Have you ever wondered about how Midas InstantBuy is managed, or exactly what this does and how we can offer this service? Read on to discover exactly what InstantBuy is, how this is handled behind the scenes and the results this is generating for projects.
In a later article, we will highlight how to use InstantBuy, and how this links to other services on Midas. Right now, we will focus on the core benefits of the service and how this brings benefits to the masternode space.
What is Midas InstantBuy?
InstantBuy was launched in June 2019, and has grown to become one of the most used services for buyers entering the masternode market. At the time of writing, Midas InstantBuy handles monthly sales of 4.95 BTC ($46,000) of investments entering the masternode space. The vast majority of this is new money entering the space.
However, what happens to this BTC adds real sustainable value to the masternode space and opportunity for organic growth. Just like businesses in the real world, the projects need a sustainable source of income to first of all survive, but then to develop or increase marketing activities, which will positively impact the growth of your investments. Every project has expenses, and without a reliable source of income, the project would likely closed.
BTC received through InstantBuy is split. We can tailor this split depending on the project’s requirement, but under our standard agreement:
20% of the BTC is provided to the project as income
To ensure that the project can support the planned growth, InstantBuy provides a source of income to the project. Based on our data and current volumes on InstantBuy, a project would expect to receive between 0.20 – 1.50 BTC per year depending on the demand of their coin, but can be much higher than this if there is strong demand for their coin.
75% of the BTC is provided to exchange support
The majority of the BTC spent on InstantBuy goes straight to a structured buy wall support of that coin on exchange. Support that can be offered through InstantBuy is often higher than most coins have on exchange. Price support supplied through InstantBuy is structured to reduce volatility, increase investor confidence and give the coin opportunity for gradual and sustainable growth.
From BTC we supply to exchange, once our buy orders have been filled, new coins received are returned to InstantBuy and made available for repurchase to allow us to generate more revenue for the project and more support for the coin.
5% of BTC is received by Midas as a service fee
We charge a fee to cover management, maintenance and further development of the InstantBuy network and wider Midas ecosystem. We will work this fee in an economics of scale model – as volumes on InstantBuy increase, this percentage will decrease to provide increased BTC back to exchange.
On a weekly basis we report directly on the Midas Discord server detailing exactly how much BTC has been sent to each project, to coin support, and how many coins have been purchased from exchange and returned to InstantBuy availability.
And how does this benefit an investor, the project or a coin?
Depending on your position in the market, InstantBuy brings differing benefits.
For the investor
InstantBuy provides the opportunity to purchase coins instantly, with no hassle, delay or fuss. Simply purchase coins, receive them to your share and immediately begin generating rewards on those coins. No waiting for orders to fill, no waiting for block confirmations and no delays in starting to earn rewards. Your time is your money.
The price on InstantBuy has been carefully calculated using live market data. Generally speaking, the price on InstantBuy should sit between the ask and bid across exchanges. However, where this is not possible InstantBuy will alway be cheaper for purchases of 0.03-0.05 BTC compared to buying those coins through the exchange sell order book, due to lack of liquidity on other exchanges.
For the project
Using InstantBuy, the project can tap into a reliable source of income to increase the likelihood of developmental progress and overall project success. InstantBuy also promotes new investors to take a position in coins, which increases overall audience increase.
At the time of writing, InstantBuy has generated over 9 BTC of revenue for projects listed to this service, and now regularly provide between 0.75 – 1.20 BTC per month to projects listed to InstantBuy and Midas exchange.
For the coin
The primary focus of InstantBuy is to increase coin support on exchange. With exchanges used by MN/PoS coins offering such poor liquidity, this discouraged new or existing buyers entering the market, and in many market spending 0.05 BTC can pump the price by 50%. This is not what a buyer wants, and they simply don’t enter that position. This has gradually drained the market or investors and majorly contributed to the depression of the masternode market.
InstantBuy promotes buying, promotes price strength and promotes sustainable value growth of the coin. By focusing on reducing volatility, this increases the confidence of that coin in the market, and thus providing further opportunities for growth.
Since launch, InstantBuy has supplied just under 20 BTC to the market in coin support.
