Crypterium ICO Date: 31st October 2017 to 12th January 2018.
Crypterium is building Cryptobank 2.0 for the cryptocurrency era. People will be able to store, spend, exchange and later borrow practically any cryptocurrency in the same way as they could any other currency, but in a quicker, cheaper and more secure environment than it is possible in any traditional bank or fiat currency.
The Cryptobank will be made available for download via the IOS or android marketplace and is planning to be ready-to-use on mobile devices immediately.
Over the past decade there has been an explosion in the demand for cashless and digital payments. Global transaction volumes grew by 11.2% from 2014 to 2015 to reach 433 billion, an increase partially fuelled by Emerging Asia. In the past 24 months this growth has been enhanced by the introduction of mobile contactless payment solutions such as Apple Pay, Google Pay, Alipay and a whole host of other innovative solutions.
Between 2015-2020, mobile proximity payment volume (such as Near Field Communication (NFC) and QR codes) is expected to rise by a compound annual growth rate (CAGR) of 80 percent, which would bring mobile proximity payments volume over US$4 trillion by 2020.
Similarly, the cryptoeconomy and cryptocurrencies in particular are growing at a phenomenal rate. It is estimated that by 2020 the cryptoeconomy will exceed three trillion dollars and that by 2022 it could be equal to 10% of world GDP. Only time will tell whether these predictions are correct, but what is certain is that cryptocurrencies have passed their point of no return. They are here to stay, and their importance will only increase.
On the other hand, universal transaction processing for cryptocurrency against fiat based goods is practically non-existent. This is an unsatisfied demand across a cryptocurrency capitalization that has already surpassed US$150 billion.
Providing cryptocurrencies to mainstream everyday users, will require dedicated cryptobanking services. Only once a person is able to use cryptocurrency in the same way that they use any other currency, will all of the benefits of cryptocurrency, such as lower transaction costs, speed of payment, removal of national boundaries and so on, become real.
Crypterium solves this problem with the commercial launch of its global banking transaction processing platform dubbed ‘Cryptobank 2.0’. Unlike conventional mobile banks that take weeks to process and issue cards, the Crypterium Cryptobank provides an instant processing engine for both fiat and crypto based currency transactions while enabling inter-changeability between the two. Customers will finally be able to use cryptocurrencies to pay for fiat based goods without transaction limits and with low commission.
Most of the technology for this financial revolution already exists: Apple Pay, Samsung Pay, Alipay; the world’s biggest banks and payment platforms have already installed more than 42 million contactless payment terminals throughout the world, a number that is growing rapidly.
Crypterium will take full advantage of this global contactless phenomenon, but instead of using it for traditional payment cards using fiat currencies, it will be used for cryptocurrencies through personal smartphones.
HOW IT WORKS.
As soon as a customer downloads the Crypterium mobile banking App they will be able to start to make transactions in current VISA, Mastercard or UnionPay infrastructure practically instantly.
Customers will be able to instantly pay in certain major cryptocurrency (at least BTC and ETH) or in ERC20 standard tokens for any product or services at any POS terminals (there are already over 42 million installed throughout the world) that are fitted with NFC (near field communication) via the Crypterium mobile banking App.
Crypterium uses NFC HCE (host card emulation) protocols to tokenise the data on the virtual payment card and in turn the POS terminal reads the connections as if it were a standard plastic card. Practically any NFC payment service, such as Apple Pay, Samsung Pay, Google Pay and a host of other providers, can now be used to pay with cryptocurrencies and as far as the retailer or online store is concerned, they are paid in the currency of their payment order. This capability possibly extends to ATM cash withdrawals and most other standard banking activities.
Crypterium does all the communication and ultimately conversion to and payment in fiat without the user having to do anything other than bring up their smartphone to the NFC terminal and press go. Robotic algorithms that automatically search for the optimal rate for a given transaction at any given time on all exchanges with which Crypterium has integrated, and the instant formation of a corresponding lot for the purchase or sale of cryptocurrency on the selected currency exchange, will ensure that the customer gets the best conversion rate possible for the whole transaction.
Crypterium has also developed a universal solution that has the ability to act as an alternative to POS terminals when the merchant has no access to them or would prefer an enhanced experience. To receive cryptopayments, the merchant has to simply install a special Crypterium App on their mobile device, such as a tablet, which in turn produces QR payment codes containing all of the essential payment details. The purchaser uses their Crypterium mobile banking solution to scan the QR code and the payments are processed practically instantaneously.
- CRPT is regulated by smart-contracts.
