Why another crypto? Were not!
In a vast sea of cryptos, why did you decide to make another cryptocurrency altcoin? I think for me, being in the crypto space since 2015 and knowing about Bitcoin since 2009.
There a few fundamental things, which I believe good crypto should have. When I looked at the crypto industry back in 2017, when I was the founder of another firm. there were a lot of shit coins, and maybe 10 good altcoins.
Today that number may be grown to probably 50 great crypto altcoins, and 90% still shit coins. Why do you believe that? Well most of the coins, are very similar in the crypto space. They don’t really do anything different, besides either like a currency, or some sort of technology.
They have no real use cases in the real world. I think besides Ethereum and bitcoin, there probably very few coins. Which can address problems in the real world.
I think Harmony is a good coin, they solve the Ethereum gas issue. And they have a few other things which they are working on, that’s one example. I think another good coin is Vechain, they solve the supply chain issue, which is not just stuck to crypto space, and I like Chainlink and Polygon. I think chainlink is a top three or top 4 coins, solves the on-chain and off-chain communication issue.
But what is missing in the real world, once I saw the snapshot of the crypto space. I think a fundamental reason, why people haven’t transitioned is due to transaction cost and rewards. Because most business at the point of sale (POS), they operate using old merchant processing models, where credit cards authorize charges and buyers when they purchase they get rewarded points or percentages.
The benefit of credit cards doesn't match the reward of Honos coin, and the increase in crypto prices in the market makes it difficult to use main cryptos at the retail point of sale.
So if for example, someone were to use Bitcoin, Ethereum, or another coin. It wouldn’t work too well, not just because of the cost of the coin. But because of the transaction speed, the discount of the transaction to create incentives for purchases, and the type of economics behind the coin.
So that is why, in early 2019 I spoke to Josue M. E, which is my brother and I told him. Hey, we need to make this coin. After many years of working in finance both on Mainstreet and wallstreet with companies like federated payments, apex, Citibank affiliate firms, and JP Morgan Chase co, at (bear sterns co) I thought we might have a solution.
That is when I began researching, every crypto currency in the space, and finding out their weaknesses and strengths, and seeing where our coin would fit in.
I thought that the main issue with the adaptation is retail, and retail was not going to use bitcoin or Ethereum because it’s too expensive. And they not going to use Polkadot or chainlink or Cardano or any other coin. Because of price fluctuations. And the other problem, was also stable coins, like Tether, and USDT, etc.
Their main issue is that there tied to the USD, that wouldn’t be an issue five years ago. But with the crypto market and (p2p) peer-to-peer exchange, and us dollar minting exhaustively that is a big issue. So what is the solution? The solution, the only one is Honos coin.
I’m not just saying that because I’m the creator of Honos coin, but here are some reasons you may think that it is the reason why.
- Economics based on Purchasing power parity, what this means is that the coin remains at a relative value consistently, over many countries. Before with Fiat currencies, this wouldn’t work, the reason this works with crypto, is because crypto the money becomes global.
- We researched every coin’s strengths and weaknesses and we found that most of the coins, in the market, don’t provide a discount. I saw when I did the whitepaper, that the bank of Canada did a report which provided a 40% discount on the economics, of crypto. Which allowed for heavy fluctuations, also the same paper discussed the double-spend problem which occurred previously in crypto. And that is when I thought, a way to improve upon these two models, is with a reward incentive, or a discount based on the purchases. This not only provides consumers at retail a lower cost currency rate, but it also incentivizes retailers to improve sales and gain customers at no cost, it’s a win/win.
- The third reason the masses haven’t adopted crypto is fear of price dips or price jumps, again yet Tether, USDT, USD are pegged to a dollar or whatever. But that’s not very effective when you have quantitative easing, and you have crypto which is international, and on top of this USD or fiat currencies, can barely compete with credit card purchases, due to built-in rewards. When you pay the credit cards before you get a charge of 18–30% you receive a 2–10% reward on purchases so if you using a fiat currency, you spending 10% more than the value of the fiat, plus your losing value based on two factors. 1. Inflation and 2. Minting of money.
- Competition with credit card charges of 18–30%, most people could do without these fees. But currently like we mentioned before most coins are technically based, and not at the point of sale. so you needed a currency that remains relatively stable while also providing rewards, our goal was to create a currency, with very minimal fluctuations that stayed between $1-$2.50 at a max of $5 dollars, if it went above this we would sell off a percentage of the coins to increase demand.
- And this is one of the most important reasons why you need Honos coin in the crypto market. Honos coin, transaction speed it uses Erc-20 standard, but it does not cost an arm and a leg and it doesn’t take 10 minutes for transaction speed, it also not supposed to rise above $5 dollars there no fear of loss.
And finally, a few other reasons, why the coin should be applied to retailers. Is because we intend to have something we call “Dual Trust”, or dual approval mechanism. Which is a way for both sender and receiver to confirm identity, one of the biggest issues with crypto is the fact that when you send money to someone, you really don’t know who is receiving it. And once you send it, you can lose the money if you typed in the wrong wallet address.
We believe this is a big barrier to entry for a lot of people who are used to working with banks and receiving a 2nd layer of protection before they send their money. Since crypto removes the layer of protection, we thought that by adding this feature to our wallet app and Honos coin in the future. That this would alleviate the pressures from people, having to worry if their money is lost or not.
I hope this makes sense to people, these are just some of the reasons. I believe that the Honos coin, once it’s adopted by the crypto community. Not only will help the crypto space, but it will also help the masses adapt to the new economy.
