NetCents Technology Inc., a Canada-based payment processor supporting multiple currencies, will issue a new asset-backed digital coin called NetCents Coin intended to be a widely circulated coin that will improve on existing cryptocurrencies for making financial transactions.
The NetCents Coin Foundation (NCCF) offering NetCents Coin brings significant experience in processing cryptocurrency payments through its proprietary systems.
NetCents Technology Inc. clients – both merchants and consumers who are transaction driven as opposed to speculative – have been pushing the company to find a more stable alternative for everyday use.
With NetCents Coin scheduled for release later this month, NCCF will create opportunities for businesses and consumers while providing financial inclusion for many who are presently constrained. NetCents Technology Inc. issued a whitepaper earlier this month.
A Unique Coin
Using existing, proven, blockchain architecture, the coin’s uniqueness lies in its release mechanism and reserve account, features that ensure the cryptocurrency will be fully scalable. It has been designed to provide downside protection through a significant, ever increasing, cash reserve account.
The multichain technology ensures that only chosen participants manage the blockchain.
The coin is not pegged to another asset class or fiat currency, but is designed to appreciate in value in a controlled manner over time as more users adopt the coin. It will be able to absorb billions, if not trillions, of dollars while minimizing price volatility.
The coin release algorithm ensures a stable supply/demand equilibrium that will provide a steady price increase, unlike existing cryptocurrencies.
Existing Coins’ Shortcomings
Existing current cryptocurrencies are volatile and speculative, offering limited long-term stores of value to the population at large.
Bitcoin can only support 300,000 transactions per day, limiting its scalability. The NetCents Coin can support 9.2 million transactions per day. Bitcoin also has high transaction costs, mining risks and limited privacy. Its value is based strictly on supply and demand, giving its underlying asset a value of zero. Bitcoin has also evolved into a centralized network with concentrated holdings that result in an imbalance between supply and demand.
The NetCents Coin will offer low transaction fees, transactions that mitigate chargebacks and instant trading.
Asset-Backed Treasury
NCCF will use its treasury reserve to position the coin as a mainstream currency as opposed to a speculation tool. The reserve will be composed initially of both fiat and cryptocurrencies. The NCCF Treasury Reserve Account will be transparent at all times.
NCCF will issue coins from its treasury at market rates. All proceeds raised from coin sales will remain in the treasury account, which supports the coin’s value and funds development of the coin.
Services Will Expand
The NetCents ecosystem includes an independent exchange, the NC Exchange, for buying and selling the coin. The exchange utilizes AI 2.0 algorithms to provide a real-time record of every transaction. In time, the NCCF will allow independent exchanges that meet know-your-customer/anti-money-laundering protocols to trade the coin.
The ecosystem also offers e-wallet capabilities, payment transfers and a merchant gateway. The minimum coin sale price will be preset at a specific premium. New treasury coins will not be issued if the coin does not trade well.
Demand will trigger the release of new coins, which will be structured in a way that will not debalance the supply/demand equilibrium.
Staggered Coin Releases
There will be an initial five staggered coin releases, with 5 million coins per release. The initial price will be $1, doubling with every subsequent release.
The coin must appreciate 75% to trigger the next release. The number of coins released will be 150% of the prior release. Users will sign up for a NetCents Technology Inc. account and load funds via credit card, wire transfer or PayPal. Users will then be able to conduct online purchases with NetCents participating merchants.
Users will be also able to set up e-wallets with third parties. The coins will not be traded exclusively among NetCents merchants and clients.
Users can sign up for the NetCents Coin presale at the website.
The NetCents Coin marks an attempt to leverage existing cryptocurrency technology to provide a more reliable coin for transactions that will be available to all.