Everex ICO - Banking for Unbanked and Underbanked

satish143 (36)in #ethereum • 7 years ago (edited)

Hi Friends,

This is Satish from India.

Today I would like to make a review on Everex ICO.

Currently, there are 2.5 billion people are not able to access the basic financial services like lending, transfers, savings, etc.,

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It is a very sad situation, even though countries are developed with high technology and having a huge mobile adoption still the banks and financial institutions are not able to provide basic financial services to the unbanked and underbanked due to lack of identity and other reasons.

In our current banking system is involved with multiple intermediaries and because of this, the people are facing problems of huge cost for international transactions like cross-border remittances.

As of now there are around 250 million migrant workers, tourists who transfer money to their relatives, and loved ones frequently.

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But for every cross-border transaction, they made they are left paying approximately 7.5% to the financial institutions and banks. Existing traditional infrastructure is having difficulties like waiting times, exchange rate losses, counter party risks, etc., Apart from this banks are favored only to big corporates for providing cross border loans. Due to this the underbanked and unbanked people are largely depending on physical cash based system locally and it results ultimately too heavy interest rates for borrowers.

This system is needed to be changed and requires new solutions to provide basic financial access to untapped people.

Now Everex wants to solve these problems by introducing a new kind of concept called Cryptocash with innovative technologies like blockchain and Smart contracts.

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Cryptocash is a cryptocurrency, where each unit is tied with specific fiat currencies like US dollars, Thai Bhat, and will represent as USDEX, THBAT, and these Cryptocash tokens are completely underwritten by third party custodian and balances in financial entities. So no single risk is attached to the cryptocash token holders.

The benefits of holding Cryptocash

Unlike fiat physical currencies, the Cryptocash can be transferred to anyone, anywhere and at any time.
The transaction will be completed within seconds in global level, So that there will not be much waiting time
Cryptocash transactions are would be done on sophisticated immutable block chain technology. Ultimately removes middle man between international transfers.
There will not be any charges for the wallet to wallet transactions unlike traditional system, which charges around 7.5%. Which is very huge.
Cryptocash can be converted into any type of fiat currency and fiat backed cryptocash like from US dollars (USDEX) to Thai Bhat (THBHT).

Generally, people around the world can exchange the physical fiat money with Cryptocash easily with currency exchangers and banks. Banks and currency exchangers will get KYC of everyone who is willing to convert their fiat to Cryptocash for legal obligations and identification purpose.
If the receiver of Cryptocash desires to convert to his fiat currency then he can convert it with nominal charges. In case of business, 1% fee will be charged for accepting Cryptocash payments.

Apart from this Everex wants to provide Microlending services to the unbanked and underbanked people. In the traditional banking system the process of lending involves a lot of process like paper work, approvals.

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But unlike traditional system, Everex will connect the lenders and borrowers in their platform. The lender can provide loans to the borrower with certain conditions based on the creditworthiness of the borrower. The creditworthiness of broker will be decided based on 3 types of data in Everex platform. The 3 types of data are personal, social, and transaction history. In Everex platform, there will be 5 stages for doing micro-lending.

1. Preparatory stage

In this information about entities or individuals are incorporated into the contract.

2. Negotiation

During this stage, the terms of a contract like interest rates, time period, no of installments will be finalized.

3. Contract execution

If both parties (lender and borrower) satisfied with the conditions specified in previous stages then both will sign the contract for execution.

4. Roll back

If parties disagree with the terms then roll back will be triggered in the contract.

5. Contract expiry stage

The contract will expire when the time period for a loan given lapses or permanently terminated.

Now Everex wants to introduce its platform token called EVX with ERC-20 standard from Ethereum platform for its platform usage.

Primarily there are two uses can be benefited by holding EVX

Based on no of EVX token holding the creditworthiness of borrower will increase. If the borrower holds more EVX in his wallet then he will get a loan with limited and favorable conditions.
EVX holders will decide the events in Everex platform like buy back of EVX from the market with voting and the voting will be based on the proportionate holding of EVX.

The people in Everex platform can vouch for the borrower by putting some of the EVX into the platform. Once borrower repays money to lender then both borrower and the person who voucher will be rewarded with some additional EVX tokens.

We hope the Everex will definitely include lots of unbanked and underbanked to the financial ecosystem.

The team and advisors having more than 15 years of experience in capital and finance markets.

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