Some Reflections on the Bear Market

The past year has been filled with high-flying euphoria followed quickly by brutal reality with many people struggling to make heads or tails of it. The market movements have certainly been a surprise to many and have caused a plethora of different emotions to come out with many calling into question the fundamental merits and viability of cryptocurrencies and blockchain based platforms.


Ethos Announces Simplex Agreement - Accelerating Phase I of Fiat Gateway

Ethos Announces Simplex Agreement - Accelerating Phase I of Fiat Gateway

Ethos is pleased to announce an integration with Simplex, a global instant fiat purchase service enabling bitcoin and altcoin purchases with credit and debit cards. This integration will mean that Ethos customers will soon have access to liquidity and exchange services between fiat and cryptocurrencies on an international scale.

Ethos aims to create a financial ecosystem that is open, safe and fair for everyone by harnessing the power and autonomy that cryptocurrencies provide. The Ethos Universal Wallet provides a secure, self-custodied mobile wallet where the user is in control of funds at all times. Ethos Universal Wallet gives users the power to store, track, send and receive over 100+ tokens.

This agreement allows Ethos to accelerate the first phase of the fiat gateway and provide Ethos customers with a safe and seamless method for converting between fiat and cryptocurrency.

Paired with the Shapeshift integration, users will be able to gain access to dozens of cryptocurrencies and tokens using fiat.

Image is for prototype mockup purposes only.

“Ethos is excited to offer a wealth of dynamic capabilities to consumers,” says Ethos Founder & CEO Shingo Lavine. “The Universal Wallet will become the most accessible way for people to safely interact with cryptocurrencies using innovative services such as Simplex.”

“As Ethos expands its service offering, Simplex is proud to play a fundamental role in offering seamless, easy conversion between fiat and cryptocurrencies while ensuring transactions are completely fraud-free,” says Nimrod Lehavi, CEO and Co-founder of Simplex. “We are able to achieve this thanks to our advanced machine learning AI algorithms and broad accumulated experience as security experts.”

The Ethos Universal Wallet is available in the iOS & Android app-store worldwide. Download the app: https://www.ethos.io/universal-wallet/

 

About Ethos.io PTE LTD

Ethos is a leading cryptocurrency services provider that is building a bridge between the blockchain and existing financial institutions and systems. The Ethos Universal Wallet enables anybody to securely safe-keep their own crypto assets easily, safely and for free. The Universal Wallet is decentralized, with consumers creating and owning their own private SmartKeys that secure personal digital vaults. The Universal Wallet is built on Bedrock, a foundation platform that abstracts and makes blockchains more accessible, secure and compliant for both people and financial institutions. Ethos has built a blockchain dream team of financial and technology executives with experience at companies like Blackrock, Citrix, Deloitte, Freddie Mac, Merrill Lynch and UBS. Ethos is headquartered in Singapore with a global presence and community. Learn more at ethos.io.

 

About Simplex

Simplex is a fintech company that provides online merchants with fraud-free payment processing. Our goal is to make online commerce safe. Based on advanced AI technology, Simplex’s automated system facilitates processing online payments while assessing risk with maximum speed and accuracy.

Simplex integrates with online crypto exchanges to fulfill the credit card payment process. Hence, Simplex is responsible for risk analysis, processing the payments with the credit card company, and finalizing the transaction. The cryptocurrency is provided by the online exchange. Learn more at Simplex.com.


Ethos and ShapeShift Partner to Deepen Liquidity and Advance Enterprise Cryptocurrency Exchange

Ethos and ShapeShift Partner to Deepen Liquidity and Advance Enterprise Cryptocurrency Exchange

Ethos, a leading multi-cryptocurrency wallet and enterprise blockchain solutions provider, is pleased to announce an integration with ShapeShift.io, a digital marketplace for Bitcoin and other blockchain tokens. This integration will mean that Ethos users and enterprise customers will soon have access to the liquidity and exchange services for dozens of cryptocurrencies and tokens.

Ethos aims to create a financial ecosystem that is open, safe and fair for everyone by harnessing the power and autonomy that cryptocurrencies provide. The Ethos Universal Wallet provides a secure, self-custodied mobile wallet where the user is in control of funds at all times. Ethos Universal Wallet gives users the power to store, track, send and receive over 100+ tokens.

The integration with ShapeShift enables users to securely exchange and swap coins without any intermediaries. Users will be able to initiate trades directly from their wallet with settlement and order handling abstracted and rapidly executed for the user.  

