Dear FirstCoin Club member,
In line with our recent commitment to keeping you up to date on the latest information with FirstCoin, we are pleased to share our latest newsletter with you.
To begin with, we fully understand that some of you have had concerns and questions over the last few weeks with regards to various aspects of the Club, the Coin and your membership. In this newsletter we look at the most common questions being asked and give some insight and guidance on matters at hand.
We also appreciate that in the absence of quality or accurate information, people tend to lean towards fear rather than courage. Especially when personal finances are at stake. However, although the entire market is volatile, please remember that education is far more powerful than speculation. This is why we want to reassure you with educated answers to your most pressing concerns. Below you will find insight and answers to questions surrounding Coin value, Payouts, FULLCOIN, the ATM project and more. There is a lot of good news and much more to come.
While we cannot answer every question here, we hope you take the time to digest the information below and will address many other questions on Monday’s webinar. Please ensure you register for this by clicking here:
In the meantime, here are the official answers to your current top questions:
PAYOUTS AND ACCOUNT ACCESS
What is happening with the Payouts?
As you are aware, payouts were put on hold in December pending the implementation of new Know Your Customer (KYC) and security measures in the form of Two Factor Authentication (2FA) and SMS verification. We are also aware that the communication of this to the members and the initial expected timeframes of limiting payouts was poor. This was an error on our part and will not happen again.
As of now we are pleased to announce that over 90% of payout requests from people who have cleared the verification process have been made. If you have not yet submitted your verification documents please do so. You will be asked to upload them upon initiating a payment request to your available wallet.
I have submitted my verification forms but heard nothing.
If you have submitted your documents but have not yet been verified, please be patient. At one stage we were receiving over 10,000 requests a week, each of which must be manually verified. We are processing the backlog as quickly as we can and should have all outstanding requests processed by the end of the month.
My verification forms keep being rejected.
If you have submitted your forms and they have been rejected, please resubmit following the instructions carefully and with clear resolution pictures that fall within the stated upload limits. If you have followed these requests and your forms are still not accepted, please contact email@example.com with your ID number, a copy of the refusal and attach your KYC documents. Again, there may be a slight delay in processing, but this will be the fastest way to resolve the issue.
I cannot get access to my account due to not receiving SMS verification.
We are aware that in some countries, certain members have been experiencing difficulty with the SMS verification. While the vast majority of members have not experienced problems, FirstCoin is now in 190 countries, each with multiple cellular providers. We also know that having secure access to your account is essential. However, due to the SMS verification being dependant on third party’s that we cannot control, FirstCoin has taken the decision to remove the SMS verification and is in the process of doing so. We simply do not want to create a situation where we cannot help you because of something we cannot control i.e. your service provider. This means it is even more imperative for members to instigate and rely on the Google 2FA security measures. (To activate 2FA, go to the profile tab in your back office and click ‘security’)
COIN VALUE AND THE MARKET
Why is the Coin value low at the moment?
Many people have been concerned with the fact that the value of the coin has dropped. This issue was addressed on both the previous webinar and in the last newsletter. The reason the coin value could drop was both explained and predicted. To understand this, let us review three of the main factors that govern the price of FirstCoin.
• General Trend of The Market
• The Balance of Supply & Demand
• Patterns, News & Sentiment
• Intra-Club Trading
General Trend of The Market
One of the main factors that affects all Alt Coins right now is the market price of Bitcoin. You may ask, ‘why does the price of Bitcoin affect other coins?’ Bitcoin is the world’s first, largest and most popular Cryptocurrency. In addition, if you wish to buy other Cryptocurrencies on the market (there are currently approximately 1450), many will only accept payment in Bitcoin. This creates more demand and helps to sustain Bitcoin’s value. This is similar in effect, to the US dollar. For example, if you wanted to buy oil and only had pounds, francs or yen, you would not be able to buy oil. Instead, you would have to purchase US dollars and then buy oil. Therefore, Bitcoin acts as a kind of base currency for the market. It is for this reason that the price of Bitcoin has a big influence on the rest of the market as a whole.
