We are tackling consumers' barriers to entry into the $200B+ USD cryptocurrency space. Our plan makes acquiring cryptocurrency as simple as purchasing a calling card.
The market cap of cryptocurrencies hit an all time high of over $800B USD in January 2018. However, the ecosystem is full of issues that have caused the value of this space to retreat to a quarter of that amount. One of the greatest issues is the complications experienced by people trying to get money into cryptocurrencies. Credit card companies have stopped allowing their cards to be used to purchase Bitcoin and other altcoins, and many banks have slowed or stopped the transfer of funds into exchanges. This has created the greatest barrier to entry.
From fixed price gift cards to load vouchers to reloadable debit cards, we're looking at changing the way people can enter the cryptocurrency space. Our solution enables our target demographic to inject money into the cryptocurrency market as easily as it is to purchase and use a long distance calling card or top up a prepaid mobile phone account.
We are starting in Canada, and will move onto other nations, prioritized by accessibility and need. That said, we are currently in talks with one of the largest multi-national suppliers of card-load distribution services, and would likely take advantage of all their distribution regions, and newly added regions as they become available.
Revenue would be realized via fees associated with loading, in addition to a margin set on the purchase of the customer's desired cryptocurrency.
Our four-person management team consists of individuals proficient in accounting and economics, research and administration, usability and conversion, and tech. We also have advisors onboard and incoming, and our management team is likely to grow, due to the scale of the project that this is a part of.
We currently require $10M USD to bring this project to fruition, including $9M which will be kept in exchanges to fill the purchase orders of customers, while we await settlement of the payment process. The initial $1M is offered as an equity opportunity, while the $9M "float" is offered as a revolving debt opportunity.
In regards to on-boarding cryptocurrency users, we're competing directly with over 200 cryptocurrency exchanges - which about 10% accept fiat. These exchanges are predominantly region-specific, and present limited options in regards to the type of fiat currency accepted and which countries they accept it from. Additionally, with the kickback from both banks and credit card companies, moving fiat into these exchanges has become increasingly difficult. Our other competition is bitcoin ATMs, which are uncommon, complicated, and expensive to use.
Due to the accessibility, ease, speed, and affordability of our on-boarding process, we're easier to find, easier to use, faster to process, and cheaper than any of our competition. Though, it should be said, that our exact process has no competitors, to date.
In an attempt to protect our position in the market, we'll be looking for exclusivity terms with our consumer-facing service providers.
This is just the first step in a global multinational finance machine that treats crypto and fiat equally, providing consumers and businesses the ability to use either or both without the issues faced in the current financial industry. We've been working on our policies and procedures, as well as our process and codebase. While this initial step of assisting consumers with on-boarding their fiat into the digital currency space may seem minor, it is essentially our branded cash-cow that will enable us to enter the money services industry and then banking - globally.
The current daily demand for cryptocurrencies has settled around $10B USD. This has fallen from a high of $70B USD in January 2018. Much of this decrease is due to an increased difficulty to enter the market. We believe this project does much to combat this difficulty, and essentially minimize it.
We see reliable and sustainable profit in transaction fees and the margin realized when facilitating the purchase of the customers' desired cryptocurrency. Comparably, Bitcoin ATMs charge upwards of 10% on transactions, between their transaction fees and their premium price on bitcoin. Coinbase is also known for excessive fees and premium pricing. We're looking at doing the same, more efficiently and affordably, without the excess overhead of a conventional currency exchange and physical ATMs.
Our current funding rounds:
SEED) $1M required for staffing, development, marketing and operating expenses.
START-UP) $9M required for floating the exchange accounts; these funds are only used during a transaction and are replenished on transaction settlement with our payment processors (1-30 day cycles).
As with most projects, there is a possibility of further funding rounds depending on growth.
Minimum equity investment of $20K will considered on a case by case basis. We have to adhere to Canadian law which only allows for a maximum of 49 additional shareholders. Dividends will be based on profit earned.
Debt investment is negotiable. Investment funds are available to be returned, as they remain liquid as floats within the exchanges. Return will be a percentage of the profit realized on each transaction utilizing the invested funds. For example, if you've invested $10k and a consumer transaction requires $1,000 to be used, if your return rate is 1.4%, you'll be remitted $14 for that transaction.
If you're an equity investor, full investment is due immediately. Debt investors will have a schedule based on the system's need to cover consumer demand within the exchanges until the transaction has settled.
Both hands-on, advisory and silent investor interest welcome.