1- You have more than 15 years of experience in the investment, fund management and bullion industries. How and when did you meet with crypto and blockchain world?
Through Allocated Bullion Exchange (ABX) myself and our team have had involvement in both private and state/government operated crypto and blockchain projects. Involvement in these projects as partners started around two years ago and provided us with the necessary blockchain knowledge, skills and expertise to successfully launch and commercialise the Kinesis Monetary System.
2- Kinesis System is an evolutionary step beyond any monetary and banking system available. Can you please tell us about the system, how it works?
Kinesis introduces yield-bearing digital currencies based 1:1 on allocated physical gold (KAU currency) and silver (KAG currency). The vision for Kinesis is to deliver an evolutionary step beyond any monetary and banking system available today.
The Kinesis currencies offer a unique yield system to encourage adoption and stimulate use. When KAU and KAG are transferred between holders the network collects a 0.45% fee that is then accumulated and distributed monthly, in varying proportions, to participants in the Kinesis Monetary System as a ‘yield’.
We have developed a proprietary fork of the Stellar blockchain for these currencies, resulting in extremely fast transaction speeds and scalable global use.
Holders of the Kinesis currencies have allocated legal title to the underlying physical bullion holdings so that they can exchange their currencies for physical gold and silver if they wish, subject to a minimum withdrawal amount.
Kinesis was founded by the Allocated Bullion Exchange (ABX); meaning it already has extensive infrastructure and technology fully operational for the trade and storage of physical bullion in 7 locations around the world.
3- What are the main problems you are solving with Kinesis System?
- Precious metal market: Precious metals and many other physical assets have no yield attached to them – they instead typically cost money to hold securely. Precious metals stored in vaults have no liquidity – they cannot be used as they currencies they once were. Kinesis gives yield to these precious metals, incentivising their use and velocity by attaching multiple types of yield for varying degrees of passive or active participation. The Kinesis debit card allows for instant conversion of KAU and KAG into fiat currency anywhere in the world where Visa / Mastercard is accepted, even allowing Kinesis currency holders to withdraw funds at an ATM.
- Fiat currency: With global low to negative interest rates, bail-in provisions, depositors’ insurance being removed, and with banks holding legal title to their customer deposits, it makes no sense to choose risk and nil-to-negative return over the alternative Kinesis system with negligible risk and high potential for return.
- Investment assets: high valuations and comparatively low yields for stock market and property investment make the Kinesis currencies an attractive alternative investment with a passive yield attached.
4- Kinesis have released the Kinesis Velocity Token (KVT). What kind of value it will bring to the token holders?
The Kinesis Velocity Token rewards participants, proportionately to the growth of Kinesis Monetary System. KVTs are limited to 300,000 only, without a chance of future dilution, holders of the KVT tokens will receive a passive 20% proportional share of the transaction fees from the Kinesis Monetary System. This will create an additional layer of income for token holders on top of the value of the token itself.
Our Blueprint (pages 37 & 38) on the Kinesis website delves into potential growth figures based on projected velocity of the kinesis monetary system, this can give potential investors a good idea on what sort of value the KVT can provide.
5- What makes you special in the market between other competitors?
Cryptocurrencies suffer from severe price volatility, limiting their utility as a currency. Slow speed of transactions and high, fixed processing fees limit the everyday use of existing cryptocurrencies.
There is also big use case for those invested in existing alternative ‘stable coins’, too. The high transaction speed, percentage-based fee model, physical asset stability and yield associated with KAU and KAG are incentives for crypto traders and holders to replace questionably-backed and non-yield-bearing stable coins with the Kinesis currencies.
Additionally, it’s important to understand that much of the infrastructure for Kinesis, particularly the gold and silver minting and physical vaults are in existence and have been operating under ABX, our sister company, for years. We are leaders in the precious metals space and have a fully operational metals exchange; this was built internally by our highly skilled development team. We have extensive partnerships in the space, a solid quality assurance framework and liquidity. Our whitepaper isn’t just a “pipe dream” it is an evolutionary step, one that we are well on the way to fulfilling.
6- What is your roadmap for the long-term future?
We are currently in our fifth phase of our Kinesis Velocity Token (KVT) discount, currently running at 2.5%, until midnight on the 9th of September. Subsequently we will be our KVT public sale until the 12th of November.
Following this will be the launch of Kinesis Currencies, whereby KAU is backed 1:1 by 1g of 99.99% pure physical gold and KAG by 99.9% silver.
7- This year is mostly called as a winter for cryptocurrency. What do you think for the future prediction of crypto world in general?
Although there has been a drop in the rate of price increase in a number of cryptocurrencies during the first half of the year, despite this, signs suggest prices are still due to climb prior to an end of year review.
Regardless, the price of other cryptocurrencies, including Bitcoin, Ethereum and many others, Kinesis currencies, KAG and KAU will be dependent on the price of the underlying precious metal at the time of purchase. This allows for stability, practicality and everyday use in the real world.
Personally, I believe cryptocurrency is here to stay and as the industry evolves we are seeing more and more reputable organizations develop blockchain solutions, a much needed boost for the credibility of the wider crypto movement.
Thomas Coughlin – Chief Executive Officer (Executive Director)
Chief Executive Officer (CEO) of Kinesis Limited as well as Allocated Bullion Exchange (ABX). He has worked in the investment, funds management and bullion industries for approximately seventeen years. His professional portfolio management career spans the foundation of the boutique investment company, TRAC Financial, to the establishment of a highly successful Absolute Return Fund.
Thomas has dedicated a significant part of his career working collaboratively to build the complex systems of a cross-border international bullion market with an extensive global network of central bankers, brokers, fund managers and advisers. His experience, extensive network and broad knowledge of capital markets, enable him to deliver exceptional value and insight to all stakeholders.