$Guap coin is a new cryptocurrency that rewards consumers for supporting black-owned businesses. According to their website, $Guap’s main purpose is to recreate and expand the age old “Black Wall Street” towards greater heights. “$Guap is more than a solution, it is a revolution.”
The $Guap strategy is to “fund, support, and circulate amongst its own merchant network that rewards consumers for supporting community businesses, grassroots organizations, and HBCUs.” The idea behind the $Guap network (which has yet to be revealed) is that participating black-owned businesses will accept $Guap tokens, allowing for a real world usage. The tokens can then be saved and spent at other merchant locations within the network.
A fantastic idea…but will it work?
Going by their current trajectory, it is going to be difficult. An interesting idea but also a hard sale for a community that has low amounts of liquid savings on average. With the crypto markets being exceptionally volatile at the moment additional funds (that you don’t mind losing) are absolutely necessary to even attempt an idea like this and with the target market and amount needed for this venture, the probably of success should be questioned.
In addition, going by their website, they are having issues raising their first round of funding at $2 million (which has been pushed back a few times it seems). Never a good start.
They are also looking to offer 10 billion tokens, 8 billion of which will circulate over time. This is a huge amount compared to other cryptocurrencies. Of cryptocurrencies with over 10 billion in tokens the one worth the most per token is TRON at a whopping $0.07 per token when rounded up. The going rate for $100 USD for $Guap is 30,000 or 0.003 per token. In the crypto market, token values increase all the time once they hit the market, but not every time.
Still the idea is a good one. I wanted to cover this simply because I think the idea is a good one and, whether this pans out or not, is a great starting point for the future of black-owned business. Whether having a token is a good idea for the community remains to be seen, but the concept of tracking the economy of a person or group of individuals and allowing people to buy into that group is interesting.