“Ethos provides the infrastructure for a more robust digital economy that is truly easy to use and accessible to the average person,” says Ethos Founder & CEO Shingo Lavine. “We want to partner with leading companies in the space to provide the best possible service while preserving the ideals and allure that cryptocurrencies hold.”

ShapeShift Swap in Universal Wallet Prototype – The image above is a prototype mockup. The actual app integration UI/UX may vary from the image above.

Beyond the consumer wallet service, Ethos plans to integrate ShapeShift as an offering in its Bedrock product and services. Bedrock is a sophisticated, high-performance API that makes blockchain protocols as accessible as internet protocols for businesses and institutions. Ethos and Shapeshift are taking a leap forward to offer exchange services and move towards building regulated, enterprise-ready service offerings that can service users and institutions globally.

The Ethos Universal Wallet is available worldwide today. Download the app:  https://www.ethos.io/universal-wallet/

 

About Ethos.io PTE LTD

Ethos is a leading cryptocurrency services provider that is building a bridge between the blockchain and existing financial institutions and systems. The Ethos Universal Wallet enables anybody to securely safe-keep their own crypto assets easily, safely and for free. The Universal Wallet is decentralized, with consumers creating and owning their own private SmartKeys that secure personal digital vaults. The Universal Wallet is built on Bedrock, a foundation platform that abstracts and makes blockchains more accessible, secure and compliant for both people and financial institutions. Ethos has built a blockchain dream team of financial and technology executives with experience at companies like Blackrock, Citrix, Deloitte, Freddie Mac, Merrill Lynch and UBS. Ethos is headquartered in Singapore with a global presence and community. Learn more at ethos.io.

 

About ShapeShift  

ShapeShift AG is a leading blockchain technology company based in Switzerland. It operates several crypto products including ShapeShift.io, CoinCap, Prism, and KeepKey. Its primary service, ShapeShift.io, is a an online marketplace where users can buy and sell digital assets. The popular app enables users to safely trade Bitcoin (BTC), Ether (ETH), Litecoin (LTC) and other major blockchain-based tokens and assets. See more at: shapeshift.com.


The Ethos Ambassador Program – A Call To Action!

The Ethos Ambassador Program – A Call To Action!

Our Ethos Ambassador for Germany, Christoph Schlechter, shares his call to action with the global Ethos community.

At the Ethos Netherlands Meetup last weekend in Amersfoort, I was introduced as the German Ambassador for Ethos’ Ambassador Program. With this blog post, I would like to share my motivation with you and show you what my approach will be for the first steps of this program.

Ethos has come a long way. One year ago, it was just an amazing idea with a whitepaper and an ICO. Over the short time frame of a few months, Bitquence, as Ethos was called back then, had become my favorite crypto project. Not so much because I liked the vision and the fundamentals of the project, but because Shingo and Stephen were so passionate and approachable in the chat rooms, answering questions every day. Until then, I hadn’t seen this with any other crypto project. It didn’t take long for me to decide that this was the project I would want to get involved in.

Back in November, driven by the word ‘people-powered’, I asked myself what I could contribute to Ethos. That is when I had the idea of an Ambassador program that would promote Ethos, financial literacy, and self-sufficiency in general. Working with many people from all kinds of backgrounds as a musician and university teacher, my experience is that talking and discussing a subject like crypto eye to eye with someone, is so much more impactful and authentic than typing in chats or watching videos, especially when beer is involved. I pitched my idea to Stephen and he was all-ears from the beginning!

If you saw Kevin’s great speech at the Netherlands Meetup about social impact (https://youtu.be/W7EjXrMP3RQ?t=27m39s at 27:40), you will know that we have great plans for changing the society we live in today. We are building a financial ecosystem that is open, safe and fair for everyone. But more importantly, we want to do our part in helping people free themselves from the firm grip of financial and social inequality! The Ethos Ambassador Program will play an important role in these efforts.

It is still in its early stages. We have been developing this program to serve crypto communities across the globe. Ethos will select Ambassadors to produce events that will spark meaningful conversations about Ethos and the New Economy within their communities.

Through this program, we aim to:

  • Educate people on crypto and blockchain
  • Foster crypto communities
  • Improve people’s financial literacy in these transformative, digital times.
  • Empower people who may believe they are unlikely crypto users to see that the future IS for everyone.

We have candidates already coming in from across the Caribbean, Europe and the USA.

