Aussie-backed ivyKoin takes on mega-cryptocurrency Ripple
Bitcoin competitor Ripple burst into the public arena late last year, but Aussie-backed ivyKoin says it will give the cryptocurrency a run for its money as traditional banks increasingly see the benefits of blockchain-backed currencies.
Backed by digital bank Change Financial, which is dual-listed on the ASX and New York’s OTC market (ASX:CCA / OTCQX:CNGFF), ivyKoin takes away the dangers of anonymity in cryptocurrency transactions by allowing users to add files such as images or PDFs to validate the transfer of funds.
Change Financial CEO Ash Shilkin says with increasing investment in cryptocurrencies, verifiable transactions will become a necessity.
“Most cryptocurrencies are by their very design completely anonymous and for that very reason traditional banks have largely seen them as a big threat,” Mr Shilkin told Stockhead.
“We’re now seeing the evolution of money. Cryptos are 100 per cent the future but they are not integrating well with the existing infrastructure because banks are suspicious of transactions that could pose an anti-money laundering and regulatory risk.”
Mr Shilkin says thousands of legitimate businesses leveraged to cryptocurrencies like bitcoin or ethereum are under-banked purely because they couldn’t get access to traditional bank accounts.
IvyKoin hopes to capitalise on the same motivating factors that have led to the rise of Ripple’s XRP currency — now second only to bitcoin and valued at more than $96.9 billion after rocketing 28,000 per cent in 2017.
Unlike XRP, all ivyKoin transactions will use ivyKoin tokens for all settlements with significant Know Your Customer (KYC) Anti-Money Laundering (AML) data to be embedded into the cryptocurrency itself and all transactions to be stored on a public blockchain. Furthermore ivyKoin will implement a decentralised system of transaction validation unlike Ripple’s centralised system of transaction validation.
Initial Coin Offerings (ICOs) have already generated strong interest in the market this year, where traders are offered digital tokens instead of shares in a company — Kodak’s aptly named KODAKcoin has skyrocketed in a pre-sale.
IvyKoin will open its pre-sale this week and expect a token generation event later this quarter.
At completion, they expect the market to have a capitalisation of $84 million, less than 0.1 per cent of Ripple.
But with an extensive network of potential partner banks through Change Financial, and a world class team with a track record of delivery, ivyKoin could be well-placed to be the next Ripple.
At present, $5 trillion per day of transactions are made across the conventional SWIFT network, but moving data to a blockchain format can allow for unparalleled transparency, making those transactions ever safer than those processed by our current financial systems, according to Mr Shilkin.
“In the same way that the internet opened up worlds of limitless data, utilising the blockchain for transactions allows us to lift the bar in terms of transparency – we can provide up to eight times more data in a transfer than the incumbent networks,” he said.
They have their eye on the 7000 banks across the US and more than $1.25 quadrillion dollars of transactions going through the SWIFT network annually.
All transactions through ivyKoin allow for settlement between business, individuals and banks, with large amounts of Know Your Transaction data automatically delivered between each financial institution.
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