Ever since the release of the Midas exchange, the team has a renewed initiative to list quality projects on the platform. It started last week with the listings of MasterWin and Sapphire, and continues into this week with Simulacrum. We conducted an interview with some basic questions about the project to help our community familiarize itself. Read below:
Q. What is SCM coin’s primary use case?
A. SCM is going to become the main payment method for the subscription based services the master traders may wish to provide on Simulacrum.trade copy-trading platform. The service is also going to consist in a couple of premium features acquired only with SCM.
According to the whitepaper, 20% of the subscription based generated profit and 50% of premium feature income will be used for SCM buybacks on open market every quarter on a random date.
The ultimate goal is to tether SCM value to the registered traders performance, upgrading the coin from an utility asset to a synthetic asset. More details would be provided in a future version of the whitepaper.
Q. How did the idea for the project come about?
The idea comes from having a background in traditional and cryptocurrency trading. Being a developer and a software architect myself, I thought of providing something useful for the community and why not profit from it as a business.
It all started from a known problem in crypto trading space: there are a series of premium and paid trading groups without providing a tangible proof of past performance on which the new subscribers can base their decision of joining or not.
Those groups who are actually genuine and work hard to provide both a great learning experience and good trading ideas have difficulties in finding followers and setting up a subscription based service.
Even then, there is quite a delay between posting a trading idea and actually placing a trade based on it, which makes an entry not optimal anymore or miss an entire move.
Simulacrum.trade aims to solve all these kind of problems.
Q. What makes SCM coin unique?
A. The coin itself is not unique, there are plenty similar coins out there, what makes it unique though, is its service: Simulacrum.trade.
Q. Why does your project require its own coin?
A. The project is all about cryptocurrency copy trading. It makes sense to have an utility coin to fuel the ecosystem around it and provide benefits to participants that otherwise might not be able to provide.
Q. Why has SCM chosen MIDAS to host its presale?
A. Midas has proven to have a well established community around it and has already made a name for itself in the masternode related space.
By doing so, joining Simulacrum.trade presale would not raise such high risk as other platforms, as it provides investors insurance and 50% of the BTC raised would go into supporting SCM price after presale ends.
Q. Why should people invest in SCM coins?
Simulacrum.trade is a new project and brings a fresh idea in the crypto sphere, an idea that has proved its value in legacy markets. Social trading has been around for years. We are just bringing it a step further by automating it and making it accessible for traders with any kind of experience.
Q. How do you plan on retaining the value of SCM coins?
A. The fact that the masternode collateral increase has a predictable schedule, combined with the fact that part of the generated profit will go into buybacks or burns, would provide a great price support if the demand is still there.
Having a working product with a great uses case and business model is more important than the value of SCM before that.
Q. What is the biggest weakness of the project?
A. I think the biggest weakness is not being able to successfully convey the benefits of having a crypto copy-trading platform in the space and the fact that trades are taken place on supported exchanges like Bitmex or Binance, without funds leaving traders possession.
Everything will take place behind the scene and both master traders and followers would continue opening or closing positions like they usually do on their favorite exchanges.
Q. What is the biggest strength of the project?
A. Simply put, there is no other functional or profitable project of this type in cryptocurrency area, that we know of. Being first in any industry is something that everyone craves for, now it’s Simulacrum.trade chance.
Q. What does the future hold for SCM in 2020?
A. My hope is that by the end of this year the Simulacrum.trade service will be fully functional and with a plethora of traders pool to choose from.
By having the platform up and running as quick as we can, would open the doors for a couple of different ideas that we have, like building an exchange onboarding service, create own exchange, pave the way for SCM to become a synthetic asset and provide coin holders a real reason to stick around and profit from it.
It is true that there is no viable copy-trading platform that is decentrally available. Platforms that offer this, like eToro, require KYC and is not available in certain countries. This is a viable market and a good use case that – if implemented correctly and efficiently – could prove to be very valuable. What is also good is that SCM is not attempting to reinvent the Blockchain. Let’s be realistic: there are now over 5000 different cryptocurrencies, most of which are forks of a select few. The vast majority of these projects claim that they are “attempting to become a payment method” and “develop new technologies” – aka unseat Bitcoin. Realistically, there can not be so many competitors to achieve one goal. But what good small-cap projects such as SCM can do is: provide value for their investors. This is largely accomplished through controlling available supply and conducting buybacks to maintain scarcity while simultaneously growing your pool of investors. If both of these are done successfully, the value of the coins is certain to go up. SCM has a good business plan and model – now let’s see if they can deliver.
Note: Always do your own research before making any investment decision.