This is a sponsored story. CCN urges readers to conduct their own research with due diligence into the company, product or service mentioned in the content below.
Monday, April 16th, will see the launch of AX1, a token designed to accumulate profit from the mining of other leading cryptocurrencies.
As cryptocurrency mining has expanded, the process has been made increasingly difficult by the mining community in order to slow the rate at which hashes of blocks are being generated.
Mining now requires more specialized, costly equipment, operating on an industrial scale. It is therefore almost impossible now for ordinary investors to benefit unless they participate in a mining pool.
AX1 was designed to give token holders the chance to profit from the mining of various cryptocurrencies without requiring expensive mining equipment or technical knowledge. AX1 also wanted to do something beyond simply creating a token that distributed mined coins; it wanted the mining pool to create long-term value for the token itself.
AX1 token holders will get to hold cryptocurrencies and profit from further price increases without having to buy them directly. Token holders will essentially buy a stake in a mining pool that is managed by a data center. The rewards from the mining activity will accumulate in the pool and continuously boost the value of the AX1 mining token.
Existing mining operations invest in mining hardware that typically cannot be adapted to the mining of different coins. AX1 wanted to mine coins that would be more likely to rise in value. Hence, the ability to switch rigs from mining one coin to another on relatively short notice is a key aspect of the company’s plan.
Another factor closely related to mining adaptability is risk concentration – or spreading risk by diversifying its mining operation across multiple coins. The company’s data center in Manchester in the United Kingdom can demarcate its miners by coin down to individual mining bays.
A second mining site is planned under the same operational model. In fact, planning permission has already been granted for this second site, which is expected to require a $10 million investment.
Segregated Account Assures Store Of Value
Half of the value of AX1 mined coins is placed in a segregated account to ensure asset backing of the tokens. The segregated account will be audited on an annual basis. AX1 will have no further entitlement to withdraw any of the assets from this segregated account, making the tokens a true and verifiable store of value.
The assets in the segregated account can still be deployed in proof of stake activities, or traded as part of exchange operations that increase the value of the tokens.
The Jersey Financial Services Commission has required AX1 Limited to obtain a consent, known as a “COBO” consent, for the issuance of tokens pursuant to its ICO. This consent has been granted.
The AX1 crowdsale of 22.222 million tokens will run for eight weeks, beginning April 16th. The soft cap of $1 million has already been raised in a private pre-sale, and will be used to accelerate the road map. Once the next milestone of 10 million tokens sold is reached, the plan to build the second site will come into play.
The price of the tokens will be the Ether equivalent of $0.80 for the first stage, $0.90 for the second stage, $1.00 for the third stage and $1.20 for the fourth stage. The minimum buys for the four respective stages are 100 tokens, 50 tokens, 25 tokens and 10 tokens.
If the crowdsale raises more than can be deployed across the two planned sites, AX1 has already earmarked overflow space in a Canadian operation that will be fully integrated with the Manchester base.
Citizens in the U.S., China and South Korea are not currently allowed to invest in the ICO.
Follow us on Telegram.