One of the ideas behind Bitcoin and other Cryptocurrencies is that the coin should be traded without intermediary. Most of the normal users of fiat currencies are used to banks and other intermediaries. To facilitate this transition from trading with an intermediary to trading without any intermediary we at The Crypto Bank came up with a solution.
Previously, in order to trade, the trader had to buy Bitcoins before he was able to buy an altcoin, because Bitcoin is the central currency at exchanges. The worth of your altcoin is expressed in a number of bitcoins, you sell your altcoins for bitcoins and buy altcoins with bitcoins. By creating the possibility of buying and selling altcoins through Ideal and Paypal we make it possible to buy altcoins for any ‘non-technical’ person. In this way altcoins will reach a larger target audience and might be accepted sooner than we thought by society.
Buying coins with fiat
At our bank users will have the possibility to buy altcoins and Bitcoins with fiat through Ideal or Paypal. These paying methods do already have a big audience so it will be easy to use for everyone.
The most buyers of Bitcoin wonder why the rates at, for example, bitonic.nl are way worse than at an exchange like Kraken. This is due to the anonymity enjoyed by the buyer at bitonic.nl, using Ideal and the fact that no personal data has to be provided before buying Bitcoins make the cost and risk higher for suppliers like bitonic.nl
Swapping altcoins for other coins
The Crypto Bank will implement a possibility to swap one altcoin for another altcoin or for Bitcoin. One example of this is swapping your XMR for ETH without making a lot of hassle with trade orders and different prices at exchanges.
Borrowing altcoins (new!)
We offer the first opportunity to borrow altcoins. This concept is best explained with an example. Let’s say that Gerard wants to borrow 4 ETH because he doesn’t have enough fiat to just buy 4 ETH. Gerard could borrow 4 ETH at our bank but has to give something as a collateral, same case as with a mortgage. He could put 4000 LSK in our multisignature borrowing wallet and this LSK will be returned to him if he pays the 4 ETH within the agreed deadline. Of course we will always make sure to return the collateral in time.
Note that we will need some personal and verified information about the person borrowing the coins because of the risks involved.
The platform of The Crypto Bank is not only made for beginners in the world of Cryptocurrency. The token that will be released on the ETH chain, Connect (CCT), will be used as a share in our company. Connect is usable like every other altcoin as a ‘digital currency’, but Connect will bring other profits. Connect holders will get a percentage of our yearly revenue. 1 million Connect equals 1% of our yearly revenue, so a holder with 100.000 Connect will get 0.1% of our yearly revenue. This ‘interest’ will be paid in Ether and will thus make it very attractive to become a long term holder of Connect. For the real mathematicians amongst us, this means that we will be sharing 38.75% of our revenue! (77.5% of the total 50 million Connect = 38.75 million Connect, 1 million Connect = 1% revenue so 38.75 million tokens means 38.75% of the total revenue.) Our token holders will also get a discount at borrowing coins, every holder that owns more than 100.000 Connect will get a discount of 2.5% once per month at borrowing coins.
50 million Connect will be created at the ico and the distribution is as follows: 10% Research and development, 5% team, 2.5% reserved for partnering, 5% reserved for other expenses and 77.5% will be issued at the ICO.
The ICO date will be announced as soon as possible.
The project's whitepaper is being written at the moment and will be released as soon as possible, this whitepaper will be readable for both beginners in the cryptoworld as well as advanced crypto users. Below we've given a short preview of the major events on the roadmap, the events are sorted in chronological order.
- 1. Starting with a platform that creates the possibility to sell and buy ETH with fiat.
- 2. Buying of altcoins with fiat and swapping altcoins on our platform
- 3. Implementing the borrowing system
- 4. Selling stable altcoins for fiat
- 5. Device that allows NFC to receive payments via smartphones (for example, so that people can pay with their mobile with altcoins in a supermarket)
- 6. Realizing altcoin and BTC ATM’s
We will offer bounties for finding bugs and translations. (coming soon)
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