Cryptopay begin their ICO in just a few hours, however unlike 99% of most ICO’s which have popped up over the last 12 months, Cryptopay is an established business. Founded in 2013 and now operating out of three separate offices, serving almost half a million registered users, 91,000 Bitcoin Debit card already issued and the company already making a profit as of 2016. Now however they are claiming an ‘upgrade’ is in order, hence the upcoming ICO.
Lets take a quick look at the Whitepaper:
Even though Cryptopay already has a number of working products, a FCA Small Payment Institution licence, and thousands of customers, taking the business to the next level requires more capital to scale our impact.
There are many variables to be considered, such as, to continue developing products, entering new markets, and hiring experts to help build the business. The funds raised during the ICO will allow us accelerate the building of our platform which needs a higher volume of loans than we are able to support at the moment.
Offering a token instead of a traditional venture capital round enables the community to participate in the Cryptopay success story, rather than limiting it to a small, selected number of traditional venture capital funds.
By acquiring CPAY tokens, token holders will benefit from our future success. A token sale is fast, transparent, and efficient for exactly this purpose.
Now what they intend to do with the money raised through the ICO is clearly laid out and split into sections depending on amount raised.
Up to EUR 15,000,000 equivalent: a financial services platform that will allow digital currency community to invest in traditional financial instruments like stocks, indices and futures to hedge their exposure to digital currency assets
Up to EUR 35,000,000 mln equivalent: a banking institution in the EEA that will provide full suite of banking/investment services for the community.
Up to EUR 50,000,000 mln equivalent: Liaison with one of the reputable regulators in Europe to establish a special / sandbox regulatory regime to establish a platform that will allow companies to legally and operationally structure their ICOs.
Launch of an ICO bookrunner / underwriter and own trading platform for fundraising investing in ICOs and blockchain based financial instruments.
Based on created regulatory framework development of a P2P platform / financial services marketplace with clear rules and ffor companies to fundraise (not only ICOs) and individuals to invest and save.
As with many new ICO’s Cryptopay is offering incentives to keep hold of your CPAY Tokens, effectively providing holders with a passive income.
Holders of CPAY tokens will receive monthly referral commissions. Starting from January 2018, 10% of the aggregate revenue from existing and newly developed products will be distributed every month to holders of CPAY tokens pro rata. According to the current performance of the business and latest medium-term projections, the suggested referral commission is equal to a competitive passive income on publicly available investment schemes.
So dependant on the success of Cryptopay’s new business ventures, holders of CPAY tokens could reap substantial rewards – from all of the incentives i’ve seen offered by ICO’s over the last few months this seems to be offering potentially the biggest rewards for its investors.
As always investing in any Initial Coin Offering(ICO) is always risky business and when investing in anything you should never invest more than you can afford to loose. However, if you have a little spare funds kicking around then this maybe worth speculating on for the long haul, with some great incentives to hold for token holders this has the potential for a great passive income for investors.
Of course what they are attempting to do is nothing particularly new or ground breaking, but they are an established profitable business and have multiple products and services already fully functional throughout the World, so we are not dealing with an unknown entity.
An established business like Cryptopay who have now been operating for around 4 years are unlikely to intentionally throw their current business down the drain, their intentions are to develop their Company further appear legit and is well documented in the Whitepaper.
I don’t think there is any huge gains to be made in the short run with this one, but it has the feeling of a more stable investment which may reap some good long term returns
Disclaimer: Statements contained within this post do not represent the views or policies of anyone other than the writer. The information contained within this article is provided for discussion purposes only, and are not investing recommendations. Under no circumstances does this information represent a recommendation to buy or sell securities.