SocialGood (SG) will be listed on BitMart on July 27, 2020. On July 22, we invited Founder and CEO of SocialGood, Mr. Soichiro Takaoka, to introduce more information about this incredible project to SG supporters.
If you missed the AMA live, check our AMA recap below for more details:
Q1. Please introduce yourself and give an overview of the Social Good Project. How can Social Good improve society?
First of all, I would like to thank you for your interest in SocialGood. We launched this project to make the world a better place. There are many challenges in the world, but what do you think is the biggest challenge most people in the world have?
It is a serious desire to "get more money."
Why do most people in the world feel like they lack money? It is because the more you spend to live, the less money you have.
So how can this problem be solved?
A good way to do this is, by making it so that the more you consume, the more assets you accumulate.
You might be wondering, is that really possible? Yes, actually, it is.
If you use our app, you can get cryptoassets for free just by shopping at everyday e-commerce shops such as eBay, Alibaba and Amazon.
Our cryptoasset is called Social Good, or “SG” for short. Since you can get crypto just by shopping, we call it "Shopping Mining."
SG can be converted into fiat by selling it on cryptocurrency exchanges.
The more consumers do their everyday shopping, the more SG they can receive. We currently have partnerships with 1,860 companies. In other words, the more you consume, the more you can accumulate cryptoassets and build your assets.
Q2. In the market, SG has a market price, but what happens if the price drops from the time it was received?
Consumers can get SG for free just by shopping via the SocialGood app, so they will not be at a loss even if the price of SG drops.
But that alone won’t make you want to save SG that much, right?
Actually, if you get SG via the SocialGood app, the operating company will guarantee the value of that SG. This is a feature of SG and this mechanism is patented.
Let me explain it in detail.
Suppose you make a US$1,000 purchase via the SG app.
In that case, suppose that you received SG worth US$10.
At that time, let's say that 1 SG = US$1, so you have 10 SG.
After that, even if 1 SG goes down to US$0.50, your 10 SG will be purchased by the operating company for US$10. In other words, if the SG you hold onto increases in price, you can sell it in the market, and if the price drops, you can have the operating company to buy it back from you.
Furthermore, depending on the amount of SG you hold, since there is a mechanism that increases the rate of SG being returned by shopping via the SG application, the longer you hold SG, the more you, as a SG holder, can profit economically.
The source of funds that the operating company uses to make such guarantees is based upon the advertising revenue SG receives from partners, such as Amazon and eBay.
Q3. How is SG different from other reward programs?
There are already services around the world where you use cash back or points.
The difference between them and us is “cryptoassets back.”
First, by using cryptoassets, you can target global users. Secondly, though points expire over time, cryptoassets, just as its name speaks for itself, will literally accumulate as “assets.”
Also, it is more advantageous for users to receive returns with cryptoassets. Even if 3% is returned with cash or points, it is only 3%. However, if that 3% is returned with crypto, there is a possibility that the value of the token will increase, and the price could go up so that you're actually receiving, for example, 10% back, instead of just 3%.
There are several crypto-return services out there, and some of them have a market cap of over US$100 million. However, since our company has a patent point return mechanism of returning points with crypto, these services will pay us royalties in the future.
Unlike other Altcoin projects, our project is a real business, providing a point reward service that partners with e-commerce shops. In fact, last year, we had already started a web version of our service, so we have already obtained advertising sales from e-commerce shops and have continued to have sound growth.
If that’s the case, then the number of SG holders who hold onto SG for the long-term will increase. That leads us to my next question.
Q4. What do you think will influence the price of SG? Do you think that if the amount of long-term SG holders increase, this would affect SG’s price?
Before discussing SG price, let's first talk about Bitcoin’s price. What factor do you think determines the price of Bitcoin?
In fact, there is data that shows that the price of Bitcoin is proportional to the number of Bitcoin holders. Note that it is not proportional to the number of times Bitcoin is used, but rather to the number of holders.
