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Assetz Capital P2P Lender

As the traditional banks continue to be less supportive in providing finance to many small and medium enterprises (SMEs), there’s increasing interest in peer-to-peer lenders willing to bridge the gap. Assetz Capital is one such P2P lender that we’ll review in this article.

Who is Assetz Capital?

Assetz Capital is the leading property-secured business P2P lender in the UK and Europe. They offer secured business loans to small and medium SMEs and are the second biggest general business P2P lender, behind Funding Circle. They offer loans to property developers and SMEs in the UK, funded by individuals and several institutional investors and companies.

Investment Accounts

Assetz Capital has a minimum investment amount of £1 and is open to international investors. However, you need a UK bank account and if you don’t have one, you can open it at Transferwise. There are no fees for investors and all Assetz Capital investment accounts are protected by a provision fund except the MLIA.

30 Days Access Account

For the most part, this account is hands off. You can deposit a small amount which should be credited in your account in less than two hours. The new 1% cashback offer on Assetz Capital 90-Day Access Account replaced the initial customer promotion. Investors who took advantage of this promotion will still receive their cashback payment.

Quick Access Account

The quick access account offers a 3.7% target rate, designed to provide immediate access to cash for investors in normal market conditions. There’s over £19 million invested in this account.

Other account types include the Green Energy Income Account (GEIA) with a 7% target rate, the Great British Business Account (GBBA) with a 7% target rate, and the Manual Loan Investment Account (MLIA) with 5.5% to 18% gross rate.

The Access Accounts are popular as over half of the investors utilise them and they’re approaching £170 million in investments. The lender has processed over £1 billion of withdrawals to-date from the Access Accounts.

Despite the underlying loans within the Access Accounts being between one month and five years in duration, the high investment flow into the accounts has allowed users to withdraw funds on time consistently. But supply and demand can vary while exit times are not guaranteed.

Whom Does Assetz Capital Lend To?

The lender comprises two divisions: Assetz SME Capital and Assetz Development Capital.

Assetz SME Capital provides secured loans to SMEs that have been trading for more than two years.

Assetz Development Capital provides secured lending to established property developers who have been trading for more than two years. Additionally, they offer “lend to let” secure loans to overseas clients wishing to invest in the buy to let property sector in the UK.

How Can You Use the Loan?

For Assetz SME Capital, loans are available to assist in business projects and future growth. For Assetz Development Capital, the preference is to lend for prime property purchases in prime locations. In the case for “lend to let” scheme, funds are availed towards buying quality buy to let properties.

With a loss rate of 0.46%, Assetz Capital ticks the correct boxes for a safe investment in the peer-to-peer lending for first-time investors. However, some Assetz Capital reviews online are discussing how the platform is confusing and frustrating, with some investors unhappy with the returns and manual investment process involved in some of the products.

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Can Dozens Money App Rival Monzo And Other Similar Fin-tech App Services?

Dozens is not a bank. They offer access to savings and current accounts while making them profitable. For only £100, you can earn a 5% return on your savings. Launched in January 2019, over 2,100 Dozens cards have since been issued, with 100 cards a day being sent to the more than 3,000 people on the waiting list.

How Dozens Work

Dozens offer a current account that helps you grow your money, encourage saving and finally invest. It offers several financial services including:

1). Current account – Dozens is yet to have a full banking license, so it’s currently not a full UK account. But, it will have an account number and sort code.

2). Cash savings – This will enable you to set aside money regularly, according to the set rules you decide. You will not earn interest on the savings, but you can transfer them back to your main account anytime.

3). Investment bond product – Already listed on the NEX stock exchange, the bonds will be £100 each and earn a 5% annual interest paid monthly.

4). Investment account – Yet to be launched, Dozens will allow you to invest your money. The minimum buy-in will be £1,000, and same as any investment, there’re risks of losing some or all your money.

5). A card – Dozens is already issuing cards to people on the waiting list. The cards are MasterCard and a bright yellow in color.

6). Great App – There’re four sections to the Dozens app: spend, save, track and invest. Spend is the current account, save is the savings account, track is your budgeting and invest is for stocks and shares investments.

