There was a time back in 2016 when the price of bitcoin was worth less than $1,000. During that year, a number of digital assets saw a significant rise in value.
Few really knew what Bitcoin was, let alone how to make a purchase. Those that did steered clear of cryptocurrencies fearing their volatile nature as well as the complexities of entering into the market. This scenario still prevails, serving as a major barrier in efforts to boost mainstream adoption.
Addressing this issue has been a perpetual challenge. One company that believes that they have a viable solution is Vaultbank.
With the goal of reducing these barriers while intending to offer a more stable investment, Vaultbank, a global investment firm committed to sound financial investment and technological advancement, is in development on a platform called Vaultbank Exchange. This revolutionary technology hopes to improve the world of cryptocurrency by making investments in security tokens and utility token trading easier, faster and more cost efficient with some of the lowest fees in the market.
Austin Trombley, Chief Technology Officer and company visionary, states, “We are excited about the prospect of reducing the fees on platforms like Coinbase by more than 50 percent all the while leveraging an extremely user-friendly interface and offering access to security token investments, which we believe will take up much more significant share of the cryptocurrency market with additional SEC regulations coming.”
Vaultbank’s aim is to deliver quarterly dividends through their tokens (VB). VB tokens are backed by secured credit assets overseen by an experienced investment and portfolio management team.
Addressing the Market Entry Conundrum
Purchasing cryptocurrencies can be a trying process filled with multiple steps, online navigation challenges and long deposit times. Myriad exchanges now fill the crypto space with hundreds of different coins, most of which are unfamiliar to the investor.
Through the use of distributed ledger technology, Vaultbank will provide a debit card that allows the investor immediate access to their invested funds. Here blockchain enhances the overall efficiency of portfolio management with the effect of lowering fees common in the investment world.
Vaultbank achieves this through a joint venture with U.K. debit card and FX Currency exchange platform Volopa. Volopa allows the end user to trade up to 17 FX Currencies at highly competitive exchange rates, while giving Vaultbank account holders the ability to pay with Ether, Bitcoin and VB tokens.
Augmented by artificial intelligence and machine learning from Random Forest Capital, Vaultbank’s team of experienced portfolio managers intends to create attractive yields for its users. The value creation comes from a quant approach to portfolio management, coupled by ensured security and solvency to rival traditional financial institutions.
Vaultbank and its token system stand to reduce the complexity in cryptocurrency banking by tackling these five obstacles in the securities distribution market:
- Inability to use tokens as a fungible form of payment
- Delayed liquidity in executing a token transaction
- High transaction costs entry and execution costs (as high as 5 to 7 percent)
- Volatility, various cryptocurrencies have exhibited 20 percent to 50 percent swings in valuation within days
- Lack of transparency and integrity tied to most cryptocurrencies having no audit, compliance or oversight practice.
Vaultbank Token Sale
Vaultbank’s token sale, the presale of which is now live and the public on sale which will commence on January 18, 2018, will feature the new Vaultbank Token, which will act as an investment in their entire business and funds. 80 percent of the token sale funds raised will be invested in a secured loan portfolio, as the main fuel early on with quarterly dividends, making it the first asset-backed token to pay dividends in this manner. Vaultbank is clear to note that dividends cannot be guaranteed.
Says Trombley: “Vaultbank is different from 99 percent of ICOs that have taken place thus far because we are filing as a Reg D 506c private security. Our tokens are a security because they actually represent equity, although non-voting, in Vaultbank.”
When asked about the long-term vision of Vaultbank and where he hopes the company will be in terms of its development in the next 12–18 months, Trombley concludes:
“Our goal is to be the leading firm for investment strategy and expected investment liquidity. We believe that value creation is achieved through a quant approach to portfolio management as well as our debit cards and Vaultbank Exchange platform. With an executive team and advisory board with decades of combined experience in managing trillions of dollars for the largest investment institutions around the world, we are confident in the roadmap we have in place to achieve these goals.”