Debitum – A Blockchain based Solution for the SME Financing Market
What is Debitum Network?
Debitum aims to bring blockchain technology to the world of small business finance. Their goal is to provide a secure and easy financing solution to small and medium businesses through out the world.
HOW IT WORKS:
A good indicator of an ICOs potential success, is the assessment of whether their business tackles are real problem, and presents a viable and obtainable solution. In Debitum’s case, they see a problem in the fact that the current financing system is broken.
Small and Medium enterprises often have great difficulty in obtaining the money they need to operate and create new projects. The banks are just not lending. This has been evident in the existing financial system for a number of years. In emerging markets, the difficulty is even greater.
Here co-founder Martins Liberts summarizes the Debitum concept:
A 2.6 Trilion Dollar Market Gap
Today is estimated the is over 2.6 Trillion dollars in requests for small and medium business funding that goes unresolved. Banks are just not lending nor willing to put in the time support small business through due diligence and risk assessments. This has been evident in the traditional financial system for a number of years now. For emerging markets the
Missed Investment Opportunities
Often it is the case that private investors can not step in to satisfy thisfinancial demand. Local regulatory issues and a lack of adequate infrastructure prevents private investors and SMEs from being able to connect and address this gap.
Help for Emerging Markets
The access to SME financing in emerging markets accounts for the largest share of the gap. Based in Lithuania, Debitum is positioned to address the this funding gap starting in Eastern Europe, and growing globally for there. The whitepaper spells out their delivery timeline for various global regions.
What Problem does Blockchain Solve?
Blockchain helps to establish the trust network needed and the platform will help to connect investors in primary markets with SMEs in emerging markets in need of funds. The platform will facilitate the transactions from end to end. The flow allows financiers to inject fiat currency, which is converted to crypto, drives the execution of smart contracts on the blockchain and the is converted back to fiat on the receiving end.
The ecosystem allows for investors to sell debts they have acquired on a secondary market which Debitum provides. This allows initial investors to exit positions early and potentially profit, while offering a new opportunity for an investor who acquire the contract. The business’ funding is still secured by the original terms of the contract, unlike when a bank takes over an equity line from another institution and had leeway to change servicing terms.
As with all of the tokens we personally invest in, we look more towards the teams as indicator of potential in delivering on the vision. The team must be passionate about the goal and driven more by the solution than the rewards.
The co-founders have had successes with Debinfo and Inntec – combining their drive to provide alternative financing solutions for SME with professional IT services. There is also a strong advisory board, including Eyal Hertzog. Co-founder of Bancor. The team has lined up Investors, Investment Funds and Clients that are ready to utilize this platform.
MVP Available Now
The Debitum MVP (Minimum Viable Product) is currently online and available for testing. You can experience the demo for yourself by downloading the their wallet directly. And, if downloading demo software is not for you, you can still a full overview of the demo in this video:
The Debitum roadmap projects that the full platform delivery should come about in the last quarter of 2018. This is not at all unreasonable given the breadth of the project, and the fact that full development will not truly begin until the token sale has closed.
The project has gathered a great deal of support in the community, with over 10,000 Telegram members to date, and positive mentions from Clif High in the November 2017 crypto report. $2 million dollars was raised in the first two hour of the crowdsale. There are two exchanges already slated for DEB trading, Nebula, and Lykke.
There will be 400 million DEB tokens issued (60% to be issued in the public crowdsale) and a hard cap of 24,000 ETH has been set. Round B of the token sale is open now, and will close on February 25th. To find out more about their bonus program, please checkout the ICO site at https://debitum.network/ico for participation details.
You can also join in the conversation on the Debitum Telegram: https://t.me/.
Stay tuned for our live interviews with Debitum team as we continue to deep dive into this very promising project.