7). Spending report – This feature shows your spending according to location, category, and size.

8). Budgeting service – You can save automatically by setting your own rules. Occasionally, Dozens will encourage you with cash prizes.

The 5% Interest Bonds

This is one of Dozens best features. Such high rates often mean a risky investment but the money you deposit with Dozens isn’t invested anywhere. The bonds are held within stocks and shares which are put into a separate trustee-controlled account. As a result, Dozens cannot touch it, your tax-free returns will not vary and the capital isn’t at risk.

The bonds are not risk-free as Dozens issued the bonds on the NEX stock exchange as a way for raising money. If the worst should happen, the FSCS offers investment protection up to £50,000, if your investment company fails.

In a bid to reward investors with smaller saving pots, Dozens will weight smaller funds more favorably. Bonds will be allocated from the smaller bids, scaling up until it depletes the monthly availability. This means the lower the bid, the more likely you are to get the bonds.

Should you get Dozens?

Same with any new banking ventures, due diligence is advisable before making any sizable investments. For Dozens monetisation plans to be a reality, people need to save and invest before any monies can be realised. The 5% bond is competitive enough and the fee-free overseas spending is likely to attract frequent travelers. If you have a small savings pot, the app might give you enough flexibility to get started.

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Seedrs Review And What To Expect

It’s now easier to invest in startups thanks to a new online trading platform called Seedrs. The platform allows you to invest in new businesses in the seed stage, or that are yet to raise any cash. You can invest as low as £10 to a maximum of £150,000.

About Seedrs

Seedrs is a UK based crowdfunding platform launched in 2009. It assists new businesses or investment projects to raise funds from individual or institutional investors. 2018 is Seeds best year yet with £195M invested on the platform and 186 successful pitches. It was also named the “Most Trusted” Global Equity platform in 2018.

How it Works

Startups can pitch to raise money offering investors an equity stake in the company. You can also call it equity crowdfunding or peer-to-peer (P2P) equity. The startup provides information about its product, plans, market dynamics, and achievements.

Apart from UK residents, Seedrs is open to international investors. Once you sign up, you can browse the pitches that are currently raising money. A pitch will remain open for 60 days but may close earlier if the startup achieves its goal early.

The equity share offered is stated. Say for example it’s 5%, and the startup wishes to raise say £50,000. To define the valuation the startup has applied, £700,000 will be the pre-money. So post-money, after the startup valuation is complete, will be £1M. The 5% equity share of the new investors represents 5% of £1M = £50,000. The valuation is based solely on what the startup deems appropriate. But if the startup aims higher than the investor demand, the funding will fail.

What Happens After the Funding?

As Seedrs acts as the nominee for the investors, it will complete all the paperwork with the startup. The nominee model means the startup only deals with Seedrs who represents all investors rather than deal directly with each one of them.

When funding a startup, investors don’t have to pay any upfront charges. But entrepreneurs have to pay a 7.5% charge once the startup achieves the cash target. Seedrs will charge the investor a fee of 7.5% on the profits the investor makes.

In return, Seedrs will manage your investment on your behalf. Although Seedrs may limit your voting rights in the startup’s AGM, you’ll receive quarterly updates on the startup’s progress.

Tax Advantages

The startup’s prospectus or pitch will highlight if the startup is eligible for EIS or SEIS. This can benefit British residents depending on individual circumstances and is subject to change. For more detailed advice, contact a qualified and certified tax advisor.

Seedrs Pros and cons

Pros

  • Strong track record with over £540M invested in startups
  • Large investment portfolios
  • Strong underwriting team
  • Regulated
  • Auto invest tool available

Cons

  • Investing in startups is risky and you can lose money as there’s no guarantee of returns.

Having provided assistance of over £500M for startups, Seedrs has managed to create a big database of investors. However, the company cannot make any investment recommendation for you. That will be your prerogative. Crowdfunding is not for the faint-hearted, but for sophisticated investors who are not afraid to take risks.

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What is NKN?

NKN (New Kind of Network) is a decentralised data transmission network powered by Cellular Automata. Incentivised by blockchain, the open-source group plans to change the design of the internet by improving security and ensure network neutrality.

