Zeex is targeting the multi-billion dollar corporate currency sector. All major retailers issue their own gift cards as a form of currency consumers can spend in the issuing company’s “economy”. These days the gift cards also come in virtual digital form and everyone is in on the action. Starbucks, Amazon, Gap, iTunes, you name it and they have a gift card. Zeex will make it easy to spend crypto on pretty much anything you want with the same convenience you expect from credit cards and the ease-of-use of a couple of taps in the slick smartphone app.
What is Zeex?
Zeex’s proposition is to launch a platform that lets holders of cryptocurrencies convert their assets into the gift card of their choice, without the need to first convert into fiat and then buy the gift card; Zeex puts it all together for the convenience of the up to know frustrated crypto shopper. Zeex is backed by market leader in the gift card exchange market Zeek, whose business has already sold one million gift cards.
The virtual gift card market is valued at $600 billion and Zeex plans to put some of that liquidity into play for shoppers with crypto in their pockets. “In order for cryptocurrencies to become mainstream, the infrastructure surrounding it must be user friendly and efficient,” chief executive and co-founder of Zeex, Guy Melamed, told CNBC at the beginning of May.
Zeex aims to solve the problem cryptocurrencies have with acceptance and the difficulties gift cards have with lack of transferability and expiry dates that limit their usefulness as a store of value. Also, demand for gift cards outstrips supply, which further enhances the use case of decentralized marketplace such as Zeex by putting sellers and buyers in touch with each other trustlessly.
How will it work
The ZIX token brings the corporate currency and cryptocurrency types into direct convertibility with each other for the first time. That has the effect of opening up a world of goods and services to the holders of crypto. Simultaneously, for virtual gift cards it performs the act of making them seamlessly transferable in the Zeex marketplace.
The ZIX token has three main features. Token holders get priority on when virtual gift cards are in short supply, which is a perennial problem given the supply constraints affecting the sector. Secondly, settlement of transactions is immediate with no waiting around for clearance. ZIX tokens are collateralized – through “pledging” them to the network – in order to facilitate timely settlement.
Thirdly, the ZIX token bestows on its user secure and anonymous login credentials on the Zeex platform. At a stroke online shopping becomes anonymous, bringing one of the key benefits of crypto into the mainstream shopping experience.
Zeex also takes the volatility of crypto out of the equation because now you can convert into your favourite brand or company’s virtual gift card currency safe in the knowledge that the face value of the card will not be subject to rapid and wide price swings seen with cryptocurrencies.
Because Zeex is a blockchain platform its decentralized nature enables it to offer its customers 0% fee transactions, so platform users don’t lose money every time you enter into a currency exchange transaction.
Also, although there is a shortage of supply of virtual gift cards they will nevertheless trade at discount to face value on the Zeex platform, as is the case on the Zeek platform presently. The discounts arise as a result of the misfit between giving and wanting – someone might give you a gift card for a retailer whose products and services you don’t want to buy.
In such a scenario the “corporate money” becomes dead to you, unless of course it can be exchanged. That’s the essence of the Zeek business model and its tried and tested experience running the marketplace is the same expertise, business infrastructure and relationships that stands behind Zeex. The support of its sisters company should provide contributors to the Zeex token sale with the confidence that is often in short supply for blockchain projects doing an ICO. It also gives Zeex access at launch to 350 global brands.
So with no transaction fees, how does Zeex intend to make money?
Zeex has identified a number of revenue streams involving offering services to gift card suppliers, from providing working capital to less established groups to helping others integrate cryptocurrencies into their wider business operations, provide fiat-crypto conversion facilities, custody service for crypto storage, plus other operational support and marketing services such as business intelligence.
ICO/Token sale
ZIX is an ERC20 token. 1 ETH = 5,000 ZIX.
50% of tokens are available for sale in the ICO, with a soft cap of $14 million, targeting a fundraise of $50 million. 20% of token go to the team, 15% for partnerships, 10% reserved and 5% for the community.
Of the funds to be raised, 55% is earmarked to invest in gift card suppliers, 30% on R&D and product development, with 10% for sales and marketing and 5% operations.
The token sale begins on 28 June and ends on 12 July. More details are available in the whitepaper.
To know more, click here!
