The Kinesis CEO, Tom Coughlin was recently part of an extensive US tour to meet with investors.
During this time, Bart Chilton of the finance show “Boom or Bust” took the opportunity to interview the illustrious CEO of the rapidly growing institution, Kinesis. Coughlin was able to express his vision for the future of Kinesis and talk about the exciting developments Kinesis has had over the last several months.
Kinesis Overview
The cryptocurrency markets have the attention of the entire financial world. From the richest nations in the world to small independent countries, everyone is wondering how to proceed in this new rapidly expanding financial and technological sector. This involves new legislation, laws and tax plans and investor regulation for each country. Blockchain is quickly proving to be a valuable tool in most industries, and countries everywhere are figuring out how to adopt it for everything from government filing, to the tracking of goods along their supply routes. This is in addition to some of the biggest business corporations in the world like Walmart and Amazon.
With many advances in the cryptocurrency and blockchain industries happening every day, one particular facet is still yet to be fully harnessed. The cryptocurrency market is in desperate need of a proper stablecoin that is truly reliable and from a well-established and trusted source.
As described in the white paper, “The vision for Kinesis is to deliver an evolutionary step beyond any monetary and banking system available today.” Kinesis is in one part, an upcoming cryptocurrency project that promises to be the most efficient and trusted stablecoin in the market today. They are preparing to launch two digital currencies that will be backed by precious metals like gold and silver. These are time-tested stores of value that have never lost prominence in the centuries they have been used for commerce, and investment worldwide.
Kinesis has several tokens they are launching, their primary currencies being KAU and KAG. These two tokens are backed by gold and silver, respectively. This is in addition to their KVT token which is currently being offered in their public sale. The KVT token is their “Kinesis Velocity Token.” This is an ERC20 utility token for the Kinesis network. Holders will be long-term investors and believers in the Kinesis project and will receive a proportional 20% share of all the transaction fees that transpire on the Kinesis network from the use of the KAU and KAG tokens. This is in addition to 20% of all commissions from the Kinesis Commercial center or KCC.
Coughlin explains on Boom or Bust that Kinesis is more than just a cryptocurrency or stablecoin. It is a full monetary system with several tiers that has extravagant benefits to those that choose to be a part of their institution. “It’s secure and efficient and rewarding, really for the benefit of all both collectively and individually.”
How Kinesis Works
When you look into the inner workings of Kinesis, you will find a multi-layered system that has been specifically designed to match almost every individual need of the consumer in the rapidly growing crypto space. Kinesis has done its market research from top to bottom and has a system that offers much more than any competitor in crypto, be it stablecoin or otherwise.
Being developed and launched right now exclusively for the Kinesis platform, is everything from a sleek new proprietary crypto wallet, to their own crypto exchanges, to even a Kinesis debit card. The debit card is linked directly to your Kinesis wallet, making your Kinesis tokens spendable anywhere in the world, even where cryptocurrencies are not yet accepted.
Coughlin explains in the interview that Kinesis has a “highly unique sort of two-tier market structure.” The top tier is the primary market where anyone interested in using the Kinesis platform can go to mint and create their own cryptocurrency tokens that are backed by gold and silver. Essentially allowing anyone in this new market to create their own digital money, and thus be their own central bank while cutting out the middle man. In these times where distrust of legacy financial systems is growing, this is an attractive concept for many people. The second tier is the interaction with the blockchain where gold and silver are truly brought into this new digital age.
The Difference between mining and minting
When asked by Chilton about minting, Coughlin then explains the difference between Kinesis’ system of minting and mining which is used by the majority of other cryptocurrencies. Mining is the system used by other cryptocurrencies to create new tokens by solving very difficult mathematic algorithms with your mining rigs. This is a very extensive process that needs very hi-tech computer chips to do. This process is also incredibly wasteful as far as electricity is concerned. It is estimated that the total mining worldwide is comparable to the annual electric consumption of a small country.
Minting, however, is a conversion of fiat currencies into the new Kinesis tokens, KAU and KAG. Coughlin explains “the gold is already above ground, it’s already there, so it’s really a conversion between another currency into basically a gold currency.” This is the real heart of the Kinesis system. No wasteful mining that depends on a mining pool centralized in China. Anyone can mint their own cryptocurrency with Kinesis by converting fiat currencies into these Kinesis precious metal coins.
The coins KAU and KAG are backed on a 1:1 ratio. This means one gram of gold to one KAU coin and ten grams of silver to one KAG coin. KAU and KAG refer to the chemical names of gold and silver on the periodic table of elements. When someone wants to create these coins, they utilize Kinesis’ KCX or Kinesis Currency Exchange. When purchased with fiat currency, or alternatively bullion holdings, the Kinesis coins are then emitted into their Kinesis wallet at the same time. These coins can then be used immediately.
