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A VITAL TOKEN — PARENTING YOUR BUSINESS SMART

Studying business from the angle of science and watching its dynamics, I came to the conclusion that in business there are, basically, three main groups of people. The first is entrepreneurs, experienced people who have already built something. They understand that for the successful achievement of their goal it is necessary to focus on the demands of the market and to constantly adapt their business to it — or, simply said, to study. The second is newcomers, people who are beginning to discover a new field of activity by trial and error. The development of a new niche, technology or method is associated with the learning process, and learning something new is equally difficult for both experienced and newcomers. Therefore, among the newcomers the first attempt is, with a high probability, always a flop. Only a small percentage of the first-timers is successful, and this is mainly due to the fact that those people understand the importance of education, and have the skills of quick learning. The third group are scammers, people who set a goal to deceive other people, or the market, and to cash in on it.

Studying the digital market in the era of blockchain and ICO, I came to the conclusion that it works by the same laws: there are scam projects that have the goal to collect money and to disappear, there are newcomers and, of course, there are experienced entrepreneurs. If you look at successful projects, they were all made by people with vast experience in the field of innovative technologies, and with the understanding that business needs to be built thoroughly, constantly receiving analytics, consulting, learning, and educating staff.

According to statistics, about 44% of post-ICOs fail, many become scams, and the reason is not that the project was initially bad. The reason is the same — with the development of a new niche and training in new methods, the lack of expertise comes up and the associated falsification of economic activity comes along. For example Australian SME survival statistics:


With the advent of tokens, it became possible to program any type of economics — to turn it into a token that will carry the functions of a means of exchange, storage, payment unit and will be subject to completely different economic laws from those on the market. This means that any business can be digitized, and any business can have its own unique economics that meets its specific tasks.


The main problem for newcomers in blockchain is that by creating their own blockchain and tokens, they create their own economics without understanding it to the end, and not taking into account the nuances. Therefore, their economics collapses before the serious problems of the project itself arise.

My unique method of consulting is that I help projects understand their business model from the point of view of mathematical economics: what economic model is able to support this business, what economic model will allow this business to develop and to exist during the first 3–5 years. As I said at the beginning, in the classical business there are entrepreneurs who perfectly understand that from any business you can get something useful if you have invested enough time in it. So, if you have the opportunity to stay in business for at least 3 years, then, with a high probability, you will get something useful out of it, something unique, which might bring super profit.


A simple business cycle

I help create economic models that, in accordance with the business model, will work on the market in a cycle, preventing this business from collapsing, that is, losing its value, they will not allow it to overclock, i.e. exceed their capabilities, so that business expectations do not exceed real opportunities and vice versa. Tokenomics — the economics of tokens, the token-economy is a set of economic rules, which is based on cryptoeconomics. Cryptoeconomics is, in essence, pure mathematics, an area, in which most entrepreneurs have no experience. If business is an automobile, then tokenomics, as means of developing a business, is the highway on which the business will run. If you make a car and run it into the sea — it will drown and, of course, your business will fail.


The best strategy is to study

Most entrepreneurs, most people launching ICO&STO, want to get knowledge, want to understand how to make their business work. However, now the number of real specialists on the market who are able to offer a “tokenomics consultation” service is small. Many advisers, having a useful experience in fundraising, marketing, do not really understand what services the digital market requires. Offering fundraising consulting for ICO&STO, they forget to offer consulting on how the token actually works. A token is a unit that has an economic weight and a token must work according to economic rules. Their service of consulting on tokenomics, in which these advisers have exactly the same level of skills and knowledge as the ICO&STO business owners themselves, appears, in effect, a disservice.

My advice — a free advice to everyone, as I’m not only a scientist, but I am also an enthusiast of cryptoeconomics and I would like to see cryptoeconomics flourish, as I am sure it is the future — is to pay maximum attention to the economy of your token, your ecosystem. When you create such ecosystem that will match your business perfectly, then this ecosystem will help you develop, help you cope with any unexpectedness, with a crisis. And if you are told that cryptoeconomics or tokenomics is simple — that’s just a bunch of bullshit! Tokenomics is difficult, it needs research and comprehension. For that, you will help scientists: economists, mathematicians, physicists — people who know how to work with mathematical formulas, who can come up with different solutions and systems, based on scientific research. Then a bright successful future will shine on your token and you will really have a much better chance of not only collecting money, but also to have sufficient time to hang in there while your business develops and starts generating income, exactly as you planned it.

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