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ICO Alert Quick Facts
- Business borrowing ecosystem allowing small businesses to access financing
- 1 ETH = 3,750 DEB token
- December 7, 2017 — December 21, 2017
- 240,000,000 total available / 400,000,000 total supply
- Advisor (Eyal Hertzog) is Co-founder of Bancor
What is the Debitum Network?
We are a business borrowing ecosystem that allows smaller businesses to access financing needed for growth. At the same time, it allows investors to lend fiat using a decentralized, trust based network of needed service providers (like risk assessment, insurance, debt collection). Our goal is to redistribute financing so that smaller companies can get more of it and can grow and compete with large and wasteful corporations.
Q&A with Martins Liberts | Co-founder
ICO Alert: How does the Debitum token (DEB) function within the platform and why is it needed?
Martins | Debitum: DEB is used as a payment method for services, and at the same time, as a guarantee of service quality. DEB also ensures trustable and secure trust ratings to be calculated and stored for each member of the ecosystem.
There will always be more DEB demanded for a single loan process due to internal Debitum Network mechanics, hence the token price is expected to grow.
ICO Alert: You claim the current model of SME financing is “broken.” Why is it important that SME financing becomes less centralized?
Martins | Debitum: Currently, large and often inefficient corporations have access to cash, hence they waste it. At the same time, many smaller and often more efficient, more innovative or better quality companies have to sell out equity or remain small as they lack financing. This is a very unfair system, mainly kept alive by the centralization of financial institutions and the financing process itself.
ICO Alert: If I’m investing in a company halfway across the world, how do I ensure that my funds aren’t being mismanaged? What are the repercussions for a SME that does not repay their end of the agreement?
Martins | Debitum: There are mechanisms prior to investment, like risk assessment, so you know what you’re investing into and insurance that can insure you against bad debt. But there are also post investment mechanisms like debt collection service that works to get as much money back as possible and secondary market that allows you to sell your investment with a discount to liquidate it.
In general one should expect up to 5% of loans to have certain payback issues (be delayed, partly repaid, bad debt), but that is compensated by higher interest rates. So as long as you invest in a wider portfolio of loans you should be safe.
ICO Alert: What separates Debitum from other small business financing platforms?
Martins | Debitum: We use blockchain as a backbone and a backend technology to ensure smooth and trustable process. At the same time, we use fiat for loans, as this is what is needed by businesses at the moment. We feel that such “hybrid” solutions will ensure adaptability of Debitum Network by customers, investors and service providers. User experience of our solution will ensure that users will not have to break their minds on how to use crypto, rather they will use a service run on a blockchain and utilizing crypto as an internal token.
ICO Alert: You already have a functional MVP, how has that been received by the community?
Martins | Debitum: The community likes what we have done already and we have received many positive comments on the technical side of our demo version. We are looking forward to further developing the Debitum Network solution and launching it. Currently, we are incorporating exchange solution to make sure Debitum Network users will not be forced to use seperate exchange services for buying or selling DEB tokens.
ICO Alert: Are there any specific geographic regions you are targeting immediately and/or in the future?
Martins | Debitum: First business development stage is Europe-centric as this is our home market. We will launch in several eurozone countries, as well as several countries around eurozone. All of which are picked based on the World Bank statistics about lack of financing for small companies. Next stages include global expansion.
ICO Alert: How do borrowers, lenders and other various groups of risk assessors and insurers cooperate within the Debitum platform? Can you take us through a specific use case?
Martins | Debitum: Imagine that Miguel runs a timber company in Brazil and would like to export his production to Netherlands. Since Miguel has no money for international business growth, he sells all his production quite cheaply to Alex, a middleman taking care of business development in Netherlands and logistics. Miguel finds Debitum Network and puts a loan application for $20,000 USD with a 12% interest rate, providing his production in his warehouse as a collateral. Many investors from all around the world decide to finance Miguel and provide him with the loan of $20,000 USD. Miguel is happy to see his business grow as he has more money. As Miguel successfully establish his operations in Netherlands, investors are paid back the loan.
ICO Alert: The Ethereum network has occasionally suffered from slow transaction times. Is there any concern that this may affect the Debitum platform?
Martins | Debitum: We are monitoring Ethereum blockchain and its performance. We look at Ethereum as a great place to launch Debitum Network. However, we will keep our eyes open and if technical issues arise or other blockchain infrastructure will allow us to reach our business goals better, we will consider migrating away from Ethereum.
ICO Alert: As a non-Debitum question we like to ask for unique predictions for the ICO and cryptocurrency space in the future. Where do you see both in the next 3–5 years?
Martins | Debitum: I believe ICOs are a great and fair way to raise money for technology savvy and future changing projects — it is here to stay. However, it will become more regulated to ensure that people contributing are more safe and that projects are genuine. As more and more future companies are tech-related, it will take over other funding options and allow communities to take charge of new business ventures.
As for the crypto space — it will become a part of our everyday life; however, not in a crypto vs. non-crypto manner but in a hybrid, more “under the hood” approach, like https is to the Internet and the use of social media, news portals, and online gaming.
The main ICO will begin on December 7, 2017 and will end on December 21, 2017. There are a total of 240,000,000 Debitum Network tokens (DEB) available during the main ICO, representing 60% of the total 400,000,000 supply. A hard cap of 50,000 ETH is set for this period.
Step 2: January 25th 2018 — February 25th 2018
Step 3: TBA
DEB is an ERC-20 token, so it’s important that contributors use ERC-20 compatible wallets to send funds to the ICO smart contract, and to receive the DEB tokens.
Token Distribution Information
There are a total 400,000,000 DEB tokens being created, with 240,000,000 available during main ICO.
Contributors will receive their tokens immediately after transaction. Tokens will be frozen until the end of Round B. Visit the Debitum Network website for more information and the contribution address.
Use of Crowsale Proceeds
View the Debitum Network website here.
View the only comprehensive list of active and upcoming Initial Coin Offerings here.
(1)Debitum Network Website, Debitum Network (2017)
(2)Debitum Network Whitepaper, Debitum Network (2017)
Source: ICO Alert