What is FintruX?
FintruX is a global peer-to-peer (P2P) lending platform on the Ethereum blockchain network for providing unsecured loans. It connects small businesses who need money for cash flow issues, with lenders who want to earn a better return on their money. FintruX has many technological and strategic innovations including “credit enhancements” that have been used in the securitization market to reduce risk for lenders. On the technology side, our “no-code software generation and instant deployment” has proven to be successful in delivering robust, fast, and easy-to-use software, with extremely low maintenance.
— Nelson Lin, CEO
ICO Alert Quick Facts
- A P2P lending ecosystem making unsecured loans easy
- Pre-ICO 1 ETH = 1,650 FTX tokens; Main ICO 1 ETH = 1,500 FTX tokens
- Pre-ICO January 7, 2018 — January 21, 2018; Main ICO February 7, 2018 — February 28, 2018
- 75,000,000 total available / 100,000,000 total supply
- More than $19,000,000 already raised
Q&A with Nelson Lin, CEO
ICO Alert: How does the Fintrux token (FTX) function within the platform and why is it needed?
Lin: FTX tokens are the means through which this platform will operate effectively and efficiently. With the exception of the collateralization pools and currency being financed, inside the FintruX Network everything is tokenized. Agencies, guarantors, and FintruX Network are all being paid in FTX Token. Rewards and late charges to borrowers are paid in FTX Token as well. FintruX will continuously sell collected tokens back to the participants to finance the operation and provide liquidity.
On other lending platforms, many service agencies charge an upfront licensing fee, an annual maintenance fee and an hourly customization fee. On the FintruX Network platform we will only charge our lenders per transaction, in FTX tokens. This simplifies the onboarding experience by removing the barrier to entry.
ICO Alert: How does Fintrux separate itself from other blockchain projects that connect borrowers, lenders, and rated service agencies?
Lin: We feel we separate ourselves in three key areas:
There is no lending platform out there aiming to lend to small businesses in fiat currency, especially startups; we are targeting a completely different borrower. Furthermore, we are truly a matching platform, as the loan itself and the payments do not pass through Fintrux, but instead are transacted directly between Lender and Borrower.
No one else is using “credit enhancements” to make unsecured loans highly secure like we are — and we are able to accomplish this by leveraging our decades worth of experience in serving the bulk lending market.
We are an ecosystem — we envision that in the third phase of our project, all lending businesses of different asset classes will operate on our network, taking advantage of our technology to provide loans for all sorts of different asset classes so that FintruX becomes the “go-to” financing hub of the world.
ICO Alert: How does Fintrux plan on achieving a network effect for the platform? Is the goal focused on more users first, more lenders first, or both simultaneously?
Lin: We are focusing on both simultaneously, but of course, it is necessary to have lenders on our platform before we are able to service borrower’s requests. For the first phase we will be onboarding institutional investors as lenders in our ecosystem, and then the plan is to broaden that pool in the future to include private investors as well. The full network effect comes into play when you consider that we are connecting borrowers with lenders, while utilizing service providers such as identity verification, KYC/AML, and third-party guarantors who are also part of the FintruX ecosystem. In that sense, our platform will be a true global network.
ICO Alert: Can you please explain how your credit enhancement technology works and how it will reduce the risk?
Lin: By applying credit enhancements, FintruX Network will virtually neutralize the lender’s credit risk and, in the case of a default, provide cascading levels of insurance to cover any possible loss. With risk reduced, lenders have peace of mind and the interest rates for borrowers is lowered.
We have four levels of credit enhancement protection:
- Over-Collateralization — FintruX Network holds back 10% of each loan as for default protection. This serves as the primary level of security for lenders.
- Third-Party Guarantors — Takes care of overflow losses. Individuals are invited to participate on the platform as a guarantor and choose their risk & compensation packages, and in the case of defaults, cover the losses.
- Cross-Collateralization — Covers multiple bad loans. The 10% held back from every loan is pooled together in a pool which functions as insurance to cover all loans within the same class. When invested properly to match the obligations, this pool can offer a sufficient coverage ratio against the average loan loss.
- FintruX Reserve — Last resort protection. 5% of all FTX Tokens have been reserved to cover any unexpected losses in the unlikely event that all previous credit enhancers fail. This is the ultimate layer of protection.
ICO Alert: Is there any concern with the lack of scalability that the Ethereum network has? If the project encounters transaction speed issues, would the team be open to moving to another blockchain?
