As we are drawn closer to the biggest milestones of the Colendi Project, first one being the mainnet launch of the Colendi Decentralized Application, and the second one the Colendi Token Sale; we feel the necessity to clear up the doubts our community may have about the Colendi Application and Colendi Token details. Colendi Project is proud to present its Colendi Token, a formally approved token and defined as a utility token. This is a piece of very significant information that needs to resonate more within the blockchain and Colendi’s own community. Today’s blog intends to explain thoroughly what it means for us to be able to launch a utility token as well as defining these terminologies in a way to express the vision and aim of Colendi Project.
In our previous blogs, we have explained you why Colendi chose to utilize the blockchain technology and adapt the ever-growing decentralization and anonymity. To sum up in a sentence, Colendi chose to apply blockchain technology and create a unique Colendi Token because it needs an algorithm which would calculate and automatically carry out certain transactions while keeping the users anonymous and transactions within the ecosystem secure. These were quite impossible before the rise of blockchain technology and the invention of smart contracts. Basically, Colendi thrives on the fact that blockchain opens the doors to decentralization, true sharing economy mechanics and mass adoption of the sector projects and products.
Colendi Token, the official Utility Token
However, Colendi has long been on the wait for certain regulations and approvals before being able to move forward. For about two years now, the business structure and product essentials had given way to define the main characteristics of the Colendi Token, but it required highly intricate legal action and 3rd party revisions. We are proud to announce that after a long and elaborate operation on the legal and product side, the Colendi Token is officially recognized as a utility token. You may read our Token Paper now or go to our website to have a better understanding of the Colendi Token in detail, because this blog will intend to shed more light onto the word “utility token” next, rather than describing the Colendi Token.
Utility tokens are basically functional things, that serves for a certain purpose in the application. In case of Colendi Tokens, the COD is used for calculating the credit score, staking/slashing, and vouching mechanisms. Colendi Tokens are an inseparable, an integral part of the Colendi Application and the Colendi Protocol. Without the existence of the tokens, Colendi Application would not be able to carry out a fully decentralized application and serve the use cases it does.
Getting approved as an Official Utility Token was a very important legal milestone that is now 100% successfully accomplished. This also brings us to what we have been doing for the last couple of years. We are aware as a team are aware of the fact that Colendi’s firm structure needed also a solid infrastructure and Colendi Token has never been pushed beyond its legal definition and schedule. This means, in order to comply with the blockchain regulations, relying also on the experience of its honorable technical partners ConsenSys and Token Foundry, Colendi deliberately chose to wait for the official approval before being able to roll out the COD, Colendi Tokens and talk about its tokeneconometrics. With the approval finally obtained, we can say that Colendi Token is nearing towards the start of its Colendi Token Sale which we will inform our community very soon.
Why does it feel right right now?
Colendi Token Sale has never been more expected than today. Let’s recap why the time feels right more than ever and how the team is responding to it.
Today, Colendi sits on almost 3 years of experience. During this time we have been through many cycles and activities that showed us the sector insights, people’s perceptions and the backstage of the other fellow projects. The times change fast, especially with the blockchain environment, however, we can all agree that some things are still in the focus of the majority of the sector stakeholders:
We want to see good projects and we want to be able to trust in the decision making of those who claim to be able to create value for the ecosystem.
Colendi Token, although being on display for almost two years now, has always been preserved carefully and presented as a real value that Colendi Project defines a specific role working for the mechanism of its Protocol. It never met the markets, it never implied a fiat value and it always was made to serve the Product. These decisions are in a way, very different from what we have seen in the market until now. Many of the sector projects chose to roll out their Tokens or Coins to be able to fund their projects. They relied on mainly marketing based activities, pushing the products to below of the to-do lists, just to be able to sell more tokens and create more funds for the project. This, in fact, seemed as a rather peculiar method for people who come from the start-up ecosystem as the method needed a minimum effort for the definition of the product and more focus on promotion. This method, unfortunately, was what led the huge blockchain and cryptocurrency community to lose their faith in many projects in the sector. This false hype was quickly was dissolved in a market making it lose velocity and we saw the end of many projects.
Colendi deliberately chose to stay away from this false hype and be on its way to create its unique solution for the financial inclusion with its R&D and whitelabel products with the seed funding that we announced last August. Colendi never acted upon creating a Token before its legal review and Colendi Product’s mainnet launch and it managed to craft a roadmap that would bring the two Colendi Products together: Colendi Token and Colendi DApp to serve Colendi Users. We are proud to say that we are finally coming close to the end of this phase as we will be launching the Dapp and the Token very soon.
How will the CODs meet the community?
Colendi Token structure will be made public in the very near future, but before that we have to catch up with the latest activities of the blockchain ecosystem.
To recap what the blockchain ecosystem looks like today, we may go back to the end of 2017 and revisit the ICO-driven market. As you might know, ICOs, Initial Coin Offerings (ICO term is also used for Initial Token Offerings), created a huge hype back in 2017 and led to creation and issuance of many tokens and projects. Today some of the strongest projects were the ones that raised funds back then. There are many comments that can be made for the ICOs in general, but just looking at the numbers of projects failed (hacked, went bankrupt, ceased, gave up, disappeared etc.), ICO appeared as a risky business for many of the ecosystem actors as the majority of these projects were far from offering a product within the ecosystem. Today, many countries openly banned the ICOs and even the word itself carries a negative meaning in the market.
The problem with this system was mainly the lack of trust. The sheer number of projects and people involved made it almost impossible to go through the projects one by one and make an educated decision like the investors might do in the Stock Markets. In order to reestablish this trust, a more reliable set of actors stepped in to fill this void. The Exchange Markets or Sites have long been the center of cryptocurrency activities and many of them have successfully created a reliable label for themselves. As players’ trust grew for these centralized establishments, the markets saw an opportunity to issue the tokens on these platforms. One of the biggest actors in the sector Binance, has already carried out successful introductions for many solid projects. Binance’s Launchpad is now followed by Huobi Prime for the token sale of another project. The existence of strong establishments is what seems to give the ecosystem actors the confidence to step in and participate in the Token Sales, as they offered their users Selective Token Listings.
As an alternative, the projects may choose to make their own Token Sales, or divide their offering amounts into more than one exchange to make multiple IEOs (Initial Exchange Offering). In return, they may get to define the amounts and time-span themselves along with the responsibility of creating a decent campaign to find buyers. There are also other platforms that issue the tokens on their sites, which again accumulates all the responsibility to engage with the community in a correct manner and express themselves.
As you might understand, the market is still full of alternative methods and multiple paths on the token sale methodologies. Colendi team has long been in the ecosystem and in touch with the important players to be able to adapt its legitimate Colendi Dapp and Colendi Token to create the best Token Sale structure possible. The team will soon complete its studies and conversations to offer the best roll-out for the Colendi Token with the sole ambition to kick start one of the most promising and disruptive blockchain based technologies of our era and engage with its community through early adoption. Colendi Dapp and its integral utility token, COD will be able to undertake the Colendi vision and lead us to a brighter future as financial inclusion and true decentralization are made possible.