Most of you asked plenty of questions after the CFT medium and it came to my attention that an FAQ was required. Make sure you read all the content below. I'm aware that there will be MORE questions after this, i'll try my best to constantly update this thread with all the new questions.
Why come up with CFT rather than using the COSS tokens?
Prior to coming up with CFT, our team researched on similar tokens such as BNB & KCS tokens as 2 main examples. CFT was raised up quite a while back so this isn't something that was planned out last minute.
The research on BNB was it has a high liquidity mainly because it serves as a discounted token and also other utilities such as community voting and even as a currency in the Monaco app. Now imagine if holding BNB entitles you to a fee share just like the FSA on a daily or weekly basis, do you think people will use it for trading or community voting? Most like not, due to the simple reason that they do not want to receive lesser fee share. This will result in the token having low liquidity which defeats the purpose of it being a trading token.
Now, let's take a look at KCS (Kucoin Shares), it is exactly the opposite of BNB. KCS holders receive 'dividends' directly to their wallets on a daily basis by the amount of KCS tokens they hold. Now imagine if KCS gave trading discounts if you use KCS tokens to pay for fees. It wouldn't work because KCS hodlers wouldn't want to jeopardize the amount of 'dividends' they receive on a daily basis.
In law, there is something called precedence, following and learning from the past. We believe that BNB & KCS has showed us the difference between an investor token and a utility exchange token, and those 2 are not meant to be mixed up.
Is the team running out of funds and that's why CFT was introduced?
No. CFT was introduced to make our fees more competitive and since we are taking in institutional accounts that trade in big volumes, CFT was strategically introduced to complement the new COSS 2.0, to make it more attractive to large volume traders.
What will the funds raised by CFT used for?
Funds will be used for major up scaling of the exchange, marketing activities etc.
Other than trading discount, what other utilities does CFT have?
For a start, it is only a trading discount, but moving forward, it will be used for things such as community voting, COSS exchange currency to buy merchandise, FSA conversion, dust conversion etc.
Does the CFT make the COSS token more inferior?
Definitely not, CFT actually makes COSS tokens more valuable to hold. Holding COSS tokens will get you CFT on a daily basis and it actually incentivises you to trade whereas holding CFT doesn't get you any COSS tokens on a daily basis. CFT is an extension of COSS but it is not better than COSS, our native COSS tokens will always be more valuable and worthwhile to hold compared to CFT.
Why is the CFT starting price more expensive that COSS token itself?
Have in mind that when COSS exchange had 12M daily volume the COSS token was traded at 3 USD. With the new launch and our target of drastic increase in trading volume we do not see COSS token as a 5 cent token. Trading volume directly impacts the value of the COSS token.
So instead of saying that the CFT token currently is overvalued compared to COSS token, we would say the opposite that the COSS token is undervalued.
Why is the CFT sale rolled out at such a bad timing (bear market)?
Well, as much as we would love to do the token sale on a bull run when perceptions of cryptocurrency is at it's all time high, we are launching the CFT to complement the new platform, regardless the sentiment on the whole crypto ecosystem. We have to move forward, especially in this uncertainty, if we aren't moving forward as a tech company, then we aren't going anywhere. (Kinda obvious right? Sorry for the Captain Obvious sentence)
That is all for now.
The COSS team.