Review of Tenx (PAY) cryptocurrency

TenX currently (as of 1st August 2017) has a market cap of approximately $97 million. TenX trades under the token name PAY. For people who have no idea about TenX, TenX is a cryptocurrency platform that consists of a wallet, debit card, ATM access and more. Most of the apps that currently exist only allow you to spend your bitcoins. But TenX allows many alt coins including ETH, DASH etc. The app is currently available on play store and is expected to be launched soon on apple store

When I first came across this app on a news website, I was very excited and felt that it has a lot of potential. Having this app, makes the altcoins in your portfolio spendable and opens the market for many altcoins like DASH which currently doesn't have many vendors. Additionally, PAY token holders receive 0.5% of every transaction that is done using TenX app or card. This is an excellent concept. I immediately bought some PAY tokens. I am iphone user. So had to wait till i had access to an android device to download the app and try it. As an investor, I always believe in products I use. But when I opened the app, I found that it is in very nascent stage. Its glitchy and with very limited functionality. But this is quite normal for a new app. But what surprised me was that, there are hundreds of companies which have a fully developed product and are still not able to raise the money TenX raised. So I decided to find a way to value the PAY token.

So, as mentioned earlier, if you are PAY token holder, you will receive 0.5% of every transaction amount done through TenX services. As an investor in riskier alt coin market, I would expect at least 10% return per year from my investment (this is a very minimum expectation. Many stock indexes generate more than 10% for hardly any risk compared to this investment) . So a $100 million market cap should generate 10% * 100 = $10 million worth of return. Now in order to generate that return, the volume of transaction through TenX should be close to $10 million / 0.005 = $2 billion worth of transactions. But right now, TenX may be having few hundreds of thousands of transaction volume. In comparison, Paypal processes around $100 billion every year.Also TenX also has many competitors who are trying to solve the same problem (Monaco, Xapo etc).

TenX has a long way to go to even justify current valuation. Any security should be valued at what its worth now. This kind of excessive valuations is the reason why people are comparing crypto currency market to the dot com bubble.

Please note that I am by now way suggesting you to not invest in TenX. This article is meant to give my opinion on TenX as an investment and help people to understand the company better and make an informed decision before investing. Also please note that I do not own any PAY tokens at the time I am writing this article.