Another great aspect of the Kinesis system is the bonus “minter yield.” This is in addition to three other types of yield that Kinesis offers. These yields bring added value to users and continue to flesh out this multilayered system that benefits active users.
- Minter yield: The person who mints the actual coins receives a five per cent return of the transaction fees that transpire on the Kinesis coins they create and then use. This is a great bonus that continues to pay out for the lifetime of the coins.
- Holder Yield: Kinesis coin holders receive a fifteen per cent share on their coins that comes from the transaction fees on the Kinesis network. This is calculated on a daily basis and credited to the associated e-wallets every month.
- Depositors Yield: This yield is a five per cent share of transaction fees on their first deposit and then the use of the coins from their wallet.
- Recruiter Yield: This final yield is variable referral bonuses to for bringing new users to the kinesis system, be it individuals or corporations.
Gold As an Investment Throughout History
One great point that Coughlin touches on in this interview is that gold is the greatest store of value throughout history. Gold carries with it the reputation of a solid stable asset and has for centuries. One major factor that has turned off new investors in this digital space is the intangible nature of these new digital currencies. Older investors cannot understand the concept of money that isn’t backed by anything, and the fact that most cryptocurrencies have no real backing is exactly the reason for the notorious volatility they experience every day.
Kinesis understands this dilemma well and that is precisely why they have chosen to use gold and silver as their backing currencies for the kinesis platform. “We are focused on what makes money successful, we’re talking about gold, it’s the greatest store of that the world’s ever seen.”
Combining gold and the blockchain
Kinesis is leading the crypto universe in gold and blockchain integration. It is finally time that gold comes into the digital age in a way that is safe against hacks, fast and cheap for users, and has all the features that make cryptocurrencies so attractive to users.
Coughlin describes the second tier in the Kinesis system as a “highly efficient rail system.” He is referring to blockchain technology and all the advantages this brings to the gold markets.
As Coughlin puts it, when you mint the Kinesis cryptocurrencies through the KCX exchange, the gold or silver is then submitted into the blockchain. “So that’s where we make it an efficient medium of exchange ultimately to be able to transmit or transfer value between different parties within the blockchain system.”
Fast global transactions
Gold has been the same for all of history. The medium in which we exchange it is what is changing. Gold cannot be moved cheaply and safely. With this Kinesis integration, gold will be as fast and easy to move as any other cryptocurrency.
The core principle of cryptocurrencies as written in the bitcoin white paper is a peer-to-peer electronic cash system. A simple concept that unfortunately, bitcoin has failed to provide. Kinesis will fill this role in new and exciting ways. Even before the Kinesis exchanges and the debit cards or anything else, it starts with peer-to-peer transactions.
For Kinesis to be successful, transactions need to be fast and cheap for all users, all the time. To ensure this, Kinesis chose the best network to fork from to ensure these needs are met. In the end, Kinesis decided to fork from the Stellar XLM network. Stellar is well known for it’s speed in processing transactions. Following a number of tests and experiments, it is proven that the Stellar network was able to process between 3000 and 4000 transactions per second, a good starting point for Kinesis. This is a stark difference from the bitcoin network which processes a mere seven transactions per second.
Another big detail that the Stellar network is known for is its consensus vs mining model. Stellar does not use mining in the way that competitors like Bitcoin or Litecoin do. Stellar uses a consensus model which requires a specific amount of nodes to reach consensus for transactions to be passed onto the network. The Kinesis network will utilize this feature. Kinesis will ensure that external parties cannot try to say, add false nodes to the network. This will be through a process where consensus is reached from trusted nodes on the network only.
Mining is also risky when considering how it is essentially a technological arms race. There is potential for centralized mining pools to take over the majority of the mining power and therefore the network power by having more miners than competitors. This is risky for any new or established network. Kinesis eliminates this risk with a fork from the Stellar network that utilizes the consensus method. This ensures that transactions remain fast, and cheap and don’t get clogged in the network.
Kinesis promises lighting fast transactions anywhere in the world. This means two to three seconds, not hours or days which is the case with bitcoin at times of high network congestion. In addition, Coughlin also promises fees that are much lower than any competitor. He says the standard fee rate will be 0.45%, much lower than alternative cryptocurrencies or payment networks like Western Union which can be up to an insane 25%.
