What do you think about the rumor that PayPal wants to buy BitGo, a company who’s services you use? 8:08
Kevin used to dislike PayPal and thought they were abhorrent for many years. They used to freeze accounts at the drop of a hat and lock money for months with no reason. But they realized their model wasn’t sustainable in the digital world and have adapted over the years.
They are a powerful company with a lot of money which could potentially give CoinMetro a better service. Depending on what they do with it, we’re not against it at all.
How much has Basecamp raised? 10:25
With 45 days remaining, they’ve raised about €30,000 of €2.5 million. Marketing push is starting to ramp up and they’ve got some other options in their playbook as well. But they are the first to ever use this new platform/user base. Generally during fundraising rounds you tend to see a lot of action at the beginning, and then and a lot at the end. So we will see another push in the last half.
From the CoinMetro perspective, it’s been a success! Everything has worked from a technical standpoint — interest is being credited and bonds are being delivered.
You can checkout the Basecamp project here.
Can we get a rundown of the bond? What does the “equity like” token give the user after 2 years? 12:11
The Bond Tokens can be converted at maturity to Equity like Growth Tokens which offer equity-like rights in CoinMetro’s parent company. If you invest €5000 in the bond issuance, you will receive 500 Bond tokens. At maturity of the bond you then have the option to redeem those tokens for 500 Growth Tokens which would grant you 0.01% equity rights in CoinMetro of the total 5% availability, this is based on today’s €50mil seed valuation.
More information can be found here.
Can you purchase the bond with XCM? And will the daily payouts be in XCM as well? 17:25
The bond will be priced in Euro, not XCM. You will be able to invest using USD/EUR/GBP and various cryptocurrencies including BTC, ETH, LTC and others
If you’re holding XCM and you expect it to go 20 cents & beyond… then holding your XCM would give you a higher return. Also we’re going to spend this money! So if you pay us in XCM then we will have to liquidate it which would obviously affect the price.
The idea is that if you get to the end of the term and XCM is at 4 Euros, that is a 20x on your money. You’d have to decide if you want the 20x return right then, or the equity which could eventually pay much more than 20x. THAT is why we have the XCM option!
Major XCM price move UP in Q4? 19:40
The whole industry is still hype and fomo driven. As a company we haven’t been the source of creating our own hype just yet. We’ve focused on building a well rounded product with several different services & revenue streams.
Now we can focus on client acquisition & growth! We have a lot of things happening in Q4 and if XCM is correlated to the underlying value of the company, then the price should already be 10x what it is now.
Kevin thinks we will see upward mobility as people come into the bond.
Could you please clarify the exit point valuation in two years when the bonds are converted to equity? 26:34
The valuation was actually created BEFORE the last funding round!
We used a valuation based on financial projections plus what our intellectual property is worth. The valuation was set in stone at 50 million when we raised 1.4 million, based on the equity they acquired. So unlike many companies, it’s not made up.
Will you offer debit cards? 30:25
YES! We are going back and forth with the banking-as-a-service provider and are waiting on them at the moment. They have been “close” for several weeks now. But it is going to happen!
What CoinMetro product excites you the MOST for the future? 33:00
To answer from our perspective as the company, the Matching Engine is sort of the “heart” of the entire business. But from a trader’s perspective, I think Staking & Collateral is amazing! This allows me to get passive income, but also to be able to utilize those locked funds and continue to trade. OR if I’m not a trader, I can copy a professional’s trading with TRAM! That’s quite unique. The passive income earners will be our most sexy products, especially as we continue to add more.
Personally, my favorite is the investing platform. A better functioning capital market system is the main value I saw when reading the Bitcoin whitepaper the first time. I’m excited to be making that a reality at CoinMetro!
Would trading be locked if there is an XCM token swap? 39:30
Nope! The only thing you couldn’t do is withdraw, or deposit more, during the actual token swap period.
Future plans? 41:48
Going through the CM bond, expanding the investment platform and expanding marketing efforts. Push into new countries. Create new innovative products. You’ll continue to see Kevin regularly and we will be transparent as we continue to try and do things the right way.
Why is CoinMetro better than Coinbase? 45:30
We will never stop improving our products and continue to create new ones. Compare the fees, transparency, & support. Those things alone set us apart. And it isn’t even close.
Can you help me convince my friend Nick to invest in the bond? 50:48
Use Coinbase as an example. Think of them five or six years ago when they were a small, unknown start-up in the US and if they offered you what we are offering now — 5% equity at a €50 million evaluation. They’re most recent evaluation was about 8 billion. You can do the math there…
Plus you’re not locked in! If you don’t see the growth you want to see, you can get out in the secondary market. It’s really a no brainer!
Why are you doing a bond rather than a standard equity raise? 59:35
For small investors! It gives people with less capital a very good interest rate and also two years to sell out of that loan if they want.
We’re giving you a two-year test drive before you commit. And we are SO confident, we are willing to PAY you 12% interest over those two years to sit and watch as we grow!
Should we sell our XCM to buy the bond?
If you’ve already been buying XCM at these prices then you probably have no need to convert. However, this could be a good diversification agent for your portfolio and add some interest. BUT I’d say if you’re an XCM holder it wouldn’t make much sense, as that would affect the price.
At what level of daily volume do you think will make the XCM price rocket? 1:18:00
Daily volume is only one piece of the puzzle. Volume induces vaulting, which means a lower supply. But that itself wouldn’t be a rocketship.
Although a daily volume of 5–6 million a day would make CM profitable (however we have, and will add more, other services that create revenue which affect that number).
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