The growth of cryptocurrency adoption enables global financial inclusion in developing countries, as well as transforming business models and liquidity channels. The global cryptocurrency payment apps market size is expected to reach USD 2.15 billion by 2030, growing at a CAGR of 16.6%. Other sectors of the crypto financial world are scheduled to demonstrate growth, too.
We talked to Alexander Mamasidikov, Co-Founder and CEO of MinePlex Digital Banking, a cryptocurrency-friendly ecosystem of decentralized financial and banking services, and tried to find out why both businesses and retail investors flood decentralized ecosystems.
Who is the primary user of MinePlex ecosystem products? Which regions have displayed the most significant interest in crypto-finance solutions?
MinePlex caters primarily to users in developing countries. We have two main categories of users: those who use our staking services, and those who use our technologies, products, and solutions.
The first category includes individuals interested in cryptocurrencies, much like other blockchain projects. The second category consists of businesses of various sizes, ranging from small retail outlets to large merchants who install our terminals, as well as state-level organizations and government institutions in regions such as Africa, Asia, and Latin America, where high inflation rates necessitate solutions for tokenizing assets from the real sector and accessing digital assets conveniently.
Our most potential products are a crypto-acquiring platform with ready-made solutions for enterprises and businesses, tokenization of banking services, integrated acquiring through payment cards, POS-terminals and self-service terminals, token emission and acquisition at the private, corporate, and government levels, including cryptocurrencies, stablecoins, and digital twins, personalization processing, issuance and acquiring of cards and electronic payment instruments, ATM network processing, trading terminals, and e-commerce.
Another product worth noting is MinePlex Finance, a personal bank account in cryptocurrency and fiat in a mobile phone. Thanks to a partnership with a major Brazilian bank, this gives users access to traditional banking services from anywhere in the world, such as spending analytics and market overview, sending cryptocurrencies via account, card, SWIFT or by phone number, ordering payment cards, converting cryptocurrencies to fiat. The product solves the problem of financial isolation of people and makes it possible to use cryptocurrency every day along with fiat.
We focus on regions where our products are in demand, such as the Middle East, North Africa, Latin America, Asia, and CIS countries, which are the most active in terms of crypto adoption.
Why does MinePlex use a dual-token model, and how does it compare to a single-token model?
The decision to implement a dual-token model aligns with MinePlex’s goals for creating a sustainable and efficient ecosystem. This approach ensures that the two tokens support each other and reduces the risk of architectural issues such as a sharp increase in transaction fees or the freezing of a large number of coins.
In a dual-token model, one token figuratively replaces sockets and computers. This is a token of computing power. In the MinePlex blockchain, this is the MINE token. By staking, it produces another token – the PLEX token. In our new MinePlex 2.0 blockchain, MPX and XFI coins perform the same functions. MPX enters the staking and immediately goes into operation, mining XFI coins, which are distributed among all MPX holders.
Another important reason and advantage over the model with one token is that the model with two tokens removes any stages of vesting, lockups, etc. In systems with a single token and PoS consensus algorithm, staking involves a lock-up period during which coins cannot be withdrawn from a smart contract. Once this period ends, there is a high risk that validators will sell all the coins, potentially causing a drop in the token’s value. MinePlex eliminates this risk.
In essence, MinePlex’s dual-token model can be likened to a tokenized computing machine that operates in a more sustainable and efficient manner.
MinePlex recently announced it is moving to Tendermint Core and launching a new version of blockchain and a couple of new tokens. What is the reasons behind this decision?
We needed a faster blockchain primarily due to the increased turnover of assets since the launch of the MinePlex ecosystem. The main reason for the launch of the new blockchain is that the bandwidth of the Tezos blockchain was not enough to implement all of our plans. As the expiration period for generating PLEX tokens through MINE staking draws closer and demand remains high, we have decided to launch a new version of the blockchain. This new version will be more powerful, faster, and offer a staking period of 20 years, compared to the five years of staking in the blockchain of the 1st generation. The MPX and XFI tokens of the MinePlex 2.0 blockchain have the same logic and functionality as before, but with a longer planning horizon.
And what will happen to the owners of the tokens of the previous blockchain? How will the ecosystem work simultaneously with two blockchains and two pairs of tokens?
MinePlex cannot ban it as it is a blockchain and not a centralized server that can be turned off. The first version of the blockchain will continue to work as long as it is in demand, nodes continue to support it, and users have MINE and PLEX tokens in their possession. The issuance of PLEX through MINE staking will continue for the next two and a half years, and during this time, the ecosystem will support both versions of the blockchain simultaneously with two pairs of tokens. Then MinePlex will offer an opportunity for all holders to convert MINE to PLEX and change them either to USDT or tokens of the new version of the blockchain. The first MinePlex blockchain may be stopped only when its last token leaves the market. While MINE and PLEX tokens remain in the hands of users, the first blockchain will continue operations.
How do you plan to achieve a target ROI of 7% per month, which equates to almost 100% per year?
This is a very conservative estimate based on calculations that factor in liquidity turnover in the internal services of the ecosystem. The projected user growth is taken into account but it is not the main factor of development strategy. Instead, the focus is on the widespread implementation of MinePlex solutions at the state level in countries across Africa, the Middle East, and South America. We are constantly engaging in discussions with representatives from various nations regarding the potential implementation of blockchain solutions in their management processes. Recently, we signed a memorandum of understanding with UBC Group, a major developer in Turkey, to collaborate on the integration of MinePlex technologies and products. The primary sources of growth for MinePlex are financial flows from the real business sector and the introduction of financial products such as MinePlex Finance, among others.
How is the stability of the MPX price maintained?
MPX is not traded on the market and not listed on any exchanges. It can be purchased only by converting XFI, PLEX coins in the MinePlex personal account. MPX is a non-volatile token and has a fixed cost.
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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.