We have been basing all the dividend return calculations based on the estimated $500 million volume for 2018, which yields roughly 100% annual return given $0.01 / SAFEX.
I wanted to look at this over all the possible prices & marketplace volume to get a better idea of growth. Most traditional investors look for an annual return of 10% as good investment. So let’s assume that a 20% return will heavily incentive lots of investors to buy SAFEX.
Cost per SAFEX | Marketplace Revenue | Annual Return | SAFEX growth
$0.01 $100 million 20% 1x
$0.05 $500 million 20% 5x
$0.10 $1 billion 20% 10x
$0.50 $5 billion 20% 50x
Basically SAFEX price will be directly proprotional to the marketplace volume. Does this logic look sound to you guys?
Although I think the general idea is good, there is one thing that is worth noting.
The dividends are not paid to Safex that is stored on exchanges such as Bittrex. This will result in an under-supply of Safex “shares” which could/should drive up the price when demand is high. Certainly I think people who expect more and more trade volume on the marketplace will think long term, so the 20% figure is probably quite high.
For example, if I buy in at $1 and expect a 20% dividend that year (i.e. 20c), in 3 more years the trade volume may have doubled, hence my dividend is closer to 40c. In that time the price of Safex, at 20% would be $2, so I am, effectively, getting a larger “opportunity-cost” type payout.
The short version is: Think medium to long term. 5 years max!
That’s true, lost coins and coins on exchanges will increase the effective dividend.
Also SAFEX value itself will increase so that’s a gain in itself.
Also in terms of marketplace revenue, got a chance to discuss with a few people in person who are trading on Amazon, with 50+ products and 100k turn over means only 100 such merchants would reach us to the 500m mark. Not to mention the great benefit the merchants get for using our platform over amazons due to lower costs.
Seems like now is a good time to get my nonexistent dropshipping side hustle going.
Hi am new here … when will the market place will be online ?? any clues ??
Yes, check out the roadmap on the website, https://safex.io/
Scroll down until you find the “roadmap”
Click on the “Chille” words.
scroll to the end
Marketplace deploys Q2 2018
100k inventory turnover for each of the 50 products?
So we’ll need 100 vendors that sell $5 million per year.
That’s also assuming no individual sellers, so it’s definitely possible!
Hi Dan, Do you have any merchants committed already that have $100k+ revenue? That would be an amazing kickstart to the platform.
As for adoption, I think existing merchants will simply extend their current marketplace avenues with the SAFEX market. Vendors will continue to sell on eBay/Amazon, but add their products to SAFEX.
The great thing is that vendors can have an edge over competition by lowering prices simply with SAFEX’s lower commission fees. Imagine a 10% amazon fee vs Safex’s 5%. SAFEX merchants can attract customers with a 5% discount, while maintaining overall profits.
I’m not sure what the tax implications are for selling on the SAFEX market, but I would assume you could report less revenue overall for your business because the government can’t track crypto currencies.
So on top of the 5% saving, you’re saving an additional 20-30% worth of business taxes. If the anonymity aspect is truly so, the tax savings will be even more incentivizing than the commission savings.
why shouldnt be there no individual selllers … safex can be a place for everyone… big sellers small sellers … could be great for people selling on etsy too…
I think theres’ more value to target vendors initially, to introduce and attract buyers. Those buyers may then become individual sellers on the SAFEX market as well.
This makes hitting 50 cents very unlikely, as the value of SAFEX is proportional to the marketplace volume.
At $0.50 a coin, it would take 5 billion revenue for holders to get 20%, or 2.5 billion to get 10%.
Dogecoin has a market cap of 1 billion and yet is completely useless. Many coins in the top 50 have no objective value apart from the percieved chance that their price will rise further.
In all this crypto crazyness, a price of coins is not determined (only) by some objective RoI calculation, but also hype and subjective perception of people regarding future price increase.
If SAFEX lifts off, I guarantee many people buying it wont even know about the marketplace details, dividents etc, but will simply be rushing aboard in order not to miss the ride…
I think there is going to be more variables involved which would affect the price of the safex coin… i remember hearing in an old interview with Dan that sellers on the chille marketplace would get some additional account benefits for holding safex coins. One idea that i had which would bring up the value of the safex coin is to have promotional sections in the chille marketplace website which would display featured products/services. An algorithm could be made to give sellers with higher safex holdings a higher priority of their promotional products displaying in the featured section… this would give a lot of incentive for users of chille to hold more safex coins in order to get higher click through rates in the promotional sections of the website. Not sure if its something which would be considered, but to me it seems like an obvious incentive to buy more safex.
I THINK I saw Dan mention it a few weeks ago somewhere on reddit that he is finalizing some talks with a few big stores (he couldn’t say witch due to NDA). Don’t quote me on this tho…
Yeah that’s true, also people will probably want voting privileges as well, which is another incentive to buy them.
I’m just solely thinking from an earnings perspective, which is what most disciplined investors look at.