Analysis of Monetha – Merchant Payment Solution and Trust System - Crush Crypto

Analysis of Monetha – Merchant Payment Solution and Trust System

Summary

  • Project name: Monetha
  • Token symbol: MTH
  • Website: https://www.monetha.io/
  • Whitepaper: https://www.monetha.io/Monetha_WP.pdf
  • Hard cap: 95,000 ETH (ICO contributors own 50% of total token supply if hard cap is reached)
  • Soft Cap: 28,000 ETH
  • Conversion rate: 1ETH = 2,000 MTH
  • Maximum market cap at ICO: US$57 million assuming current ETH price of $300
  • Bonus structure: 20% bonus for the first EUR 7 million contribution
  • Pre-sale / white list available: No
  • ERC20 token: Yes
  • Timeline: August 31, 2017 at 2PM GMT for 31 days (please refer to Monetha’s website for most up-to-date information)
  • Token distribution date: Immediately after contribution
Watch our video summary (video is 7:05 long)

Project Overview

What does the company/project do?

Monetha is creating a universal decentralized trust and reputation solution working together with mobile payments processing on the Ethereum blockchain leveraging smart contract technology. In short, Monetha wants to be the decentralized version of Paypal and Trustpilot.

Monetha’s payment services are catered to e-commerce merchants. Compared to the traditional payment processing solutions like Paypal and Stripe, Monetha is significantly cheaper and faster.

Monetha charges merchants a 1.5% transaction fee for any purchases made through the Monetha platform. Because Monetha processes transactions on the Ethereum blockchain, transaction time (time required for merchants to receive the payment) is only around 2 minutes.

Monetha’s decentralized trust and reputation system is universal, where customers can see the rating of any merchants that integrates with Monetha. The trust ratings of both the merchant and the customer are updated automatically every time a transaction is made.

Below are some of the reasons for customers and merchants to transact using the Monetha platform.

Customers

  • Every purchase made via the Monetha payment system will reward the client of the merchant with 0.2% (percentage may change over time) of the value of the transaction in Monetha tokens from the Monetha loyalty pool.
  • Loyalty tokens can be used during any purchase within a 6-month period using a Monetha wallet, similar to how you spend credit card points

Merchants

- Transparent fee schedule – 1.5% of transaction value

  • No minimum charge
  • No chargeback / chargeback fee
  • No holding period which is set at the payment processor’s discretion and it is sometimes completely arbitrary (Paypal is notorious at this).
  • No foreign exchange fees

- Much quicker fund transfer time (2 minutes compared to days or even weeks for traditional solutions)

How advanced is the project?

The idea of Monetha was conceived in January 2017. The team has released a minimal viable product (MVP) in May 2017. It is a plugin for merchants to accept payments in Ether in e-commerce stores. The MVP is available for merchants using the WooCommerce and Magento platforms.

Below are some of the key milestone and the estimated time and budget:

  • Early 2018 (budget EUR 700,000): E-commerce and first version of the trust rating.
  • Mid 2018 (budget EUR 1,700,000): A full e-commerce solution to accept Ethereum-based tokens and exchange them to fiat currency.
  • Late 2018 (budget EUR 3,500,000): Monetha Wallet for clients + loyalty program + significant improvement of decentralized trust and reputation algorithm.
  • Early 2019 (budget EUR 5,500,000): Full functionality of the decentralized trust and reputation system.
  • Mid to late 2019 (budget EUR 7,000,000): Develop and introduce the decentralized payment, trust and reputation system for retail merchants.

What are the tokens used for and how can token holders make money?

MTH holders will receive 0.5% of the transaction value on the Monetha platform in the form of vouchers that can be applied as a discount when buying from Monetha’s merchants.

This voucher would be proportional to the amount of the MTH tokens held. The redeemed MTH will be expired if they are not spent within 6 months.

As the vouchers can only be used for Monetha’s merchants, the more merchants accept payments via Monetha, the more valuable MTH should be.

