On February 26. 2021 we held an AMA with the r/btc community on Reddit where users asked us several important and interesting questions about CryptoSorted and CST.
This is a summary of that AMA session to serve as reference material and to also provide those who missed the AMA an idea of what transpired then.
The AMA was anchored by the founder of CryptoSorted (Chris Simon) and facilitated by one of the r/btc community moderators - u/Bitcoinopoly.
The AMA was opened with a post by Chris:
I'm Chris Simon, founder of CryptoSorted and the SLP-based CryptoSorted Token (CST). Ask Me Anything!
I started investing in crypto in mid-2017 and on January 24, 2020, I founded cryptosorted.info.
January 18th this year (2021) we created the CryptoSorted Token (CST). An SLP-based token that rewards holders with weekly dividend in BCH.
I'm here to answer all your questions regarding our project. Ask away.
Below were the questions asked and Chris' answer(s) to them.
1. Hello Chris! How did you get the idea to start something like Cryptosorted and what was the motivation?
Several things motivated my creating CryptoSorted:
1. I wanted to create a "practical" resource for crypto investors. Most contents on crypto were too technical and not actionable. People need information on how, when, why, where, to "do crypto". Information that they can use to produce a predictable result. Most crypto blogs don't have that.
2. I talk to people in real life about crypto and I get asked the same questions over and over again. I thought why not create a blog, create an article for any question new and existing crypto investors ask me and refer new people to it. It was a more efficient use of my time, knowledge, and experience to educate crypto investors like myself.
3. Because I cannot rely on external blogging platforms like Medium, Publish0x, read. cash alone to implement all my ideas for a blog.
Those were the major reasons.
What is the purpose of CST beyond speculation? What can it be used for IRL (in real life) today that makes an impact on the world, and what are planned implementations 2-4 years from now?
If it has no implementations then what, apart from dividends and speculation, makes it better than just using BCH directly?
CST is used to pay for all of the CryptoSorted present and future products & services. Right now you can publish a sponsored post, place an ad, and get an article written for you by us, and you pay us with CST and enjoy a 50% discount.
CST is a staking token. Meaning people can stake it just by holding it in their wallet to earn BCH rewards weekly.
2 to 4 years from now, we would have built a solid ecosystem all of which will be powered by CST as the native cryptocurrency. Some of the ideas I am unable to discuss publicly right now.
Guess I’m out of the loop. So what is CryptoSorted and what is the SLP token for?
CryptoSorted is the platform. The SLP token (CST) is a community reward and native token of the platform.
This user's comment was more like an appreciation.
"Nicely done! I like the site. Great to see some innovation going on in the SLP space.
I just swapped a little BCH for some SLP-CST on CCTip. I have never used that site.
Keep up the great work."
Expect your first and our 5th weekly BCH reward by next Tuesday.
I hate to ask this but what's the USP of this coin? I see the site is a blog but I can't find any info about the token itself under "About". Is the dividend derived from ad revenue?
I'd humbly suggest you improve this if you want to make a success of it.
Thank you for your suggestion. I will take necessary action about it.
But complete details about CST is the first post on the blog.
Here's the direct link>> https://cryptosorted.info/cst/
Our USP is:
CST helps you increase your stack of BCH and unlike most "farming" and staking tokens that get dumped with time, CST actually becomes scarcer with time and value tends to only grow accordingly. Thus,
Your investment in CST is growing while you're also accumulating additional BCH.
You're accumulating more BCH weekly from the dividend, your CST appreciates against both BCH and USD, and your accumulated BCH also potentially appreciates against USD with time.
You can calculate how fast your overall investment grows with CST and see for yourself.
The dividend we pay is derived from:
Our earnings from publishing on read. cash and Publish0x (the only 2 external blogs we maintain).
Our earnings from ads and other revenues from cryptosorted.info.
Our earnings from all our present and future products, services, and projects.
Number 5 is a bold claim. What exactly will cause CST to trade at 5000?
What products/services are planned that would cause that valuation?
Staking alone can cause that valuation.
Everyone will want a slice of the weekly BCH we will be dishing out and very few people will be willing to sell it.
Other use cases like clients buying CST to pay for our services at a huge discount will support it.
Plus we may be doing regular buybacks to have CST to reward the community with.
There's only a maximum of 21,000 CST.
Q7: overloadQ (replying to the above answer)
A $5k token valuation is $105M.
You'd have to be giving away a *ton* of BCH to make it have a reasonable ROI, and thus your company would have to be doing a *ton* of revenue to not be constantly haemorrhaging cash.
And you're saying you're going to reach that in a year?
1 to 2 years is like a decade in crypto.
We have seen better performances in one year before. Which means it can be done.
I am confident of that possibility because we have tokenomics that supports it. And a business plan that makes the revenue projections reasonable.
Added to the fact that we don't even need a revenue close to that valuation to get there. Demand and supply will do most of the magic.
Q8: overloadQ (replying again)
Yes, but your business isn't crypto. It's investing news, ads, and publishing fluff pieces for a fee.
You probably need to take a closer look at CryptoSorted again.