Cellular Automata will operate the same way as Filecoin and IPFS but in the network domain. This means you’ll receive a token reward based on your data transmission capacity, instead of your storage space as is common with IPFS. But despite NKN’s ambitious goals and the relative infancy of the project, its support team is a group of talented individuals.

How Does NKN Token Blockchain Internet Work?

NKN wants to create a contemporary enhanced version of the internet. It will build the new version on blockchain technology with the aim of creating an internet that is decentralised, safe, active, shared, and owned by the community. This innovation is a decentralised data transmission network (DDTN). The extensive network of independent nodes will transmit data, acting as cellular automata which will change state based on a combination of received inputs and the state of its neighbors.

The team at NKN believes blockchain technology has already revolutionised two “pillars” of internet technology, including computing power (with bitcoin and Ethereum proof of work systems), and storage (with systems such as IPFS and Filecoin). NKN now wants the network infrastructure to run on blockchain.

NKN’s dense whitepaper mentions that the service will simplify the creation of dapps (decentralised applications) due to its low intermission, large bandwidth, and high scalability. But unless the group releases an API, it’s not clear how developers will use it. The company claims it will “tokenise” the network, encouraging users to share their bandwidth in exchange for currency.

NKN Service Analysis

Though relatively young, the NKN platform is planning to release a beta version of its network in the first quarter of 2019, and a full version in the third quarter. But as of March 2019, it’s not crystal clear what the company will release to end users. Currently, NKN seems more focused on creating back-end solutions that developers or service providers can use.

On the group’s Twitter page is a small internet service provider called Speedy Net. It offers fast broadband to rural areas as an early adopter of the technology. NKN claims the provider is based in the American Midwest, but a quick internet search yields result for a tiny British company. Though no information is available for this company, it’s encouraging to see interest in applying the technology.

Bottom Line

There’re many groups working with blockchain claiming to have created an innovative product. But most are using jargon to advance a rehashed and often ineffective product.
NKN is the opposite as they’re developing an amazing product. However, they need to improve their marketing to better explain it to the public. Computer scientists seem to have written the scholarly publications, but a robust public relations initiative could attract more investment and early adopters. Nevertheless, chances are high NKN’s technology could become universal in the future.

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Uphold Review: What Is It and How Does It Work

Although there are many cryptocurrency exchanges that are active within the crypto market, few are reliable and completely trustworthy. Exchanges such as Uphold have carved a niche at the top of the crypto food chain. This down to several unique features, transparency, attractive fee systems, and different noteworthy security features.

What is Uphold?

Uphold is a cloud-based platform with several functionalities including trading in cryptocurrencies and, offering a cloud-based digital wallet for storage. It offers services in over 184 countries, across 30-plus currencies’ (fiat and crypto), commodities with frictionless foreign exchange, and cross-border remittance for members around the world. Since its debut in 2015, Uphold has powered over $3 billion in transactions.

The Uphold platform combines an app model with payment connectivity to offer financial services to a global market. The platform empowers innovation in financial services by allowing app developers, and fintech partners to leverage the reach of Uphold through licensed relationships with banks and financial institutions around the world.

Uphold Core Features

Uphold allows members to convert, transact money assets, and secure storage. It currently supports popular cryptocurrencies including Bitcoin, Bitcoin Cash, Bitcoin Gold, Litecoin, Ethereum, Ripple, Dash, and Basic Attention Token. Members can exchange over 20 fiat currencies as well as four precious metals.

Uphold acts as a virtual wallet for its members as you can use the wallet to store both cryptocurrencies and fiat money. This feature alone makes Uphold more appealing than other exchanges as few offer such as complete package.

Uphold members get support for MasterCard and Visa. Members can send both crypto and fiat from one uphold member to another without limitations, and at no extra charge.

It’s worth noting that unlike other crypto exchanges and typical financial institutions, uphold stands out as a real-time transparent and verifiable service. This means anyone interested in viewing operations such as assets, transaction volumes, solvency, and other features can do so.

