February 19, 2018
Where are the 10 thousand ETH community already contributed?
Let me start with huge thanks for everyone who has so far contributed during Debitum Network crowdsale, we have reached 10’000 ETH milestone! It’s great to see that our community trusts and supports the project and the vision behind it – to provide access to financing for small businesses worldwide. We are working hard to make our vision reality!
I believe the more tech savvy community members will soon notice that Debitum Network Round B smart contract (its address) will soon be restarted at 0. The less tech savvy most likely would not have noticed but we want to bring this to your attention to remain open and transparent. We will move funds already contributed to another address (a Debitum Network multi-signature wallet) for couple of reasons that we believe are important to share with the community:
- Minimum target achieved: We have reached the minimum target already during Round A – we collected more than 1.2M USD that is enough for Debitum Network team to develop v1.0 of the ecosystem and launch it in a single market. When we reached the minimum target, it meant that we should start working on actual Debitum Network to launch it asap. As you already know we have been working on Debitum Network version ‘Abra’ from January this year. We are currently working on designs, performing detailed analysis, working with potential ecosystem partners etc. This means that we already encounter operational costs that must be covered and we are using collected funds for that.
- Security: Every day there is something going on with security. We receive offers of “consulting security”, constantly someone is trying to scan our website or registration site, there are many scams taking place on Telegram. There are also a limited number of people (their combination) that is capable to move funds from current address, hence we also need to consider human related errors, like accident. We believe that we must act to ensure that funds contributed are safe, hence we believe it’s better to move currently collected funds to another wallet, distribute it among many places to ensure that Debitum is not keeping all the eggs in the same basket.
- Money management: Yes, we do understand that we are doing a crypto project at the same time large part of our costs will be fiat based. It means that we’ll need fiat to pay for those costs (like product development costs, legal costs, business development costs etc.). Of course, we could hope that ETH value will just raise and not care about potential risks but that would be rather careless. We believe it’s worse for Debitum Network project to see ETH price sharply drop decreasing collected funds value from 10M to 3M USD, rather than not seeing collected funds raise in value from 10M to 20M USD due to ETH price increase. Hence, we will exchange some part of collected ETH to fiat to ensure that if for some reasons ETH sharply drops it will not have such a huge negative impact on the whole project.
Our community is large ~10k members on Telegram, more than 30k subscribers to our newsletter. It would take us to contribute from 0.3 to 1 ETH each to reach hard cap the now. I believe each of us should consider this – our team already did!