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What a week this is turning to be. Full of twists and turns! There is a sense of regulatory maturity and acceptance in a way. From XRP, Ripple Inc., Cardano, Bitcoin and now Venezuela, it couldn’t be better for value-searching and relentless crypto traders. 

It may be XRP’s partnership with BitPay, the development in Cardano via Shelly Testnet launch, and Venezuela’s progression towards a more open cryptocurrency society. But what of other low risk, high reward, low to medium cap digital assets that have a well laid out roadmap and valuable partners? 

In week’s speculator’s notes, we identify two such projects that I’m convinced is worth a second look in Q4 2019. One thing though: Beware that this is not investment advice, neither am I endorsing any project. Do your due diligence and base your investment decisions on solid and well-researched findings. 

So, which projects are these? Well, let’s get started:

NEXO

Think about it, there is a wave of fiat debasement around the world. The FED, the ECB and other central banks are slashing interest rates and purchasing more assets to salvage their respective economies. With QE and preventive monetary policies, owning cryptocurrencies is a strategic, risk-averse move. 

Why? Digital assets are immune to these interventionist stuff. How Bitcoin behaves during periods of economic crisis is leading, and Nexo found an opportunity. Nexo is a blockchain-based overdraft system based in Switzerland and has a partnership with Credissimo. 

Credissimo are veterans in finance. While that is a huge plus, other well-thought out factors as automation where loan APRs are calculated via their Nexo Oracle, and insured funds are stored by BitGo in an audited Ethereum smart contract, it is their transparency and their thrive to dominate the cryptocurrency lending sub-sector that is ticking.

Guys, Nexo is a security, compliant with SEC’s rules and there are audited financial statements as part of their compliance. Token holders, aside from enjoying capital gains also receive dividends. Recently, Nexo distributed $2.409 million as dividend-with the obvious trend that these allotments keep rising.

I’m bullish on $NEXO because:

  • People will continue to borrow funds regardless of the base currency. It is just how the world operates. Willing lenders, willing borrowers agreeing on a determined interest rate. That demand alone plus Nexo’s global reach-and ease of borrowing, and the infancy of the industry means $NEXO could be highly undervalued at spot rates. Just to quantify, Nexo has distributed over $700 million to over 200k across the globe since launching. 
  • There are heavy weights involved. Credissimo is behind Nexo but their decision to rope in a qualified custodian in BitGo means token holders-and those lending their coins, are guaranteed of security. As it is there are security concerns in the space stemming from the decentralized nature of crypto operations. Few people can shoulder the responsibility of securely storing their coin’s private keys. When lending, that responsibility is shifted to Nexo who in turn passes that baton to certified experts.
  • They have launched a mobile app for clients. This further complements their work of building the Utilities 2.0 for NEXO tokens. Upon completion, there will be a plethora of amazing features for clients. However, that’s not forgetting their partnership with Terra that will further thrust them into the spotlight in South Korea.
  • More and more coins are being supported for lending. TRX was the latest. Furthermore, lenders can earn interest on Euro, USD and GBP, and even stablecoins–USDT, TUSD, USDC, PAX, and DAI. Interest rate is 8% APR on stablecoins, how can’t that be attractive? Cool thing about this is that there are no hidden fees neither are there minimum repayments. Just recently, LTC was recently added as a loan repayment option, widening options for borrowers.
  • Nexo will be listed at Binance DEX after receiving majority votes. Earlier, they had sent for a proposal for listing.

For more fundamentals check our long format review here: https://cryptogems.com/nexo-worlds-first-instant-crypto-credit-lines/

Telcoin (TEL)

We wrote a long format post on Telcoin here

It is not rocket science that remittance companies charge exorbitant fees. But there is good news. The penetration of the internet has been a reprieve, and recent statistics attests to this. It has contributed to financial inclusion, and Telcoin is right in the middle of this revolution. 

