FOUNDATION’S INITIAL ISSUANCE STRATEGY, RETAIL PARTNERS
Once the date for distribution has been reached, The Foundation will start distributing CafeCoin to the public. They have a certain strategy for their initial distribution though, and it won’t be given to only merchants and other users. They have specific people they intend to give out coins to, and the funds they will gather will be allocated strategically. The Foundation made sure to properly think up of the right entities to distribute coins and funds to in order to ensure long-term utility of CafeCoin. CafeCoins will transform how a cryptocurrency can function with retail partners after its initial issuance.
The Foundation will first target the high-margin café sector as the initial merchants who adopt CafeCoin. The reason they chose cafés, aside from their high-margin business model, is because they also have a large returning customer pool. The Foundation has also already planned out exactly who the first partners will be. This is done so as to establish CafeCoin as a utility token that is beneficial for both merchants and users, and this in turn could increase wide-spread adoption by other merchants. Unlike some other cryptocurrencies, CafeCoin endeavors to be as transparent and honest as possible with users, so all would be equally informed about what happens behind the scenes.
Read More: Cryptocurrency: An Explanation For Beginners
CAFECOIN’S INITIAL ISSUANCE POLICY
The Foundation intends to generate 100 million CafeCoins in total for the purpose of its initial sale. This number was selected in advance to properly meet the demand that would be generated after the CafeCoin is released. These CafeCoins may also be offered in different tranches with varying prices that are based on market demand so the offering price will reflect that particular demand. The Foundation did this to make the pricing fair for all those involved. The anticipated allocation of the generated coins will be:
Founders and CafeCoin Team – 5%
Reserved for Purchase by Strategic Partners – 5%
Follow-on Private Sale Completed at $3 per CafeCoin – 3%
Private Sales Completed at $2 per CafeCoin- 2.5%
Public Distribution – 30%
Treasury Reserve – 50%
Based off of the percentile distribution, five million CafeCoins will be set aside for the founders of CafeCoin and the team. An additional five million will be reserved for purchase by large strategic partners in retail that will adopt or implement CafeCoin in their point of sale solution. Two and a half million will be given to the Foundation’s venture investors who have invested five million dollars at two dollars per CafeCoin, and another three million will be given to private investors who had made a $9 million dollar investment commitment to buy CafeCoin at $3 per coin.
In the ICO, up to 30 million CafeCoins will be acquired by CafeCoin subscribers. The Foundation will announce the pricing and the time of the offering on its website. All the remaining CafeCoins, which will amount to 54.5 million, represent the remaining 54.5% total amount of CafeCoins that were generated. These will be held in The CafeCoin Foundation’s Treasury Reserve.
Wide-scale adoption by merchants remains, and will most probably always be, one of the most crucial steps in the implementation of cryptocurrency products. If no brick-and-mortar stores are going to adopt the cryptocurrency into their point-of-sale system, then the use of cryptocurrency will stay as it is right now, as a digital version of gold. At least that’s what the public sees it as. However, it’s not that easy to have stores go with a cryptocurrency. Because it is not as widely accepted, they would think that transferring their system would not be beneficial.
The Foundation proposes that in order to combat the problem of merchant adoption, they will form strategic relationships with established retail brands worldwide, as well as retail fulfillment companies like Amazon and other mass merchandizers. If a professional relationship is formed, this will make it easier to have CafeCoin be integrated by other merchants. The Foundation also believes that by launching with these partnerships in place, it will accelerate the adoption process and success of CafeCoin.
Currently, The Foundation is in the process of securing such relationships. With the relationships secure and in place, the benefits of CafeCoin can also be known as well. In most cryptocurrencies, one reason why people are hesitant to integrate them into their payment processes is that they don’t really know what happens during the transaction, and the fact that several older cryptocurrencies did not achieve wide-scale adoption because of a lack of incentives.
The CafeCoin Foundation has already thought of this, and has taken steps to ensure CafeCoin will prove beneficial for both merchants and consumers alike. CafeCoin is also easy to use to the point users will no longer need to have in-depth knowledge of the usual cryptocurrency processes in order to make full use of it. Once word has spread of the benefits that CafeCoin gives its users, both the sellers and the buyers of products and services will be more willing to integrate it into their lives.
FIRST ADOPTER OF CAFECOIN IN THE CAFÈ INDUSTRY
A definite strategic partner for CafeCoin is going to be FIKA, which is an established luxury coffee and confections restaurant chain that was founded in New York City over 10 years ago. Aside from the operation of multiple retail stores in New York City, FIKA has established a global wholesale and retail brand in countries all over the world. FIKA is interested in re-invigorating a global brand, and therefore is expected to become one of CafeCoin’s first adopters in the United States, as well as abroad. FIKA products are also well known all throughout the luxury café sector. They have well-known, established purveyors like Fresh Direct, Union Market, Whole Foods, Tiffany’s, and multiple others.
In addition, CafeCoin is also expected to be adopted by other marketing firms that specialize in brand franchising throughout Hong Kong, Singapore, and Japan. More details will come out in the future, as the relationships will expand after the initial sale of CafeCoin. The Foundation expects that a consumer would receive lowered costs for a café product at participating retail locations, if the transaction makes use of the CafeCoin innovative mobile app. The Foundation believes the combination of the significant discount availability in Asia and the user-friendly and intuitive CafeCoin mobile app, will make the distribution of CafeCoin more prolific, and this will also build a solid platform for the success of the whole project.
STRATEGIC PARTNER: THE NEWTON PROJECT
Aside from FIKA, The Foundation has also partnered with Mr. Xu Jizhe in a strategic technology partnership and the Newton Project which Mr. Xu is Chairman. Just recently, Mr. Xu has also co-founded a highly successful cryptocurrency called Elastos, which is being actively traded on several exchanges. Mr. Xu is also one of China’s leading authorities in cryptocurrency and blockchain technology. Aside from that, he is also an expert in open source software platforms and internet security. He is broadly viewed as a cryptocurrency pioneer, and his White Papers on blockchain technology are regarded as one of the best foundational research papers in China. The Foundation will leverage Mr. Xu’s expertise and knowledge to make CafeCoin grow even more in Asia.