Analysis of TenX Token - Crush Crypto

Analysis of TenX Token


  • Project Name: TenX
  • Token ticker: PAY
  • Website
  • Whitepaper:
  • Hard cap: 200,000 ETH (token holders own 51% of total token supply, 100,000 ETH already sold out in pre-sale)
  • Soft Cap: None
  • Conversion rate: 350 PAY per 1 ETH
  • Maximum market cap at ICO: US$141 million at current ETH price of $360
  • Bonus structure: +20% in the first 24 hours, +10% from day 2-3, +5% from day 4-7, +2.5% from day 8-14
  • ERC20 token: Yes
  • Timeline: June 24, 2017 at 9pm Singapore time / 3pm Munich time / 9am New York time / 2pm London time to 24th of July 2017 10.59am UTC
  • Token distribution date: June 24th, 2017

Project Overview

What does the company/project do?

TenX is a payment company, offering debit card and mobile wallet funded by cryptocurrency. Partnering with VISA and Mastercard, TenX wallets can be used in almost 200 countries at over 36 million points of acceptance today.

The credit card companies charge the merchants 2% of the transaction amount, similar to other types of credit cards. TenX generates revenue by having a revenue share agreement with its credit card partners.

TenX cards are open for application on June 20, 2017 - I will be ordering one myself!

Here is a video featuring Q&A about the token sale. In this video, the TenX team is introduced one by one (video is 23:34 long):

How advanced is the project?

The company was founded in mid-2015. The idea of TenX won the DBS Blockchain Hackathan and the TenX team was rewarded 15,000 SGD.

As at May 2017, the company completed the following:

  • Completed a $1 million seed round in March 2017
  • Selected to join the Paypal incubator program in Singapore
  • Has a working product that has been live since early 2017
  • 1,000 users in Singapore, transacted over $100,000 during the beta test in over 50 countries

Here is a video showing a TenX card being used at a McDonald’s (video is 0:37 long):

How can token holders make money?

Basically, the more transaction volume TenX processes, the more valuable PAY is. The value of this token is driven from transaction volume, not from the increased usage of the token.

Token holders will receive 0.5% of the whole payment volume that is spent through the TenX debit card. The payments to the token holders will be paid in Ether.

Unlike other ICOs where the value of the token is difficult to gauge, it is more straightforward to calculate the valuation of PAY because of how the value is driven.

The value of PAY is a function of (1) the number of TenX debit card users, and (2) average spend per user.

Assuming a valuation of 30x price to earnings (P/E) ratio, which is on the aggressive side but possible because this industry is growing rapidly, the transaction volume for TenX debit card needs to be US$940 million per annum to justify the ICO valuation.

As a reference, Visa cards processed US$8.2 trillion and Mastercard processed US$4.8 trillion in 2016. TenX probably won’t be able to achieve a volume of $940 million per year unless there is a wide adoption of cryptocurrency.

Therefore, the success of this ICO hinges on whether cryptocurrency can become a common currency used for daily spending. If it can, then with TenX’s first mover advantage, it can probably do very well.

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TenX was founded in 2015 in Singapore. On its website, it shows that TenX has a team of 9 and they have 3 job openings.

Toby Hoenisch, CEO – a serial entrepreneur. He has a Bachelors degree in computer science and a Masters degree in artificial intelligence.

Michael Sperk, CTO – based in Austria. Prior to joining TenX, he was the lead frontend engineer at Visalyze.

It is good that all the team members are working full time in TenX and have a Linkedin page – this seems like a very basic requirement but it is not. It is kind of sad to see that many ICOs can’t actually qualify for this basic criteria.

The website also listed Vitalik as an investor of the company. Vitalik is an investor through his investment in the VC firm Fenbushi Capital – however we don’t know how closely involved Vitalik is in the project, if at all.

It is like I invest in a Fidelity mutual fund, so by extension I am also an investor of the stocks that the fund purchased. However, it doesn’t mean that I endorse the investments made by that fund. Therefore, don’t focus too much on the fact that Vitalik has a stake in TenX.

  • I checked the cards offered by other competitors such as Tokencard, Mobi, Xapo, and Monaco. The existing competitors only have cards denominated in USD, GBP and EUR.
  • That means for users outside of the US and Euro Zone, TenX would be the default card of choice.


  • Tokencard has a market capitalization of $25 million, which means that the market cap for TenX at ICO is over 5 times that of Tokencard.
  • TenX has many other competitors that are trying to solve the exact same problem – Mobi, Monaco, Tokencard, and Xapo .
  • Being able to develop COMIT is a big part of the success of TenX. However, development success not guaranteed – it is a complicated project. In fact, 45% of the amount raised will be spent on developing COMIT. It is ambitious – if they can pull it off, then they have created something very valuable in the payment industry but if not, it is going to change TenX's game plan dramatically.
  • It is true that TenX’s fees are lower than competitors, but competitors can respond quickly and lower fee structure themselves, so this advantage may not last.


Overall, I am neutral about this ICO. I like the problem that they are trying to solve and that TenX has a working product and a detailed roadmap, but the valuation is on the rich side and there are already a few competitors in this space.

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

For short-term holding

Not good because they are raising a lot of money - $71 million at current ETH price, which brings the market cap to $141 million. Only 10 tokens are worth more than PAY’s ICO valuation.

For long-term holding

I like PAY for long-term investment. Let’s assume that (1) the cryptocurrency card transaction will eventually reach 1% of the combined transaction volume of Visa and MasterCard, and (2) TenX has a 33% market share in the industry, PAY holders will receive $215 million per year.

Of course this may not happen at all, and if it will, it is going to take many years for this to happen.

For more information about the ICO, please visit the following links:

Company website:


TenX blog:

Reddit page:

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