Telcoin does what they know best: incorporate mobile operators for financial inclusion and eliminating previous pain points of KYC, trust and reach. There move was strategic, taking advantage of the high rate of mobile penetration in developing countries. Leveraging this fast-tracks their drive of offering cheap remittance which fosters financial inclusion. 

Because of this, mobile money subscribers can send, buy, and sell Telcoin tokens with the operator as the intermediary. TEL are distributed to Telco partners depending on their level of adoption, promotion and integrity. There is a strict issuance model in place for this purpose.

Remittance and ecommerce are multi-billion industries, and Telcoin is merging two of the world’s disruptive developments in blockchain and mobile technologies. There are challenges, yes, but they are progressively moving towards their objective. 

I’m firm on $TEL simply because of:

  • The media attention it has been receiving in the last couple of months is enough to justify what the future holds. Since their objectives are clear and are desirous of playing crucial roles in ecommerce, financial inclusion and remittance, their reputation and their capable platform-it can handle 5 billion subscribers, could pump TEL valuation. Presently, TEL is in the top-200 of the world’s most valuable coins, out of the 2,000+ digital assets.
  • Pure mathematics: While there are 100 billion TEL as total supply, 50 billion has been set aside for telecom partners and operators and spread over 10 years issued according to a laid out model mainly depending on demand. Since they are issued freely to mobile operators, telecom partners will be incentivized to sell them to their subscribers as they will receive all profits. The other 50% are locked in exchanges. To further curb volatility, there is an option of locking prices for a period—a very attractive feature. 
  • They recently partnered with Paga, a Nigerian mobile payment provider that transacts over $500 billion with over 800 merchants. Besides, a partnership with one of the Philippines leading payment app issuers could be on the cards thanks to their meeting with Kenneth Palacios, the Vice President of Consumer & Trade Wallets of PayMaya. PayMaya’s objective is to build a cashless ecosystem, allowing business owners to pay online in seconds via any credit, debit, or prepaid card, or using their PayMaya app.
  • Telcoin were recently approved to provide remittance services from Australia. That is massive and bodes with their plans of opening up various payment corridors from the Philippines where they received a BSP VCE License. 

For more fundamentals check our long format review here: https://cryptogems.com/telcoin-tel-send-payments-to-a-mobile-number-for-real-crypto-adoption/

I hope this was informative for you. Never miss crypto investor insights by subscribing to our mailing list.

Thanks for reading and good luck everyone!


How is your crypto doing?
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How is your crypto doing?
Get accurate buy/sell signals for easy investing ✨🔮🧙‍♂✨

Get PlebApp on Google Play

Fact is, numbers don’t lie. Numbers are records and according to independent studies, internet penetration is a big contributor, alleviating people out of poverty. But it isn’t about food or basic needs as shelter or education.

Research reveals that when there is financial inclusion, people, more so, in developing countries, can progressively move towards prosperity, and away from the grip of poverty and misery. Where they have access to financial services, they can better “arrange” themselves, get cushions whenever there is an emergency and cater for their family needs or even start a business. Good news is, according to a report from the World Bank, 3.8 billion people had an account either from their local banks or through mobile service provider.

However, development and adoption levels varied depending mostly with internet penetration which also correlates with smart phone accessibility. At the same time, the gap between the rich and the poor, men and women and the educated and the uneducated remained the same. Evidently, Blockchain, as successful startups demonstrates, are efficient and cheap.

Ripple Inc for example is working with the Bill and Melinda Gates Foundation through Mojaloop towards financial inclusion. Because access to smart phones and internet penetration goes hand in hand, Telcoin is taking financial inclusion to the next level, bring crypto straight to people’s phone numbers made possible by their collaboration with Telecommunication companies across the globe.

What is Telcoin?

According to the project’s creators, Telcoin is all about sending money, not to agents but to individual’s phone numbers, and making payments in a smarter way by leveraging the benefits of the blockchain. Utilizing the Ethereum blockchain, sending funds or making payments in eCommerce stores using Telcoin is near instant and distinctively cheap from traditional facilitators as Western Union and others.