As part of its transparency features, Uphold boasts Reserve ledgers and Reserve chains. Reserve ledgers is a public record with all the exchanges made to Uphold assets. The latter is a real-time public record of all member transactions on the platform.

The main drawback is that Uphold is not an anonymous exchange, fees are on the higher side and it doesn’t have a 24/7 customer support service which relies on a ticket system.

How Does Uphold Work?

Registration on Uphold is free. Users enjoy various privileges including converting, transacting, transferring, storing, and withdrawing fiat and cryptocurrencies. In regards to cryptocurrencies, you can buy and sell all supported coins.

To access this feature, you have to qualify as a “verified member”. The verification process requires a member to submit several details. They include the date of birth, an active mobile number (to act as two-factor authentication), place of residence, ID passport or driver’s license details, and a clear passport photo.

The simple and straightforward exchange process even allows members to fund from a debit card. But you must first add funds in a traditional currency such as USD before transferring to the cryptocurrency of choice. Sending and receiving funds from one member to another is free. For currency conversions, variable mid-market exchange rates take precedence.

There’s no doubt Uphold stands out from other exchanges with its comprehensive services. It boasts one of the most versatile exchange platforms which acts as a wallet service, catering for the needs of almost every member. Furthermore, it’s one of the few regulated exchanges and their website is innovative and easy to understand.

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Cred Launches Secure Easy-To-Use Cryptocurrency

If you have enough balance in your crypto wallet but lack a healthy traditional credit history, it may be impossible to get a loan from a conventional lender. Thanks to blockchain technology, there are new lenders who assist crypto enthusiasts use their crypto assets as collateral to access finance. One of these lenders is Cred. Formerly Libra Credit, Cred offers fiat and cryptocurrency loans backed by digital currency and aims to provide access to credit anywhere, anytime.

What is Cred?

Cred is the brainchild of ex-PayPal executives Lu Hua and Dan Schatt. It made its debut in 2017 with the aim of providing “credit for the real world”. Its token sale in 2018 raised over $26 million in funding. A desktop platform for crypto-to-crypto/fiat lending went live in Q3 2018, while the mobile app was launched by close of 2018.

Cred’s mission is to solve the main issues that bedevil cryptocurrency consumers such as transparency, ease-of-access, and understanding. Many are the times’ consumers feel intimidated when looking to invest in cryptocurrency. According to Brendon McQueen, Founder & CEO of Cred, this is because consumers lack education, in the crypto industry, lack of trust in the industry, as well as confusing product offerings.

The unique position of Cred will address this issue head-on by offering an easy-to-use platform that allows users to track the progress of the cryptocurrency invested, receive daily market recaps, news updates, and learn about each coin before investing.

Cred Loans

Cred offers loans in a decentralised lending ecosystem based on the Ethereum blockchain. These loan products are ideal for the demand for credit that traditional banks cannot fulfill. The main target is people with crypto assets, first-time borrowers and citizens in developing countries.

The Cred ecosystem comprises a proprietary AI-based credit model for risk assessment and multiple partnerships with e-wallets, decentralised exchanges, stable coins, identity verification, and KYC.

You can access loans in a seamless digital lending process which involves 5 steps. This includes application, verification and credit assessment, confirmation, collateral deposit, and disbursement. A borrower can pledge any crypto- asset as collateral and receive loans in their desired assets.

Key features of the platform include:

  • Extensive exchange partnership network
  • Diversified sources of credit funds including individual lenders, financial institutions, and stable coin providers.
  • A collateral grade algorithm to verify the volatility of collateral assets
  • In-house proprietary AI-based credit models
  • Identity-verification platforms to outsource the verification process
  • Reduced-interest repayments when you use LBA (CRED’s native token) as collateral
  • Single digit interest rates
  • Fast access to credit

Why Buy Cred?

The blockchain ecosystem is easy to explore and conquer. According to the World Economic Forum, 10% of global GDP will be on blockchain by 2025.

