This article analyses how TFX gains value in general. The article is only aimed to educate and should not be taken as investment advice.
At its core, each TFX will always have an intrinsic value of 1 USDT, as they are backed by the USD liquidity we hold with our liquidity providers. However, the value of 1 USDT can go further up based on the supply and demand for it.
When demand for TFX is higher than supply. With the introduction of TFX, TriumphFX will no longer be accepting USD funds from new investors. All fund attachment and profit sharing will be carried out using TFX. So, new investors who wish to invest in Fund Management will need to first buy TFX from existing investors. This creates demand for TFX as new investors cannot buy TFX elsewhere. When there is high demand for TFX, the value will go up as new investors will be willing to buy TFX at a value higher than 1 USDT.
This theory works as long as the demand for Fund Management remains strong, which we are confident in. Why do we think so? Over the past 10 years, most of the fund managers have built good track records in delivering consistent returns. Most investors will choose to stay and compound their profits. Moreover, there might be new fund managers available on the platform. New fund managers with new business models will most likely attract new demographics. All these justified the fact that the demand for Fund Management will remain strong, and thus the demand for TFX.
To further control the supply of TFX, TriumphFX also put in place Protection Protocol.
During the launch, the total supply of TFX is around 10 billion (10,000,000,000). This supply will then further increase after each profit sharing. To prevent the growing supply from driving down the value of TFX, we put in place Protection Protocol. The Protection Protocol is made up of two mechanisms that aim to preserve and increase the value of TFX.
The amount of TFX will be minted based on the value of TFX at the time of closing.
Case 1: If TFX is at its par value of 1 USDT at the time of closing, TFX will be minted based on the par value of 1 USDT.
TFX’s value at the time of closing: 1.00 USDT (Par value)
For example, if the Fund Manager generated a trading profit of 1,000 USD, the equal value of TFX will be minted based on the par value of 1 USDT.
1,000 USD/1.00 = 1,000 TFX
In this case, 1,000 TFX will be minted as your profit.
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Case 2: If TFX is under the par value of 1 USDT at the time of closing, TFX will be minted based on the par value of 1 USDT.
TFX’s value at the time of closing: 0.80 USDT (Under par)
For example, if the Fund Manager generated a trading profit of 1,000 USD, the equal value of TFX will be minted based on the par value of 1 USDT.
1,000 USD/0.80 = 1,250 TFX
1,000 USD/1.00 = 1,000 TFX
In this case, only 1,000 TFX (instead of 1,250 USDT) will be minted as your profit.
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Case 3: If TFX is over the par value of 1 USDT at the time of closing, TFX will be minted based on the current value.
TFX’s value at the time of closing: 2.00 USDT (Over par)
For example, if the Fund Manager generated a trading profit of 1,000 USD, the equal value of TFX will be minted based on the current value of 2 USDT.
1,000 USD/1.00 = 1,000 TFX
1,000 USD/2.00 = 500 TFX
In this case, only 500 TFX will be minted as your profit.
If too many TFX is being minted over each closing, the total supply of TFX will be increasing tremendously. Over supply will cause the value of TFX to plummet. This mechanism creates scarcity to limit the supply and to drive up the value of TFX.
In the unlikely event that the value of TFX is under the par value 1 USDT (For example, 0.80 USDT) and no one is buying, TriumphFX will fulfil the market’s sell order at 1 USDT each. These TFX will then be kept in our reserve. Once the amount of TFX hits the threshold of 50 million (50,000,000) in our reserve, we will initiate coin burning and take 50 million TFX out of circulation. This will reduce the total supply of TFX and slowly rebuild the demand for TFX to retrace back to 1 USDT and beyond.
So, as you have read, TriumphFX has put in place mechanisms to stabilise the value of TFX and is confident that our Fund Management is going to drive the value up.
Let’s also not forget about the POTENTIAL of TFX. Ultimately, the value of TFX is not tied to Fund Management but on its own. While there might be cynics who deny cryptocurrency, there are advocates and visionaries who made it on the other side. Would you have thought Apple’s worth would be this high when it was launched? Or that of Tesla? Bitcoin? What we are trying to express is that we have a long way in front of us. What seems uncertain now might prove otherwise in the future. Which side are you on? We leave it to your imagination.
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