Why Does Construction Property Token Price Change?
The price of each construction property token on Binaryx increases progressively as the fundraising progresses. This pricing mechanism is designed to balance returns fairly between early and late investors.
How It Works:
Gradual Price Increase: The price of each token rises slightly with every purchase. For example, the first token might cost $32, while the 100th token costs $32.05. After the initial fundraising stage (the down payment collection), token prices increase by 5%.
Fair Return Distribution: Early investors benefit from lower token prices, maximizing their potential returns upon the property’s completion and sale. Late investors, while paying slightly higher prices, still enjoy competitive returns, as all tokens are eventually redeemed at the same sale price.
Example of Price Growth:
At the start of a project, the first token of a property under construction might cost $32. By the time 10,000 tokens are sold, the price of the final token could reach $37—a 15.6% increase from the initial price. After construction and sale, each token pays out $45, regardless of its purchase price. This ensures all investors receive the same sale value per token, but individual profitability depends on the entry price and the number of tokens purchased.
Why This Matters:
This dynamic pricing approach incentivizes early investment while maintaining fair opportunities for all participants. It reflects the evolving value of the property as construction progresses and ensures a balanced return for investors at different stages of the project.
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