[BTC/USD] Price Analysis: $10,000 for Bitcoin in 2019 — Is It possible? Of Course!
[BTC/USD] Price Analysis: $10,000 for Bitcoin in 2019 — Is It possible? Of Course!

Crypto Debit Cards Are Here. Well, Almost: Past-ICO Review

  • Eric Eissler
    ⭐ Features

    What are the strings attached to crypto debit cards?

Crypto Debit Cards Are Here. Well, Almost: Past-ICO Review
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Coming out of crypto valley in Zug, Switzerland, the company Monaco, which has no relations to the principality of Monaco, has come out with an app and a debit card to make it easier to spend crypto without selling and get credit to make purchases to pay off later, or if you can’t pay it off your collateral Bitcoin on Monaco coin is used instead.

Furthermore, according to the website, there are no additional fees to send crypto to other wallets. According to their statements, Monaco is attempting to disrupt the way debit and credit cards are used. Let’s take a deeper dive and see if they are following through.

The Swiss bank account

Monaco and Switzerland, countries with names that ring with money. And Monaco rang in the money with its ICO, to the tune of $54 mln in fundraising, in a month-long ICO that took place between May 18 and June 18, 2017.

Its token, know as MCO, ERC20 token, entered the market at $2.24 per token and has seen several ups and downs since then, ending on a down note at $4.80 which is still more than double the entry price.

The all-time high was reached on Aug. 29, at $24.78. CoinMarketCap ranks it at 111 and it has a market cap of $75.3 mln with 15.7 mln, with only half of its 31.5 mln total tokens in circulation.

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On the road to success, albeit a bumpy ride

Monaco has officially partnered with Visa to launch its card which can be used for everyday purchases. This explains the massive spike in the price back in August 2017.

Despite this, the Visa cards still have not been issued yet.

According to their recent blog post on June 19, the cards are going into a second round of testing and the first round found some errors that need to be corrected. There are two apps on the market, one for Apple and Android users. They also claim that Monaco has some 53,000 approved and registered users on the platform. Anxiously awaiting their visa cards, we can safely assume. To quote the post, “We should have the results back from 2nd round next week. No major issues expected now that the 1st round issues were corrected- relating to the configuration of the various systems.”

Monaco was unavailable to comment on the further development of the Visa cards; my email was returned.

Leading the way

The team behind the coin appears to be well known in the crypto circles among others, Kris Marszalek is the CEO behind the operation. He is well known in Southeast Asia as a serial entrepreneur. Since 2004, Marszalek has been a co-founder at five companies which he leads from start-ups to either be a successful company or to be acquired. He has a proven track record of building success.

CFO, Rafael Melo has been working in the mobile payments system industry for 15 years in southeast Asia and has a strong grasp of risk and compliance. He was the business finance officer for Mobile Payments Solutions, which was a MasterCard incubated technology company.

Bobby Bao is the managing director and is known in Southeast Asia for his work in investment banking, corporate development, and investor relations. His career spans the banking world in southeast Asia as well as North America.

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In good standing

Monaco has been successfully fulfilling its milestones as it is getting closer to launching fully with the Visa cards. According to the website, there are only six more milestones left to complete before the company is fully operational:

  • Visa cards ship in Asia

  • New Visa cards announcement

  • Visa cards shipping in Europe

  • Monaco Invest goes live

  • Visa cards ship in the US

  • Monaco credit goes live

It appears that they surpassed or on equal footing with their main competitor TenX, which is also linking crypto accounts to debit cards.

However, the business plan is well thought out. Once the cards are launched and are in use, Monaco stands to rake in the fees paid to them by the retailer.

On top of that, exchanges such as Coinbase, which offer a very limited selection of coins could then lose a lot of business to companies such as Monaco or TenX because they can easily move between crypto and fiat. Furthermore, if the company is going to be offering credit that can be leveraged with crypto and debts that can be paid with crypto or fiat, then there could possibly be a paradigm shift for the credit industry. We only need to wait and see.

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Question of the Day: Can Stablecoins Accelerate Cryptocurrency Adoption?

  • Yuri Molchan
    ⭐ Features

    Stablecoins show hardly any volatility compared to Bitcoin and altcoins, many are hoping that they will be able to bridge new crypto economy and regular fiat money

Question of the Day: Can Stablecoins Accelerate Cryptocurrency Adoption?
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Bitcoin, the father cryptocurrency, emerged in hope that it will remove all intermediaries in electronic commerce that cut off their share of payments. BTC was perceived as a P2P way to replace fiat cash in an electronic format, which would enable one party to pay another without any financial institution or payment platform which would demand its share of a transaction as a reward for its services.

What is wrong with Bitcoin

For quite a while Bitcoin was performing the way the crypto community expected. But the situation changed later – BTC rate became weaker, thus bringing down its financial and economic reliability, when it gets to be used as a regular means of payment.

You cannot have a currency that would cost like a British castle today, a gram of gold – tomorrow and a pack of French fries the day after.

At that point practical fintech minds came up with an idea of creating something which would become a breakthrough in the universe of crypto – a so-called stablecoin.

Will stablecoins solve the volatility problem?

Technically, stablecoins are protected from the volatility roller-coaster that Bitcoin and other cryptos love to ride. They are programmed to keep their prices stable and investors now are largely attracted to this new type of digital assets.

Stablecoin does not show any volatility in its monetary value, since it has a fixed connection to an asset it is pegged to. The major goal of using stablecoins is taking the best from decentralized crypto coins and combining it with a constant value. Thanks to it, stablecoins can be used as a reliable means of trade.

Asset-pegged stablecoins

Asset-backed ones get their value from an asset as can be understood from the name. An asset provides the necessary value to a coin, as well as the necessary legitimacy.

A great example of an asset-pegged stablecoin is Tether (USDT). In spite of a series of scandals at the end of last year, it remains the most popular stablecoin in the crypto market.

Recently, it has partnered with the Tron Foundation to launch a Tron-based stablecoin.

Other examples are TrueUSD (TUSD), USD Coin (USDC), the Gemini Dollar (GUSD), and the Paxos Standard (PAX). They are all pegged to the USD.

Crypto-backed stablecoins

Some digital coins work in a similar way to fiat-backed ones, however, they are pegged to collateral crypto. That means that crypto assets that ensure the value of such stablecoins are stored in a wallet similar to escrow.

A good example of a crypto-pegged token is Maker, which is ranked 16 on CMC.

Algorithmic stablecoins

Even though, stablecoin can be interesting at first thought but the way they are built goes against the principle of decentralization that crypto coins have as a foundation. Thus, many crypto fans and evangelists are positive that stablecoins must be linked towards not a centralized asset but a computer algorithm which takes value from a balance between supply and demand.

Basis is now considered the most promising algorithmic stablecoin of all.

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Can stablecoin ensure smooth future for the crypto industry?

The primary goal of all crypto assets was and remains to come up with virtual asset that would be liquid enough and not vulnerable to market volatility. From this point of view, stablecoins are a dream of all crypto fans and evangelists of a decentralized economy.

Apart from the potential to conduct crypto transactions smoothly, experts believe it can bridge the two worlds – fiat and crypto, bringing them a mutually beneficial coexistence. However, that may take time.

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