It has been announced that USI-Tech plan to launch their own cryptocurrency which will be called 'TechCoin' (UTC). Given the popularity of the USI-Tech Bitcoin package, which has over 300,000 investors, the TechCoin should have a loyal support base from day one.
How Do You Buy The USI TechCoin
The only way to participate in this Initial Coin Offering (ICO), is to buy USI-Tech Tokens, which will convert to TechCoin once the cryptocurrency hits the markets. USI-Tech Tokens can only be purchased by active USI-Tech members. That shouldn't be much of an obstacle though as it's free to join USI-Tech.
Once you have signed up, you can purchase USI-Tech token packages from the members area. The packages come in Silver, Gold, Ruby, Emerald and Diamond. The price of each package and the USI-Tech Tokens attached is shown below:
Depending on which package you select, you can invest anywhere from 50 to 50,000 Euros in USI-Tech Tokens. All packages entitle you to an upfront allocation of tokens. You will get 2 tokens for every Euro invested. In other words the tokens will cost you EUR 0.50 each.
If you are willing to invest at a level of Gold or above, then you will be entitled to bonus allocations of USI-Tech Tokens. There will be 4 bonus allocations. If you qualify, then each bonus will double your allocation of USI-Tech Tokens. If you purchase a Diamond package, and qualify for all four bonuses, then your original holding of 100,000 tokens will increase 16 times to a massive 1.6 million tokens
USI-Tech plan to issue a total of 1 Billion TechCoins. Once they have sold half of these in the ICO, they will float TechCoins on publicly accessible exchanges. This means that they want to sell 500 Million tokens exclusively to members before floating the cryptocurrency in the free market. Bonus token will be allocated as the sale of Tokens reaches preset milestones, as shown below:
As of the time of writing, USI-Tech Tokens have been available to members for just over a week. In this short time, they have already sold just under 34 million tokens. The indicator on the right shows when each of the 4 bonuses will be triggered. We assume that they are spaced evenly at 25%, 50%, 75% and 100% of the total token sales. In other words the first bonus should be triggered when 125 Million tokens have been sold.
Each time a bonus is triggered, investors who qualify will receive additional tokens at no additional cost. This is designed to reward people who have invested in the more expensive packages. We see this as a risk to those of us who can only afford to risk a Silver level investment. When the Tokens convert to Techcoins, Silver investors will have paid EUR 0.5 per TechCoin. Diamond investors who received all 4 bonuses will have only paid EUR 0.03 per TechCoin.
Our concern is that when the tokens convert to TechCoins and hit the open market, then some might sell off their bonus allocations to recoup their initial investment funds. Given that their break even price on the TechCoins could be as little as 0.03, this could cause a sell off leaving those of us who paid 0.50 per TechCoin in negative equity.
For this reason we have not yet purchased any tokens ourselves. However we might end up regretting that. It's also possible that there isn't a mass sell off. It's possible that the Techcoins will be be so successful that everyone who buys the tokens will make a profit. Given that the tokens are only available to the 300,000 USI-Tech members, it's possible that when the Techcoin floats, there will be a flood of new buyers.
Why is USI-Tech Launching TechCoin
Like all companies who launch ICOs, USI-Tech is raising funds. At present there is no formal white paper available about the USI TechCoin, but they did explain their intentions at their recent conference in London.
We did not attend the conference, but we did find this video about it from someone who was there.
Based on this video (and some other research), we believe that USI-Tech will be using the funds they raise from selling tokens for the following purposes:
USI-Tech Bitcoin ATMs
Bitcoin ATMs are a great way to increase awareness of cryptocurrencies, and make it easier for people to buy and sell them. USI-Tech plans to eventually have 3,000,000 ATMs around the world. These will promote USI-Tech, members can arrange to pay to have their own referral code linked to a USI-Tech ATM.
USI-Tech plans to become a cryptocurrency exchange. This will allow members to buy and sell a variety of crytocurrencies including Bitcoin and TechCoin right from the USI-Tech Website.
USI-Tech Mining Pools
At the conference we believe it was purported that USI-Tech has already spent US $70 Million on mining hardware. They have developed a new mining process which they say is much more energy efficient. This means their process is a potentially more cost effective way to mine Bitcoin and other cryptocurrencies.
USI-Tech is already mining a substantial amount of the Etherium Alt Coin, and they plan to represent 1% of the Bitcoin Hash Rate by the end of 2017. If they achieve this then this will give them the ability to earn Bitcoin through both transaction fees and mining rewards. Investing in mining hash rate will improve USI-Tech's ability to continue to pay 1% per day on their Bitcoin Packages.
New Promotional Tools for Members
USI-Tech reward members for referring friends. All members need to do is share their unique link which looks something like this: https://b9862680.usitech-int.com/ USI-Tech is currently adding around 5,000 new members per day.
Part of the funds raised will be used to develop a marketing funnel, to help members generate referrals. We expect that from your USI-Tech members area, you will be able access a collection of pre-made marketing material automatically sends new members to sign up under your referral code.
Referring friends can be potentially lucrative too. USI-Tech will pay you 10% commission on any investments made by people you have referred. If you purchase 12 packages yourself, you can start earning commission from people that your referrals sign up. The full commission structure is shown below:
In order to earn commission on levels 2 - 12, you need to have 12 active Bitcoin packages. Once you have 12 packages, you will become a 'distributor'. As the people you have referred also buy their 12 packages, they will become distributors. In other words to earn commission on the second level, you need to find 3 friends who are willing to buy 600 Euros worth of Bitcoin packages.
This is similar to how most MLM compensation plans work. There is however one key difference with USI-Tech which we think makes it worthwhile to give them a shot. This is that it's free to join USI-Tech, and you can earn 10% without buying any packages yourself. You can choose to risk as little as 50 Euros on 1 package, and then buy more packages once the commission and daily payouts start coming in.
USI-Tech has an advantage over most MLMs because there is literally no upfront cost to join. You are also free to invest as much or as little as you feel comfortable with. There is no pressure to buy product every month even if you don't want or need it. We think that you won't lose money with USI-Tech, but that doesn't mean it's going to make you a millionaire.
Should you Invest in USI-Tech Tokens
It's free to join USI-Tech, and you can invest as little as 50 Euros in their Silver Token Package. If they invest the funds raised as expected from the conference, then believe that they can add a lot of value to their system. It is possible that the ICO will turn out to be a huge success and it could be the TechCoin will generate good returns for all Token investors.
Even though we think that USI-Tech are using the funds in ways which can grow their company, we have chosen not to purchase any Token Packages at this stage. Our preference is still to invest in the USI-Tech Bitcoin Packages. While there isn't the same potential capital gains that can be achieved with the TechCoin, we believe that the Bitcoin Packages carry less financial risk. The investments made through the Token ICO, will help the performance of the Bitcoin packages.
This is just our preference, if you would like to invest, we believe that USI-Tech Tokens, are a safer bet than most ICO offerings out there. For a start USI-Tech has over 300,000 members supporting their new Coin. They also have an established company that is already generating Bitcoin for investors. This is less risky than a total start up with no customers and no cash flows.
This has been our opinions on the USI-Tech Tokens and the upcoming TechCoin. We'd love to hear what you think in the comments section below, especially if you've purchased some tokens yourself.