In 2017, roughly 2.2 trillion of new corporate bonds were issued in comparison to $780 billion in new corporate equity. But despite its massive size, the debt markets face a myriad of issues. They include

  • Liquidity risks
  • Barriers to interoperability between markets and regions
  • The heavy concentration of players crucial to market operations create a single point of failure

Cred has one of the strongest team with solid development after ICO. Partnerships with UPA, Uphold, and Binance labs could help mass adoption of the platform, as well as create opportunities beyond the exchange listing. Given that 40% of the world’s population is unbanked, Cred could open the door for everyone to lend, borrow or invest. Though not completely risk-averse, blockchain-based lending platforms such as Cred can offer borrowers and lenders a transparent, global, rewarding experience.

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The Royal Mint Digital Silver Coin

The Royal Mint is offering investors tired with the poor returns from low-interest rates an opportunity to invest in silver in its new trading platform. Collectors and investors can now buy, trade and store bullion coins from The Mint which offers a range of three silver coins. They include the Britannia fine silver coins, Lunar coins of the Shengxiao Collection, and the Queens’s Beasts range of 2oz and 10oz silver bullion.

Why Invest in Silver Bullion?

Bullion is the term used to describe silver in bulk form. To calculate its value, you first base the mass and purity of the coin or jewelry which are traded via brokers, online platforms or in auctions.

Whatever your budget, Signature is an ideal way to trade and invest in physical silver coins or jewelry. With a minimum budget of £20, Signature allows you access to the precious metal market where you can buy a fraction of silver. Royal Mint will offer you a vault, which is one of the most secure sites in the UK to store your silver.

Investing in precious metals such as silver has many advantages. For starters, you have the benefit of touching or holding the silver coin. A bullion investment will also provide useful alternatives for diversifying your investment portfolio during uncertain economic periods. Despite silver recently falling 18% in value to $17 an ounce, it still boasts a big demand, particularly for jewelry in the emerging markets and among coin collectors.

It’s worth noting silver Britannia and Lunar bullion coins are exempt from UK Capital Gains Tax for UK residents, as its considered legal tender.

Why Invest in Silver?

After the introduction of silver bullions, the precious metal market is now accessible to the average investor. This is because smaller silver coins produced by The Mint provide a cheaper means for entering the market.

Investing in coins is seen as a more suitable option for investors making a modest outlay in precious metals. Considerations you should bear in mind when investing in bullions include:

  • Capital Gains Tax – Capital Gains Tax is an important consideration to make when investing in bullions. This is because all The Mint’s current range of silver bullion coins have legal tender status and are exempt from UK capital gains tax, for UK residents. But silver bullion coins are subject to VAT at the standard rate.
  • Resale – After you buy bullion, consider how you will sell it. As bullion coins have a certain coin collectors appeal, they are easier to sell than gold bars, which tend to sell for their intrinsic value.
  • Purchase premium – In terms of cost, as the quantity of silver bullion increases from 1g upwards, the purchase premium decreases. This is partly due to The Mint’s lower storage and manufacturing costs.

Other Investment Platforms

BullionByPost offers a service that allows investors to buy and sell a range of coins and bars. They store your metals for 0.65 % per year based on the value of the precious metal held in the vault. The minimum charge is  £10 per month inclusive of insurance.

Another service is BullionVault which allows users to buy and sell metals from each other, at prices set by the service provider. It allows clients to hold their silver in vaults controlled by BullionVault in either London, Zurich, Singapore, Toronto, or New York, depending on the client’s preference.

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UK Crypto Tax Policy Report

Her Majesty’s Revenue and Customs (HMRC), is the UK’s government agency responsible for collecting taxes, and overseer of other forms of the nation’s coffers. In December 2018, the tax agency released a comprehensive report explaining how it views crypto assets and taxation on holdings.

The report’s focus is on how to tax the crypto assets you own. The agency will further publish information on the tax treatment of crypto asset transactions involving businesses and companies.

Which Taxes Apply?

The HMRC document is a continuation of previous reports which treat assets more like property rather than a form of currency. The agency doesn’t consider crypto assets to be currency or money. This is a reflection of the position set out by the report from the Cryptoasset Taskforce (CATF). The taskforce categorises cryptocurrencies as either utility tokens, exchange tokens or security tokens.