Lin: At this stage, we don’t anticipate any problems in using the Ethereum blockchain. We have off-chain SQL databases to handle transactions that require fast throughput. Certain information will be on-chain, other information will be off-chain. For example, confidential information such as borrower’s names and addresses will be off-chain, while legal documents written as smart contracts will be on-chain. Our technology will have quite a significant performance edge when compared with traditional loan approval mechanisms.
We also expect the Ethereum network to address and resolve the scalability concerns. However, that having been said, our focus is on whatever solution will be best for our platform to achieve its goals. Our no-code development technology enables us to simultaneously deploy to multiple blockchain networks at the same time; we are constantly in search of more suitable blockchain platforms that can fulfill all our needs and offer long-term stability.
ICO Alert: How does Fintrux ensure that the platform is easy to use for those who are not technically savvy?
Lin: If you have had the opportunity to use our prototype you will see that we have designed the user interface very carefully to be easy to use for a technological neophyte, while at the same time not to be frustrating for a more advanced user. We’ve received a lot of very favorable reviews from our user base so far. The complexity of the technology below the surface should really be invisible to the end user and that has been our focus for some time, especially with our patented no-code technology that FintruX is based on.
ICO Alert: What are some of the agencies you are planning on partnering with? Do you have any planned partnerships you would like to discuss?
Lin: Already we have made several announcements of platform partners that we have engaged. Among them are Bloom, Hive, Datawallet, Persona, Trust Wallet and Stox. But these partners are, of course, just a start to our ecosystem. We will indeed be having many more partners join us. There are some other partnerships in the works, but they are unfortunately confidential until we have all the details worked out. Our supporters will not be disappointed!
ICO Alert: How far along is the project today and when can contributors expect to use the platform? What does the roadmap look like for 2018?
Lin: We are on target so far with our projected road map. We actually released our prototype early, which is great. For the remainder of Q1 we obviously have our token sale to complete and then we will focus on expanding the team. Q2 will see the launch of our alpha test with a fully functional version of our prototype for a limited group of real users. Q3 will be a busy phase during our beta test, while also onboarding new service agents and organizing our support services. Then finally in Q4, our plan is to go to market where we will start scaling the network to serve the masses!
ICO Alert: As a non-Fintrux question, we like to ask for unique predictions for the ICO and cryptocurrency space in the future. Where do you see both in the next 3–5 years?
Lin: The ICO model is a terrific idea to raise capital. If done right, it provides liquidity to innovation and opportunities for everyone in this world to benefit from the outcome. Nevertheless, because regulators are cautious and quite often slow to react, it may have been abused and there will be consequences. It is our view that there will be a slow-down in ICO activities sometime this year, call it a correction if you will, and it may rise again afterward to a new height with built-in regulatory compliances.
Cryptocurrency is the future and we believe there will be many cryptocurrencies and we can exchange value freely and instantly all over the world, a truly global phenomenon.
The Pre-ICO begun on January 7, 2018 and ended January 21, 2018. There was a total of 8,250,000 Fintrux tokens (FTX) available during the Pre-ICO, representing 8.25% of the total FTX supply. A soft cap of 5,000 ETH was set for this period.
The main ICO begun on February 7, 2018 and will end on February 28, 2018. There are a total of 66,750,000 Fintrux tokens (FTX) available during the main ICO, representing 66.7% of the total FTX supply. A hard cap of $25,000,000 is set for this period.
There are five bonus tiers for the ICO. The price for each tier is calculated on a bonus model and the distribution of the tiers is based on a first come, first served basis. Early contribution will benefit from the highest bonus, which will diminish down to no bonus at the last tier.
Fintrux currently only accepts Ether.
Fintrux is an ERC20 token, so it’s important that contributors use ERC20 compatible wallets to send funds to the ICO smart contract, and to receive the Fintrux tokens.
Eligibility for Participation
Any individual, who is 18 years or older, and who does not fall in the following categories, is entitled to participate in the token sale.
Residents of the following countries are not eligible to participate in the token sale: Afghanistan, Belarus, Bosnia and Herzegovina, Canada, Central African Republic, Crimea, Cuba, Democratic Republic of the Congo, Democratic People’s Republic of Korea (Commonly known as North Korea), Eritrea, Ethiopia, Egypt, Guinea-Bissau, Hong Kong SAR, Iran, Iraq, Libya, Lebanon, New Zealand, People’s Republic of China, Somalia, South Sudan, Sudan, Syria, Sri Lanka, Tunisia, Uganda, United States of America, Vanuatu, and Yemen.
