As things currently stand, the crypto market is valued at more than USD $250 billion. While alt-currencies provide users with a high level of financial flexibility, the number of crypto ATMs located all across the world amount to a total of just 1600 kiosks.
Uptoken is the native currency being used by a Seattle-based company called CoinMe to streamline digital asset procuration via the establishment of new ATM portals around the globe.
In addition to being a vertically integrated outfit, Coinme offers its users with a highly simplified pathway for obtaining cryptocurrencies via their specially devised kiosk hardware and software. Other than that, CoinMe is also involved in other niche aspects of altcoin sourcing including:
- Obtaining required federal licensing as well as other regulatory licenses.
- Real estate acquisition
- Managing cash logistics
- Providing round the clock customer service.
Through their ATMs, Coinme provides users with instant, on-the-spot fiat-to-crypto and crypto-to-fiat exchanges, thereby eliminating any uncertainty or long waiting periods that regular online exchanges impose on their users. Not only that, Coinme’s crypto ATMs also provides customers with a hassle-free transaction experience that eliminates any barriers to cypto-adoption for non-technical users.
- The platform allows users to facilitate instant crypto-fiat monetary transactions.
- Can be made use of by novice as well as experienced crypto users.
- Does not require users to link their bank account details to their UpToken profile.
- Customers are provided with incentives (such as cash back rewards) every time they use a CoinMe ATM for withdrawing money.
- There is a dedicated customer support team that users can call 24/7 in case they have any doubts of queries regarding the platform.
To start off with, UpToken holders receive a flat 1% cash back on each transaction that is executed via any CoinMe ATM kiosk. The money is provided in the form of UpTokens which can later be redeemed for either physical assets or other digital goods.
Graph demonstrating the rise in Crypto-ATM use over the past three years.
Similarly, customers receive a 30% discount on ATM transaction fees if they opt to spend their UpTokens to cover for internal transaction charges. This is quite an attractive financial proposition for causal crypto enthusiasts who are looking to switch to digital currencies for their day to day payments.
At this point, it should also be noted that CoinMe has implemented a voting protocol that allows users to choose, over time, the currencies they would like to see across the CoinMe ATM network. As per the whitepaper, auctions will be held as per the requests of the CoinMe community, and interested parties will use UpToken to vote and choose which currencies to adopt next.
How does the ecosystem work?
Unlike standard ATM providers, Coinme is associated with both the production and operation of ATM kiosks. The company develops and manages a full stack of technology ranging from the hardware design to the software of the dispensing unit. As a result of this, Coinme is equipped to meet the changing demands of the crypto market as the industry keeps evolving.
Overview of the CoinMe ecosystem
It is useful to remember that the company is completely vertically integrated, and thus can handle all aspects of the customer experience, from cash logistics to customer support and engineering.
In terms of the internal work-scheme of this platform, if a customer decides to make a purchase worth $1,000 from a Coinme ATM and the ATM transaction fee is 5%, the customer could choose to pay the fee from their Coinme UpToken wallet, which would reduce the transaction fee to 3.5%. All of the aforementioned discounts are applied immediately and monetary savings are reflected in one’s wallet instantly.
Lastly, each time a person uses a Coinme crypto ATM, the company automatically deposits UpToken into the customer’s Coinme wallet equal to 1% of their ATM transaction amount— as part of their customer rewards program.
About the company
With this venture receiving a lot of public interest recently, it can be beneficial for the readers of this article to learn a bit more about the people involved with this project.
Neil Bergquist is the Co-Founder and CEO of CoinMe. As per his professional online bio, Neil has previously worked as:
- The former Director of Innovation at Delta Dental, Washington
- Former Innovation Management Consultant at Point B— a consulting firm with offices throughout the US.
Additionally, Neil has also been associated with a company called SURF Incubator in the past.
Similarly, Michael Smyers is Co-Founder of this project. He is an engineer by profession who has also been associated with a wide array of digital entrepreneurial setups. In 2007, Michael co-founded Zipwhip— a cloud-based texting platform— that is currently valued at $281 Million.
Lastly, J.R. Willett is one of the key back-end devs involved with this setup. He is widely credited as the inventor of the Token Sale/ ICO concept back in 2013 when he launched the Omni Layer digital fundraiser online. Omni is the 2nd largest ecosystem for crypto assets, hosting hundreds of millions of dollars (including Maid Safe and Tether).
Since Uptoken has only been on the market for little under a month, it can be difficult to assess its future market performance.
Uptoken (UP) lifetime performance chart (courtesy of Coinmarketcap)
Introduced into the market at a nominal rate of $0.41, UP tokens have gradually decreased in value over the course of the past few weeks. As on the 9th of April, 2018 the price of a single coin currently stands at $0.125.
With the adoption of cryptocurrencies at an all-time high, many market experts predict that altcoin ATMs will be the financial norm moving forward from here on out. With CoinMe providing its customer base with a fully functional, integrative platform, it will be interesting to see how the future of this technology pans out.
If you would like to start investing in this project, UP trading pairs are currently being exchanged on websites such as UpBit, Bittrex and Bancor Network.