According to the report, how to treat a token for tax purposes depends on the token’s use case, rather than its definition. The report explains that you will be liable to pay Income Tax and National Insurance contributions on crypto assets you receive from:

  • Your employer as a form of payment, transaction fee, from mining or airdrops
  • If you invest in tokens hoping their value will increase

Additionally, there may be instances where you could be running a business, which is carrying on a financial trade in crypto assets that have taxable trading profits. Though uncommon, Income Tax would take priority over the Capital Gains Tax rules in such cases.

Securities or Not?

Note that the HMRC doesn’t consider crypto trading to be the same as gambling. Such assets are more of securities. To simplify tax calculations, you can combine different assets rather than calculating the gains and losses on each specific asset. Look at the total value placed in the pool and compare that with the value at the end of the tax period.

Forks and Losses

Hard forks occur when one blockchain splits another one for improvements. The document outlines how forks of a blockchain may affect taxation, especially hard forks which cause the chain to split forming new tokens.  The document explains, “A new crypto asset can only be disposed of if the exchange recognises the new crypto asset. If the exchange doesn’t recognise it, the position of the blockchain will not change, to show individual owning units of the new crypto asset. HMRC will consider difficult cases as they arise.”

Other provisions account for assets which lost value, if tokens are defrauded from the investor, stolen, or if you lose your private keys. In regards to the latter, HMRC advises that you can now claim your crypto asset has a “negligible value” which could if approved allow you to claim a loss.

Crypto asset exchanges may only keep records of transactions for a short period. In some instances, the exchange may no longer be in operation when you complete a tax return. It’s your prerogative to keep separate records for each crypto asset transaction. This includes the type of crypto assets, transaction dates, number of units, bank statements, and the cumulative total of investment units held.

The HMRC document is precise and well-written.  It’s also rejuvenating to see the British government shun the ‘Crypto bad’ mentality, popular in some quarters. Treating crypto assets as regular income or investments will make trading in them much easier as most taxpayers, and tax professionals will be more familiar with the processes.

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The Complete Guide To Stablecoins, Cryptocurrencies Holy Grail

The latest innovation in the fast-paced ecosystem of cryptocurrencies is “stablecoins”. These are cryptocurrencies pegged to real-world assets such as the dollar, euro or gold. It’s a global currency, but is not tied to a central bank and has low volatility. This allows for practical uses such as paying for everyday purchases.

How Do Stablecoins Work?

There are two types of stablecoins – reserves-backed and algorithmic.

Reserve-backed stablecoins function same way paper money does when linked to the gold standard. As cash is backed by gold reserves in a central bank, reserve-backed stablecoins are backed one-for-one by reserves of the currencies they’re pegged to.

The second type of stablecoin is not backed by any reserves but instead controlled by an algorithm.

Importance of Stablecoins

Price volatility bedevils coins such as Ethereum and Bitcoin. Swings of 5% or even 10% in a day can happen anytime. This makes using most cryptocurrencies for daily transactions inconvenient. Stablecoins are an attempt to control the benefits of crypto by transferring value digitally and combine them with the trust and stability of mainstream currencies.

Uses of Stablecoins

The most common use of stablecoins is as a liquidity tool for cryptocurrency exchanges. Most banks have shut out many exchanges from mainstream banking because they’re wary of dealing with anything related to crypto for compliance reasons. As a result, many exchanges are unable to accept dollar or euro deposits. Stablecoins offer a solution for clients who want to buy with dollars and trade out of crypto into dollars during high volatility.

Stablecoins proponents believe the technology can allow the creation of more complex financial products on crypto including smart contract dividend payments, insurance, and loans.

Who’s developing Stablecoins?

New startups and existing crypto business such as Circle and Gemini crypto exchange are developing stablecoins. Venture capitalists also have their eye on the space. According to a Blockchain report, stablecoin projects teams have raised $335 million to date. Silicon Valley fund Andreessen Horowitz recently made a significant investment of $15 million into stablecoin project MakerDAO.

