How do TenX cryptocurrencies work
TenX: credit card for Bitcoin and Co. - can investors benefit?
Singapore-based TenX caused a sensation in the summer. Within 7 minutes, the blockchain startup was able to collect US $ 80 million from investors via a so-called token sale or Initial Coin Offering (ICO). The euphoria surrounding the small fintech startup is no coincidence.
Because the German-speaking management team around CEO Toby Hönisch and President Dr. Julian Hosp has big plans. TenX wants to solve one of the most pressing problems in the crypto world.
So far, Bitcoin users and other owners of crypto currencies have hardly been able to spend their digital currencies in the real world, because the regional supermarket around the corner usually does not accept crypto currency as a means of payment. TenX wants to solve exactly this problem - with a Visa or MasterCard debit card.
What is TenX?
TenX is a Singapore-based fintech startup founded in 2015. In addition to Fenbushi Capital, the investors also include Bo Shen (Managing Partner at Fenbushi Capital) and David Lee (Angel Investor). In addition, Ethereum inventor Vitalik Buterin is named as an investor.
TenX offers a debit card that is accepted wherever VISA and Mastercard (Singapore) are also accepted - these are currently around 36 million acceptance points worldwide.
How does the TenX debit card work?
In addition to this, the provider operates a TenX Mobile App, which is available for both Android and iOS. Interested parties can order a physical debit card from the app for a one-time fee of 15 dollars, but due to the high demand TenX is currently putting its users on a waiting list.
The debit card is free for users who later make purchases of more than US $ 1,000 per year, otherwise an annual fee of US $ 10 applies. Once the user has received their debit card, they should be able to top up it in the future with Bitcoin, Ethereum, Dash and ERC20 tokens (Golem, Aragon, QTUM, PAY, WINGS etc.).
If the customer then pays with the debit card in the store, the respective cryptocurrency is converted into euros or another paper currency (US dollars, etc.) in a fraction of a second before payment.
TenX guarantees the best available exchange rate; the user does not incur any transaction fees when paying. The corresponding amount in Bitcoin, Ether or Dash is then deducted in the app.
TenX rewards users and investors
In order to motivate TenX customers to spend their cryptocurrencies, debit card owners get 0.1% of the transaction amount credited back to their purchases. The credit is automatically made in the TenX crypto currency PAY.
Investors and card users who hold the PAY token in a digital wallet will also receive 0.5% of the transaction volume as a credit in Ether. This means that if 1 million users spend an average of US $ 150 per month with the TenX card, this results in annual sales of US $ 1.8 billion. Of this sum, 0.5% (US $ 9 million in this calculation example) goes to the PAY token holder.
There are currently almost 105 million PAY tokens outstanding. For investors, it should be noted that PAY tokens that are held on a crypto exchange and internal PAY tokens that are withheld for developer purposes do not benefit from the distribution - therefore, the exact return is difficult for investors to calculate.
Conclusion: TenX has potential, but the technical hurdles are high
TenX tries to bring cryptocurrencies into the real world, but still has to solve various technical challenges (backend etc.). The COMIT network will help in 2018, which will simplify transactions between the paper money world and various blockchains and put TenX in the pole position in technical terms.
TenX has a working product, but the startup still has a long way to go before all the promised features are available to all users and the goal of 1 million customers is reached by the end of 2018.
The success of TenX depends not least on how quickly and reliably the company can master the technical challenges and deliver the promised features.
For investors, this means not only great opportunities, but also a great risk, because it is not yet clear whether crypto currencies as such and TenX with its debit card will be able to prevail among the masses.
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