If we go to WorldCoinIndex.com and compare the 2017 high of Bitcoin and the current price with FirstCoin we discover the following:
2017 Bitcoin High: $19,906 (Dec 17th)
Average Price Last 7 Days: $11,000
Percentage Drop: 45%
2017 FirstCoin High: $18.14 (Dec 16th)
Average Price Last 7 Days: $8.50
Percentage Drop: 53%
We see that FirstCoin has only dropped 8% more than Bitcoin. This is where we then move to understanding the role of Supply and Demand.
The Balance of Supply & Demand
The second main factor affecting price is supply and demand. If more people want the coin and less people sell, the price rises. If more people sell the coin and less buy, the price lowers. Right now, because of the delayed payouts caused by the implementation of the security measures and enhanced KYC, many people have waited weeks to be able to access their coins. Now that the payouts have started, there are more people selling than buying. This is causing the price to fall. Once the selling pressure has eased, the price will stabilize. Also, many people who had been referring FirstCoin and helping to build the network were waiting because of the delayed payout. This is understandable. People needed to be know the company was resuming payouts after the technical upgrades to be sure of the integrity of the Club. Now that payouts have resumed, more people are stepping up their referral activities. Remember, once more people purchase Firstcoin than sell, the price will increase. The fact that FirstCoin has only been affected by 8% more than the market due to increased selling in our opinion demonstrates a strong and stable coin.
Patterns, News & Sentiment
Markets follow patterns and are affected by news and sentiment. Due to being a new industry, there is much speculation in the Cryptocurrency world, and news announcements tend to have an effect similar to the moons’ effect on the ocean tides. Causing markets to rise and fall periodically. However, if we look at patterns we also notice something interesting for this time of year. Take a look at the charts below.
As you can see, in terms of the overall growth for 2017, the January ‘crash’ was not only predictable, based on historic patterns, but accounted for an insignificant ‘blip’ in context of the year.
Another contributing factor to the coin value decrease has been due to the fact that a large volume of coins which have been purchased by new members have been transferred internally from existing members via the back office. We understand this is one way to avoid the 7.5% fee the club charges for external transfers and that human nature will always find the path of least resistance. The downside to this is that much of the volume that would have been registered on the exchanges was not recorded. Even though the 7.5% is one of the profits centres for the Club and contributes towards the Pool Share bonus, the damage to the coin value on the exchange cannot be discounted. Therefore, the company will soon be lowering the fee to be in line with standard exchange rates and instead limiting the internal transfers. This is in the best interests of everyone.
Should I Sell My Coins?
If you look at the reasons why the coin value has fallen, it bodes very well for future growth. Membership is again increasing, the market timing looks set to rebound and in addition, FirstCoin is preparing a huge investment in its growth strategy and infrastructure. This was outlined in three phases on our last webinar. But to answer the question should you sell or not, is best answered by looking at the difference between professional and retail investors. When the market falls, retail investors tend to panic and sell because of fear of loss, due to short term views and a lack of understanding market fundamentals. Professional investors either hold or take advantage of the low prices and buy more. This is because they have a better appreciation of the market. If you do sell your coins now you will likely be doing so at the lowest end of the market. This may realise a loss for some members and contribute more days or weeks to the length of time it will the coin value to rise. FirstCoin are committed to building a community of people who believe in the coin and see the long-term future. If you treat FirstCoin as a get-rich-quick-scheme you will be disappointed and maybe best served by selling your coins and leaving the club.
How Do We Help The Coin Value To Increase?
If you wish to support the coin and help to raise its value, there are several pro-active steps members can take.
1) Do not liquidate at the bottom end of the market. Hold your coins until the price rises.
2) Start recruiting more members and use this time to earn more coins in commissions. In other words, due to the current price, you can earn over double the amount of coins you earned in December for the same work! This window of opportunity may not last for long but can make a major difference to the value of your portfolio. Be smart.