Whether it’s a lunch-and-learn or after-work cocktail party featuring a product demo for 20

people, or a medium to large scale event featuring panel discussions and blockchain workshops, we’re interested in hearing everyone’s ideas. Be on the lookout for the launch of the application to become an ambassador for your region and spread the word!

How am I going to approach establishing the Ambassador Program in Germany? We should ask ourselves two questions: Why are so few people in crypto and what do they need to enter? The answers are very simple: Because they don’t know about it yet, and when they hear about it, they often don’t trust it. Right now, entering crypto is still unbearably complicated for most people. The Universal Wallet and its future additions, especially the Fiat Gateway, will take care of the latter. But education remains paramount in achieving mass adoption.

Therefore, my first goal for the next twelve months is to establish a network of local Ethos meetups in the major cities of Germany. These meetups should take place (bi-)monthly in a low-key atmosphere like a bar/restaurant, or in a university setting. The meetings will contain an introduction to Ethos and the ecosystem it is building, followed by a Q&A. There will be plenty of time for open discussions, networking and showing the wallet in action.

In short, it’s time to build trust and bring Ethos directly to the people! Let me know if you would like to help setting up this network in Germany. Just DM me on Telegram (@Christoph_Schlechter)! Other activities will involve participating and representing Ethos at blockchain conferences to network with other projects and strengthen awareness about Ethos within the industry. We will take the experiences from the German community as a testing field to see which other formats can be explored and how they can be applied to other countries.

I feel honored to be part of this amazing project and am proud to serve as the German Ambassador. Building a strong and supportive community is a key component to Ethos’ vision and success. As you can see from my example, it is quite easy to engage with the team and contribute your ideas to the overall vision. Get moving, apply to be your country’s Ethos Ambassador, and play your part in reshaping society!

Interested in learning more or exploring becoming an Ethos Ambassador? Email our Director of Community to let us know.


Live Community Q&A: The Road Ahead

Live Community Q&A: The Road Ahead

You’re invited to an open forum where we’ll provide details on the Ethos roadmap. Join this community webinar and hear directly from Ethos Founder & CEO Shingo Lavine on Wednesday, August 8th at 3pm PST / 6pm EST.

In this webinar:
We will show our vision for how Ethos will bridge the traditional financial system with the Blockchain, and how Bedrock will power a next-generation crypto ecosystem.  

Because we believe in a people-powered future, we encourage you to submit your questions about the Ethos Roadmap and Bedrock on Reddit.

Submit your questions – Submit your questions ahead of time on this Reddit thread, we’ll be selecting questions from there prior to the broadcast, so make sure to have your questions submitted before Wednesday, August 8th – 3pm PST / 6pm EST!

Submit A Question in Reddit

Thank you for your support and we look forward to hearing from you!  

Live stream details – We’ve created the YouTube Live Event ahead of time, so tune in here once it’s time for the broadcast:

 

Stay tuned for updates, follow us on Twitter at @ethos_io


Ethos Netherlands Recap: Global Ambassador Program Launch

Ethos Netherlands Recap: Global Ambassador Program Launch

Hot off the heels of the Universal Wallet release worldwide, we were thrilled to also launch our first Global Ambassador led meetup event in the Netherlands on Sunday, July 29th. The event was organized by Michael Noordanus, our Dutch Ambassador, who has been an energetic and loyal advocate of Ethos since day one. Ethos Telegram community members have come to know Michael very well as result of his ever-present support in our channels.

 

 

The Key to the New Economy is Community

To kick off the live talks, Michael welcomed to the stage our newly appointed German Ambassador, Christoph Schlechter. Christoph’s contributions to the Ethos community have been invaluable. From his clear and patient communication in Telegram, to developing ideas like the Ethos Ambassador Program, he has played an integral role in nurturing our people-powered movement.

 

 

Community members, Thijmen (Customer Service & QA Manager), Customer Support reps, Shingo, Stephen, KDP, Ambassadors, Moderators… the whole fam!

 

Secure and Simple Design

KDP educated us on the people-powered financial future that awaits us all. As a leader of the product development team, KDP spoke to how the feedback we receive from the community, the people’s wants, needs, and desires, is directly informing what is built into the app and where we will go in the future.

