Top 5 Frequently Asked Questions About KatalystCoin!

Thank you for your strong support towards KatalystCoin— we are very heartened and humbled! Today we have specially compiled the top 5 frequently asked questions for KatalystCoin.

So here they are–

Question #1: “I thought Katalyst ICO ended in February, 2018? Why are we having another ICO in July?”

Team Katalyst:

Our first round of ICO has ended 15 Feb 2018 and we thank you for your strong support!

After the round in February we have been working really hard to implement the Katalyst Exchange. At the same time, we have been implementing the Proof of Loyalty.

This is on top of us also forking a major blockchain platform!

We acknowledge that most current blockchain projects are focusing on building a better tool like a hammer (like ethereum, waves, EOS, Qtum, Tron, etc).

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Our thoughts are that eventually we have to use the hammer to build something that can be directly enjoyed by people.

Like a chair!

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Katalyst supporters who have read our whitepaper know that we are experts at designing business models. Financial innovation is one of our strength, and this expertise in designing business model will undoubtedly be an asset as we design the Tokenomics of future coin releases.

This would mean that while blockchain technology (think of it as a hammer) would remain an important focus –as the blockchain methodology needs to be improved for implementing various tokenomic model–we would focus very much on using the tool (hammer) to build something.

The chair. 

At the same time, we are building an ethereum gateway for waves-compliant tokens to go from waves to ethereum and vice versa. This forms an ecosystem which we can add value to ethereum tokens.

You see, current tokens that are on ethereum blockchain are plagued with problems like paying their gas using ethereum and not adding an use case to their own coin. We are empowering tokens on ethereum to pay fees in their own coins.

Eventually we would advance to other blockchain platforms.

That said, it is because of the above reasons that we need a further ICO.

We thank you for your patience and look forward to your continued support. Do check out our Github here for the latest developments.

Question #2: “How is the Katalyst Team going to market Katalyst to the masses? I can connect with Katalyst’s affiliated coin Viola because of the nature of the coin–everyone relates to dating and relationships! KatalystCoin seems to be quite technical and I wonder if investors are able to understand and connect.”

Team Katalyst: 

Let’s examine this question via an example.

Assume that a particular gentleman can relate to leather shoes priced at USD 150.00 – USD 200.00, but could not relate to those which are USD 3,000.

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To him, this is because USD 200.00 leather shoes are generally more durable than those USD 30.00 Leather shoes.

Does it mean that manufacturers should stop manufacturing USD3,000 shoes?

On another note, with the recent Ethereum influx of users and projects, it is likely that coin holders can relate to Ethereum projects.

And if they can’t, it is probably no loss to Ethereum. Katalyst takes the same stance.


Question #3: “How would the price of KatalystCoin be affected by Katalyst DEX?”

Team Katalyst:

Katalyst is a fee token in this exchange. If you were a customer of this exchange and have to pay a fee, you may use KatalystCoin to pay.

Question #4:  “I don’t understand this part of the white paper, can you explain?”

Team Katalyst:


From an economics standpoint, the valuation of a company before and after ICO is different.

This is by virtue that a successful ICO reduces the uncertainty of the project. A failed ICO is also certain – specifically in reducing the value of the project.

Therefore its enterprise value is reduced. Therefore, a capitalist involvement in the project before ICO has a larger space to grow as compared to his involvement post-ICO.

Question #5: “Is KatalystCoin a utility or security token?”

Team Katalyst: 
KatalystCoin is a utility token. We can distinguish a utility token from a security token from the Howey’s test.

“Investment” via Howey’s test requires the profit to come from no work. This is the definition of securities.

If the nature of the coin offering is “utility” in nature, the coin directly changes and impacts the “income statement”. which generally depending on the valuer, they may value it according to

  • “Revenue” x multiple; or
  • “Net profit” x multiple; or
  • “Gross profit” x multiple or even “customer number” x value per customer x multiple.

Having a successful ICO has a multiplicative effect on enterprise value, if the company is issuing the token.

People who are merely just trading this token misses out this value which only can be captured by people who understand business modelling, tokenomics and capital structuring.

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We hope the following answers have helped you understand more about KatalystCoin! 🙂 Once again we thank you for your strong support!

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