Estimated reading time: 5 minutes, 56 seconds
Watch as Jeremy breaks down the the Stack project and token including it’s goals, market, and details! Stack hopes to be a payment solution that’ll bring mass adoption of their technology through existing payment networks. The STK token will use the blockchain technology in order to provide payment transfers at lower fees, incorporating more citizens into the global economy.
We’ll go over the project using the four questions we use to evaluate every ICO, so keep watching or read below and we’ll get you up to speed on everything involving the STACK project. Check back for more episodes of ICO or NO!
What is STK token & what problem does it hope to solve?
Right now is at a tipping point. Mainstream news outlets are covering the rise of cryptocurrency. Coverage has gone from absolutely none to having regular segments on networks like CNBC. Last week, for the first time, I saw a major business news show actually do back-to-back stories on blockchain and cryptocurrency.
So why hasn’t it completely caught on yet? What’s holding back adoption? Because very few merchants accept cryptocurrencies at point-of-sale or online, consumers must exchange cryptocurrencies into their local currency to make everyday purchases. In short, it’s a hassle to use crypto as a payment solution because very few are set up to accept that type of payment. Through any existing exchanges this can be time consuming, and comes with sizeable fees. Though there are some companies have made products that enable retailers to accept Bitcoin payments, they are currently available at only a tiny number of locations.
There is a two-pronged problem that the STK solution will solve:
1) A lack of merchant acceptance of cryptocurrency. STACK has partnered with an existing payment network that will allow the cryptocurrency wallet to be used at 39 million merchant locations.
2) Payments at point-of-sale must complete in near-instant time. Writing each payment transaction to the blockchain takes time depending on which network is being used. Different blockchains have different confirmation times: bitcoin has a 10 minute confirmation time and Litecoin has a 2.5 minute confirmation time. Imagine sitting around waiting for your payment to clear; it’s not practical.
So STAKE uses something called State Channels. What are State Channels? Well, they provide the speed required for STACK’s point-of-sale purchase mechanism, allowing for near instant purchases that don’t require much clearance time. At the moment of purchase, the user sends STK tokens to STACK’s in exchange for fiat using their liquidity pool to make a fiat purchase through the global payment network. This is a cost effective approach to enabling transactions.
STACK offers its members fee-free, digital money services including:
• Real time conversion from crypto to local fiat currency at point-of-sale
• Tap-to-pay functionality on the STACK mobile app and on participating third party mobile wallets
• Multi-currency wallet (cryptos and fiat currencies)
• Chip-and-PIN EMV card
• Social sharing to celebrate moments that matter on the STACK World Stream
• The ability to withdraw cash from any ATM
Each STACK account includes a STACK card – a prepaid card – which is used with the STACK digital wallet. STACK payment facilities which include the physical and virtual prepaid card which is expected to be able to be used in almost 200 countries at over 39 million points of acceptance. This is possible through their card issuance partnerships with global payment networks.
What are the market conditions facing the STK ICO?
Payment channels are going to have to develop if were going to see this type of project take off. The good news: they are well on their way, as this project is evidence. The bad news: there are a lot of other projects that are trying to accomplish the same goal. Just off the top of my head there’s Bancor, Monaco, and TenX. Most of the projects we cover are kind of pioneers in the niche they are carving out. This is such an obvious application of blockchain technology, this space is already crowded, and some projects have head starts over others.
Something interesting other payment solution projects have done is that they are isolating certain geographic markets, and making strategic partnerships in order to make their project’s goals more achievable. The perfect example is OmiseGo, which has set up a partnership with McDonald’s Thailand.
However, just because the space is crowded doesn’t mean this project won’t find success. Another reason that this space is so crowded is that demand is very high. People are looking towards this technology to pave the way for payment solutions. It might be an uphill battle and only time will tell which one of these payment solutions, if any, end up making it in the long term.
The major advantage that this project does have, however, is that they are going to be using an existing payment network to complete part of their transactions. The other part of their platform is currently in testing and does not look to be too far off. Getting to this step first could be a big deal in solidifying their place in the market.
Who is the team behind STK token project?
They state that their team has lots of experience in several different fields. They essentially took professionals from financial services, technology, and marketing. Having a diverse team coming from several different career backgrounds makes a project stronger. You don’t want to see one with all tech people, or all marketing people. The strongest projects are going to have team members of various backgrounds.
In addition, one of their advisers is Alex Tapscott. If you don’t recognize the name, he’s pretty much on the Mount Rushmore of blockchain technology. It’s kind of a big deal since it’s not a name you see associated with every project. (Read more about Alex Tapscott and his work!)
And finally, what are the details of the token sale?
STK tokens will be available for purchase starting November 13, 2017 and the estimated cost per STK token is $0.16 USD.
STK tokens for sale represent 55% of all STK tokens, with 45% for presale. A maximum of 310,345 ETH and a minimum of 3,600 ETH will be accepted for the sale of STK tokens.
STK tokens are not available for purchase for residents of United States or Canada because of existing security laws, although that hasn’t necessarily stopped anyone before.
In order to further develop and promote the STK platform, STK will conduct a token generation event that will offer for sale 550,000,000 STK tokens out of a 1 billion total supply.
The money raised from the ICO will be used for marketing, solution development (both iOS and Android), integration of STK with STACK, and the operation of crypto to local currency exchange. The remaining will be reserved for the liquidity pool, bounty programs, and referrals. Any unsold and undesignated tokens will be burned.
ICO or NO covers some of the hottest tokens sales from the coolest projects! Jeremy, though his patented Four Question System*, dissects each project to help you better understand the token sale! Check out more of our ICO or NO episodes here, and subscribe to our YouTube channel for future ones!
*Patent Maybe Pending