 

 

“We share a common vision and mission, which is to use the power of blockchain and finance to create a New Economy. One that is open, safe and fair for everyone.”– KDP

 

“What’s most salient for me is reaffirming our commitment to our community roots. My goal every day is to figure out how to be nimble in our team structure [and] our feedback loops so we can keep a close pulse on the needs and requests of the community . . . so that its woven directly into the product.” – KDP

 

 

We chatted with attendees from across Europe, each one having a story or use case to share, emphasizing the need to create a decentralized financial ecosystem.

 

Interconnectivity: Traditional and Next Gen Finance

Stephen and Shingo both provided insights into how the current financial system functions and how change must and can be brought to usher in the New Economy. Stephen dove into the details of building a frictionless global investment and wealth management ecosystem.

 

 

Stephen went further to unveil that we have all the partners in place to deliver a robust and complete Fiat Gateway, which for Ethos means offering consumers wealth management, trading and banking services.

In response to a question from the audience, Stephen discussed Ethos’ global reach for our global mission, and revealed that Ethos has already begun garnering international attention, including strong interest from a bank in Tokyo to discuss custodial solutions.

As you probably know, the technical infrastructure for funding accounts with USD is being facilitated through our relationship with Plaid. But did you know that through our powerful partnership with Payroc, merchants will soon be using Ethos Bedrock to begin accepting crypto for goods and services?

 

“I get up in the morning because I believe we can actually solve this” – Stephen

 

Shingo educated us all on the history and evolution of custody in financial markets over the last century. Furthermore, he discussed the regulatory environment around custody in both the Old and New Economy, and where we are headed. His calls for a system that serves the people instead of institutions, and the questions he evoked around the topic of self-custody, sparked meaningful dialogue amongst audience members.

 

“… Where the individual is taking custody of these funds, at all times … is it possible that you could create a financial ecosystem that is open, safe and fair for everybody?” – Shingo

 

“Can you create a programmable system that can build a financial ecosystem around the individual, rather than around the institutions that are taking custody? Is it possible to take the individual and bring them to these financial services rather than having to cater to the institution?” – Shingo

 

We recently introduced the community to our development process and how we plan to fulfill the core underlying needs of consumers. We have come so far and we are so excited for the direction we are heading! Want to see the most up-to-date information regarding development progress? Check out our new Dev Dashboard.

 

 

Attendees were privy to a sneak peek into the working relationships of the team members! During the much anticipated Hot & Spicy interview with Stephen, where he daringly scorched his palette with 5 progressively hotter hot sauces, and gave away $1500 to members of the audience, he was asked what it’s like to work with someone so much younger than himself.

 

“It’s been phenomenal. There has been some mentoring there too. But it’s funny, the mentoring goes both ways. Even though he is 30 years younger than me, I learn from him and he learns from me. Which makes it an extremely successful and powerful relationship.” – Stephen

 

The event was filled with gourmet bites, craft beer – including the original Ethos Saison, which was described as landing on the palette with beautiful floral and fruity tone. Brewed with a little rye for a round mouthfeel and a sturdy punch in aftertaste! This beer was a wonderful compliment to discussions on the fresh ideas that have surfaced in light of the radical change in financial industries. Concepts like the Ethos objective to empower everyone with their own digital vault aka self-custody in the New Economy.

 

 

Not unlike the Ethos Summit, our first meetup held in Rhode Island, new relationships were forged and old ones rekindled as Ethos Ambassadors, Moderators, Team and community members, and leaders of other blockchain companies united under one roof in Amersfoort, NL this last weekend.

Want to watch the full video of the meetup? Check it out here.

 

 

Couldn’t make it to the Netherlands meetup? Be on the lookout for Ethos events near you!

 

KDP and BTC.com’s Community Manager Eleanor chilling at Crypto Canal in Amsterdam


Ethos Community Airdrop Program

The Official Guide on how to get your airdrop tokens in your Universal Wallet. Here you'll find all of the information you need to learn more about the Ethos Community Airdrop Program, how it works and how to receive your tokens if you pre-registered for the Universal Wallet.


Tokenomics: A Case Study With The Ethos Token

Tokenomics: A Case Study With The Ethos Token

Demand and supply are the opposite extremes of the beam, whence depends the scale of dearness and cheapness; the price is the point of equilibrium, where the momentum of the one ceases, and that of the other begins.
– Jean-Baptiste Say

Demand and supply — the foundational pillars of economics — play a dominant role in the economics of utility tokens (tokenomics) and affect the present and future price of the token. This case study with the Ethos token provides a framework for projecting future demand and price for utility tokens. We introduce the Ethos Tokenomics Calculator that will empower the community to use their own projections to estimate future value of the Ethos token.

