Monetha, the latest addition in the ICO list is all set to have its Initial Coin offering on August 31, 2017 competing in an increasingly saturated space of bringing cryptocurrencies to the real world by providing payment processing services.
Monetha ICO aims to accomplish this by their Decentralised Trust and Reputation System (DTRS) which aims to bring a rating system to the transaction by letting both the buyer and the seller rate each other to help develop reputation on the Blockchain over time. They are planning on charging a 1.5% transaction fee which is about half compared to existing VISA and MasterCard fees. The price structure is quite similar to that of the TenX VISA card where the merchant gets charged a 2% fee and the buyer gets 0.1% rewards for using the card.
As of right now, they do not have a working product and there will be plenty of challenges for Monetha to overcome before they can compete with giants like TenX and OmiseGo in the crypto payments sphere. For starters, it appears that merchant ratings could easily be diluted with fake reviews unless Monetha polices their reviews which would incur large costs. The chargebacks are going to be another huge hurdle for real word adoption which would require setting up large customer service networks to ensure security. In a free market there would be no checks to prevent people from claiming unauthorized transactions left and right. These are the same problems that makes PayPal difficult to use and what bitcoin set to overcome by making transactions final and non reversible. Nonetheless, it is important for the average consumer to have a recourse in the event of a fraudulent transaction and therefore if implemented well, there would be a lot of market share to be gained in this space. For reference, VISA alone had a transaction volume of $8.9 trillion as of December 31, 2016 for that year.
The crowdsale begins on August 31, 2017 and lasts for a month until September 30, 2014. There is an incentive to invest sooner as investors will receive more Monetha tokens before €7 million soft cap is received – 2400 MTH tokens for every unit of Ether whereas 2000 MTH tokens after the soft cap until the hard cap of 95000 ETH is reached.
Monetha has a solid team behind it where all the three cofounders Laurynas Jokubaitis, Andrej Ruckij and Justas Pikelis have founded several successful tech start-up in their past.
To read more details about Monetha ICO, visit their official website.
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