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 the decision of a general assembly.
FairCoin is one of hundreds of AltCoins. Compared to most other coins which are just capitalized by an ongoing blockchain bubble, FairCoin is connected to real values, e.g. on FairMarket and for exchanging goods and services at Local Nodes in many countries. Our ultimate goal is that FairCoins are mainly used within the FairCoop ecosystem by people who support values based on a fairer world and economy. Only about 10 percent of all FairCoins are in the open market without a direct relationship to FairCoop.
In the FairCoin Economic Strategies group on Telegram or fairchat we are discussing various aspects related to 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
Increases 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 its own ecosystem and in other related projects
Prevention of selling FairCoins in getfaircoin below the price on markets (prevention from arbitrage)
Cons of a price increase
A fast increase has a higher risk of initiating a bubble or attacting speculators with the intention to “dump” on a high price, which finally can lead to a big difference between market price and official price
A large price difference over an extented time can lead to liquidity problems for FairCoop because those “cheap coins” on the open market can also be used to get products and services (related fact: merchants can always exchange for 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 official exchange rate was set at 1:20 (that is, 20 FairCoins per Euro). In 2017, it had to be corrected several times.
- 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 on June 15th, 2017.
- Due to the peak demand on June 20th, our getfaircoin site was put into 'maintenance mode' until we had a more clear view on the situation.
- On July 13th 2017, FairCoin users had another assembly meeting and decided for 1:5. (1 FAIR = 20 Eurocent).
- After the successful migration to the Proof-of-Cooperation blockchain and the high demand on markets due to the BitCoin forks on August 1st, we have again corrected the price in the assembly to 1:2 on August 10th 2017.
- After 4 weeks stable price on markets around 0,6, the FairCoin open assembly has agreed in September 14th, 2017 to set the exchange price to 60 Eurocent per FairCoin for getfaircoin and merchants.
- With the rallye of Bitcoin to 7000 we jumped over 1 USD and adapted the price of 1 FairCoin to 90 Eurocents, valid from Nov 3rd 2017.
- With the continuing demand we have set 1:1 in another assembly, valid from Dec 5th 2017.
- Due to growing acceptance, partnerships and demand official price adapted to € 1,20 in first assembly of 2018, valid from Jan 16th.
Parameters for considering a price change are:
- Buying volume with getfaircoin.net
- Buying/selling volume from the merchants accepting FairCoin
- 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/Bitcoin liquidity of the community to support a price change
- Bitcoin exchange price development
Speculators: keep out
If you are interested in building a fairer economic system with us , then buy some FairCoin. If you just want to "get rich quick" and intend to "pump and dump" - please consider other AltCoins to speculate on. We prefer to keep speculators out and attract long-term investors that are in line with our core values and support our projects.
We have decided not to sign any statement wth Bittrex (because FairCoin is not an ICO) and got de-listed on their crypto-market on March 30th, 2018. Our strong community has bought 1,2 Million FairCoins the two weeks before this de-listing, which really is a powerful sign of real world usage.