Dang! Big move up for AVA at the exchanges I just noticed. I suppose after the update was done yesterday, or was it already two days ago? Anyway, seems a bit late to jump in now.
Trying to understand how this buying AVA to provide the 2% free AVA to those purchasing something through the Travala website. Now I don't know what this 2% is, but I assume this is the amount of AVA equalling 2% of the $ value of the purchase. The current market cap for AVA is approx 50M$.
Now, let's assume they will have a turnover of 1,5M$ a month for the next 12 months which equals 18M$. 2% of this equals 360k$. Based on the current market cap, Travala will have to buy approx 0,72% of the market. This 1,5M$ is conservative looking at the growth they going through. Maybe more realistic is double? This is about 1,5% of the current market cap Travala has to buy to continue to provide the 2% free AVA to their customers purchasing something.
Ok ok, now getting the numbered down, it seems somehow manageable from a market cap perspective. From a profit point of view, Travala will give 2% of the revenue to the buyer, but this may be a large percentage of their projected profits. Recently they went through crowdfunding to get funds, basically telling me they may make an operating profit, but not a company-wide profit.
What happens with the AVA provided to users that don't have an AVA account? Or is an AVA wallet being opened automatically upon first purchase at the Travala?
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