Generally, their goal is to facilitate financial inclusion via cheap remittance, payments, credit and several other services that can be offered via the blockchain. Towards achieving their goal of unbanking the world and contributing towards the ideal goal of total financial inclusion, Telcoin is actively partnering with Telecoms in areas where accessing traditional financial services is a challenge. With this partnership, not only will more people access financial services, make payments and generally benefit from blockchain but users can receive funds in crypto straight to their phone numbers.

Remittance, Payment and eCommerce

Although their target market is large and not limited to collaborating with Telecoms, they will predominantly focus on payments, eCommerce and remittance. Payments is pretty straight forward but as aforementioned, through the Telcoin network, they are free.

The only charges are those made during conversion to local fiat currency. Undoubtedly, free on-chain transactions with conversions done in collaboration with local telcos is massive for small business owners always searching for saving avenues.

As a user, Buza, attests:

” Fast, Secure, Low-cost transactions, send crypto via phone number, available on top exchanges and partnered with plenty of crypto friendly merchants. Its never been easier to use Telcoin!”

Sentiments equally shared by Robun Decker who said:

” Very secure, fast, and low cost fees to send money around the world no more 10%-19% fees and accessed from your mobile operator.”

On the remittance front, Telcoin will provide a fitting solution. To paint a picture of how this is important, India’s received upwards of $62 billion of remittance in 2016. In the financial year 2013/14, remittance to Nepal stood at $3.5 billion which is roughly 25 percent of the country’s GDP. Sending funds via Telcoin, given the efficiency and cost-saving aspects of the blockchain is therefore, highly welcomed by the diaspora.

Team

Making this possible is a dedicated team. Claude Eguienta is the CEO and Co-founder. He has a master’s degree in Computer Science and previously worked as lead systems architect at CyberAgent besides founding Kabotip. Paul Neuner is the Chairman and he has over 20 years working in the telecommunication space. Apart from Telcoin, he his the CEO of Mobius, a mobile telecom fraud management company.

Then there is Simo Kinnunen who is a a full-stack programmer and an expert in Rust computer program. Other team members include Eric Chung who is the Executive Director, Adam Kull, a Masters of Computer Science graduate at Sweden’s KTH Royal Institute of Technology, Naïm Boughazi, Yacine Farouk, Alix Zerd and Christopher Riza, a smart contracts and blockchain researcher.

Advising the team is Michimasa Naka who has more than 28 years experience working with banks, Toby Hoenischm, a specialist in Artificial Intelligence, Jeff Quigley, Rajesh Sabari, the Head of Partnerships at MasterCard, Chris Suh working at the Royal Bank of Canada and Goldman Sachs and Batara Eto.

Partners

Telcoin transactions are affordable, near instantaneous and powerful yet convenient thanks to their collaboration with telecommunication providers. Besides, there is an incentivization model for service providers where volumes and fees are considered without affecting the profitability of these connectors.

At the time of writing, the Telcoin team are working hard, building a repertoire of partners. Because of the conversion from TEL, the ERC-20 token of the Telcoin network, to fiat, a majority are exchanges. They include HitBTC, Latoken, KuCoin,Changelly and CoinGate. Others include BRD, GSMA and Jumia.

Token and Fund Allocation

The platform’s native token is TEL, an ERC-20 utility token and a tool that Telcoin creators believe will serve the unbanked smart phone holders in developing economies. In total, there are 100 billion tokens.

Overly, the project’s aim was to raise a minimum of $10 million and a maximum, the hard cap, of $25 million. As such, crowd funding timeline was set from Dec 12, 2017 to Dec 31, 2017. Of the 100 billion TEL coins, only 20 percent or 20 billion was available for sale.

Then, each token was sold at 0.00129 USD (0.0000018165 ETH) with the minimum contribution at 0.1 ETH with no maximum cap. Notably, only ETH and BTC were the accepted coins. Despite an overall ratings of 3.3, the team managed to raise $25 million from their token sale which ended on Dec 31, 2017.

