It’s clear that we are living in the early stages of mass adoption of cryptocurrency. While there are many profound implications a crypto-connected world, one of the more poignant revolutionary aspects is the potential for cryptocurrency to level the playing field between individuals and institutions. Cryptocurrency allows true independence from corrupt financial systems and institutions, as well as the state, while providing individuals a way to store and accrue their assets without the involvement of banks, intermediaries, or middlemen.
In many parts of the world, especially in developing countries, we are already seeing the enormously transformative effects of cryptocurrency. Countries affected by hyperinflation (such as Venezeula), as well as those afflicted by corrupt central banking systems or institutions (like many countries in Africa), are seeing their populations gradually turn to cryptocurrency as a viable alternative to traditional banking systems.
A Long Way To Go
However, it’s also clear we are still in the early adoption stages. 2017 will surely be remembered as the year of cryptocurrency, as the market has exploded, both in terms of market volume as well as the amount of blockchain assets. Yet, there are significant barriers to the world of cryptocurrency for many. The process of purchasing cryptocurrencies can be confusing, time consuming, or laborious – ditto to figuring out how to safely secure funds. There are a handful of crypto-ATMs around the world (predominantly Bitcoin) but they are both at a premium, and few & far between.
Coinme wants to change this, and are launching UpToken in an attempt to make cryptocurrency available to the masses worldwide. You may recognize Coinme as the first company to create a cryptocurrency ATM. Since their founding in 2014, Coinme has focused on their home state of Washington, refining their operational management as well as their user experience while biding their time until they were ready to expand operations. With Coinme running the every step of operation to a level they deem satisfactory, they believe that time is now.
Coinme’s mission is to bring cryptocurrency to the masses, under their rallying cry: “In a crypto world, all economies can rise up.” There are currently only 1600 cryptoATMs (39 of them Coinme machines) in the entire world, despite the entire cryptocurrency market being roughly 100 billion USD. Coinme would like there to be a cryptoATM on every corner, and intends to make this happen via the issuance of UpToken.
How UpToken Works
UpToken is a network utility token for CoinMe’s ATM platform, which both helps maintain the network while offering three primary benefits to token holders:
Users receive a 30% discount on the ATM transaction fees: like any ATM, CoinMe’s ATMs utilize transaction fees, to cover operating expenses. Holders of UpToken can opt to pay their transaction fees using UpToken, receiving a 30% discount for doing so – turning a 5% transaction fee into 3.5%, for example
“Cashback” in the form of UpToken: Every transaction on a Coin,e ATM will result in 1% of that transaction being automatically deposited to that user’s Coin,e wallet, in the form of UpToken. Coinme may also decide to reward users with UpToken, at their discretion.
Democratic coin adoption voting process: One of Coinme’s parallel goals is to broaden the selection of tokens available on their ATMs. To this end, they’ve proposed several models for a democratic voting process to put adoption decisions in the hands of users. The leading proposal is fairly simple; each potential coin will have a wallet which UpToken holders can send tokens to. At the end of the specified period, the wallet with the largest amount of funds will be added to the platform, and the tokens added to CoinMe’s UpToken reserve, the Vault. Losing wallets will have their transactions reversed and the tokens returned to sender.
In their time running a network of crypto ATMs in Washington state, Coinme has refined their platform to the point of perfection, which is why their ATMs average about 100k USD in transaction volume per ATM per month.
As an example of Coinme’s superlative ATM design, Coinme ATMs don’t require the use of any external wallet, doing away with the need for clunky paper or phone-based wallets. All transactions take place within the Coinme platform, making Coinme ATMs the most user friendly models on the market.
Coinme is committed to fulfilling several promises to its userbase going forward, with an adherence to transparency and ongoing communication between Coinme and their users. To this end, their mission plan has several tenets. Their long-term goal is to create an increasingly broad network of ATMs in the US, with intent to deploy internationally in 2018.
To help them achieve their lofty ambitions, Coinme has set several primary guidelines for development of their platform going forward. As their platform brings about a wider availablity of cryptoATMs, Coinme intends to:
- Acquire new hardware
- Develop software to support new cryptocurrencies and integrate them into their platform
- Integrate new payment methods
- Maintain infrastructure, operation management, regulatory compliance, appropriate state and federal licensing, among other targeted expenses
The Coinme Vault
It’s common practice for companies issuing tokens to store a reserve, to cover company expenses, issue later to faciliate platform development, or offer employees as equity. Coinme is taking a novel approach to this concept by the creation of the Coinme Vault.
The vault will initially hold an amount of tokens in the vault equal to 25% of the tokens sold in the crowdsale. These tokens will serve a number of functions.
The tokens will be locked away until 500 ATMs are deployed. At this point, Coinme believes that more circulating Uptoken may be requestd from their userbase, and will make an amount of coins in the vault available for sale accordingly. However, during any one month period, Coinme will not sell more than 20% of the total volume of Uptoken distributed as loyalty rewards by the network during the previous calender month.
How To Participate In the Crowdsale:
The UpToken crowdsale begins on Oct. 15th, and requires users to register before being able to participate, which creates the identity associated with users. Customers are required to submit information such as choice of payment currency, sender address, non-exchange ERC20 complaint wallet, and name. Full requirements can be found in Exhibit B of their Terms of Sale.
The company is creating 10 billion tokens, of which 8 billion will be allocated for sale during the token creation event. An equivalence 25% of tokens sold will be retained by the company for the company Vault. Here is the equivalence value of the tokens during the crowdsale, which halves each subsequent 24 hour period from onset:
Purchases over 1 million USD will entail a 30% discount, if originating from a single wallet address.
Accepted currencies for the crowdsale: Bitcoin, Ethereum, Ripple, Litecoin, Bitcoin Cash, with other currencies accepted on a case-by-case basis. Minimum purchase price is equivalent to $100 USD; to protect from volatility, minimums are 0.05 BTC, 0.6 ETH, 1000 XRP, 4 LTC, or .5 BCH.
Minimum sales cap is 10 million USD, upon which sales will be halted. Should this minimum not be reached, buyers will be refunded in an equivalent amount of cryptocurrency sent.
Read the specifics of the Terms of Sale here.
Read the Uptoken whitepaper here.
Watch the ICO counter in real-time here!
The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.
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