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What is Ripio?
Ripio Credit Network (RCN) is a global credit network based on cosigned smart contracts that connect lenders and borrowers located anywhere in the world and on any currency. The smart contracts connect agents with information on the borrower’s identity to agents that analyze the borrower’s credit risk impartially, thus standardizing credit lending through blockchain technology. A cosigner acts as a reinsurer that distributes and reduces the lender’s risk and, at the same time, helps to improve the contract conditions by retaining access to the borrower’s local legal system.
— Sebastian Serrano, Founder and CEO
ICO Alert: How does the Ripio Credit Network token (RCN) function within the platform and why is it needed?
Ripio: Although borrowers and lenders will denominate credit transactions in a local currency, RCN Tokens will facilitate transactions among the other agents in the network. RCN Tokens will be required to access the RCN network given that agents’ fees and obligations — plus the corresponding distribution expenses within the network — are driven by the use of these tokens. RCN Tokens also act as an incentive to each one of its participant agents to continue to participate in the network.
ICO Alert: How does the Ripio Credit Network provide safety to both borrowers and lenders against potential bad actors?
Ripio: RCN aims to strengthen the solution provided by most P2P platforms and magnify its potential. RCN operates on cosigned smart contracts, connecting borrowers, lenders, and cosigning agents. The cosigning agent undertakes insuring a sufficient volume of credit transactions to predict its own return on investment, to manage the debt, and to collect the funds in case of borrower default. RCN seeks to solve the risk neutralization problem of traditional credit platforms and regular P2P loan services by adding the figure of the cosigner.
ICO Alert: Many businesses use third party services or products that are required for their business to function. Are there any foreseeable issues with banks allowing for the storage of the Ripio Credit Network loan?
Ripio: No. Ripio has been working with local and international banks for over three years now.
ICO Alert: What are the incentives for the lender and how does the smart contract allow for those incentives to take place?
Ripio: The RCN smart contract protocol facilitates connections among several agents, each of whom play a role to ultimately offer the lender better tools to manage its capital, reduce the intermediation costs between a lender and borrower, provide increased credit access to borrowers, and, as a result, make more projects viable.
The inclusion of a cosigner distributes and reduces the lender’s risk and, perhaps most importantly, also helps to improve the contract conditions by retaining access to the borrower’s local legal system.
ICO Alert: What is the history behind BitPagos? How many users currently exist through BitPagos?
Ripio: Ripio (formerly BitPagos) was created by Argentinean entrepreneurs Sebastian Serrano and Luciana Gruszeczka. The company started in 2013 as Latin America’s first Bitcoin payment platform, offering Bitcoin-based financial services for merchants. A year later, they launched a digital wallet that enables consumers to send, receive, store, and buy or sell Bitcoin in local currency, and to make online payments. In 2016, Ripio launched a groundbreaking credit service (called Ripio Credit), reaching the finals at TechCrunch Disrupt, and revealing the innovative service to the world. RCN is the next step on that road.
Ripio has over 140,000 users in Latin America.
ICO Alert: Who/what is completing the full lending process that signifies how risky a borrower is for a lender?
Ripio: The cosigner, the key agent of Ripio Credit Network, uses information provided by the ID verifier and the scoring agent to establish the terms under which it will operate if the cosigner is willing to cosign on a loan. The cosigner may group the smart-contract-based loans (generated by the wallet providers) in homogeneous risk portfolios in order to diversify them. This way, the cosigner will be able to estimate and predict an expected loss for a portfolio of similar credit rates and use this information to assign its fee to cosign the smart-contract-based loan and/or add additional credit information to the smart contract under various conditions.
ICO Alert: How far along is the project today? What does the roadmap look like for the rest of 2017 and 2018?
Ripio: The next phase will see the implementation of advanced smart contracts and SDKs. These additions will allow third-parties to join the network as RCN agents. The RCN smart contracts will have the capacity to generate advanced credit requests, manage due dates, and allow payments in installments, among other actions. The ID Verifier interface will be defined and implemented, as well as the cosigner and scoring agent interfaces and their roles within the network.
ICO Alert: As a non-Ripio 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?
Ripio: During the next year, we will grow our development team and our business development team that will work with several strategies (PR, marketing, event participations, sponsorships, etc.) focusing on the RCN network development.
The Ripio crowdsale begins on October 24, 2017 and ends on November 7, 2017. The Ripio token (RCN) is an ERC-20 token and Ether is available as the sole method of contribution.
There was a premium crowdsale (presale) that reached it’s cap on Oct 6th and is now closed.
Token Distribution Information
510,000,000 RCN tokens are available across the presale and crowdsale. Since all tokens were sold during the presale, only 85,000,000 tokens will be available during the crowdsale. Any tokens not sold during the presale will be available for purchase during the crowdsale.
Tokens will be distributed to contributors once the contribution transaction has been confirmed.
42.5%: 425,000,000 RCN Tokens will be sold to selected contributors during a presale taking place before the crowdsale. In the case that the total amount of tokens reserved for the presale event are not sold, the unsold tokens will be added to the public crowdsale event.
8.5%: 85,000,000 RCN Tokens will be sold to the general public via crowdsale at the token generation event taking place on October 24, 2017.
14%: 140,000,000 RCN Tokens will be distributed to the current and future Ripio international team (those developing the RCN) to incentivize their use and testing of the network.
15%: 150,000,000 RCN Tokens will be kept as a pool to incentivize the participation of agents and for otherwise bootstrapping the network.
20%: 200,000,000 RCN Tokens will be held in reserve for bounties, partnerships, and future RCN expenses.
Use of Crowdsale Proceeds
60.75% of the proceeds will be allocated to the development of the Ripio Credit Network, which includes hiring and growing a development team, implementing RCN business strategies, and others related expenses.
16.35% of the proceeds will be used for the legal, tax, and related corporate structure fees, and for potential liabilities of the RCN.
19.63% of the proceeds will be part of the marketing budget to promote the Ripio Credit Network.
3.27% of the proceeds will be kept for miscellaneous and other unforeseen expenses.
Sebastian Serrano, Founder and CEO
Sebastian is an entrepreneur, having founded multiple companies before Ripio Credit Network. Sebastian was the co-founder of BitPagos, a payment gateway for Bitcoin in Latin America, is a mentor at BoostVC, and co-founded devsAr, a design and development company in Argentina.
David Garcia, Co-Founder and SVP
Before Ripio, David co-founded BitPagos with Sebastian and is a managing partner for a cryptocurrency investment fund in Latin America. He has a degree in marketing and also co-founded Qbien.com, a payment gateway for Latin American customers to purchase goods online in their native currency.
Luciana Gruszeczka, Co-Founder and Compliance Officer
Luciana is an entrepreneur at heart, having co-founded devsar.com before her time at BitPagos and Ripio. She has her MBA from Universidad Nacional de La Plata and is currently based in Argentina.
Andres Fleischer, Head of Operations and Administration
Andres helped start BitPagos with David, Luciana and Sebastian and also has founded other projects in the cryptocurrency space. He is very active in the Bitcoin community in Latin America and has previously worked for IBM.
Antonio Ceraso, CTO and Lead Blockchain Developer
Antonio has a range of experience as a developer and will act as the team lead for development of Ripio. He is also an archaeologist by trade, as he received a degree in archaeology from university.
For a full list of team members, developers and advisors please visit the Ripio website.
View the Ripio Website here.
View the only comprehensive list of active and upcoming ICOs here.
(1) Ripio Website, Ripio, (2017)
(2) Ripio Whitepaper, Ripio, (2017)