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Media

Basking in the Glow of a Virtual Fire

Matthew Warner | May 2020

Tuesday 26th May 2020 saw Blockpass and TOZEX sit down for a virtual fireside chat so the two companies could talk about their recent partnership, TOZEX’s latest development and the current state of regulations, crowdfunding, token markets and other areas. Moderated by Hans Lombardo, Blockpass COO, the CEOs of Blockpass and TOZEX, Adam Vaziri and Remy Ozcan, respectively gathered at three different computers in three different countries to come together as one in this time of isolation and discuss current news.

The talk began with a discussion of TOZEX, it’s origins and its goals. Ozcan described TOZEX as more than just a crypto exchange, being a bridge between primary and secondary market for digital assets, with a vision of providing the infrastructure for a token-based economy built off digital assets. TOZEX would allow entrepreneurs and investors to create, manage and exchange digital assets whilst being fully compliant with the regulatory frameworks around the world, hence TOZEX’s design as a tokenization platform. Ozcan believes that providing various tools to enter into this token based economy will be essential as he predicts that these assets will become the norm within 5 years or less. 

The participants also discussed the importance of regulation in the space, with Vaziri examining the history of cryptocurrency and blockchain regulation from where it began as an unregulated and unknown entity to the current state where regulations are becoming standard following the past few years of regulatory developments. As regulations are so prevalent now, Vaziri explained how the concept of a solid identity solution being core to enabling regulatory compliance and that older, KYC and identity management is sub-par compared to what we need in the modern day with blockchain and cryptocurrency becoming increasingly important. Ozcan agreed with the analysis, pointing out that the industry needs regulation to professionalise and provide structure and to provide a more comfortable framework for everyone involved, with responsibilities and duties for those involved to remain compliant with the latest regulations and directives and facilitate a system which provides protection and safety whilst allowing for the evolution of systems and solutions. Ozcan also gave an overview of three different approaches taken by countries – applying existing regulations to blockchain and crypto, creating customized regulations, or simply to ban the new developments. Ozcan believed that a unique digital identity provides a way for these ecosystems to evolve without issues with regards to regulation, hence TOZEX’s decision to form a strategic partnership with Blockpass so the tokenization solution can provide professional tools to people in the industry whilst remaining compliant. 

The Believer’s Reward Offering – launched the previous day was also discussed. Ozcan described the idea as an idea he hopes will change how blockchain startups can be funded by being the first crowdfunding platform based on stablecoins. Following blockchain values, the system is transparent, automated and immutable, coded onto smart contracts. This method will allow companies to finance their development by borrowing stablecoins from around the world, offering a sustainable alternative method to ICOs and STOs etc as it is designed to avoid ‘pump-and-dump’ issues, limit volatility and foster the growth of the token by treating all contributors equally. Investors can contribute with stablecoins and be fully reimbursed, 50% in the type of stablecoins used and 50% in TOZ tokens, with an additional interest rate depending on the amount invested and the time invested for. The investors can choose each quarter to withdraw tokens, sell them or to continue by staking them and thereby showing their continued confidence in the project. The choice to call the system the Believer’s Reward Offering was made to reflect the rewards reflecting the belief they have in the projects they choose to invest in. The pre-registration for this opened the day before this virtual fireside chat, providing bonuses to early adopters, but the main process will begin officially on 23rd June 2020

Lombardo then invited Vaziri to speak about the suitability of TOZEX as a partner for Blockpass. Vaziri then proceeded to the describe the mutually beneficial partnership being formed by the two companies whose goals so closely aligned, with Blockpass aiming to provide a simple and user-friendly solution to avoid the issues by traditional compliance methods, and with TOZEX at the cutting edge of providing new opportunities and pathways through blockchain technology and cryptocurrencies whilst seeking to be fully regulatory compliant. Ozcan added that Blockpass’ ability to simplify investor identification and the KYC process and enabling it to take place in seconds would allow TOZEX to have compliance at the forefront of its solution and would allow its users to create their unique digital identity quickly so they can effortlessly enter and navigate the TOZEX ecosystem. 

The final part of the conversation centered around cypto markets and their performance in the past few months and what might happen over the course of the rest of the year. Vaziri drew some comparisons to other markets and their fluctuations, but looking at how the cryptomarket isn’t necessarily in opposition to financial markets, but is an alternative, and can balance financial markets whilst avoiding manipulation such as quantitative easing. Acknowledging the scope of the question, Vaziri talked about how the economy has changed over the ages, and how we find ourselves at its pinnacle with a diversified economy where all types of economy – physical, digital, crypto etc can coexist. Ozcan expanded, with insight from being an advisor to the European Parliament on the use of blockchain technology, discussing the current coronavirus pandemic, and highlighting that many banks and financial systems – even central banks – are exploring crypto solutions for the many benefits it could bring, including being able to be reactive in the distribution of its money due to the traceability and logging of transactions. Fighting fraud and terrorism financing, knowing where its money is and moving to a cashless society were huge potential advantages for the banks. 

Concluding the virtual fireside chat, Lombardo invited Vazri and Ozcan to impart any final thoughts. Vaziri highlighted the importance of a strategic partner who shares goals so closely and the mutual benefits they can provide each other, hoping Blockpass and TOZEX would be able to continue to work closely and have many more meetings – hopefully eventually in person – to foster the good working partnership. Ozcan thanked Blockpass for its facilitation of easy and quick regulatory compliance and invited people to try TOZEX for free by visiting its website. He hoped the partnership would continue to grow and that the team would be able to attend the Paris Blockchain Summit when it was able to be hosted.