We’re in the process of creating our first product: an index and a token that represent the large-cap and mid-cap cryptocurrencies in a single portfolio. The portfolio will have roughly 45 coins using a smart weighting scheme, and the token will represent the value of the portfolio.
Now we’re trying to decide how to price it. The initial price of our token can be anything we want. It's psychological - it's behavioral marketing.
For example, see this page of ETF and index prices - they range from $10 to more than $200. Many are in the $20-30 range.
I guess we should price between $10 and $100. Our token won't be divisible, so this is a choice we'll live with forever.
On the one hand, a $100 price makes it seem in bitcoin territory, which people are used to. It could seem more valuable - like an average of the price of many coins. Another view: since it's a whole basket of coins, and most of them are worth around $1-2, then you can imagine that, without bitcoin, the total basket could all add up to around $100. And it’s nice for tracking the growth over time. Plus, people perceive expensive things as being more valuable, and this is a nontrivial consideration.
On the other hand, I don't want people to balk, saying it's an expensive token. We shouldn’t give people a reason to not buy it, and maybe at $100 they will think it has more downside than upside.
On the other hand, perhaps $100 will encourage people to buy and hold, which is what we want. A price like $10 could encourage more speculation, which would increase volatility.
It's a matter of perception.
What do you say? Where do you think we should price it initially? Just leave a comment and we'll see what people say, or come to the forums and discuss everything 20|30 with us!