TenX was founded in mid-2015 in Singapore. They chose Singapore for a few reasons. Singapore is a major and globally recognized financial hub, the Monetary Authority of Singapore is open to development of start-ups in the FinTech industry and Southeast Asia is a market with huge growth potential.
According to the World Bank Group, 39% of the population is still underbanked in Southeast Asia, China and India. When asked what the reason was that adults didn’t have an account at a financial institution. The most common reason was the lack of enough money to use an account and that accounts are too expensive as a third most common reason. (1)
TenX connects your blockchain assets for everyday use. They offer the TenX Card which is a Visa prepaid card, with an accompanying Tenx Wallet, a mobile wallet that can be funded with multiple currencies. At the moment you can spend bitcoin, but Ethereum, ERC20 and Dash are in beta.
They are able to do this by connecting blockchains, leveraging on the COMIT network, including the COMIT Routing Protocol and the Cross-chain Payment Channels.
Before the invention of the TCP/IP protocol the internet was dispersed in many local networks called intranets. In 1973 these different intranets realized that they could use a unifying internetwork protocol to communicate between each other. COMIT network provides the same solution as the internet did for information. (2) TenX Card holders can use any blockchain asset to buy products and services at any over 36 million merchants that accept global credit cards. They use Cross-chain Payment Channels of the COMIT network to allow the user to settle incoming payment requests from the credit card networks in real-time. It works like this:
– User pays at the merchant using his virtual or physical TenX card.
– The card network will send an authorization request to the services for the purchase amount.
– TenX sends an invoice through the COMIT network to the user.
– The user chooses which blockchain asset they want to use for the payment and send it to TenX through the COMIT network.
– Once the amount is received, TenX will authorize the payment to the merchant.
The user needs to configure his TenX wallet with his preferred default blockchain to allow real-time transactions.
The card has a issuing fee of $15. There are no annual fees if you spend more than $1000 a year, otherwise you have to pay $10. There are no foreign exchange fees. Once activating the virtual card on the app there is another $1.5 issuing fee. On the other hand users can earn a 0.1% reward for every purchase they make. This incentive will be transferred to the user in form of PAY tokens. It’s on a monthly basis but they say they are aiming to distribute the reward more frequently. The PAY tokens can be traded on exchanges. (3/4)
Like TenX there are several other Debit cards providing similar services. The following ones are also mentioned in their whitepaper. There is Token Card and Monaco Card.
Token Card is all about making ETH and ERC20 tokens spendable. They are able to do this with 3 components. The Contract Wallet, TokenCard and Token App. The Contract Wallet is a smart contract wallet that is directly controlled by the user. The token Card is a debit card that can be given customizable access to make payments in ETH and ERC20 tokens. With the Token App they are unifying the former two and providing a banking experience on Ethereum. (5)
They are partnered with Wavecrest (digital payment solutions to businesses and governments) (6), Bancor (making ERC20-tokens tradable) (7) and Digix (tokenizing Gold on Ethereum). (8)
They charge 1% fee on every transaction and offer 2% cashback on every purchase. They allow users to buy crypto from their app directly from fiat money. (9)
Monaco card is a debit card. They are offering BTC and ETH at the moment, but you can also use fiat currencies. On forehand they do analysis on the coin and then choose the coins which they think will last long. They offer up to 2% cashback in MCO tokens on all purchases. Monaco is offering their cards with no monthly or annual fees. The cards are shipped to users for free. There is however a monthly Fair Usage Limits for the fees which is different per card. The platinum cards are ‘’free’’ if you buy a certain amount of MCO tokens on forehand. Afterwards you can sell them and still have the card. At the moment they have 5 cards. 1 plastic and the other 4 are metal. They begin the rollout of the cards in asia and are according to their blogs, following up on Europe (Q4 2017) and North america (2018). Monaco is offering an app where you can pre-register and reserve your card. They Claim credit functionality is planned to be added during 2018. Monaco has direct partnership with Visa in form of a Visa Program Manager. Monaco claims they give the best rates at the moment of making a purchase. (10)
The way monaco works is different than TenX. When making a purchase with Monaco Card, the Monaco Card’s server-side processing systems apply interbank exchange rates to calculate the fiat exchange. After that Monaco calculates provided by the highest daily volume exchange the amount in for example ETH. Monaco will take the cost over the Fiat to ETH exchange for themself. There are no fees applied for the exchange between Fiat and Fiat.
The current whitepaper is outdated. (11)
Team and advisor
TenX has 37 members working on their project. The CEO and Co-Founder of TenX is Toby Hoenisch. (12) He was also the CEO and Founder of Studypact (incentive for studying). Another impressive member is Michael Sperk, (13) the CTO and Co-Founder of TenX. His background comes from being the CTO of OnePay (blockchain based mobile bank account). OnePay was a project where you can spend bitcoin by tapping your mobile phone to a receiver. OnePay is now upgraded to TenX.
More interesting are the advisors of TenX. In the Whitepaper TenX mentions Vitalik Buterin, creator of Ethereum, but thats however not true. Vitalik is listed as a general partner at Fenbushi Capital. Fenbushi is an investor, Vitalik however is a not. (14)
TenX also have Visa and Worldpay as an advisor stated in their Whitepaper. They participated in the PayPal Incubator’s program and they won. This program aims to develop and nurture the next generation of FinTech start-ups. (15)