Utility Tokens — A Capital Structure Break-through

Traditionally, debt and equity (bonds and stocks) are the two main avenues entrepreneurs use to raise capital for their enterprise. Cash flows (interest payments) are largely predetermined in debt investing. Equities, on the other hand, give the investor exposure to cash flows (via dividends) and future demand for the products or services offered by the enterprise (as rising earnings lead to price appreciation). Although there have been several variants like convertible bonds, preferred equity, etc., over the years, the debt and equity based capital structure has existed for a long time. For context, stocks have been trading for over 400 years. The first recorded IPO (initial public offering, not to be confused with ICO, initial coin offering) occurred in 1602 when the Dutch East India Company offered its shares to the public.

Bitcoin, and several other crypto projects that have followed, expand the capital structure by removing cash flows from the equation, thus providing pure exposure to the growth of the project. The projects are funded with the expectation that the demand for the services provided by the project will rise in the future, and that will lead to a rise in the price of the native token. For those wanting a deeper dive, our previous article provides a useful metaphor for how a token economy built on utility tokens operates and thrives.

 

 

Present Value Of The Ethos Project

Market cap measures the present economic value of a project that investors collectively agree upon; it’s the product of the number of tokens in circulation, and the price of each token.

(Ethos) Market Cap = Circulating Supply * (Ethos) Token Price

It is important to separate the concepts of total supply from circulating supplyat this point. Ethos has a fixed total supply of ~222 million tokens, of which ~78 million are in circulation. It’s the number of tokens in circulating supply that affect the market cap of a project. The total supply of Ethos tokens is fixed and will not change. The circulating supply, on the other hand, will be determined by the economic forces we describe in the next section.

Holding the present value (current market cap) of the Ethos project constant, we can imply that token price and circulating supply are inversely related. In other words, an increase in supply will result in a drop in token price, and a reduction in supply will boost the price.

Token Price = (1 / Circulating Supply) * Market Cap

Future Value Of The Ethos Project

The future value of the Ethos project can be determined by projecting any changes in the circulating supply and the price of the token.

Future Price: Holding supply constant, the price of the token is driven by the value the Ethos project adds through its products and services, and the overall crypto market performance — as the crypto asset class grows, the beta of the asset class will affect prices of all tokens including the Ethos token.

Change in Token Price ~Ethos Value Added + Crypto Beta


Future Supply: 
The future supply of the Ethos token is affected by the number of new tokens released for covering costs, and the number of tokens staked or consumed thereby removing them from circulating supply.

Future Supply = Current Supply + Tokens Released — Tokens Staked or Consumed


Tokens Released: 
Tokens are released into the circulating supply to cover the cost of building the Ethos platform — compensation, technology services, legal fees are some of the key components. Many of these costs are denominated in fiat currency, so the higher the price of the Ethos token, the fewer the tokens that need to be issued to cover costs.

Tokens Staked or Consumed: Ethos is building products and services that will create opportunities for staking and spending Ethos tokens thereby reducing the circulating supply of tokens. When users of the Ethos platform staketokens, the tokens continue to be owned by them but not longer circulate in the open market. On the other hand, when users spend tokens on a service, the tokens are returned to Ethos and can potentially be taken out of circulating supply. Staking or spending does not result in burning of any tokens, and the total supply remains fixed.

The Ethos Rate Card details various products and services we have on the roadmap that require staking or spending tokens. A few key opportunities are highlighted below:

  • Bedrock API Access: The Ethos Bedrock API enables developers and businesses to build secure Blockchain applications on top of safe and secure standards and protocols such as Ethereum. It is designed to be an architecture to both create a financial ecosystem for cryptocurrency, as well as bridge the traditional and blockchain ecosystems. Ethos hosts full blockchain nodes, and enables developers to create wallets, query balances, verify sources of funds and identities, enable payments, and other useful transactions.
  • Verified Wallet Domains: A verified wallet address enables a registry to a public Blockchain Name Service (BNS) that creates and broadcasts a branded name and verified wallet. This is useful for companies that want to reserve their brand on the blockchain, or users who want to use their names for simple payments. Benefits include not having to use long-form crypto addresses, verified identity written into all Blockchain transactions, and reduced error and fraud rates.
  • Robo Wallet & Automated Trading: As Shingo Lavine highlighted in his recent post describing the Ethos roadmap, we will leverage the Ethos platform and the research that has been conducted by the portfolio management team to build diversified crypto baskets — or “one-click diversification”.

