We’ve spoken to Pradeep Goel, CEO of Solve.Care Foundation about the new offering they are going to launch. Is it an ICO or is it not?
According to Solve.Care they are going to launch their token sale, and it is not coin offering. ICOs are essentially crypto currencies, while the Solve.Care tokens are usage tokens giving access rights to the platform.
Pradeep explains: “Those who have the tokens will be able to configure our platform to their specific needs, large token holders will even be able to influence our road map, and participate in our product management council. Token holders will also have the right to procure certain licences, and acquire new products from our marketplace. What they are buying is the right to use our platform, not equity in our company. We are simply selling them advance licences to our software. In many ways it is similar to putting down a deposit for, say, a Tesla, before the car is built. It is a pre-sale of our services.”
Solve.Care are only going to issue one billion tokens in total.
After the initial offering the entire token supply will only exist in the secondary market. Users won’t be able to buy tokens from Solve.Care, they will have to buy them from existing token holders. The value of tokens will vary depending on how many clients are using the platform. The transaction fees between the users of the platform will also be paid in tokens. By using Solve.Care platform, they will be able to reduce the overall costs of healthcare and benefits administration. “The cost of administration today can be as high as 30%. We will be able to bring it down to 3% through decentralising the administrative functions. And our tokens are part of that function, they are the gas that drives the platform.” Pradeep adds.
Utility tokens are not retired. They are always in circulation. When Solve.Care receives the token in return for payment, it will redeem tokens in the market for crypto/fiat currency at going market rate and the tokens are back in circulation. So the tokens are ever green and always in circulation. Solve.Care will monitor liquidity and if needed release tokens it holds in reserves but will not issue/print more tokens.
Solve.Care is starting the sale of the tokens for 25 cents per token. So if they sell all 1000 million tokens then Solve.Care will raise 250 Million. The tokens will grow in value. They will start at 25 cents, week two it goes up by 2%, and so on until it reaches 31 cents in 12 weeks, after which it stabilises. After the end of this sale, Solve.Care is no longer the supplier of tokens.
What are these 250 Million for? “We are using the money we raise to build the platform in five stages: first –the administrative functions, second – care coordination function, third – payment function, forth – personalised care and best practises, and finally stage five – the global adaptation to every healthcare system in the world. Our vision is to have 1 billion citizens of the planet using our platform. The release of every product moves us closer to that global vision,“ says Pradeep.
With this kind of ambition, they certainly had the option of going to Wall Street and raising money in a traditional way. However, the timelines and the views of ROI of traditional investors are very different to what Pradeep thinks his company needs for its scale and growth. The token sale is a perfect solution, it brings the three things together: capital for building the platform, community that is engaged, and clients of the platform, immediately taking down some of the barriers to mass adoption.
An app store for healthcare?
Pradeep adds: “We are transforming healthcare administration, healthcare payments and healthcare coordination. We envision our platform to be like App Store, in a sense that it will have all those incredible healthcare products and treatments from all over the world available on it. We are building an easy to use global framework in which any products can be bought by someone in China or California, and where a specialist in Boston could treat a child in Mumbai. Hopefully that will result in improvement of care quality and coordination. The platform would give us the normalised care around the world. And that’s a huge impact. The community on our platform have no limitations, building a place to coordinate and improve care – that’s what we are ultimately after.”
More Information: https://solve.care/