- Crypterium Credit Token (a separate banking product by Crypterium that is not related to regular CRPT token) will be linked to a smart contract that stores a reputation of a borrower. And no one can fake the reputation data.
Standard everyday services will include:
- Buy and sell BTC, ETH, XRP, LTC, Dash, XEM, NEO, MIOTA, XMR and many other cryptocurrencies and tokens.
- International transfers to any blockchain wallet’s account, including bank cards, without limits or restrictions (other than those applied for anti-money-laundering purposes).
- Conversion and exchange between Crypto assets.
- Direct payment for services such as telephone, utilities, penalties, loans, taxes, internet, etc.
- Automatic direct debit payments.
- Transaction history data (including sorting services such as filters and payment categories).
- Fiat currency transactions.
Additional launch services will include:
- Multi-currency transactions (write-off multiple currencies simultaneously).
- Photo-payments – simply take a photo of the invoice and send to Crypterium and we’ll do the rest (this may incur additional charges).
- QR payments for Crypterium infrastructure users.
- In order to use the Crypterium platform, the person must own/spend CRPT to complete a transaction. Every time a person makes a payment, a fee equal to 0.5% of the value of the transaction in CRPT is taken from the CRPT token holder’s account and is burnt as fuel for the transaction. For example Bill, who is a CRPT token owner, wants to purchase a cup of coffee costs $10 using his Bitcoins stored inside his Crypterium Wallet. At the time of the transaction, 1 Bitcoin had a best market value of $5,000 and 1 CRPT had a best market value of $4. When Bill makes his payment, by just tapping his smartphone to NFC terminal, he will be charged an additional 0.5% in CRPT. His total is now $10.05 which in turn reduces his Bitcoins by 0.002 BTC ($ 10 / $ 5000) and reduces his CRPT by 0.0125 (5 0.05 / $4).
- Priority service for all Crypterium applications and support, including early roll-out for new functionality.
- Whilst many core functions of Crypterium will be free to use for all members, future additional services may incur a fee for use, for example concierge services. Upon launch, token-holders can expect to receive a discount of up to 75% from standard fees (the exact benefits will depend on the service).
- Those token-holders that are also merchants using the Crypterium payment platform for acquiring will be entitled to fee discounts of up to 50% from standard fees.
In 2013, two of the founding partners of Crypterium launched PayQR, a Cypriot based company, its goal being the establishment of a contactless payment platform that works with any smartphone and which does not rely on the current international payment systems or mobile phone manufacturers such as ApplePay.
Working with QR codes, the company moved to commercial operations in 2015, and quickly became a leader in the Appstore rankings for Google Play, was named as one of the top 100 Russian start-ups one of the top 50 start-ups with international potential, was awarded the top prizes for its antivirus solutions at the Emerging Challenges Competition and best innovation of the year (2016) at the safety leaders awards in the Financial services category.
Further prestigious awards and recognition continued into 2017 including Russia’s Ministry of Communications selecting PayQR to showcase at the world Mobile Congress in China. Today, users of the platform include many European banks and technology leaders such as Alipay (for Russia).
HOW ADVANCED IS IT?
The platform will be ready for the release at the end of Q4 2017 – early Q1 2018. This includes the implementation of the following services:
- Traditional banking services (following the acquisition of a banking license) that will enable classical banking services to co-exist with cryptocurrency services.
- Peer to peer crypto and fiat currency transfer.
- Interest earning crypto deposits.
- Banking statements.
- Salary accounts.
TenX is a payment company, offering debit card and mobile wallet funded by cryptocurrency. Partnering with VISA and Mastercard, TenX wallets can be used in almost 200 countries at over 36 million points of acceptance today.
The credit card companies charge the merchants 2% of the transaction amount, similar to other types of credit cards. TenX generates revenue by having a revenue share agreement with its credit card partners.
Unlike TenX, Crypterium is not just a crypto-currency wallet, but a full-fledged bank with a wide range of services for companies (crypto-acquiring), for clients (crypto-loans) and for developers (open platform).
Polybius or Polybius Bank Project is a modern banking institution which uses cutting-edge technologies, such as SSL-backed OAuth2, smart contracts and applied AI, to name a few, in order to provide a range of reliable, secure, and easy-to-use financial services.
Polybius is focused on lending and investments. Crypterium is focused on transactions and payment infrastructure.
UTRUST is a revolutionary payment platform that empowers buyers to pay with cryptocurrencies while providing a groundbreaking purchase protection mechanism. Their main difference from Utrust is the CrypteriumSX (Smart eXchange) system. Also, implementation of a previous project, i.e. paying with QR codes. Another noticeable difference is loan feature using CRED tokens.