Users will be required to stake or spend Ethos tokens to access these services which will effectively reduce the supply of Ethos token, resulting in an appreciation in the price of the tokens that remain in circulating supply.

What does this mean for investors?

The price is the point of equilibrium, as the French economist Jean-Baptiste Say correctly observed. The direction and momentum of the price is determined by the value added by Ethos products and services, any changes to circulating supply of the token, and the overall crypto market performance (crypto beta). We are building products and services that will increase user adoption, and drive demand for the Ethos token. We are also confident that demand for the broader crypto asset class, and commitment demonstrated by several projects like ours will positively influence crypto beta in the long run.

Tokenomics is a nascent and rapidly evolving concept. We encourage investors to make well-considered and well-informed decisions — to use tools like the Ethos Tokenomics Calculator to model their projections and estimate future prices.


Where We’ve Come and Where We’re Going - Universal Wallet to Fiat Gateway

Where We’ve Come and Where We’re Going - Universal Wallet to Fiat Gateway

Hey Ethos Fam!

Just a little over one year ago, Ethos, or Bitquence at the time, was a small project with just a few team members on an audacious mission to revolutionize the financial sector using the capabilities of cryptocurrency and blockchain technology. The company was founded on a single premise — that financial services should be made open, safe and fair for everyone.

One year later, the company has grown to over 60 team members spread across 8+ different countries and has released its first product, The Ethos Universal Wallet. The Universal Wallet was built 100% on Ethos Bedrock, a scalable, high-powered API set that has been engineered to make blockchain protocols as easy to use as internet protocols and provides the foundation for countless other sophisticated financial services applications including the Fiat Gateway.

The Universal Wallet has been extremely well received with over 40,000 users on the platform a few days after global iOS release and an average of over 1000 new users a day joining in the days following without any paid marketing spend. The architecture has been remarkably stable handling nearly 200,000 transactions with only minor scaling issues handled by the team and the app has been well received on the google play/app store with 4.7/4.8 stars respectively. The fundamentals of the Ethos platform have never been stronger.

A Return to the Roots of Crypto

The original vision of Bitcoin was to enable a currency that was decentralized, returning to people the fundamental right to hold and exchange their own currency.  This vision has the potential to blow open the doors of global commerce and drop international barriers, sowing the seeds for a new generation of abundance and prosperity.  At Ethos, we believe that a decentralized, safe and self-custodied digital vault is the backbone of this vision.  That is why we put an intense amount of effort into a scale architecture that could enable people to store and exchange a wide variety of digital assets.

But… When Fiat Gateway?

But that doesn’t mean we haven’t been busy with the Fiat Gateway! We’ve heard you loud and clear and we haven’t been idling around. A lot of work has being happening in the background to make this happen as the Fiat Gateway is one of the defining features of what we see as an inclusive financial services ecosystem and is a crucial piece of the second phase of the Ethos Platform.

That being said, the “Fiat Gateway” is not a single product, but a rolling set of features that will collectively create the BEST fiat solution we can for investing in crypto and traditional assets. We’ve divided these up into 5 separate stages that we will cover in detail.

The Skateboard Development Methodology

One trend that you will notice as we move through these stages is the concept of “Skateboard Development” by Henrik Kniberg that has been adopted by large, successful tech companies like Spotify.

 

Skateboard development is a methodology where you focus on fulfilling the core underlying need of the consumer. In the case of a car in the example above, the problem is “I need to get from point A to point B faster.”

For the Ethos Fiat Gateway that problem is, “Buying cryptocurrency is too hard.” Instead of trying to build the car from the get-go and failing to fulfill the user’s needs as you iterate through building a tire, then a driveshaft, then an engine-less car frame until eventually building the car, which is a practice all too common in the blockchain industry’s product development process, you start by building a skateboard which fulfills, to some extent, the user’s fundamental problems while you iterate towards a solution that actually can end up being better than the car that was originally designed.

Said another way, instead of trying to day trade your way to a lambo, start small and hodl your way to the lambo. (Not investment advice by the way)

In our 5 stages of the fiat gateway, we will start by fulfilling the basic fundamental needs of the consumer while we build out additional infrastructure, reduce fees, and add additional capabilities until we are providing the consumer with the best possible solution.

