Value-stable ≠ value-static
HoloFuel’s main purpose is to be used by publishers to pay hosts for serving their hApps to the web. It’s designed to be stable enough for people to trust doing business with.
That being said, value-stable doesn’t mean the price is fixed. It will most likely be less volatile, but it can still go up or down. It also won’t be value-stable immediately upon launch -- it will take time to find an equilibrium. Until that stability is found, we do expect significant price movement.
As outlined in a Medium post we put out just prior to our ICO, we have identified five key factors that determine HoloFuel’s value:
- Current market for decentralised and centralised hosting through Ethereum, Amazon Web Services, and others
- Demand for distributed computation, personal data ownership, and hosting
- Number of hosts, and their prices based on ability to run on cheap hardware
- Popularity of apps and usage levels of hosting power on the Holo network
- Relative demand from hosts for redeeming out into each reserve currency
We won’t give investment advice. In fact, buying now with the hope of making huge returns is not an investment. It’s speculation, and it involves some risk and uncertainty. You’ll have to decide for yourself whether you think the risk is a smart one.
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