The IP addresses of the above-mentioned countries are blocked to prevent the participation in the token sale. The use of a VPN is considered an illegal action and will be reported to the competent authorities.
Nationals of the above countries can participate in the token sale if they reside in eligible countries by providing a proof of residence during registration.
Token Distribution Information
There are a total 100,000,000 FTX tokens being created, with 75,000,000 available during main ICO.
Contributors will have their tokens distributed shortly after the end of the ICO. Visit the Fintrux website for more information and the contribution registration.
ICO: Maximum of 75,000,000 FTX. Funds raised during the crowdsale will be used solely for the development of the FintruX Network.
FintruX Reserve — 10,000,000 FTX: This portion will be allocated to reward advisors, early adopters, bounty programs and provide liquidity to the market if required.
Collateralization Reserve 5,000,000 FTX: For the unplanned compensation of losses incurred by lenders in the case of default.
FintruX Team 10,000,000 FTX: This will be allocated to founders and team. Tokens will be locked for a 12-month period in a multisig wallet.
Use of Crowsale Proceeds
Core Development 40%: Core development will involve the development of the technology as described in this document. This includes: proprietary functionality, smart contract generation, supporting services, decentralized end user applications, etc.
Operational 25%: This covers the necessary costs incurred for a functional system. This includes: hosting and infrastructure costs, staffing, outsourcing, management and other related expenses.
Marketing and Sales 25%: Marketing costs will be used for partnerships development and direct marketing. Sales costs will largely be incurred by direct P2P sales to small businesses.
Legal and Compliance 10%: There are legal costs associated with privacy protection and registrations with regulators. The legal costs might vary from region to region.
Q1: Prototype Ready. First prototype comprising basic functionality of the wireframe deployed to Ethereum Testnet. Open Source. The smart contracts’ solidity source code published on Github. Funding. Crowdsale campaign completed. Team Expansion. FintruX Network will expand the development team and hire experts in the financing and Ethereum blockchain development sectors.
Q2: Alpha Test. Fully functional version of the prototype deployed to production EVM with added functionality such as credit checks and scoring, scheduled payments, fee payments, cross collateralization pool management, end of term processing. Real Customers. 12 borrowers and six lenders signed up to use the FintruX alpha on a daily basis.
Q3: Beta Test. Extend downstream processes and functionalities added such as guarantor participation, statistics, management reports. Network Development. Platform ready to grow exponentially by adding new participating service agents. Service Organization. Support team set up to help participants of our ecosystem. Marketing. PR, marketing campaign, event participation, and sponsorships established. General Availability. Initial version available for all participants.
Q4: Go to Market. Sales and support team established. Scale the Platform. The platform is tested to serve the masses. Extension. Extend processes and functionalities such as loan trading interface launched on an incremental basis.
Nelson Lin, CEO:
Pioneered online credit adjudication for the asset-based finance and leasing industry in Canada as mentioned in the book ‘Unstoppable’ published in 2014 by Beth Parker and endorsed by the Canadian Finance and Leasing Association (CFLA). He has over thirty years of experience delivering numerous custom enterprise applications to global organizations such as J.P. Morgan, AT&T Capital, etc.
Conrad Lin, CMO
Completing a degree specializing in Neuroscience and Psychology from the University of Toronto, Conrad is deeply in tune with social marketing and outreach. He defines long-term marketing goals and short-term tactics, builds key customer relationships, identifies business opportunities, negotiates and closes business deals, and maintains extensive knowledge of current market conditions.
Ng Eng Ho, President
Chairman of Zweec Analytics and is also a director of China Taisan Technology and TNG (Asia) Limited. He has served in top management positions in large corporations including Singapore Technologies Telmedia, PT Indosat Tbk, and Keppel Telecommunications and Transportation Ltd. He was director of Alvarion Ltd and Mencast Holdings. His extensive network creates long-term shareholder value.
Gary Ng, CTO
A veteran in software development and has been a seasoned architect in the financial sector for the past 25 years, including some of the top global banks. He is skilled in all major programming languages and computing platforms. He has been instrumental in turning our low-code development platform into a no-code generator for smart contracts. Scalability and security is his main focus.