If it’s going to be successful, it helps if a cryptocurrency is about more than just a token offering
The cryptocurrency industry over the last few years has followed a fairly similar path to a gold rush in America’s old west: a few people strike a seam, make some healthy profits, lots of other people follow but struggle to make the returns some of the pioneers enjoyed.
In the process, regulators have become concerned about the sizable fortunes that are being made and lost, as well as the amount of sharp practice that has sprung up around the industry.
The fundamental point that is sometimes lost in the discussion about cryptocurrencies is that they are very useful in a number of ways. This is particularly true when looking at their role as a unit of global value for emerging technology projects.
The problem though is that there are so many out there, it can be difficult to gauge what has genuine value.
How the Mogu Token stands out
The trick, perhaps, is to look at how much potential liquidity the token has. Is the token simply there to support an innovative project, or does it have wider potential use?
In the case of the Mogu Token, the initial token sale is indeed there to generate support and funding for an innovative solution to the increasingly acute shortage of server capacity globally. However, our cryptocurrency has a wider utility beyond simply moving the company beyond its successful beta test phase (which has involved 5,000 Mogu Smart Routers active in homes across China).
Mogu Smart Router users are also paid in Mogu Tokens for the time that their routers are completing tasks on the Mogu Distributed Server Network. Using blockchain technology, time is tracked and users reimbursed for the tasks that their routers contribute to. These tokens can be exchanged for goods and services from Mogu’s growing number of partners. Currently AirAsia is offering exclusive discounts to customers paying with Mogu Tokens, while digital distribution platform Steam is also offering exclusive offers and skins for its games.
These is also a third reason why Mogu Tokens are likely to have a lively secondary market: companies, governments and research communities will need them to pay for Mogu’s data services. Mogu’s innovative internet infrastructure circumvents the need for expensive servers and means that we can carry out complex data analysis tasks at a fraction of the cost of traditional server companies. Given that only around 4% of the data that is currently collected globally is actually analysed because it’s too expensive to dig any deeper, the lower price will create a potentially significant audience for our services. This in turn will drive demand for Mogu Tokens.
Cryptocurrency that shines
An initial token sale that is based on existing technology, an ownership model and eco-system that that generates consumer demand, and a professional appetite will come together to create significant demand for Mogu Tokens.
The future of cryptocurrencies overall is difficult to predict, but in all likelihood, the currencies that will thrive will be the ones that are built on solid foundations. That is what is going to separate the gold from the iron pyrite.
Mogu is a smart router company that is reimagining the infrastructure of the internet. Mogu will shortly be holding its Initial Token Sale. For further details, please follow us @MoguTech or subscribe to updates at www.mogutech.io