Stage 1: Basic Fiat Integration (The Skateboard)

Basic fiat integration is actually not as difficult as some may think, but still takes a few integrations. Using existing processors and liquidity providers and shaving off a few capabilities on the technical side, you can put together a fairly robust crypto purchase solution that is on par with the level of quality that is seen in the industry today. We will be taking this approach, partnering with an existing processor and liquidity provider that we are already in deep strategic discussions with to power this solution. Stephen and Vishal, with their Blackrock, State Street, UBS and Morgan Stanley connections and experience, have been invaluable partners, networkers and mentors in this effort.

This phase of development will also include “instant-exchange” between cryptocurrencies with a fiat onramp to provide users with the basic functionality that one would expect from a fiat gateway available internationally. All crypto sourced from this will be entirely self-custodied and held by each individual in a decentralized fashion providing a revolutionary amount of control, security and freedom when it comes to trading and managing your assets. We are fast tracking this solution and, by doing so, we are building much of the infrastructure required for the more advanced fiat integration solutions that we have on the roadmap.

Stage 2: Advanced Fiat Integration with Banking/Fiduciary Accounts (The Motorcycle)

Phase two of enhancing this capability will enable customers to purchase a wide-variety of cryptocurrencies with ACH wire deposits and withdrawals. In order to construct a robust fiat gateway with buying and selling capabilities for a wide-variety of coins, we are in advanced, strategic partnership discussions with some of the most-trusted and largest liquidity providers in the industry, along with one of the most-trusted providers in the banking space. Furthermore, Fusion Financial has signed a LOI with a major banking partner whose capabilities can be leveraged for consumer benefit.

An important note that we will continue to emphasize in all aspects of our model is that advanced fiat integration is achieved through a fiduciary structure that legally obliges Ethos, as the technology platform, to always act in the best interests of the end-user which ultimately results in a streamlined, cheap solution for the consumer. These lower fees and faster settlement experience will be immediately noticeable to consumers as they are providing what we hope to be the close to “at-market” prices for the end user less counterparty-originated fees.

Liquidity and counterparty risk issues will become a thing of the past in this model. Unlike centralized crypto-to-fiat entities that exist in the space now which may only keep 2% of their assets in hot storage, Ethos does not custody or legally take possession of any assets, crypto/fiat or otherwise. There is no risk of assets becoming inaccessible or frozen or having a “run on the bank” where large market swings cause trading systems to go down as has been experienced in the past.

We plan to combine this notion of decentralized, people-powered self-custody, and marry it with best-execution financial partners.  We have not seen any other crypto company taking this approach, and we believe it is in the best interest of consumers, financial institutions, Ethos and for cryptocurrency and financial Blockchains as a whole.

The self-custody technology model that we have designed and implemented in Bedrock enables this unique structure. Unlike a centralized custodian model, the decentralized self-custody model decreases liquidity, regulatory and counterparty risk for traditional financial ecosystem players. This is a rare and wonderful “win-win” for both consumers and financial institutions alike.

Stage 3: Discounted Fiat through Token Functionality (The Car)

ETHOS tokens at this point will provide additional benefits to the end consumer by further reducing fees while at the same time potentially exposing users to rewards similar to what you may see in a “cash-back” model in the traditional financial system. Functionality for ETHOS tokens to mitigate fees and provide additional incentives to the end user will be core to the way that the fiat gateway is structured in this stage.

Non-token holder fees will be some of the lowest in the space, but we see the possibility of providing the closest to “At-Market” fees of anywhere in the crypto space making functionalities like “Nuke” (liquidate all assets) and “Un-Nuke” (repurchase portfolio) viable and cost-effective options for users holding tokens. These cost savings and potential “cash-back” proceeds for token holders will directly originate from fees sourced by Ethos and other counterparties.

We again believe that this model is extremely unique in the crypto space which is only made possible through leveraging fiduciary accounts and similar financial structures.

Stage 4: Robo Wallet & Automated Trading (The Convertible)

Using the infrastructure provided by the self-directed offering, Ethos will leverage the research that has been conducted by Fusion, Vishal and the portfolio management team to build diversified crypto baskets — or “One-click diversification”.

Automated crypto will provide intelligent automated indices similar to “Synthetic ETF Structures” that was mentioned in the Ethos AMA on Ethfinex here: https://www.reddit.com/r/ethfinex/comments/8zqnv6/ama_w_shingo_lavine_ethos_founder_and_ceo_starts/e2msel6/

Robo Wallet functionality is building the “Skateboard” for Fusion which will ultimately incorporate traditional assets into “Fusion Portfolios” that blend crypto and traditional assets to provide advanced investment advice and intelligent portfolios for the crypto asset class.

