TrueFlip, which we reviewed here and gave a numerical rating of 6.9, has finally begun token trading. Problematically, the website still does not allow people to “park” their tokens on the site, thereby earning a portion of the house’s take. This situation has undoubtedly affected the price, as the entire demand for the coin would be driven by people wanting a piece of TrueFlip’s lottery take. Being currently unable to garner as much, people are looking to trade the tokens to those with more faith. As we can see, opening bells have not rung in great price news for TFL at HitBTC:
The tokens were initially sold during the ICO for .0005 BTC, but have yet to trade above that at HitBTC. Trading is still young, as until today trades conducted in the pair were done on an IOU basis. Now the real volume can take place since individual token holders, whose tokens are not “parked” at the lottery earning a portion of its revenues, have no reason not to get them onto exchanges.
From a high view the whole matter can almost be viewed as a long-term shake-out. Having initially issued 21 million tokens, if they can “burn out” low-confidence token holders by getting them to sell the tokens back at a short price through delaying the deposit of tokens for interest-bearing usage, they can create a situation where their liabilities are lower. Moreover, the cost of the token doesn’t influence their lottery operations, which are off and running. These are all things we have learned since analyzing True Flip initially, but we will now downgrade it from a 6.9 to a 4.9 based on such revelations.
True Flip has yet to provide adequate documentation for token holders looking to earn their actual intended token’s purpose, or revenues from lottery tickets sold. While the lottery itself appears to be legitimate, token holders only have a vested interest in it if they are able to park their tokens on the exchange and earn revenues as they were promised. Since this has not been the case to date, or in any case the method of doing it is extremely non-obvious, we must caution against the purchase of TFL tokens unless you have inside information about their impending usefulness. This recommendation comes despite the author holding a small amount that need to be sold above ICO prices.