To better understand what an asset like the Simba Storage Token is all about, you’ll first need to get to know the whole Simba ecosystem in general. Simba is a company based in Switzerland, Liechtenstein, and the United Arab Emirates, whose primary service is the custodial storage of cryptocurrencies.
With a staff of experts from various fields, the Simba team is competent in all matters related to cryptocurrency, whether it be trading, market analysis, blockchain programming, and much more.
The main Simba product involves Bitcoin cold storage on purpose-built Simba Storage equipment, which is planned to be placed in four locations: Switzerland, Liechtenstein, UAE and New Zealand. All modern cybersecurity systems are involved in the storage, and most notably, multisignature technology is used to sign transactions.
At the heart of the ecosystem is also a token with the ERC-20 standard with the SIMBA ticker*, not to be confused with SST. All storage customers who deposit their Bitcoins receive SIMBA in return. This is firstly for an additional guarantee that the funds are actually deposited and always accessible, and secondly for cases when it is necessary to quickly conduct any transaction, in that cold storage (on physical devices, namely hardware wallets) is inexpedient for the instant withdrawal of funds.
So, there are a total of three products in the Simba ecosystem: Simba.Storage Bitcoin storage, the SIMBA Coin, and the Simba Storage Token (SST), which we will analyze in more detail.
*SIMBA Coin: a cryptocurrency backed by an asset and pegged to its price. In the case of SIMBA, the asset is backed by Bitcoin with a rate of 1 SIMBA = 1 satoshi. In depositing 1 BTC, clients of the storage receive 100,000,000 SIMBA in return.
About the SST (Simba Storage Token) asset
Simba Storage Token (SST) is the flagship utility token of the SIMBA ecosystem, maintaining the ERC-20 standard.
Let’s briefly touch upon the ERC-20 standard itself. Simply put, this means that the token is on the Ethereum network, the most popular and one of the earliest blockchains. The Ethereum network is enormous, with over one million transactions per day. It is supported by all major cryptocurrency platforms and exchanges, and serves as the basis for the vast majority of decentralized applications. Solutions for network scaling are constantly being developed in order to increase the speed of transactions and reduce commissions for their implementation. The above is necessary to understand that if a token has the ERC-20 standard, it circulates within the most global and demanded network in the cryptocurrency world, thus having great potential.
SST entered the market in July 2020. It is worth noting that there was no ICO (initial coin offering) on SST, and this is a big advantage of the asset, which will be discussed in more detail later on in the text.
The tokenomics of the Simba Storage Token (SST) are thus:
- Total volume: 100,000,000 SST;
- Distribution of tokens by sale: 50,300,000 SST;
- Partner Rewards: 8,000,000 SST;
- Airdrop: 1,700,000 SST;
- Storage security: 5,000,000 SST;
- Team: 5,000,000 SST with a blocking period. One million tokens will be unlocked each 12 months;
- Fund: 30,000,000 SST.
The SST token, as with any other cryptocurrency asset or stock of any company, reflects the state of affairs in the market, this case being Simba Storage. Therefore, its price directly depends on the development of Simba, which has observed extremely positive dynamics in since July 2020.
SST price history
One of the first exchanges on which the asset appeared in July 2020 was Vindax, and by the end of the year the token was also listed on the Coinsbit platform. In 2021, it was listed on the highly liquid Bitmart exchange. On these exchanges, SST is traded in pairs against USDT (USD-backed stablecoin) and BTC. The asset is also listed on Uniswap, one of the most popular decentralized platforms, where it may be purchased with ETH or USDT.
In addition, the token is available for purchase on the website of the storage at a fixed price for any volume. Purchases on the website are carried out for USDT and will soon be carried out using a bank card. In addition, by buying a token on the website, you can take part in a partner program that allows you to receive a reward of up to 40% of the purchase amount by your invited partner.
One can observe that the starting price of the token was $0.1 in July 2020, and at its peak at the end of this May, the price reached $2.90, in just 11 months the asset having shown an increase of more than 2000%. Such an incredible climb in price from the low says a lot about the project, even despite the global general upward trend in the market that could be observed this year.
Only the strongest projects can boast about such results, which are actively being discussed by the entire community present on the largest major exchanges. The fact that during this growth, SST has not yet even been listed on the most popular exchanges and has relatively little liquidity, leaves huge potential for growth, which will be touched upon in the next section.
