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Letter from Midas Protocol's President and CFO

Letter-from-Midas-Protocol-President

Developing a technological solution aiming at mass market adoption is a classic approach taken by many. Microsoft, Apple, Google, Facebook all went this direction: from product development to building and responding to their users, building a community of users also known as the market. They spent years doing this. Such process is based on very demand-driven microeconomics. Those who buy shares of such companies are also the obvious fundamental investors.

In the past 2 years, many technology companies have chosen a new path: ICO. ICO is a route that calls for capital in conjunction with building the investor/user community and developing the product at the same time. In these cases many microeconomic principles seem to have become no longer applicable. The reason is that in the process of building communities and issuing cryptocurrencies, many teams have been trying to build a market that is not based on the solid foundations of microeconomics such as keeping with the equation of supply and demand, identifying pareto optimal points, identifying nash equilibria and push/pull factors that influence these equilibrium points, ensuring a constant reduction in the deadweight loss, enhancing and optimizing both supplier as well as customer surplus. Those who buy cryptocurrencies mostly want prices to rise, but do not really understand the underlying factors that bring the price growth. They are merely speculators.

For any team, if they are dominated by the community and drawn to the FOMO movement without relying on the supply and demand laws, they are building a castle on the sand. Therefore, a crypto-enabling technology solution team needs to balance the elements of investment and speculation, not just follow FOMO’s wild cries. They need to know the balance between product development and the right time for product release, assess the rhythm of the community building process, whilst becoming listed on the exchange and work towards boosting the actual number of real users. Increasing real demand and reducing circulation supply will help to raise the value of the token and rhythmically push it from one exchange to another one, scaling to global expansion. In this way, any team would be able to reduce and optimize unnecessary costs such as listing fees, maximize their resources for product development and serve customers in the most valuable way possible.

This is the way that the Midas Protocol and Vinex Network are going - strongly backed by the fundamentals of microeconomics. By 30th of September 2018, just 3 months after ICO end, we released the Midas Foundation Alpha, Midas Protocol Wallet App Alpha 1 and 2 on both Google Play and App Store, Vinex Network Crypto Exchange Alpha and Beta and got our MAS token listed on various other exchanges.

We will show you that our development and growth are based on the understanding of economics, balancing the real supply demand laws and the speculative nature of tokenomics.

In code we trust, in you we believe!

Visit our social channels for latest updates and discussions around the Midas Ecosystem:
Reddit: reddit.com/r/MidasProtocolOfficial
Bitcointalk: bitcointalk.org/index.php?topic=3718145.0
Blogs: blog.midasprotocol.io
Telegram group: t.me/midasprotocolglobal
Facebook: fb.com/MidasProtocol.io
Twitter: twitter.com/MidasProtocol
Website: www.MidasProtocol.io

Letter from Midas Protocol's President and CFO
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