Other than buying the tokens from ICO/exchanges, you can obtain MTH by performing transactions via the Monetha payment system. 0.2% of the transaction value (the amount may change over time) will be rewarded to the customer in MTH from the Monetha loyalty pool.

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Team

Monetha has a team of 11, all of whom have relevant experience in their respective fields.

The bio of the core team members are shown below:

Andrej Ruckij, Co-Founder/Technology – Former VP of Development of Adform, a dig+ital advertising company.

Eric Duprat, Payments Lead – Former General Manager of Mobile at Paypal.

Kellogg N. Fairbank, Sales and Merchant Acquisition Lead – Former VP Sales/Head of Business Development for Braintree in Europe. Also worked in GlobalCollect and Paypal.

Dr. Jean-Marc Seigneur, Decentralised Trust and Reputation Lead – Published over 100 scientific papers on computational trust and online reputation management. Advised many companies including Philips, Amazon, Thales, and Swissquote.

Justas Pikelis, Co-Founder/Business – Serial entrepreneur, specializing in IT, robotics and digital marketing.

Laurynas Jokubaitis, Co-Founder/Product – Serial entrepreneur, specializing in digital marketing.

Monetha also has a strong team of advisors supporting the project, including Sean Harper, CEO of FeeFighters which was acquired by Groupon, James Downton, co-founder of The Marketing Group, which went public in 2016, and Robertas Visinskis, former CEO of Trustribe and CEO of Mysterium Network.


Opportunities

  • Cryptocurrency payment is not catching on because of the rising Bitcoin transaction fees. As at August 22, 2017, the average transaction fee for Bitcoin is over $6. However, with the growing popularity and much lower transaction cost of Ethereum, I believe the time has come where Ether can become a viable cryptocurrency for online payments.
  • The online payments market is large with huge potential. If Monetha can be successful, they have the potential to process billions of dollar of transactions a year, which would likely to cause MTH price to appreciate substantially.
  • Monetha secured partnership with Pigu.it, the largest e-commerce website in the Baltic States. It processes 2 million orders and generates over $100 million of revenue a year. This is going to provide immediate traction for Monetha when the development of Milestone 01 is completed in early 2018.
  • Network effect is present because of how the trust rating system works. The more customers and merchants use Monetha, the more valuable the Monetha platform is.
  • The project has a detailed roadmap with the estimated budget for each milestone, demonstrating a well thought out game plan by the team.
  • Monetha has a strong team and advisors who has extensive experience in both payment processing and online reputation areas.
  • The company reserves 10% of the tokens for potential future financing 12 months after the ICO. This creates an incentive for the company to deliver and keep token price high so that they can obtain more funding from the potential future token sale.

Concerns

  • There are other competitors in the cryptocurrency payment solutions space, such as Coinify, CoinPayments, BlockPay and Cryptonator. Some of them charge a lower fee than Monetha. Monetha may not be the winner in this industry.
  • The trust rating is for merchants but not individual products. Even if the merchant has a high rating, the quality of its products is still not guaranteed.
  • The trust rating system may have loopholes that can potentially be exploited by merchants that want to boost up their ratings. In any system, there are people that try to exploit it and gain an unfair edge.

Conclusion

Overall, I like this ICO, both for short-term as well as its long-term potential. Personally, I am rooting for this project to succeed because I would love to see more and more merchants accepting Ether as a form of payment.

Our thoughts of the tokens for short term and long term are as follows:

For short-term holding

Good. The project has received a lot of media coverage which generated awareness. The current market conditions should help Monetha reaching hard cap with little problem.

For long-term holding

Good. I believe cryptocurrency will gain popularity as a form of payment, and Monetha is well-positioned to benefit from this trend.

As a point of reference, Paypal processed close to $400 billion of transactions in the past 12 months. If Monetha becomes a success, there is a lot of potential for MTH.


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