminishing excitement impact on the X8 project? The answer is: We feel this is not bad news for the X8 project at all. We believe that the current situation has prepared a new background in the financial world against which the X8 project can stand out better than ever before. If the turning point for TGEs has come, if from now on contributors will prefer to subject every project to scrutiny before sending their money, we welcome this change. If anything, it makes our project more competitive and noticeable among the many other TGEs. If we are on the verge of the dissolution of a gigantic bubble much like the famous dot-com bubble was almost two decades ago, we await with no worry the process of separating projects with real potential from passing fads. The current sentiment about TGEs opens up space for projects with firm foundation and impeccable legal framework.
There are two advantages to the X8 project that are immediately obvious. A solid legal framework and an already existing, performing technology.
SOLID LEGAL FRAMEWOK
The X8currency issuer, X8 Capital AG is about to be founded in Zug, Switzerland with all the required licences for operation. The Canton of Zug is working diligently on becoming the most blockchain-friendly hub in the world. TGE will be carried out in accordance with all the guidelines and standards of the Swiss regulatory body FINMA. Moreover, the X8 project will be 100% compliant with existing American regulatory guidelines. Regulators will find the X8 project an acceptable business model. Today it is no longer sufficient to present a company to which the funds gathered in the TGE will flow, to get an approval by regulators. A solid background with a sound business plan is required. Mere paperwork that follows the regulatory guidelines is not sufficient anymore.
Another advantage of the X8 project is the smart contract within the X8 currency enabling independent blockchain auditing. Independent blockchain auditing is a function within X8 currency bringing additional safeguards against any abuse. Another built-in safety mechanism is the provision that it is impossible to withdraw more than 5% of the funds behind the X8C per day by board authorisation.
Unlike many other TGEs our product does not exist only in the pages of a whitepaper, but has been operational as an automated portfolio risk manager in live accounts since December 2015. This makes the X8 project stand out among the multitude of mere ideas and future commitments that do not bring any real novelties to the crypto world.
Rather than trying to cash in on the TGE hype, we have decided to make the X8 project more resilient and adapt to the shaping legal requirements. We already see the results of this strategy as the X8 project is gaining recognition among wider audience, chiefly institutional contributors. Regulatory compliance combined with the built-in system preventing any abuse of the system and a dedicated team of experts are making sure the X8 project is at the forefront of the blockchain revolution.