How was the idea of Vaultbank born?
Vaultbank was formed by Austin Trombley and Christopher Cummock in San Francisco, CA. Austin comes from a data engineering and finance background and Christopher has extensive experience in investment management and hedge funds. They both were avid followers of the cryptocurrency market and had been actively involved in the space and began to notice some key missing elements. Having seen gaps in the market and a need to bridge traditional finance and its tools with the crypto market they formed Vaultbank to be a next-generation suite of financial services to serve customers of the crypto and traditional finance markets.
Having come from finance and traditional banking they noticed that exchanges and many ICOs were lacking basic functionality, customer service, and usability that trading platforms such as Bloomberg, E-Trade, and interactive brokers were providing. The market was lacking a bridge between traditional finance and the crypto market an. In addition, many people in traditional finance were cautious of cryptocurrencies since they were “not backed by anything.”
Vaultbank was formed out of a need to fill those gaps, to provide customers were a trading platform that was easy to use and could serve both utility and security tokens. The ability to tokenize securities can increase liquidity and drive down costs compared to traditional private placements, having a place to onboard such securities and trade them with real-time information while integrating KYC, AML and FATCA would be a huge step in the right direction. By creating such a platform, and by backing the Vaultbank (VB) token with real credit assets the two biggest issues they saw were solved. Backing the VB token with credit assets, cherry-picked for their top performance by our partner organization Random Forest Capital’s Machine Learning and AI algorithm would yield steady returns and pay out a dividend to token holders, creating a stable token.
Can you explain your product to common people?
Common people are familiar with their traditional financial institution, and they may have some exposure to the cryptocurrency market. What we have sought to do is to bridge the two industries by providing a suite of financial services. First, we will have one of the first security token exchanges with utility token access. On our exchange, you will be able to buy traditional cryptocurrencies, like Bitcoin, Litecoin, Ethereum and others as well as security tokens with the same ease and ability as you would use a traditional trading platform like E-Trade and Interactive Brokers. We will have up to date information, tax and regulatory compliance built into the system for ease and accessibility to your information and documentation. In addition, our tokens will be backed by real credit assets. That means that the Vaultbank (VB) token will be backed by underlying real credit assets – cars, homes, equipment and other credit assets- which give our token value and generates a quarterly yield. The yield from credit assets and the revenue generated by our fund will be paid back out to our token holders in the form of quarterly dividends- and it is our goal to outperform bonds and savings account returns.
As the company is carrying out its ICO, what has already been done and what are you going to create with the money collected by the ICO?
Compared to many other ICO’s which raise funds and then go out and create a company, Vaultbank is ready to conduct business the first day the token sale closes with all three business lines far along or ready to launch right away. Our Exchange is nearly 70% built out and we already have a beta version that we are having tested out by a select group. We also are in active negotiations with debit card partners. And finally, our investment vehicle and fund are on standby and ready to receive capital and begin to generate returns on our token holder’s investments. We believe we are ahead of the game in regard to other ICOs and on the legal end, we have already spent a great deal of capital and time to be a fully functioning and SEC compliant entity ready to begin generating revenue on day one after our token sale ends.
How does Vaultbank differ from similar services? How can your innovative service assist the new economic development and change the current payment system?
Whereas most exchanges offer utility tokens (Bitcoin, Litecoin, Ethereum, etc) we will also be exchanging security tokens. Our exchange will have built-in KYC, AML, and FATCA integration and provide our users with up to date news and information on the markets and the tokens they are exchanging with full legal and tax compliance features built in. We also believe there are a lot of utility tokens masquerading as security tokens and that the SEC and other regulatory bodies will crack down, and have already begun, to shut these offerings down. Our token is registered as a security token and will seek to pay out a quarterly dividend and be a stable token without the volatile nature of other tokens on the market. Our Vaultbank wallet, and pending debit card program, will allow users to easily use crypto and fiat currencies interchangeably by selecting their preferred method of tender on our wallet. A major issue with card processors is their reticence to being exposed to the volatility of crypto. The Vaultbank wallet will be integrated into the Vaultbank Exchange and we will spot sell crypto assets in order to allow our users to pay with crypto- in doing so the card company never sees or interacts with the crypto.
How can anyone join Vaultbank?
We urge interested individuals to go to our website Vaultbank.io and get acquainted with our team, our board our product, and our value proposition. If it of interest to them and they would like to invest, they can click on the “INVEST NOW” button on our homepage and follow the investment procedure. Our partners are Crown engine have built our a platform to allow anyone to invest, assuming they pass KYC, AML, and accreditation requirements (where applicable) and invest using BTC and ETH.
Why do you need a Token Sale?
We believe that a token sale opens the traditional investment process to everyday individuals (assuming they pass our investor verification criteria). Whereas investing in a private offering or a hedge fund often comes with a certain lock-up period, a token sale allows for increased liquidity and an easier method for the crypto enthusiast and investor to join our company.
What are your plans after the Token Sale ends?
As previously mentioned, we are ready to conduct business and begin generating revenue on day one after the token sale ends. We will allow a certain percentage of our funds raised to the Vaultbank fund and begin purchasing high performing real credit assets. In addition, we will continue to finalize the Vaultbank Exchange and hope to launch in late February and onboard clients interested in trading utility and security tokens. We will begin to list additional security tokens and then work to tokenize the securities industry making it easier to offer private placements and give access to investing in a broader segment of the population.
Vaultbank’s pre-sale is already underway, with the token sale scheduled to start on 17th February 2018. The tokens can be purchased via Bitcoin, Ethereum or USD.