Archives for March 16, 2018

TRAXIA – A BLOCKCHAIN SOLUTION TO DISRUPT TRADE FINANCE

What is Traxia?
Traxia is a Cardano-based project that will disrupt trade finance. Traxia enables small and medium enterprises (SMEs) to trade accounts receivable, at a premium rate, to obtain instant liquidity.

What really happened?

Simply put, Traxia will allow SMEs to sell invoices (receivables) to investors. This will provide liquidity to the business by making accounts into short-term assets shortening the billing cycle.

Examples of this are:

  • A clothing manufacturer signed a deal with Nordstrom to deliver 1000 shirts.Nordstrom will pay importers when shipping.
  • Manufacturers started working on shirt projects and estimated finishes in 60 days.Manufacturers must pay employees and purchase inventory before payment.
  • Manufacturers use Traxia to “sell” their Nordstrom invoice for 90% of its value.
  • The manufacturer receives payment from Traxia for invoices.
  • 60 days later the delivery of clothing arrived at Nordstrom and the investor received payment from Nordstroms directly.
In this example the manufacturer receives 90% of their payment 60 days in advance.This increased liquidity allows them to make additional offers, create more merchandise and grow their business faster.

It sounds familiar?

Factoring Accounts are financial transactions and types of debtor financing where the business sells its receivables (eg invoice) to a third party (called a factor) at a discount.It’s a big business and everyday happenings.
Traxia wants to make it easier for SMEs to get access to factoring without relying on banks. They want a small portion of the $ 43 trillion daily receivable market.

How does Traxia do this?

The traxia ecosystem consists of several players and components. The main players are:

Seller – Upload their invoices to sell their receivables.

  • Buyer – Purchase of the seller’s products. They must confirm (using private key) that the invoice is correct and agree to pay it. The buyer’s credit rating affects the rate that the seller receives on his invoice.
  • Publisher Provider * – Converts an invoice into a smart contract and makes it a tradable asset. They are connecting with blockchain and LiqEase will initially provide this service.
  • Liquidity Providers * – Investors of funds or institutions that initially buy assets before reselling them on the exchange. Has paid the spread.
  • Warehouse Loan – The facility owned by Traxia (digital) which will initially act as a provider of liquidity.
  • Listing Provider * – Exchange where the assets are registered. Linking liquidity providers with investors.
  • Investors – Individuals who visit the market to invest and trade a portion or collection of invoices (now digital assets) in the hope of gaining profits in such trades.

Let’s See Early Examples from Manufacturers Shirts:

Seller (manufacturer) and buyer (Nordstroms) signed an agreement for 1000 shirts.Sellers want to use Traxia so they convert their accounts into tradable assets through LiqEase and Traxia. To do this, Nordstroms verifies and authorizes transactions using their private key.
The invoice is converted into a smart contract (digital token) by the publishing provider (LiqEase) and registered on the market for sale by list provider (LiqEase). At this point individual investors can purchase assets (invoices) at a premium providing instant liquidity to the seller.
If the contract is met then the buyer will buy a digital token (smart contract) from investors and investors will take advantage.
  • ACCEPT COMMISSIONS

What is LiqEase?

Traxia consists of two entities, the nonprofit Trauma Foundation and the LiqEase profits business . LiqEase builds technology behind the platform and will act as a provider of liquidity and preliminary lists in the ecosystem.
When reviewing the documentation and traxia sites, the names sometimes seem interchangeable as team members and the concept float between each entity.

Tell About That Sign.

Token, TMT, is the utility token required as a payment by issuing the provider to add a new invoice to the system. This system allows the mass adoption of the platform because buyers and sellers can continue to operate using FIAT.

How about Tim?

This balanced team starts with entrepreneurs and fills with marketers, and business veterinarians. CTO has worked on active blockchain technology (liqease). The team currently employs additional devs.
The counsel is very strong with heavy support from the VC group and legal counsel.Cardano is the main investor through their incubator Emurgo and Darren Camas, a senior advisor, is an investor and adviser on this project.
The team has a working MVP and use cases with Porche China.
Team (additional team and advisor on Traxia website)

Florian Pfutze – CEO / Founder of

Florian Zeim – Co-Founder and Product Development Lead

Jean Michel Lied Lied – CTO

Bruno Botelho – CMO

Sebastien Cheng – Business Development Executive

Counsel 

William Bao Bean – General Partner at SOSV

Darren Camas – Emburgo

Zennon Kapron – Former Intel and Citibank

 

What’s wrong with the ICO?

At present the ICO includes four presale rounds that offer 40% of the total token inventory to be sold. The token base price is $ 0.15 and can be purchased with ETH or ADA.
The first round of presale is currently open and offers 22% of total offer with a maximum discount of 40%. The discount is available until March 18 and requires a minimum contribution of 10 ET and limits the individual to a maximum of 1000 ETH.
The second round of presale lasts from 9 to 9 April and offers a 20% discount. The minimum contribution is reduced to 0.1 (or the ADA equivalent). This round offers 18% of total supply for sales.
It seems that the third and fourth rounds will sell the remaining tokens from the first two rounds with a 10% discount followed without a discount. If required, round 4 will end on 2 June. Max individual cap lifted for round 4.
Hardcap from token sales is $ 41.4 million and no soft stamp.
According to whitepaper a total of 60% of total TMT tokens will eventually be sold to the public. According to CMO Bruno Botelho an additional 20% will be sold to create additional capital if needed and will likely not be sold within the first 3 years.

Unsold tokens will be burned.

Token will be distributed at the closing of the crowd, when hardcap is reached or on 2 June.
Team members, early investors, strategic advisors and partners will have 60% of their tokens locked for 12 months and the remaining 40% locked for 24 months. Treasury funds will also be locked for two years.

Supply Marketcap & Token

The hardcap project will have a marketcap of about $ 41.4 million (400 million TMT) if no additional tokens are released at that time. In the current ICO environment, the calculated marketcap is on the high side.
The high amount of funds needed to fund properly the loan warehouse that is being implemented by Traxia. See allocation of funds on the left.
The loan warehouse will allow Traxia to buy its receivables and hold them until they are repurchased by the buyer. In the early stages of the project, the warehouse will play an important role in matchmaking and prevention of ecosystem congestion.
Total token supply is 1 billion TMT.
 
PARTNERSHIP?
The project has not announced many partnerships but their technology partners are Cardano and Emurgo. Emurgo will use Traxia as a test case to migrate platform from Ethereal to Cardano.
Traxia also partnered with creditafe.com which is a credit rating service for the company.
Although not an official couple, Traxia has completed use case (MVP) using Porsche China specified in whitepaper.
Social & Hype
TMT Telegram Group has 1,000+ members and reflects that the project is in the early stages of marketing. Telegram is increasing in activity and team members including CEO Tobias and CMO Bruno both seem to answer the question.
The crowd is not overly hyped at the moment but is expected to increase as token sales build momentum. This is the first project built on Cardano and supported by Emurgo, both of which will help increase interest.

Overall

The receivable industry is an industry worth $ 43 trillion / day. The team rated their project at 0.35% of this market (or $ 150 million). It is a project that can leverage blockchain to solve real-world problems and the ability of buyers and sellers to use FIAT will help the adoption.
This project is the first to build Cardano and will act as a test case for Emurgo and their migration services. Emurgo (Cardano’s investment incubator) is also a leading investor in the flagship field showing Cardano’s confidence in the project.
We encourage you to do additional research if the project interests you.

For more information visit: 

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