Risks of ICO projects

In the United States and around the globe, stable coin projects have all been stalled. This is largely due to the fact that the issuing entity links the value of the stablecoin issued to external assets, such as legal currencies, as a measure to stabilize the value of that stable coin (unit exchange value). In other words, the issuing entity is not designed to play a leading role as a utility token. This increases the likelihood that the stable coin to be issued will be classified as securities and requires the issuer to apply legal restrictions on the handling of securities.

As a result, whether the coins are a utility token or security token is a topic of great debate and this is a major bottleneck for stable coin projects. The usefulness and possibilities of stable coin are well known, but the underlying mechanisms behind these platforms are crucial.

In other words, the issuer must clearly state in advance whether the stable coin to be issued in an ICO-project is a utility token or a security token. This is considered to be the risk of an ICO project because of its uncertainty.

Two types of tokens, by STO and ICO

There are two tokens to be issued in the MAXELE Project: the utility token that can be used to advertise at the INTERVERSE called the INTERCURRENCY and to acquire big data, and the security token that is the company’s own shares. These are entirely different. The security token issued by the STO functions as a security in the MAXELE Inc, as is the case with traditional stocks. On the other side of the coin is the INTERCURRENCY, which is issued by the ICO and others functions as a utility token supported by money creation algorithms (patented inventions). These algorithms incorporate the functional basis of the stable value of the stable coin into their platforms, while having a strong property of stable value.

As described above, INTERCURRENCY is a highly innovative utility token that is a stable coin but does not fall under the category of securities. MAXELE Inc. holds several patents for the money creation algorithm as a technology to make this happen. In other words, MAXELE Inc. is a unique organization that can issue and distribute stable coins as utility token.

INTERCURRENCY characteristics

1. Utility token issued by ICOs, etc.
2. Commodities that can be consumed INTERVERSE
3. Commodities whose volume increases or decreases autonomously through smart contracts
4. Basis for the value is the user’s purchasing power in the INTERVERSE
5. Functioning as a value exchange medium between users
6. Effects of money creation algorithmMoney creation can be realized by adding a credit issuing function

SECURITY TOKEN characteristics

1. Shares of MAXELE Inc. issued by STO
2. Unlisted shares transferable over the blockchain
3. Responding to different laws in different countries through smart contracts
4. Basis of the value is the right to issue the INTERCURRENCY
5. Medium that directly links the researcher’s willingness to study with the economic value that arises

Specificity of INTERCURRENCY issuance by ICO

INTERCURRENCY is a utility token that has originally been characterized as a stable coin. The value of the INTERCURRENCY is stabilized by the underlying algorithms on the ICT platform. As a standardized digital currency of purchasing power, INTERCURRENCY is designed to circulate while exercising value on its own, although it is natural that the value is stable.
With such an INTERCURRENCY, it’s easy to draw comparisons with stable coin, but as explained above, the INTERCURRENCY is fundamentally different from the conventional stable coin.
Conventionally, stable coin issued by the ICO stabilizes the value by connecting its value to the value of external assets procured by the ICO, such as legal currency and crypto assets. Therefore, external assets procured by the ICO need to be managed very strictly. For example, stable coin issuers may attempt to earn profits by investing, but in some cases the issuer’s mismanagement may reduce the amount of external assets on which the value of the stable coin they issue is based. In this way, stable coin’s conventional wisdom required strict control over the handling of external assets procured by ICOs, making long-term management theoretically difficult.
In contrast, INTERCURRENCY, including stable coin functions, does not stabilize its value by connecting itself to the value of external assets, such as the legal currencies and crypto assets procured by the ICO. Unlike conventional stable coins, INTERCURRENCY is more highly controlled than ever by a patented money creation algorithm. Therefore, external assets procured by ICO are freely available to MAXELE Inc. For example, the external assets procured are used to build and manage the INTERVERSE. Thus, while conventional stable coins have theoretically been difficult to manage over a long period of time, the INTERCURRENCY is designed on the assumption that not only long-term management but also sustainable development goals are met.
Thus, the specificity of INTERCURRENCY issuance by ICOs is “free access to procured external assets.” This means stable coin breakthroughs. MAXELE Inc. is the only organization that can generate purchasing-power standardized currency from nothing and generate income from the consideration for providing it.

INTERCURRENCY’s ICO is the issuance of currency to the wider economic bloc that brings unprecedented seigniorage. This is the ultimate alchemy. MAXELE’s ICO functions as a means of procuring external assets from society and distributing INTERCURRENCY to society as compensation.