Kinesis Decentralization
The show’s host, Bart Chilton asks Coughlin an interesting question at a certain point in this interview. One that really touches on the message of both Kinesis and the entire crypto market in general. “What sorts of problems is Kinesis trying to address in the current financial system?” Coughlin goes on to describe the many problems with the banking system today that Kinesis will provide an alternative.
Here are some of the key points that Coughlin touches on. “We address problems across different sectors, and one of those sectors is the banking sector. So I go put money in the bank, I’m actually giving the money to the bank by transferring title of my money to that bank and so I’m holding counterparty risk against that bank.” He goes on to describe the practice of bailouts for the bankers, where they have less risk or fear of being held accountable for running bad practices. Traditional banks act in the best interest of the bankers, not the users. Money in the bank is not money that you fully own or control. Kinesis and blockchain technology are changing that and putting you in full control of your funds.
The Users are the Title Holders
One of the most important key components of the Kinesis system is that the end user is the final title holder of all the gold and silver that users’ coins are backed by. Kinesis does not hold the users’ funds. Each individual has full control over their coins in the Kinesis crypto wallets and the coin holders are the gold and silver owners.
In other crypto exchanges, you are turning the ownership of your coins over to the exchange when you deposit. You are then holding essentially a warrant for your funds to be paid upon withdrawal. It is important for the users and for the Kinesis system that users have full control over funds always. This is in the true spirit of cryptocurrency and for many in the scene, it is a necessity. As Coughlin says, “this is an attribute that Kinesis is addressing, one hundred per cent.”
Protection from Hacks
Crypto exchanges get hacked because criminals know that is where many users keep their funds. With Kinesis, the users are in control of their funds. They are not sitting in an exchange where they have to wait for withdrawal delays. In addition, Kinesis is taking all measures to protect its users. The benefit of being blockchain-based is that all the transactions are there visible on the blockchain. It is a transparent system that anyone can see and review. Transparency is key and Kinesis provides that. You know where your funds are being held.
What makes Kinesis unique
While there have been a few gold-backed cryptocurrencies in the past, and there may be several more In the future, no one has approached this sector like Kinesis. In terms of what Kinesis offers, they are a much greater platform with numerous benefits to the user.
Kinesis is a full monetary system with a primary and secondary market structure. Kinesis has mobile banking integration and even the Kinesis Commercial Center that ties in with merchants for ease of adoption. Kinesis has its own web wallets with rock solid support and a sleek simple design layout for new users. Older model crypto wallets are clunky and easy to misuse and send transactions to the wrong places. Kinesis even offers a debit card that will allow users to spend their Kinesis coins anywhere where major credit cards are accepted. Therefore even though crypto merchant adoption is still slow, you can still spend your KAU and KAG coins anywhere in the world.
Kinesis has a full yield reward system that incentivizes users. They have two dedicated exchanges. One being an exchange for minting new crypto coins and the other being a full-service crypto exchange for digital asset transactions. No other blockchain or crypto project has a full fleshed-out system like Kinesis has crafted. They have thought intensely about the end user and have provided a unique experience that meets all of the users’ needs in the cryptocurrency markets.
Users benefit by spending money
Kinesis is one of the only financial systems in the world that rewards the user for actually spending their money, as Coughlin puts it. Gold has traditionally been either an investment or a store of value for most of recent history. We are a long way away from the days of using gold for day-to-day transactions, food, services or whatever you need. Kinesis aims to bring gold back to being used as a day-to-day currency, through the use of the Kinesis coins.
This is because Kinesis rewards users every time they choose to use the Kinesis coins, KAU and KAG. In a very astute and to-the-point example, Coughlin says “when presented with an option, okay I can spend my $20 US dollars now or I can spend $20 dollars worth of Kinesis coins, but I actually receive a benefit in perpetuity on Kinesis, I’m going to choose Kinesis.” That’s exactly the thought process consumers will have when they use the Kinesis system.
As mentioned before, this is due to the yield system that rewards users with essential rebates for using their tokens instead of hoarding them like gold investors. The yield system grants benefits to the user when tokens are minted and used. There are numerous other benefits you are granted as a user just by participating in the network. With the Kinesis system, gold will return to a day-to-day medium of exchange through their KAG and KAU coins.
Velocity tokens
Coughlin then goes on to describe the other token on the Kinesis network. The Kinesis velocity token or KVT. This token is actually an ERC 20 utility token on the Kinesis platform. This token is currently in public sale, but is only available to licensed and accredited investors in the US, as Coughlin states. When you purchase and invest in these KVT tokens, you are investing into the strength and future of the Kinesis platform. This is because KVT holders actually receive a proportional 20 per cent share of all the transaction fees that are associated with ALL of the Kinesis currencies. On top of that, holders receive another 20 per cent of all commissions from the Kinesis Commercial Center. The benefits are very large for token investors. For those truly interested and believing in the Kinesis platform and it’s future, this is a chance to get a piece of the future growth and add it to their portfolio. Their Initial Token Offering for the KVT token is open until November 11th.