We're 1000% a crypto business. I'm not sure what makes you think our business isn't crypto.
A crypto-based internet publication business (current state) that generates revenue from ads and other products and services and with a token.
How more crypto can the business get?
PS: When I speak, I am not seeing CryptoSorted in its current state alone. I'm speaking from what is and what is coming.
I don't want to make any assumptions, but do you think that kind of growth is achievable?
Has the site had growth over the past year that would indicate this is possible?
5k per CST would require major growth, right?
Sure! And it's achievable.
But this is mostly speculation but backed with solid fundamentals.
If we're able to achieve our content goals and implement some of our plans for the next 6 months we can do at least 10x to 100x in revenue every year for the next 5 years.
It's an optimistic projection and it's realistic and achievable.
Hi Chris, glad to be a part of the community.
What are your plans for CST in the future and where do you see our token in near future?
I have answered this question above. But let me add the following points.
I see CST as the most valuable SLP token by market cap in the nearest future (1 to 2 years).
CST is trading on all major exchanges supporting SLP tokens.
We're distributing thousands of dollars worth of dividend weekly.
CST will be used to power multiple platforms within the CryptoSorted ecosystem and as payment currency for all our (future) products and services.
I wouldn't be surprised to see CST trading at $5000 in the next 1 to 2 years. It wouldn't surprise me at all.
Q11. QanonsDad (replying to another question)
I find all this very sketchy.
You say "We're distributing thousands of dollars worth of dividend weekly."
But when asked where this money is coming from you say "
Our earnings from publishing on read. cash and Publish0x (the only 2 external blogs we maintain)." Really? How much you getting tipped on read. cash ?? lol
Yes there other sources such as revenue from your website but I can't see it adding up to the "thousands" "weekly" you claim.
Without seeing a detailed audit or you provide proof of income my gut instinct tells me you paying out early investors dividends with new investor cash.
A classic Ponzi, that's what it looks like to me, I got to be honest.
Please read the reply you quoted again.
It was in response to a question that asks where I see CST in the next few years.
The thousands of dollars weekly weren't referring to a current state of affairs.
Please read the question and reply that you referenced again.
As for the Ponzi aspect, even you can audit the transactions. It's all on-chain.
Check the reward pool wallet and see where the funds are coming from.
You can easily tell if it's Ponzi or not if you take a look.
REWARD POOL WALLET: bitcoincash:qrzgz8ff4dxc7l9mlv0faeztzdru9r2cnv6krsaktt
That is the wallet. You can check and verify where the incoming funds to that wallet are coming from.
I've seen a similar token that paid out as advertised but the catch was that most of the payment stayed in the owner's hands.
For example, if there are 10 accounts that hold ABC token, one account has 99% of the supply and the other 9 split 1%.
They made regular dividend payments but most of the payment just cycled through two addresses. So they could truthfully say they're paying X amount to holders regularly.
I'm not saying that's what's happening here but I do have questions.
I understand your concern. The CryptoSorted Token (CST) team's wallets are publicly known.
MEMO.CASH WALLET: simpleledger:qq7tw8485a9rpvekvsc3qgru93ggpxqkvs7aaakmp3
CCTIP.io wallet: simpleledger:qq2fymc6zsd9tp9gsjd8ek684qpeewr4fg6crs5xsc
You can confirm if these wallets have ever received dividend by checking the on-chain transactions
I tend to agree, from my experience the vast majority of SLP tokens are made by people thinking " this will be easy money, all I need to do is create 100 billion SLP tokens, give them a cool name, think up some kind of backstory, promote the token with promises of regular dividends and to the moon price predictions and I'll sell millions of them..."
I would agree with u/QanonsDad, I would want to see a detailed account of where and how and how much income is produced to pay the dividend and I would like to see proof of it before I would consider buying into this. It would be far to easy to just lie and run this for a little while paying out 10-20-30% dividends from new investor capital before it all comes crashing down.
u/CuriousTitmouse also raises a valid point that it's very easy to appear to be paying out large dividends when you still in control of the vast majority of tokens and in reality just paying yourself 90+% of the funds.
I'm afraid it's up to u/CryptoSorted to provide rock-solid evidence of your accounts with a sensible growth forecast, not just pure speculation that in a year the thousands of tokens you created at a cost of less than 1 cent to mint are going to be worth 5K USD each. Without that solid base information, there's no way I'd buy into this and I'd say buyer beware for anyone that does. Don't trust, verify.
Sure! I wouldn't even advise anyone to buy CST without doing some research.
Your scepticism shows you're doing it right.
The only thing I will add is that you can verify where the money we use to pay dividends is coming from by yourself because it's all on-chain.
I also advise you to check my previous replies regarding the sources of our revenue.
Lastly, it's a foolish thing to pay dividend with previous investors money and risk my business which obviously is more valuable to me than token right now.
All the doubts you raise, if you truly do your own research you can verify them yourself without having to trust my word.
And that was all the questions and answers in the Reddit AMA.
Do you have other questions which weren't mentioned here?
Feel free to ask in the comments section of this post and Chris will answer them.
You can also click here to learn more about CST on the official token page.