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December 23, 2017

SUNCOIN: An asset-backed token

Suncoin is part of a small group of cryptocurrencies that are backed by hard assets. Asset-backed tokens have a number of advantages over traditional cryptocurrencies like Bitcoin and Ethereum. The latter two are volatile and could become virtually worthless if other participants in the network stopped accepting them as an exchange medium for goods. The value of those currencies is only established by the expectation that they can eventually be exchanged for services or commodities. Suncoin is different in that it can be exchanged for Solar Bankers‘ solar panels and is therefore backed by a tangible asset that is likely to be very useful for households and businesses in the future.

Acquiring Suncoins enables you to buy our highly efficient solar panels at a discount, giving the token an intrinsic value that derives from the value of the solar panel. Tokens not backed by hard assets, such as BTC and ETH, have a more arbitrary price determination – their price tends to be driven by volatile speculation on exchanges, making them more risky investments in the long-term. By contrast Suncoin provides direct access to tangible assets that provide real utility, giving markets a more stable price orientation.

This may be of special significance in the case of a crash on cryptoexchanges. Asset-backed tokens like Suncoin are an attractive alternative for investors in troubled times by virtue of their more stable price trajectory. Should traditional cryptocurrencies experience a crash, the money that previously flowed into non-asset-backed currencies for short-term speculation will likely be redirected into tokens perceived as more secure. Solar Bankers guarantees to exchange its energy-generating equipment for Suncoin to consumers at a minimum fixed rate (see white paper) in the case the traded price of the token should fall to below the pre-ICO level. Suncoin is thus well positioned to profit from a crash in traditional cryptos and offers early investors opportunities to experience a rise in the value of their coins with the increased usage of its technology by households and businesses. In addition, Suncoin itself will be used to settle payments within Solar Bankers’ P2P energy networks – it will act as the currency for energy trading in the energy communities equipped with Solar Bankers’ devices and smart meters. This will create high demand for Suncoin everywhere Solar Bankers’ P2P networks are implemented.

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