Albeit their successful ICO, there are no details on how exactly funds were used. However, as per their whitepaper, a “large part of the extra funds will be allocated to additional marketing spending in order to maximize our reach to at least one telecom in as many countries as possible – particularly important remittance corridors.”

At the time of press, TEL has a market cap of $21,505,807 with a daily trading volume of $105,173 or 156,296,866 TEL. This is from a circulating supply of 32,051,138,545 TEL. Year-to-date, the token’s performance has been stellar against the ETH, adding 69 percent, dismal against BTC as it is down 45 percent and stable against the USD.

Short-Term Price Catalysts

There is no doubt that Telcoin, an innovative blockchain based solution, is trying to merge two of the world’s leading digital domains in blockchain and mobile technology. Disruptive in a sense and a cog that will help in achieving a 100 percent financial inclusion, Telcoin is despite the bog, progressively moving towards its objective.

Although it is hard to judge the project’s true market potential and whether its token price will rocket in days ahead, the media attention it has received over time will help in a way reassert how the project is significant. The overarching objective for Telcoin is to be a go-to platform in online remittance, play a role in eCommerce and fulfill its purpose in monetary payments where people, regardless of geographical location, can receive money in their mobile phones.

As a result, the platform has an incentive-based governance model, a Flexible API for more interaction and differentiating itself from competitors, transacting via the platform is affordable. Because of what they want to achieve, they have a reliable platform that can support over 5 billion mobile phone owners.

Since they work closely with mobile operators, Telcoin inherent a system where users already trust the system made easier thanks to their proprietary easy to use wallet available for iOS and Android, that can easily integrate with telcos mobile wallets. The simple fact that Telcoin wallets can connect with Telecom mobile wallet means that users can send funds directly to phone numbers.

Striking partnership and edging closer to providing remittance services to those who truly matter is vital for Telcoin. Already as per their roadmap reveals, there is progress, releasing the Telcoin Reference Wallet in Q1 2019. There is another milestone. Late July 2019, the Telcoin team announced that their registration “with the Australian regulatory body AUSTRAC as an independent remittance service provider has been approved.”

As a result, Telcoin continued, this was their “first step toward providing Telcoin users in Australia the ability to send fast, secure, and affordable remittances to Southeast Asia and beyond with just a few taps on their mobile phone.”

Long-term Price Catalysts

Part of Telcoin success anchors on their ability to draw partners and get approval from regulators across the globe. Therefore, it is a noteworthy achievement that Telcoin, after waiting from 2018, has received a virtual currency license from Philippines Central bank.

Because of BSP VCE license, Telcoin can open up the first remittance corridor between Philippines and Canada. Thereafter, they make the real first step towards Telcoin product launch. Furthermore, with the license, Telcoin can reveal their Telecom partners in the Philippines as they prepare for a possible product launch latter this year.

Next there is also a great partnership for adoption in Malaysia:

We’ve partnered with Telin Malaysia, a member of Telkom Group, the largest telecommunications services company in Indonesia. Together we will empower anyone in Malaysia to send low-cost, high-speed, international remittances to Indonesia and beyond. Soon, anyone in Malaysia will be able to cash in via Telin’s network of 30,000 dealers nationwide to remit money to friends and family in Indonesia using the Telcoin app.

Additionally, with their partnership with NYSE-listed Jumia and Vimo, which is Vietnam’s leading mobile wallet, it is no doubt that Telcoin is right on track on their ambition of making remittance easy and fast in South East Asia.

Specifically and according to Telcoin, their partnership with Vimo will be the “fastest and most affordable option for the $1 billion Canada-Vietnam corridor.” Because of this link, “Telcoin users in Vietnam will be able to accept inbound international remittances from Canada (in CAD) and cash out to their Vimo digital wallet balance (in VND).”


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