Telcoin is an all-new "mobile crypto solution," with a particular focus on "integrating crypto and mobile networks globally." Through this operating model, Telcoin aims to make conversions between telecom mobile money and prepaid credit and postpaid billing platforms easier. Other key aspects of this service include:

Full compliance with telecom operators guidelines: The platform adheres to all international telecom regulations and will be exclusively launched by GSMA mobile network operators.

Widespread availability: Telcoin has partnered with all major global mobile network providers, bringing this crypto-based service to over 5 billion mobile users.

Based on market research: The platform is built on the solid foundation of the Ethereum blockchain. Analysts predict that this niche market has the potential to become a goldmine in the future. Thus, Telcoin inherits the benefits of a trusted network.

Project Highlights

The company employs a model that distributes its tokens to mobile networks based on a highly incentivized model. In the 10 years following the ICO, Telcoin tokens will be allocated to telcos at a rate of 5% annually. This phase will be considered an integration period and will allow the currency to gradually enter the mobile market. Other key features include:

Incentivized adoption: Anyone adopting this network immediately becomes part of a group eligible for token rewards.

System flexibility: A flexible "token pricing and exchange API" enables the platform to interact fully with mobile networks.

Secure wallet: The company provides all customers with a "TenX wallet," but also states that in the future, their goal is to help launch their own wallet brand, which will work alongside any operator or third-party partner, including payment platforms.

Mobile-friendly: Telcoin is unique in that it is fully integrated with our mobile consumption habits. The platform allows us to make international transfers, online payments, mobile credit top-ups, and ad hoc transfers.

Telcoin combined with AI (Artificial Intelligence)

Handling anti-money laundering and fraud management: If an unfortunate customer loses their phone while traveling abroad and a malicious individual finds it and starts transferring tokens, the blockchain allows access to vast amounts of data. AI can understand the clients standard behavior and thus detect anomalies.

As a liquidity provider, mitigating Telcoins foreign exchange risk: With the latest advancements in AI within quantitative finance, efficient hedging strategies have been proposed and successfully applied to the forex market. A direct benefit of using AI is lower forex risk, narrower spreads, directly benefiting mobile operators willing to buy and sell Telcoin.

Managing volatility in the cryptocurrency world: By analyzing prices, volumes, and news from different exchanges, AI can fairly price future contracts. These contracts aim to freeze the price of the currency for a fixed period. Users are advised to purchase these contracts to eliminate the volatility of the currency over a period, paying a small premium.

Automatically adjusting the remittance threshold that customers must complete to transfer funds: Since Telcoin is based on the Ethereum blockchain, most AI services mentioned here require Oracles. In blockchain and smart contracts, an Oracle is an agent that finds and verifies real-world events and submits this information to the blockchain used by smart contracts. In our AI environment, Oracles can provide external data inputs such as volatility forecasts and dynamic remittance thresholds per customer.

Use Case

Analie is a Filipino nanny living and working in Canada who sends CAD 200 to her mother in the Philippines each month. She goes to the bank, deposits her actual salary from her employer, withdraws CAD 200, queues in a physical store, fills out paper forms, and finally hands over the money to be transferred. For a CAD 200 transfer, iRemit charges about 2% or CAD 10. In this process, 7% of the initial value is lost (and still below the average of 7.45%). However, the actual cost is much higher because Analie has to leave work early to hand it over to iRemit before the bank closes, a two-hour journey equivalent to another CAD 40 in wage loss. For older mothers, they also have to go through a series of procedures to collect the money, and the actual fees may be worse than the financial charges. The CAD 10 fee alone could have bought her a weeks worth of food in Manila.

Using the above example, Analie could send CAD 200 through Transferwise with a CAD 4 (or 2%) fee, using a more attractive mid-market exchange rate. With a linked and verified bank account, the transfer might arrive the next day.

Blockchain-based remittances could be faster, cheaper, and save users billions in fees and countless hours wasted at physical banks and payment processing stores. All users need is a smartphone and a cryptocurrency wallet.

If transferring CAD from Canada to the Philippines via smartphone to smartphone happens almost instantly and without any fees, since her mother prefers cash, she searches for nearby Abra users in her app and finds four within a block of her home. One "teller" offers a 3% commission, two offer 1.5%, and the fourth offers 2%. She chooses the one offering 2% because he offers to meet halfway and has a five-star review on the app. The "charge" by the teller ends up being the same as Transferwise, but Analies mother gets cash in hand faster and doesnt have to go to a bank.

Opportunities

Huge market potential: Market research shows that this crypto space has the potential to generate at least $50 billion in "international remittances."

Growing demand: Thanks to the extensive infrastructure developed by Telcoin engineers over the years, over 5 billion users now have the opportunity to participate in this unique business activity.

Low fees: By using cryptocurrency, the platform has the ability to offer very cheap transfers, allowing them to capture a small market share.

The project originates from Japan, where the recent blockchain environment is highly favorable. Recent Japanese projects have performed exceptionally well, making Japanese ICO projects synonymous with high quality.

Risks

The project focuses heavily on R&D and less on promotion, with over 9,000 followers on Facebook but only just over 3,600 in the Telegram group. Community engagement needs strengthening.

Due to Chinas strict restrictions on virtual currencies, the project cannot currently enter the Chinese market.

Summary

Telcoin distributes e-currency to telecom partners, who then sell these tokens to their user base. Moreover, thanks to the incentivized model for telecom operators, Telcoins focus on trust, coverage, and KYC (Know Your Customer) compliance will be key factors in its market success.

There are currently 2.6 billion smartphone users globally, expected to reach 6.1 billion by 2020. Blockchain-based remittance services have proven to reduce time and costs in sending and receiving funds. By educating the global community about blockchain and its potential economic benefits, the revolution of financial inclusion is imminent.

Telcoin boasts a team of experienced professionals from various fields, with renowned ICO commentator Ian Balina describing it as an "All-Star" team. It also has reasonable development milestones, suggesting that it will have high investment value in the long term. With a market cap of $25 million, its not overly large, and we look forward to its good performance when listed on exchanges.