Kinesis (KVT) ICO review
Kinesis has introduced yield-bearing digital currencies, based 1:1 on physical, allocated, gold and silver. When you purchase Kinesis currencies, you are simultaneously allocated real gold or silver stored securely in one of several third-party vaults around the world ensuring no counterparty risk. These digital coins (KAUs represents the gold-based coin and KAGs represents silver), can easily be spent at point of sale through the Kinesis debit card, allowing users to make fast and safe transactions. Holders of Kinesis currencies can redeem the coin and take delivery of the underlying physical precious metal guaranteeing intrinsic value with this cryptocurrency. The Kinesis Velocity Token (KVT) public sale is now live, with a successful pre-sale raise of $55 million Kinesis is on track to achieve the hard cap target of $300 million. This initiative was founded by ABX, a leading online exchange platform for physical bullion, with deep expertise in the gold industry.
Your ownership of the gold is then digitised using blockchain technology, meaning you can hold or transfer your currency from the Kinesis digital wallet, spend the currencies easily using a debit card anywhere Visa/Mastercard is accepted, or trade them on them on the Kinesis Blockchain Exchange. Your holding can even be transferred back to physical gold or silver.
The Kinesis currencies offer a unique yield system to encourage adoption and stimulate use. When KAU and KAG are transferred between holders the network collects a 0.45% fee that is then accumulated and distributed monthly, in varying proportions, to participants in the Kinesis Monetary System as a ‘yield’.
Kinesis was founded by the Allocated Bullion Exchange (ABX); meaning it already has extensive infrastructure and fully operational exchange technology for the trade and storage of physical bullion in 7 locations around the world.
It is in this context that a leading online institutional exchange for trading physical gold has created a new monetary system with a digital currency based 1:1 on allocated physical gold and silver.
This is the first time that allocated gold ownership has delivered this kind of non-debt-based yield, so Kinesis have a lot of interest from the $15trillion gold trading industry.
This initiative was founded by ABX, a leading online exchange platform for physical bullion, with deep expertise in the gold industry. ABX is integrated with Deutsche Borse’s clearing house and already has extensive infrastructure and fully operational exchange technology for trade and storage of physical bullion in 7 locations around the world.
Last but not least one of the most exciting pieces of the Kinesis currency suite, the Kinesis Blockchain Exchange (KBE). This is our own exchange platform allowing users to buy and sell cryptocurrencies against Kinesis currencies, creating easy exchange for cryptocurrencies. From Bitcoin (BTC) to Kinesis Gold (KAU) or Kinesis Velocity Tokens (KVT) to Ethereum, the KBEeliminates the need for third party exchanges. This is not the first time we have built an exchange; through ABX we have developed MetalDesk, an allocated precious metals exchange used across the world by many of the largest physical precious metal trading houses., Kinesis leverages this experience and infrastructure to provide a world class service.
No need for complex byzantine systems of the past for managing our finances. Using the Kinesis Monetary System users will be able to make purchases, both large and small, pay bills with ease and even manage international payments with lower transfer rates offered by banks and other international payment services.
Bringing back a truly decentralized, digitalized asset, based on blockchain technology.
How is an Initial Token Offering (ITO) different from an Initial Coin Offering (ICO)?
The Kinesis Velocity Token (KVT) is a utility token and isn’t an asset-based currency. This is what is currently in pre-sale in the ITO that is running until September the 10th at a 2.5% discount. Then it will head into Public Sale until November 11th, 2018.
KVTs reward participants proportionately to the growth of Kinesis Monetary System, meaning early adopters can stake a claim to an entire monetary system. KVTs are limited to 300,000 only, without a chance of future dilution.
Holders of the KVT tokens will receive a passive 20% proportional return on the transaction fees accumulated from the Kinesis Monetary System. This creates an additional, passive form of potential return for token holders on top of the value of the token itself.
The ICO references the Kinesis currency suite being launched in November 2018. This includes the KAU (gold-based) and KAG (silver-based) currencies. KAU and KAG are minted into existence as a 1:1 representation of allocated physical precious metals which underpin the cryptocurrencies.
For example, 1g gold equals 1 KAU and 10g silver per 1 KAG. You simply deposit USD or physical gold or silver into the Kinesis primary market and you are able to mint that Kinesis currency, USD, gold or silver into KAU or KAG. It is then displayed in your e-wallet available to be spent or transferred. We have even created a Kinesis debit card that can be used anywhere Visa and Mastercard is accepted.
Our target markets:
Precious metal market: Precious metals and many other physical assets have no yield attached to them - they instead typically cost money to hold securely. Precious metals stored in vaults have no liquidity - they cannot be used as they currencies they once were. Kinesis gives yield to these precious metals, incentivising their use and velocity by attaching multiple types of yield for varying degrees of passive or active participation. The Kinesis debit card allows for instant conversion of KAU and KAG into fiat currency anywhere in the world where Visa / Mastercard is accepted, even allowing Kinesis currency holders to withdraw funds at an ATM.
Cryptocurrency market: Cryptocurrencies suffer from severe price volatility, limiting their utility as a currency. Slow speed of transactions and high, fixed processing fees limit the everyday use of existing cryptocurrencies. There is also big use case for those invested in existing alternative ‘stable coins’, too. The high transaction speed, percentage-based fee model, physical asset stability and yield associated with KAU and KAG are incentives for crypto traders and holders to replace questionably-backed and non-yield-bearing stable coins with the Kinesis currencies.
Fiat currency: With global low to negative interest rates, bail-in provisions, depositors’ insurance being removed, and with banks holding legal title to their customer deposits, it makes no sense to choose risk and nil-to-negative return over the alternative Kinesis system with negligible risk and high potential for return.
Investment assets: high valuations and comparatively low yields for stock market and property investment make the Kinesis currencies an attractive alternative investment with a passive yield attached.
Differentiating Kinesis from many of the other gold-backed cryptocurrencies.