MEMBER OF THE VERDANT APF GROUP
APFC/USDT
0.8012
LIQUID FINANCIAL RESERVE OF THE APF GROUP: USD 250,233 (30.11.2024)
APF Digital Agrifund   18.11.2024
Estimated reading time: 9 minutes

VERDANT standard and APFC token market price

Dear clients,

we would like to inform you about the development of the market price of the APFC token depending on the development of the book value of the agricultural assets of the APF GROUP (VERDANT).

Revenues from the sale of APFC tokens are used to finance the purchase of agricultural assets within the APF GROUP (VERDANT). The profit from the sale of tokens makes it possible to sufficiently cover financial costs and thus stabilizes the management of the entire APF GROUP (VERDANT).

Agricultural assets consist of long-term tangible assets (agricultural land) and long-term financial assets (business shares in projects financed by the group and loans granted to financed projects). These assets can be found in the balance sheet of APF VENTURE CAPITAL CR s.r.o. and APF REAL ESTATE GROUP CR s.r.o. The change in the market value of agricultural land is continuously evaluated through expert opinions prepared for us by the expert office XP invest, s.r.o., IČ 28462572 (we published the results of some expert opinions on August 12, 2024 through Novinek).

The current book value of agricultural assets owned by APF GROUP (VERDANT) reached a value of 1.0 billion. CZK. The market price of these assets represents a reserve for possible coverage of risks arising from the management of liquidity and profitability of the APF GROUP (VERDANT).

Agricultural assets are separated from the issuer of APFC tokens of the company APF DIGITAL AGRIFUND CR s.r.o. due to the management of the risks associated with the own token (price risk, liquidity risk, technical risk of the token, operational risk associated with individual cryptocurrency exchanges).

VERDANT standard

The correlation of the development of the market price of the APFC token and the development of the total accounting value of the agricultural assets owned by the APF GROUP (VERDANT) over a comparable period creates the VERDANT standard. The VERDANT standard is expressed by the value of the market capitalization of the APFC token in relation to the total book value of agricultural assets and represents the coverage of the APFC token with real value. With this standard, we reduce the risk of price volatility, insufficient liquidity and the ability to meet all obligations in connection with the holding of the APFC token.

This correlation represents a kind of "gold standard" of the farmland tokenization project.

The correlation is also valid separately for agricultural land owned by the APF GROUP (VERDANT). The dispersion of values ​​is dependent on the total value of the measured asset (tangible assets or financial assets).

APFC Token Market Price

The market price of an APFC token is created by the interaction of supply and demand for that token on the respective cryptocurrency exchange. APFC token is currently traded on 11 cryptocurrency exchanges. We are preparing to start trading on the 12th exchange (Dex-trade).

You can follow the resulting market price of the APFC token and its development on cryptocurrency exchanges at: https://coinmarketcap.com/currencies/apf-coin/ or https://www.coingecko.com/en/coins/apf-coin.

Market capitalization represents the total market value of tokens in circulation (market price of a token x number of tokens in circulation). Market capitalization is in direct correlation with the book value of agricultural assets owned by APF GROUP (VERDANT).

The VERDANT standard therefore means that the market capitalization of the APFC token corresponds, with a permissible deviation, to the book value of the agricultural assets owned by the APF GROUP (VERDANT).

An important aspect for successful trading on large cryptocurrency exchanges is the Institute of Market Makers. It is a specialized entity that performs the following functions for the token issuer and the respective exchange:

  • maintaining sufficient liquidity of the given token
  • maintaining the daily trading volume and spreads required by the respective exchange
  • creation of conditions for proper execution of sales orders of third parties (traders)
  • prevention of significant changes in the market price of the token (unrealistic price increases and decreases outside the set exchange range)
  • preventing a significant drop in the market price of the token in case of massive sell-offs

APF GROUP (VERDANT) uses GLS Global LLC FZC (https://www.cls.global) for market maker services.

We offer the token on the relevant exchange through the Market Maker. In case of interest in buying a token at the offered price, a market price is created. The management of the market price must correspond to the contractual conditions of the respective stock exchange in order not to damage the good name of the stock exchange and the relevant stock exchange rules.

The task of the Market Maker for the APFC token is to ensure that the market price does not fall below the minimum price that corresponds to the correlation within the VERDANT standard.

The minimum price is set as a support level, which represents the price level at which we expect a reversal of the falling price and below which the market price would have no reason to fall if the VERDANT standard is followed. In this case, the total book value of agricultural assets would be higher than the market capitalization of the APFC token and the price of the token would be undervalued.

The support level is currently set at CZK 18.50/APFC. When this price level is reached, the Market Maker will start buying back APFC tokens from the market out of free liquidity, thus ensuring price stabilization. Token buyback must comply with the terms and conditions of the applicable exchange.

In the event that demand for the token increases and sales of the APFC token through exchanges grow, the market price of the token may be significantly higher than the minimum price in the short term, thereby increasing the market capitalization beyond the VERDANT standard. The funds obtained are kept on the market maker's exchange accounts and serve as additional liquidity for possible token sales and to correct the token price at the minimum price level. We do not consider this phenomenon undesirable, as it generates additional funds for liquidity management, increases the number of trades, increases the token's attractiveness for traders, moves the token higher in the ranking of other tokens and on a specific exchange, and finally generates additional profit from the primary and secondary sale of the token. If the increased price is sustainable in the long term, liquidity will be transferred in favor of the creation of agricultural assets and thus the correlation within the VERDANT standard will be straightened.

In conclusion, it is necessary to state that the long-term application of the VERDANT standard is possible only under the assumption of strict separation of the primary token sale market (direct sale to the group's clients through purchase contracts - OTC) from the secondary token sale market (token sale via cryptocurrency exchanges), which creates the market price . This rule is reflected in the contractual arrangements related to the sale of the token in the primary market and prevents high volatility of the market price and the transfer of liquidity risk to both markets.

We are at your disposal in case of questions.

Thank you for your cooperation and trust.

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