Introduction to eCoinomic.net II

How to bring more liquidity to the cryptosphere?

After the Bitcoin rally in 2017, it is hard to find an urban dweller that did not hear about the cryptocurrencies. The popularity and public interest in crypto reached it all-time high at the end of 2017, when the number of Google searches for ‘Bitcoin’ surpassed the number of searches with such keywords as “Trump”, “Apple”, “Star Wars” and “Dollar”.

The total market capitalization of cryptocurrencies was also increasing enormously and reached USD 834 billion in January (right before the current correction started) — much more than the market capitalization of Alphabet Inc — also known as Google is currently worth.

The increase in capitalization and popularity, however, did not help the liquidity and adoption of the cryptocurrencies, which is still far away from perfect. One can be a millionaire in the crypto, but cashing out process is complicated. There is limited liquidity in the services that provide an opportunity to exchange cryptocurrencies for fiat; such services frequently stop accepting new members; such operations are in the grey zone in many countries, legally-wise — this is just a few examples.

For traditional finance organization it is also difficult or sometimes impossible to deal with cryptocurrencies. For instance, in many countries banks and funds can’t invest in the cryptocurrencies directly.

To summarize, the digital assets market is attractive but yet often unreachable.

We at eCoinomic.net aim to help changing that.

In contrast with many blockchain projects, eCoinomic.net is not a startup in the full meaning of the word — we have four parent companies: a bank, a microfinance organization, a pawn shop network and an IT company. For years we have been working with banking products, loans, microfinance and IT development and now we are bringing all the necessary competence to the cryptosphere.

Let us introduce our parent companies:

Sauber Bank

Sauber Bank JSC is a Russian bank that was established in 1992 and reorganized from one of the oldest USSR banks. The bank offers a variety of financial services both for both individuals and businesses: loans, deposits and currency exchange, leasing, settlement service and cash services. The bank has branches in St.Petersburg and Moscow.

The bank’s financial indicators for the financial year 2017 are:

Net assets: RUB 2.8 billion (approximately USD 46 million),

Capital adequacy ratio is 26.5%,

Acid-test ratio is 141.4%,

Current liquidity ratio is 122.6%.

eCoinomic.net co-founder and CEO Alexei Smolianov is also CEO of the Sauber holding group and the owner of Sauber bank. eCoinomic co-founder and CTO Maksim Akulshin is the member of Sauber bank’s Board of Directors.

Microfinance company “Dengi Budut!”

The microfinance company “Dengi Budut!” operates in Russian Federation since April 2011. “Dengi Budut!” is a fintech lending company that has built out its own credit rating infrastructure and own qualified collection service equipped with high technologies and technical means. Since 2011 the company has scaled its profitable growth model throughout Russian Federation; there are offices in the 30 major cities.

With its own developed product — Installment Consumer Loans — the Company performs with the figures that distinguish it as a leading lender in the sector: customer retention rate 62%, EBITDA margin 41% and NDL 90+ 12% under the financial year 2017.

eCoinomic.net co-founder and business development director Maria Smolianova is CEO of “Dengi Budut!” and Vitalii Topor, eCoinomic.net co-founder and managing director is the director of the operations there.

Leningrad pawn shop network

The company started its operations in August 2015. 20+ pawn shops have been launched in 5 regions of European part of Russian Federation within the first year of operations. The pawn shops specialize in operations with jewelry and gold. There are two services provided — jewelry buyout and lending backed by jewelry or gold.

96% increase of sales revenue since August 2015 for August 2017, 29 months operating and investment costs recovery, customer retention rate at 76% — such performance lead to 23% ROI at the end of 2017.

Vitalii Topor is a CEO of Leningrad pawn shop network and Maria Smolianova is the development director there.

Information and Communication Systems Ltd (SIIS)

Information and Communication Systems develops software products and telecommunication systems since 2009.

SIIS offers a wide range of services with an emphasis on modern comprehensive data processing and web analytics. During the last year the company’s flagship software product Survey-Studio has registered 2300+ analytical projects with more than 1,500 questionnaires containing more than 64,000 questions. Altogether, the system recorded more than 6,500,000 interviews with more than 67,000,000 collected answers. At this point Survey-Studio has more than 190 registered customers including large private and government organizations like Russian Public Opinion Research Center (VCIOM, the oldest and one of the leading sociological and market research companies in Russia), Public Opinion Foundation (FOM), NAFI Research Center, Validata research company.

CEO of SIIS is Maksim Akulshin, eCoinomic.net co-founder and CTO.

Bringing liquidity

As we stated at the beginning of this article, cryptosphere requires more liquidity. One of the ways to provide it is to bring in large players from traditional finance: institutional investors (mutual and hedge funds, commercial banks, insurance companies etc) and family offices.

But how it can be done, provided that direct investment in the cryptocurrencies is off-limits in many cases and special financial instruments like Bitcoin Futures has its limitations?

The business model of eCoinomic.net provides a solution for traditional finance organizations that want to enter the cryptocurrency market. We offer them to become the lenders for our platform — to provide their fiat funds for lending, without the risk and limitations associated with operations cryptocurrencies. eCoinomic.net provides full coverage for their funds and act as the intermediary, so this safety is guaranteed. Our research shows such service can be very interesting for institutional investors and family offices — and in the following days we will publish first letters of intent from them.

With the participation of institutional investors eCoinomic.net platform users can be sure that they will be able to use its lending services without unnecessary limitations and difficulties — frequent companions of the P2P approach.

The solution eCoinomic.net offers is quite simple — but it requires solid experience in traditional finance, something that most of the blockchain projects can not offer. Competence and reputation in traditional finance is something that needs years to acquire, and newly opened companies do not have this advantage.

One of our mottoes is “Bridging the gap between crypto and traditional finance”.

Now you see how we do it.