Why is the price of Bitcoin proportional to the number of holders? This is because Bitcoin has a limited supply, and the mechanism of supply and demand tends to increase the price as the number of holders increases. Specifically, Bitcoin’s market cap increasing by somewhere between the amounts of US$6,000 to US$6,500 per each additional owner.
Since SG also has an upper issuance limit, as the number of SG holders increases, it’s value also tends to increase.
Q5. How can ordinary users maximize the benefits of SG?
At first, just go and get SG! Own it! The more you have and the longer you have it, the more SG you can get when you shop on Amazon or eBay using the SG app.
To get SG for free, all you have to do is to shop at your usual e-commerce shops via the SG app, which launches in September.
Q6. At the launch of BitMart, what is your expectation of the market price of SG?
We don't have control over pricing, so we also don’t know the future. However, we can make our own calculations.
As with our company, the market cap of similar projects that advocate “cryptoassets point back system on shopping” is around US$140 million. This is the current market feeling of the cryptocurrency market. However, the project has only 1/10 of the number of SG users. Therefore, if SG is valued according to the market price, I believe it would be reasonable if SG's market cap were to be valued at US$ 1.4 billion. In that case, I think that the fair value of 1 SG becomes US$800.
When will that happen? We are still unsure because more and more people need to understand our business model first. For that sake, we need to increase our name recognition.
Q7. Why do you think SG is a rising star in the crypto market?
Because we firmly believe SG’s name value will increase.
As you know, there are 90,000 people who have obtained SG through our airdrop. They will be able to trade SG after 1 SG = US$10. Therefore, I believe 90,000 of our closest friends will help to spread the word to their friends about why they consider SG attractive.
If you use our competitors as an example, for every additional one user, the market cap increases by US$13,600.
Considering this, I think that if the number of SG holders reaches 1 million, the market cap may reach US$13.6 billion.
Right now, there are about 30 million Bitcoin holders. If you look at Bitcoin as a member of the general public, it is not yet considered something that everyone wants to hold.
On the other hand, just by shopping at major e-commerce sites, you can get SG for free. Of the 7 billion people in the world, there are no people who do not shop, right?
With that in mind, do you really think it’d be that unusual to say that SG holders could reach 100 million? Is there anybody who would refuse to receive SG for free, SG being a token you have the right to receive every time you shop and which can be redeemed for fiat?
Q8. For such a hot market, I believe many users will want to know what actions will SG takes next? Can you briefly to introduce to us?
The SG team plans to further contribute to society by automatically donating a part of the total amount of money distributed through the SG app to SDGs organizations around the world. Therefore, the SG team aims at 100 million SG holders in order to improve society.
In order to accomplish that, we plan to proceed with listing on major exchanges in each country, starting with the listing on BitMart. In addition, we will increase the number of SG owners by focusing on promoting SG apps that will be released in September.
Q9. Finally, please share your messages to the people who want to own SG.
In other Altcoin projects, when the tokens are listed, the project teams often sell their own tokens, causing the market value of the tokens to fall quickly.
This is because the only source of income for a typical Altcoin project is to sell their tokens. Only by selling tokens can those projects make a profit. In this case, the token issuing company and the crypto trader will fall into a win-lose relationship.
But with SocialGood, this is completely different.
The more SG holders we have, the more advertising revenue we can get from our partner companies, such as Amazon, eBay, and Alibaba. In other words, we have a real point-back business in partnership with 1,860 companies.
For us, increasing the number of SG users is our top priority.
As the market price of SG rises, the number of SG users will increase. So, we will never take any action that might cause the price of SG to drop.
We will always have a win-win relationship with our SG holders.
The more SG holders there are, the more the advertising income of the operating company increases.
We will actively carry out marketing which works in a way at which the more the advertising revenue of the operating company increases, the more SG holders will also increase. As the number of SG owners increases, the market value of SG will naturally rise.
Let's make society better together!
Official Website: https://socialgood-foundation.com