What is dividend coin? (Does dividend really make money?)
What is dividend coin? Dividend coin is a token issued by blockchain projects,
What is dividend coin? Dividend coin is a token issued by blockchain projects, also known as “fork coin” and “mining dividend coin” in the Bitcoin network. It profits by distributing dividends obtained from user participation in virtual currency transactions. This method can be understood as when a team wants to distribute, it will give the fees charged by the team to the corresponding investors or other institutions. The value of dividend coin mainly has two aspects: one is the income sharing of making quick money on the exchange; the other is the reward for the platform operator’s operations.
Does dividend really make money?
In the cryptocurrency circle, dividends have always been a popular term. But in fact, dividends are not a new concept. Many projects are just telling stories. If 2017 was the year of ICO, then dividends in 2019 can be considered interesting.
First of all, we know that the term “distributing tokens” is not accurate, because most people see this model as a marketing strategy rather than an investment strategy. But now distributing tokens has become an investment method and entrepreneurial idea discussed by many people. What does this mean?
First, why is it like this? Everyone should realize that the entire blockchain industry is still in its early stage, and most investors do not know how to participate, so their views on distribution are more conservative. Second, why is it said that more and more projects will choose to join and develop in the future to gain more profits? Third, does dividend really make money? What is the most concerned question for ordinary retail investors regarding token distribution?
The first question is whether we have so many methods to earn profits? Let’s take a look at the specific operation process:
1. You need to deposit a certain amount of funds first, and then use the assets in the wallet to exchange for corresponding tokens (such as BTC) and then transfer them to others or other users to use these tokens to purchase products and services. If you want to buy goods or services from a platform, you need to sell your digital currency and keep it in the exchange to earn the price difference, and the transaction fees will be collected. Therefore, you can use all the funds in your wallet for withdrawal, or you can do some additional operations to increase profit opportunities.
2. There are many technical requirements here, especially in terms of contracts, especially public chains like Ethereum. Their development teams are very small, and some teams that do not understand this technology even have no experience, making it difficult for many project developers to make good decisions.
3. In addition to the above two methods, there are two important factors: one is whether the project party is willing to take on the responsibility of maintaining its own business and development; the other is whether the project party wants to provide liquidity through the issuance of tokens.
The last point is at the protocol level, whether there must be a certain governance mechanism to ensure the safe and stable operation of the protocol. If you want community members to actively discuss how to design and implement solutions, it is best not to think too much unless you want to become a “white hat hacker”, otherwise you will never gain their trust.
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