Crypterium aims to develop an open platform digital cryptobank, capable of providing a user-friendly, global banking experience using the power of blockchain technology. Users will not only be able to store, spend, exchange, and borrow against practically any cryptocurrency, they will also benefit from crypto-fiat exchange services allowing them to spend their cryptocurrencies easily in real world purchases and transactions, with fast and efficient bid-offer matching, all via a mobile application that facilitates cashless and contactless payments at NFC-fitted POS terminals, and is also capable of processing QR payment codes. Among the multitude of features promised by Crypterium are: cryptocurrency exchange, fiat currency transactions, unrestricted international transfers, utility payments, loans, and more.
In terms of offering, Crypterium falls into the category of full banking solutions, along the lines of Change Bank and Bankera. In terms of providing easy access to real world purchases (with under the hood optimized crypto to fiat exchange), Crypterium contends against solutions such as TenX, Shift Card, or UTRUST. In contrast with these, however, Crypterium appears to be entirely undeveloped as of yet, despite stating that they have raised about $8m in two rounds already, for the development of “contactless payment technologies” (in 2013, along with $1m round A) and a “universal tool for daily payments” (in 2015, along with an $7m round B). The company does not have a banking license and will require, according to their own whitepaper, 7,000 BTC to produce one. Furthermore, they will require 1,500 BTC in order to transition from a wallet with fiat settlements to a mobile bank (according to its stated financial objectives). The company is raising funds via ICO in order to support its research and development efforts and commercial operations until such time that it is cash-flow positive.
Crypterium’s CRPT tokens are supposed to provide holders with special benefits and rewards, both for owning CRPT and for user activity on the banking platform. Crypterium will charge a 0.5% transaction fee on all payments made on the platform, use these fees to buy back CRPT tokens from the open market, and burn them, thus continuously reducing supply, increasing the market value of remaining tokens, and decreasing the amount of tokens bought back for the same amount in fees. Crypterium will also charge fees from merchants accepting payments on the platform, currently estimated at 0.49% but liable to change, from which 0.15% will be used to buy back CRPT tokens and distribute them back to platform users, in accordance with the amount of tokens they hold (via inclusion in one of four distinct ‘loyalty’ groups) and proportionate to their share of transactions (within their group).
Furthermore, while the number of daily/monthly payment, transfer, or withdrawal operations on the platform per user will in general be limited, holders of 10,000 or more CRPT tokens will benefit from reduced limitations, albeit in accordance with the length of time for which they hold on to their tokens. Inbound operations (updating wallets, deposits, etc.) will never be limited. In addition, from the beginning of Crypterium’s 2nd fiscal year and provided that the value of CRPT is at least $10, transaction fees for token holders will be reduced by half (from 0.5% to 0.25%). Token holders will also receive discounts on non-free platform features, as well as reduced interest on loans. Token holding merchants will be entitled to fee discounts as well. The influence of such fee discounts on the buyback mechanism is left unaddressed.
Also, it appears that loans on the platform will be facilitated using a different token called CRPT:CRED. The platform will employ KYC and risk assessment based on previous loans to determine a loan applicant’s conditions and interest rates, and issue a smart contract based CRPT:CRED loan, which the borrower will then be able to convert to any fiat currency via the platform’s internal exchange. The borrower will later repay the loan (with interest) by buying CRPT:CRED tokens, also via the exchange.
All in all, it is very difficult to make sense of the company’s convoluted business and token models, which seem to be deliberately obfuscated in the whitepaper. As mentioned, the platform is as of yet undeveloped, and technological or implementational considerations are not addressed.