Crowdfunding for a better world
FairCoin is offering fixed exchange rates to merchants. However, as FairCoin is also listed on some exchanges, some people are also investing into the growth of its value. This makes it necessary, to adapt the official exchange rate from time to time by decision of a general assembly.
FairCoin is one of hundreds of AltCoins (link is external). Compared to most other coins which are just capitalized by an ongoing blockchain bubble, FairCoin is connected to real values, e.g. on market.fair.coop (link is external) and for exchanging goods and services at local nodes in many countries. Our ultimate goal is that FairCoins are being mainly used within the FairCoop ecosystem by people who are supporting values towards a fair world and economy. Only about 10 percent of all FairCoins are on the market which doe not have a relation to FairCoop.
In the FairCoin economic strategies Telegram group (link is external), we are discussing various aspects of the FairCoin value. How can we keep out speculators? When should we adapt the exchange rate? How can we incentivize people to use FairCoins? Here we list some aspects:
Pros of a price increase
- Increase of the stored value in the community funds (most of it is currently frozen, e.g. refugees fund)
- More economic power for FairCoop to invest in the own ecosystem and in other related projects
- Preventing to sell FairCoins in getfaircoin below bittrex price (prevention from arbitrage)
Cons of a price increase
- A fast increase has a higher risk of initiating a bubble or get speculators in with the intention to “dump” on a high price, which finally can lead to a big difference between market price and official price
- Big price difference over a long time can lead to liquidity problem for FairCoop because those “cheap coins” on the open market can also be used to get products and services (general fact: merchants can always exchange to the official price). This way, FairCoop has to pay for this price difference.
Therefore, a change of price is always considered with caution and should reflect the reality of the FairCoop ecosystem. For more than two years, the price was set 1:20. A price correction to 1:15 due to high demand on markets since April 2017 has been put in effective from May 12 0:00 CEST 2017, decided by FairCoop economy strategy assembly May 11 (see blog post). Another correction to 1:10 has been decided in the FairCoop 22nd general assembly (link is external) on June 15th, 2017. Due to the peak demand on June 20th, our getfaircoin site has been put into maintenance mode until we have a more clear view on the situation.
Parameters for considering a price change are:
- Buying volume with getfaircoin.net
- Buying/selling volume and price in bittrex
- Buying/selling volume from the merchants accepting FairCoins
- Stability of FairCoin price over a certain periode of time
- Usage of FairCoin in real markets
- Increase number of users (e.g. accounts on OCP/FreedomCoop, useFaircoin, (Bank of the Commons), downloaded wallets, Local Nodes + participants etc)
- Euro/btc liquidity of the community to support a price change
- Bitcoin exchange price development
If you are interested to build with us a fair economy system, then buy FairCoins at getfaircoin.net or on e.g. bittrex (link is external). If you just want to get rich soon and intend to "pump and bump" - please consider other AltCoins to speculate on. We rather want to keep speculators out and attract long-term investors that are in line with our core values and support our projects.