3) Raise awareness of FirstCoin. By writing supportive comments in Social Media rather than complaining about what is not right, you can have a positive impact on the position of the coin. (Remember news & sentiment!) An excellent suggestion from one member was to find a number of items you no longer wish (old mobile phone, piece of furniture etc.) and list them on E-bay, Craig’s List or another auction site but state you will only accept payment in FirstCoin. If all members did this, it would create millions of searches and SEO results for FirstCoin and increase public awareness overnight. This will benefit everyone.
In short, if you want to be smart and help to increase the value of your coins, don’t sell now but instead, hold, recruit and help to increase the awareness.
GROWTH & OTHER BUSINESS
What is happening with the ATM projects?
FirstCoin has taken delivery of 15 working ATM’s. However, the entire ATM project at this stage has been delayed for several reasons. Firstly, our priority was to focus on getting the payouts to the members and tackling technical issues on the KYC and SMS front.
Secondly, the global market for Crypto ATM’s has been affected by the huge increase in network fees and exchange times. It is one thing to be able to purchase Bitcoin from an ATM and pay a nominal fee and wait 5 minutes. It is another to pay $40 and wait 3 hours. This is affecting all crypto ATM’s due to blockchain congestion and demand. As a result, we are refocusing our efforts on aspects of the Club that will have a more immediate and positive impact on our members. This includes creating more resources, hiring more staff, including both business, technical and marketing experts and working on our short and long-term game plan to make FirstCoin a strong, competitive and valuable coin in the market.
Why has the market cap of FirstCoin dropped?
The market capitalisation of any coin is easily calculated by multiplying the current coin price by the number of coins in circulation. This is why the entire market can rise or fall tens of billions of dollars a day.
If you go to worldcoinindex.com you will see FirstCoin’s market cap has fallen in line with the current price to around $150m. However, if you go to coinmarketcap.com, you will see misleading information that states the market cap is $13m. This is due to the fact that coinmarketcap.com is not displaying the data correctly of the circulating supply. If you list all of the coins on coinmarketcap.com you will see it is not just FirstCoin that is affected but almost 30% of all of the coins they list. This is the reason we recommend people go to worldcoinindex.com as, at the current time, its information is more accurate and complete. It is also worth remembering that sites like coinmarketcap.com are not official sites and neither do they represent any official information. Instead they are private sites that have been set up with the commercial agenda of attracting viewers by providing useful information, so they can sell advertising.
What is the progress on the FULLCOIN exchange?
At the Super Day event in Phuket, it was announced that the company was in the process of creating a much easier path to purchase FirstCoin by creating a new front-end exchange called FULLCOIN. We are very pleased to announce that we have recently moved into the final stages of implementation and are now concluding technical issues. While we do not want to make any formal announcements on timing (having learned from our mistakes on the KYC issue), we can say that we expect the FULLCOIN exchange to be available ‘imminently’. We realise this will be a huge benefit to members and we are working very hard to have this operational as soon as possible.
When can we expect FirstCoin’s White Paper?
We are pleased to announce that we have hired and are working with a team of industry experts on creating FirstCoins’ White Paper. Estimated time frame for our first draft is within 30 days. This will include a full technical overview, a detailed vision of where we are heading and a strategic roadmap of how we will achieve our objectives.
When will the next Super Day conference or company events be held?
We are in the process of consulting with the company’s top leaders to arrange a series of live events over the coming 90 days. This will include a ‘Regional Roadshow’ of activities and events across the globe to make it easier for members to attend. We intend to announce the dates of the events by the middle of February. We will also be forming a formal advisory board that, depending on performance, members will be able to qualify for. This will allow the top leaders in the field to have a voice at the table and an influence in the company’s direction and policies as we move forward. Details of this will follow shortly.
It is often said that it is easy to be a leader in your own life when the sun is shining. The sign of true leadership is how you react when the storm blows in. The last few weeks have been a little cloudy, but we can assure you this phase is passing. What we need now is for the members to show their own leadership colours, hold fast and trust the current direction.
At present, both behind the scenes and in front, there are more positive actions, growth strategies, initiatives and activities underway with FirstCoin than in its entire history. Stay the course, the future is brighter than ever. After all, the sun is always shining above the clouds.
To a strong and exciting year!