Request Network is a decentralized platform that allows anyone to request peer-to-peer payments. Its goal is to replace payment systems such as PayPal and make the most advanced payment terms available to everyone.
Request.network is more like PayPal for cryptocurrencies. Crypterium aims to build a bigger and more complicated infrastructure to provide a wider range of banking products. Request will work with fiat also, not cryptocurrencies only.
HOW IS DIFFERENT FROM OTHER PROJECTS IN THE SPACE?
- They focus on contactless payments, because they believe that future plastic cards will not be needed. You can use the payment app right after installation, you do not need to wait your plastic card for 2 weeks.
- They are focused on transactions, their main goal is to create a crypto-payment infrastructure based on the blockchain technology that will significantly reduce the cost of transactions for merchants.
- They are focused not only on working with the existing crypto community, which now consists of just a few million people, but also with an audience that is still only interested in crypto-world and is afraid to buy crypto-currencies. They have created a system, which will motivate dozens of millions of new users to connect to crypto-payments.
[Of course, it shows very interestingly but the problem is whether we can use your token to do shopping. Is there any specialized outlets where they will accept the tokens or we have to pay them with only fiat currency.]
[Thanks for your interest. There will be Crypterium mobile app that will allow to pay for shopping with a smartphone anywhere. Like with ApplePay or SamsungPay through NFC (or QR code). Crypterium clients will pay in cryptocurrency, but merchants will receive the same sum in fiat money.]
[Why did you decide for ICO if you could pay your team with exchange fees?]
[Crypterium aims to develop a cryptobank with own payment ecosystem, credit subtoken and open API. This is much more than simple wallet and requires more investments than fees can provide.]
[Are there going to be any fees when someone changes his assets to another crpytocurrencies and how much? ]
[We plan to use a ‘volatility mask’ working on CrypteriumSX technology. It will allow to exchange a token with the lowest fee on the market. No additional fees.]
[Is that app is working already or I missed something to understand the concept of this project. If this project already working than it’s good opportunity to invest in it.]
[Thanks for your interest. From the beginning, we’ll support all existing payment methods like ApplePay, SamsungPay, AndroidPay. All you need is to set up the application, choose the way to pay (crypto or fiat) and make a payment through NFC protocol (or QR code in the future). You don’t need to wait for the plastic card.
The app hasn’t been launched yet, but we already have successful experience in the development mobile payment apps based on QR-code scanning, PayQR project for example. So we will use its infrastructure for the further development.]
[What’s the point of making a bank if cryptocurrency is a decentrilized thing its self, Are you trying to centrilize it? What’s the point?]
[We’re not trying to centralize it any way. Crypterium is a revolutionary digital cryptobank with credit token and open platform. Our goal is to provide a convenient banking experience all over the world using the power of blockchain technology and our experience in the contactless mobile payment technologies. We’re making a product which helps you with your cryptocurrency operations and makes the whole process more convinient with our solutions.]
[Okay, that makes sense. What’s your position about KYC and anonymous payments in general?]
[Our system is anonymous, but you can fill your personal information, if you want, for an emitent bank that provides a card for your payments. We don’t require users to go through KYC, but if you are paying in a country, which obligates any payment to be KYC approved, a user has to do it in order to make a payment.]
[And how do you make profit?]
[Crypterium has a simple and sustainable transaction-based business model. We receive profit from every transaction. It’s paid by merchants, not users.]
[My concern about those Banking Solutions are that they are way to many of em. TenX will take over this space anyway why should i consider to invest in another Banking solution which does nothing really new ? .]
[Basically, it’s not only a banking system. One of the main features of our project is an incredibly convinient wallet\payment system. It’s pretty handy to always have your cryptowallet with you and be able to pay with it wherever you can use contactless payments.]
[Cryptocurrencies were created to eliminate banks and to prove a bankless economy. This project is a step backward.]
[It’s a new form of banking, using blockchain technologies. You can think of it as a convinient way of managing your cryptoassets combined with a payment\transaction system.]
[What’s up with the credit tokens? How does it work?]
[Subtoken CRPT:CRED is the one of our cryptobanking products. It is an internal blockchain based lending system. Subtoken CRPT:CRED has no relation to a regular CRPT token.
For example, a client loans 100 CRTP:CREDs for 3 months loan period. The main condition of the loan smart contract is to bring back 105 CRPT:CREDs when the period is over. Thus, credit tokenholders can generate revenue when sell CRPT:CREDs again as the CRPT:CREDs rate grows on the exchange.