Stage 5: Fusion Financial Advisors LLC & Blending Traditional Assets (The Lambo)

The final stage is the full blown Fusion Financial Advisors product which will take in information about a user’s financial profile and financial goals and build an automated portfolio that seamlessly blends crypto and traditional assets. This is the final stage of the fiat gateway which will be opened up as we expand the blended crypto/traditional fiduciary structure internationally.  Our intention is to bring this to market through a fully regulated infrastructure.

Building the Fiat Gateway One Piece at a Time

A full-blown financial services ecosystem is HARD to build, but we have taken many of the steps already towards building it. Our partnership with Payroc builds on existing structures that Ethos has to make crypto spendable and seamlessly accessible alongside other asset classes. Our relationship with Fusion, fiduciary-based structures and de-risking practices have opened up many of the doors that were required for a solution like this to exist.

We are excited for this and we hope you are too. Along with the fiat gateway, a lot of new features are at the top of our development list including:

  • Additional Coin Integrations (with some very close to completion already!)
  • Airdrops for Universal Wallet Users (with the first ones going to pre-reg users)
  • Referral Program for Users
  • Push Authorizations
  • “Lightning Transactions” (Instant feedback/confirmation for transactions)

Thanks for reaching the end of this article and taking the time to read through it. While this one was fairly dense, we will be unpacking the implications of what was disclosed in here. Join us on Telegram, Facebook, Twitter and Reddit to stay on top of the news.

 

Until Next TIme,

Shingo Lavine
Founder & CEO
Ethos.io

 

P.S. Vote for ETHOS to be listed on Ethfinex & Bitfinex! Click here to learn how. 


We Need Your Vote to Get Ethos on Ethfinex & Bitfinex!

We Need Your Vote to Get Ethos on Ethfinex & Bitfinex!

We’re happy to announce that Ethos is currently holding the #1 position in the Ethfinex Listing Competition! Backed by an astounding 5.1 million votes, we’d like to thank all the members of our community who have supported us so far.

However, there are still four days left before the competition closes, and in the Wild Wild West of Crypto anything could happen. So we need your help to secure our #1 position and ensure this exciting listing opportunity.

It’s worth mentioning that the Top 3 Coins upon the completion of this competition will  receive the listing on both Ethfinex and Bitfinex. So as long as we secure one of the top spots, we are good to go. Although, of course we would like to stay #1.

Below is all the information you need to understand what Ethfinex and Bitfinex is and how to cast your vote in the competition!

What are Ethfinex and Bitfinex?

Ethfinex is an exchange and hub built for the Ethereum community. It is focused on learning, discussion and crowdsourcing information from developers, enthusiasts and traders across the decentralised ecosystem.

And while this is an Ethfinex listing competition for Ethereum Tokens, this listing also gives us the opportunity to be listed on Bitfinex one of the largest and most advanced spot-trading platforms in the entire cryptocurrency industry.

With your help, our efforts will be successful, and we will have directly opened the doors to our Ethos community to a much larger pool of crypto enthusiasts.

What do I need to vote?

  • A wallet accessible through Metamask or Ledger
  • Ethfinex Voting Token (EVT)
  • ETH to fuel your transaction

Here are the Instructions on How to Vote using Metamask

  1. Visit https://nectar.community/#/listings where you can submit your vote.
  • Login to your Metamask and click “Connect Wallet” in bottom right to view available tokens to vote
  1. If you don’t have any EVT then you will first need to purchase some at https://www.ethfinex.com/.
  • EVT is only paired with USD. If you do not have USD on Ethfinex, you can exchange ETH for USD
  1. Once you have your EVT you need to send them to your personal wallet
  • You need ETH to cover gas fees on Metamask
  1. Login to your Metamask and refresh the voting page. Once your tokens arrive in your wallet your token balance will be displayed and you will be able to click “Vote”
  2. After clicking vote, verify and confirm the transaction (pay the gas fee via Metamask)
  • All the EVT tokens will be used. 1EVT= 1 Vote, so that means if you have 1,000 EVT you will  be able to contribute 1,000 Votes!

For additional support with the voting process, check out this great tutorial by Ethfinex!

Thank you so much to all of you who are contributing your time, energy and resources to the cause of helping expand the Ethos Community and liquidity network. We are excited to welcome others to the new economy.