Coughlin sums it up very well in the interview when asked about the KVT tokens. “So in the case of the Kinesis velocity token, whoever buys into these is buying into 20 per cent of the revenue of the entire monetary system. So as you can imagine, a monetary system is a business with pretty big bones and if we follow through with our vision then it’s going to be quite a large business. Ultimately we’re getting good traction.” So really, when you invest in the KVT tokens, you are getting a 20% share of the network and all the transaction fees of the entire system. This is quite an attractive offer for the right investor.
The Kinesis Advantage
Kinesis has an advantage over all other cryptocurrency startups, and that thing is legitimacy. Kinesis was born from the ABX or Allocated Bullion Exchange. Coughlin explains in this interview that ABX is “a full institutional exchange for spot precious metals, gold, silver and platinum, with an unblemished track record.” ABX was founded in 2011 and is very experienced already in the precious metals markets. So they are well equipped to advise and guide Kinesis through every asset of their business. ABX is also the world’s leading electronic institution. Technology is fused into their business, and they are very forward-thinking when it comes to the future of finance. Naturally, blockchain would be the next logical step and Kinesis makes the perfect partner. There is few startups in crypto today that have the same reputation or connections that Kinesis and ABX have.
More on ABX, their exchange exists on a global scale, which represents seven major trading hubs for precious metals around the world. This is on four different continents and seven different countries. Being the first electronic exchange for physical bullion puts ABX in a market leader position and adds a lot of reputation and value to the Kinesis rollout.
Few projects or startups in crypto today have the vision or the scope that Kinesis presents. While most startups aim to solve one task or problem, Kinesis has a multi-layered fleshed-out system that simultaneously solves numerous problems in finance and crypto while providing a service that everyone needs. For starters, Kinesis will solve the volatility problem that major cryptocurrencies of today are facing. This will pave the way not only for merchant adoption, but mass consumer adoption for day-to-day peer-to-peer commerce. This is what crypto was meant to be in its inception. Kinesis has more to offer than any other stablecoin competitor, simply overshadowing competing startups. Exchanges everywhere in crypto need a stablecoin they can rely on. One that is not backed by promises or other cryptocurrencies, but by real-world tangible assets. With the reputation that Kinesis has – and the fact that they are backed by precious metals -Kinesis will naturally be a favourite for exchange adoption everywhere. Kinesis offers true stability and most importantly, confidence in your investments.
Kinesis offers more as a platform than any competitor. A debit card that is useable anywhere is yet another feature that crypto users have been begging for. Many users want to spend their cryptocurrencies but are unable to. This is a feature that is groundbreaking in itself before other Kinesis features are even touched upon.
Kinesis is meeting all government requirements and legal obligations. This is something that puts them already ahead of competitors. Regulations in this cryptocurrency sector are rapidly growing, but legacy financial markets are no stranger to the needs. Again, Kinesis’ connections and experience in financial markets are putting them well ahead of new face crypto startups, many ran by young entrepreneurs without any experience.
Kinesis Launch
After the interview, Coughlin stayed in the US to have many meetings with investors. The Kinesis platform is gearing up for its launch. The KVT token is currently in public sale for accredited investors and that sale is coming to a close soon. The Kinesis platform is ready to meet the public and will very soon in 2019. The roadmap promises to launch their KAU and KAG currencies in early 2019
Kinesis has put together an excellent team as well. This includes the executive team that Coughlin is a part of, an Advisory board, an operations team, a development team and numerous partners. Few teams in crypto are as well put together.
Kinesis has a big platform put together and a big vision to fulfil. While there may be many stablecoin competitors coming into the market now, few have the same to offer in any sense. Kinesis aims to be the best in the market today. Utilizing the history and reputation of gold and silver to back their Kinesis coins ensures the rock-solid stability that is needed in a stablecoin today.
Coughlin has had several more interviews talking about the Kinesis platform. The message is growing rapidly and many are interested in this new platform. Kinesis aims to be a leader in the cryptocurrency market and surely will be. Many are already heralding Kinesis as a “Tether killer,” though these projects have many differences and are hard to compare. Most competitors are difficult to compare to actually. Kinesis has a lot to offer this crypto scene. It will be very interesting to see these developments happen, and see what place in the crypto universe Kinesis takes.