So there is no ‘interest’ in the ‘percent for having’ meaning. Revenue is generated by CRPT:CRED rate change.]
[CRED subtokens will not be traded on the exchanges. CRED subtokens can be changed for specified currency in our internal market place with other users of Crypterium. When the lending period is over, the borrower should purchase CRED subtokens from other users to pay the credit back to Crypterium again in our internal marketpace.]
[Is there an actual usage of your tokens? I mean, the project is cool itself, but why do you need tokens?]
[There is! Holding CRPT tokens provides you with a discount on Crypterium services. Exact numbers will be availible soon]
[When do you suppose to release MVP and what it will be look like?]
[We plan to publish the first version of Crypterium mobile app in summer 2018. It will allow clients to make contactless payments through a smartphone.]
[Since you’re cryptobank you guys plan to issue your own plastic cards or use one of existing systems?]
[Since we are cryptobank we focus on contacless payments solution. That means we plan to develop a mobile app for payments through NFC, QR, photo camera and ultrasound. There will be no need for cards.]
[Do I need to move my cryptocurrency to Crypterium? What I mean is that Crypterium is going to make me a wallet for every Cryptocurrency?]
[No, you don’t! Crypto asset and currencies are contained in digital smart contract wallets. Using currently available smart contract wallet technology, there is no need for customers to move money out of their wallets and into Crypterium, Crypterium will simply debit the appropriate amount from the wallets in the predefined manner as identified by the payment protocols, and displays the remaining balances to the customer within the Crypterium mobile banking App.]
[How are you going to recieve an income rather than 0.5% which goes on buybacking your tokens(right?)]
[From the merchants that accept the payments. Today all merchants are charged for acquiring services, whether this is Visa,MasterCard, American Express etc., measured as a percentage of the payment they receive. Some of these fees can be as high as 5% to 6%. Working with our partner acquiring bank, Crypterium will also earn fees (currently 0.49% but this could change as volume increases), from which 0.15% (approximately 30% of the 0.49%) will be used to thank our CRPT token-holders and the most active users through the acquisition distribution of CRPT tokens via a monthly cashback fund (MCF).The more tokens a person holds (measured as continuous ownership on a monthly basis), coupled with their activity on Crypterium during the month, will determine a that person’s share of the MCF. ]
[I didn’t quite get how are you going to make the cryptocurrency to fiat transaction instant, can someone explain?]
[Thanks for the good question! Crypterium at the moment of cryptofiat transaction requests user’s crypto balance and acknowledges that there is enough crypto. Then we instantly transfer our fiat to merchant in the required sum and withdraw user’s crypto at the current best rate (for the user) + commission of 0,5%. We will use our special technology CrypteriumSX (Smart eXchange) to find the best rate for you. More information about CrypteriumSX you can find in our White Paper (see section 3.1.1 https://crypterium.io/wp). Commission of 0.5% goes to buying CRPT tokens from the market and subsequently burning them.
User can preselect such an option as which cryptocurrency to use, perhaps in different percentages depending on their current trading value.
So, Crypterium does all the communication and payment in fiat without the user having to do anything other than bring up their smartphone to the NFC terminal and press go. Only the exact amount of tokens in the order and ratio prescribed are exchanged to meet the payment needs.]
[Just wonder about burning mechanic]
[From every customer payment made via the Crypterium Cryptobank, a small transaction charge of 0.5% will be applied to that payment which in turn will automatically be used to purchase CRPT from the open market and subsequently burned.]
[The more I study about the area you’re going to do business the more I like it. The idea of creating a bridge between traditional and crypto economy is great in my opinion. But the risks are very high. I think governments and global banks will surely try to impede your evolvement.]
[As far as I understand users will earn money with every transaction they make, will this money be paid in cryptocurrency they spend and how will they be paid exactly?]
[Yes, we have cashback program. Cashback is paid monthly for token holders in CRPT token equivalent based on its actual rate.
Token holders benifits from every transaction they make inCrypterium. If you take closer look at section 8.7.2 of WP you may find there will be a total of 4 Loyalty Groups (LG) in Cashback Program. Users will be naturally subdivided into LG based on token amount they continuously hold within a month time. Next thing to know is there is a Monthly Cashback Fund (please see more details in WP section 8.7.2 or welcome to further ask here) to be divided in 4 shares, 1 for each LG. Now we know every CRPT token holder will belong to a certain LG while each LG will be assigned particular share of MCF. Actual cashback amount a user will receive will depend on his personal share in his LG total transactions amount, to put it easy way if his transactions stand for 10% of total transactions amount for his LG then a user will be receiving 10% of MFC dedicated to his LG.]