The Biggest Stablecoins

Tether

Tether is currently the most popular stablecoin. Exchanges use it to offer dollar-like liquidity. It’s also the second most actively traded cryptocurrency (60% of BTC daily trading volume). In early 2018, it entered the top 10 crypto asset rankings by market value. Despite its popularity, Tether has been plagued by criticism of its auditing standards, claims of manipulation, and corporate obscurity.

MakerDAO

Maker is a decentralised autonomous organisation. It’s pegged against the USD though backed by ETH. Dai is their stable coin and one is worth $1. It maintains stability via an autonomous system of smart contracts.

Havven

Hevven’s structure provides stability by building a system that backs itself with two coins. The first coin, Nomins, is the stable coin and is used for everyday transactions. Havvens are the tokens sitting in reserve.

Basecoin

Basecoin pegs their price to $1 USD, though their approach uses consensus to contract and expand the supply of the coin. When coins trade for less than $1, the coins are contracted by allowing coin holders to buy bonds. Supply decreases and price increases after the coins used to buy bonds are destroyed. To expand the supply, do the opposite.

Facebook Inc is also working to make a cryptocurrency that will allow users to transfer money on its WhatsApp messaging app. According to insiders, it’s first focusing on the remittance market in India, which has 480 million internet users, second only to China.

For cryptocurrencies to go mainstream, the ecosystem needs price stability. This will give users the confidence to make daily transactions. Full adoption of stable coins will lessen the worry of having to time your purchase with the volatility of coins such as Bitcoin and Ethereum. The ambitious projects working on stable coins will usher users into a world where you can use cryptocurrencies to buy lunch, coffee, or pay for groceries!

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TMX Global Coin First Kenyan Cryptocurrency

The continued growth of blockchain technology has seen many businesses adopt the technology into their systems. As a result, many new projects and ventures are indicating the promise Distributed Ledger Technology (DLTs) has in stimulating the economy without discrimination. A good example of borderless is TMX, the company behind TMX Global Coin.

The company aims to become the first digital currency not only in Kenya but also in the East African region. The team behind this crypto coin aims to solve common challenges traders face in the shipping industry. They include fraud, delays in product deliveries, and lack of information by customers.

About TMX Global Coin

80% of the world’s cargo shipment is by sea, making this an ideal market to exploit using Ethereum smart contracts. According to the TMX development plan, the pre-ICO phase was set to take place in September 2018 with one TMX coin costing $0.02 in the first phase, and $0.05 in the second phase. The official launch will be on May 2019.

According to the CEO of TMX, Anthony Njoroge, the company’s main goal is to reduce costs and increase shipping efficiency. TMX will achieve this by, integrating information about shipments on a secure platform accessible to carriers, shippers, freight forwarders, and other transporters in the supply chain.

Using various ERC20 tokens that allow execution of smart-contracts, the company aims to create a global courier service that will allow customers to collect their goods from any part of the world using TMX services. TMX blockchain technology will enable customers to have prior information on the amount of duty they need to pay, import rules for a specific country, delivery timelines, cost of shipping, and other related costs. Such a payment system will ensure a higher level of security that’s not available in most existing systems.

Future Prospects

Because of the high capacity of transporting goods all over the world, there’s roughly $4 trillion worth of cargo moved every year. If shippers were to do this process effectively, there’ll be a significant reduction in the cost of shipping, and the benefits can be passed on to the end-user.

TMX is setting up a global freight forwarders association which will plug into the TMX system, enabling freight forwarders to become TMX trusted agents in any country. In conjunction with its global partners in Asia and Europe, the company has managed to close up the value chain with transparency.

TMX will be able to collect cargo on behalf of the customer and inform the customer issues they need to know in the smart contracts such as:

  • Tariffs for a specific country
  • The country’s expectations and
  • The HS code in the TMX system such that when a customer requests Copper info, they will get relevant info.

The use of smart contracts will help reduce the cost of moving cargo by 14%, which is a significant reduction in the overall cost of shipment. Besides, TMX plans to raise capital through crowd-funding. The TMX coin will be available in markets such as vinyl where supply and demand will dictate the number of coins available. The company’s CEO predicts it may take 12 months to sell 50 million TMX coins, though he expects the dab to be ready by July 2019.