At the present moment, the price has slightly adjusted, along with the entire market, and is now trading around $1, which is generally a good entry point to the asset, especially if we consider medium and long term holding of the token. It should be understood that a correction is a completely normal and even healthy market phenomenon for further growth, which can be observed in many other fundamentally strong projects. Had the price been constantly growing, this is the first signal that the price of the asset is being artificially increased and the project will soon “bust.”
SST growth potential
Let’s take a look at the fundamental reasons for further growth in the price of Simba Storage Token (SST).
You can start with the fact that there was no ICO for the project, which has already been mentioned. ICO (Initial Coin Offering) is an initial offer of tokens, implying the project team attracting investments for its further development. This mechanism in the cryptocurrency industry leads to tokens purchased during the ICO ending up in the hands of random investors pursuing unknown goals.
Whether it be big players or a huge number of random users who get access to a large number of tokens, this can always negatively affect the fate of the project. Any time the price rises, all such investors, who are often not interested in the project itself, can sell most of their tokens, which will lead to a price collapse and jeopardize the organic development of the project.
That is why the absence of an ICO is a great advantage for Simba, in that the tokens at the initial stage were in the hands of thoughtful investors and a dedicated community, and this laid a solid foundation for the ecosystem’s successful development. Additionally noteworthy is the sustainability of the project and its ability to progress without the need for outside help. It is worth remembering the SST tokenomics, with the blocking of the Simba team’s tokens, which eliminates the risks of a one-time appearance of a large number of tokens on the market and a resulting price decrease.
Also, for such products, listing on the largest exchanges is only a matter of time. After being added to each new trading platform, liquidity increases as access to the new user base of each particular exchange opens up.
Another factor is the growing confidence in the custodianship of cryptocurrencies. As Simba grows in popularity, its reputation grows, it enters new markets, thereby leading to an increase in the number of deposits and profits for the company, and thus an according increase in demand for SST and an increase in price. The reputation and popularity of Simba.Storage, among other things, is influenced by the availability of licenses to operate and obtaining the corresponding licenses in new jurisdictions, which brings transparency, publicity, and stability to the company’s work.
It has already been mentioned that Simba is based in Switzerland and Liechtenstein, and the organization has a representative office in the UAE. It is important that Simba is recognized by the regulators of these countries, who take the analysis of registered companies very seriously. The company is currently applying for an FMA license, as well as a custodial storage license in Dubai, which will open up broad prospects for attracting the attention of large institutional investors.
The issuance of SST is limited, and an increase in the total number of tokens is impossible, so there is no risk of token value dilution from additional issuing.
Naturally, the price will be influenced by the quality and reliability of cryptocurrency storage services. Simba.Storage is a reliable and convenient platform where security, among other things, is ensured by proprietary blockchain modules and a system for diversifying storage of multi-signature keys in different parts of the world on physical offline devices and in copper safes protected from electromagnetic rays.
Simba pays special attention to marketing, because a competent advertising campaign, which is already underway and will only increase in pace, always positively affects the price, thanks to the increase in brand awareness and the growth of the community.
Another significant factor for the development and growth of Simba.Storage is that the team quite recently made a decision to sell tokens directly on the site in order to attract additional funds for marketing and advertising. As a result of such sales, 40% of the funds from tokens sold on the site will be distributed to a large partner program, which has 5 levels: 20,5,5,5,5.
The partner program is also a powerful incentive to attract attention from users, in that they can make great money not only on the growth of the token itself, but also from people being attracted to the company. SIMBA has already begun working with major opinion leaders who are interested in participating in the partner program. The proceeds from token sales on the website will be directed to marketing and advertising, for attracting new users.
Among other things, those who hold SST tokens for 12 months will be able to exchange their tokens for the company’s Security tokens, which are considered digital analogues of securities and their issue is possible with the appropriate licenses and permits. SIMBA Storage Security tokens are planned to be placed on major exchanges in Switzerland, Liechtenstein and the EU countries. The attractiveness of Security tokens is obvious and shows SIMBA’s serious level of development, which will also stimulate the purchase of SST tokens as an additional passive income opportunity.
Simba’s ambitions and approach to business also have a direct impact on SST, because the organization has every chance to grow into the first global cryptocurrency bank, which will also affect the financial well-being of SST holders, who will be able to experience all the advantages of investing in an asset in the next 3–5 years.
In its first years the company was engaged in serious fundamental work, which has strengthened the position of the company and is now allowing it to actively expand within the cryptocurrency industry.
There are very few projects in the cryptocurrency market with a truly strong foundation and a passionate desire for the development of the blockchain and cryptocurrency industry itself. If you intend to invest in the long term in order to make a profit, then you should pay attention to this project and the SST token.