Dear Insureum supporters,
Here is an update on the biggest topic among our supporters: the exchange listing. As announced last week, we have been working around the clock for the listing on Coinbene, which was scheduled for this Thursday (Aug 16th). However, after intensive research and internal discussions, we have concluded that postponing the listing would be the best way to mitigate the risks associated with the market downside. The listing is postponed for about a week; we will share more details as soon as possible using our media channels (Kakaotalk, Telegram, Facebook, etc.).
In this post, we will talk about two main topics: 1) why the listing needs to be postponed and 2) what the milestones of Insureum Protocol development are.
- Why the listing needs to be postponed: to keep up the market cap and to maximize ISR value for our supporters
First, the recent drop of Ethereum prices has no impact on the value of ISR investments held by investors who participated in our ICO (TGE). The price of Insureum during our private sales was set and sold based on fiat; Ethereum used in the purchase process was simply a medium. The amount of Investor tokens, which have already been distributed, were calculated by the pre-determined price of ETH/USD. Thus, the dramatic crypto market plunge does not directly affect the value of ISR investments until the listing. The problem comes after listing.
Our first and foremost goal of listing is to provide the maximum value in the shortest possible time for all our investors and supporters. Token value upside is determined by price formation, which quickly comes to a consensus at time of listing. Timeliness of the return on investments is determined by market conditions. Thus, the key influencer for price and transaction volume is the market condition and choosing the best time to list is always one of the biggest challenges for any blockchain project (Figure 1).
What is the current market situation for cryptocurrencies? At the time of press (August 14, 2018), BTC is valued at 6,027.28 USD, which is the second lowest price point in 2018, and is still declining (Figure 2).
As we show below, our research indicates that listing a new token in a bear market has a direct negative impact on the immediate and 30-day stabilized price of the token. It’s clear that transaction volume and price are shaped based on perception of market participants. Figures 3 and 4 indicate price changes of seven notable tokens (out of top 100 tokens based on CoinMarketCap) that were listed between December 17, 2017 and February 26th, 2018 during the infamous BTC market plunge.
As previously mentioned, we, the Insureum team, considers providing maximum value for the supporters as our foremost objective. We have carefully considered what the best possible decision is to achieve this goal and have come to the decision to postpone our listing. With the equation of aggregate value = timeliness * value upside (Figure 1) applied to these market conditions, aggregate value maximization can be achieved from focusing on value upside (which we can manage) and sacrificing timeliness (which we cannot manage) to a degree.
But what is the value that the Insureum team and the Protocol can provide for you, our supporters? Here we will explain our project development timeline, in greater detail.
2. What are the milestones of Insureum Protocol development?
Our current development direction is threefold: 1) listing on cryptocurrency exchanges, 2) business development, and 3) technological development.
Our first listing will occur on Coinbene with periodic announcements of new exchanges.
In terms of business development, following the recent MoU with AXA, there will be periodic announcements of partnerships with insurance companies and third parties like app developers. There will be continual releases of blockchain based insurance products developed on the Insureum protocol, as well as variety of different types of partnerships and use cases, by early 2019. Beyond innovation on insurance products, we are building an Insureum-based financial ecosystem that maximizes the usability and value of Insureum — stay tuned!
Technology development is the area which we are focusing on right now. Currently we are developing the core engine and blockchain services for the blockchain protocol. The next steps will be development web platform and web dashboard, together with DApp development to ensure seamless transaction and connection of insurers, third parties, and users; all on Insureum. More details about technology development will be shared soon, with another posting on our blog.
We would like to emphasize our gratitude to all our supporters and that we truly value your endorsement and concerns. Still, as mentioned above, our second-to-none objective is to create the largest value for our supporters. We will continue to excel on clear planning and development to make sure we deliver what we promise. You will be the first to see real blockchain innovation in insurance.
Your sincerely,
Team Insureum
