Debitum (DEB)


Name: Debitum (DEB)
Total Supply: (400,000,000 DEB)
Status: (Over)
Raises USD: (Pending)

What Is Debitum Network?

The Debitum Network platform aims to offer “borderless small business financing”. They want to leverage this by providing a powerful and dynamic nature of the blockchain to both secure and distribute fiat investments in the small and medium enterprise (SME) environment.

Founded on the principle of decentralization, accessibility and fairness, they want to create a new way for small to medium enterprises a way to access critical growth funding. They plan to wrestle away control from centralized banking institutions and the over-regulated, inaccessible nature of credit from incumbent banking platforms.

Currently, small businesses struggle under the regime of centralized banks and the Debitum Network intends to combat this by uniting lenders, risk assessors, insurers, and document validators under one flag. As a user of the platform, you will be able to connect for free, and facilitate cross-border deals that are free from high costs and the regulations of traditional lending. Debitum is constructed as a hybrid platform, and will operate based on the Ethereum blockchain and facilitate agreements via smart contracts and an internal means of payment.

There will be a native token called Debitum or (DFB), and the platform will also integrate advanced machine learning to automate additional services, and incorporate blockchain-to-blockchain communication in order to automatically clear assets and loans. The blockchain platform (Debitum) is a partnership between Debifo, an alternative financing platform that boasts a current asset portfolio of over € 3M, and Inntec which is a Northern European IT company with more than 151,000 total project hours. The team is led by Martins Liberts. He is a well-established executive and entrepreneur with deep insight in technology, finance and future.

Solution Provided by the Debitum Network Platform

Lending money is all about trust and its mechanical gears such as collateral, quantified reputation, and fear of punishment. Born in already well-established societies, we take the existing business trust culture for granted; we rarely doubt its basics and address the quantitative measurements of business friction costs. However, to solve global credit gap – we should mostly operate in younger countries where business trust is not granted. Through the usage of our trust based blockchain solution, we ensure the needed trust for all counterparties especially investors, to operate within the ecosystem.

To consider comparatively complex lender-borrower relations, let’s take a step back and see how bitcoin and other cryptocurrencies may change and simplify retailer-consumer interactions. To be able to conveniently pay in all stores, consumers go to the market of payment instruments where they have a narrow choice of VISA or MasterCard which are essentially the same. Retailers have more options — Ingenico, VeriFone, and a few others—but, since the interchange fee is still there down the line, that seeming variety does not allow them to circumvent high costs.

Putting its currency and monetary dimensions aside for now, when bitcoin, a decentralized payment tool, steps in, it theoretically allows consumers and retailers to interact with no intermediary, using the free open source tool. In practice, however, there are ‘Bitcoin operators’ such as a wallet software or side-chain providers who make life a lot easier without charging monopoly-like fees.

Three main pillars of the Debitum Network ecosystem

Our network is built primarily on three important pillars which are its uniqueness, disruptiveness as well as the will to ensure positive results on scaling the credit gap:

  • True decentralization

There are 154 countries indicated by the World Bank where SMEs experience credit gap and where a solution like Debitum Network could help closing that gap by providing ecosystem of counterparties and connecting it with global investors. However, we are not promising that the Debitum Network will be set up in 154 countries, because that will be a fallacy.

As Debitum Network is initial market maker and facilitator for solving worldwide credit gap by connecting SMEs with global investors who can rely on service provided by local or regional counterparties, i.e., verification, risk assessment, insurance, debt collection. It is impossible not to attract global investors that will distribute their available capital as well as attract SMEs to borrow and finance their growth; however, to make the whole ecosystem truly decentralized, global and self-sustainable service providers will be organized in ‘communities’.

Our belief is that our community is decentralized and truly global, consisting of various service providers and ‘institutional borrowers’ – alternative finance companies already serving SMEs that could attract more global investment and restructure their portfolio by using Debitum Network. A community consists of one or many local or regional service providers that work together to ensure service provision. Members of the community can be both crypto and non-crypto (having a crypto agent) based. Communities will offer a unique motivation for each individual as well as whole group to become more trusted as when any service is performed both the individual counterparty and their community will earn or lose trust rating.

  • HYBRID connecting crypto and fiat

As a matter of importance, since crypto is not recognized as a traditional currency in most countries (except for Japan) and as most crypto-currencies are too volatile, most business borrowers and investors in short and medium term would prefer to deal with loan principal and interest payments in its usual legacy way – using fiat payments. Incorporating loan-related capital transfers might serve as a fancy façade for any project, but the interest in such a system will remain chiefly an academic one for years to come.

If there is a way to prematurely move onboard loan-related capital today, we would spook many potential users. Hence Debitum Network will use crypto currency only for other financing cycle related fees and guarantee-like token freezes. Considering the capitals that are loan-related, we look at it as “physical goods” that can be dealt with off-the-blockchain with reference to it on the blockchain. The ecosystem has a designated role – fiat facilitator – to take care of all fiat transactions, make necessary records on the blockchain using smart contracts and ensure that the ecosystem can be used from day one.

  • TRUST based

Through the combination of fiat operations and highly trustable, we want to produce an efficient blockchain based financing process Debitum Network will ensure high interest from SMEs and investors. As lending is primarily driven by trust in the borrower’s ability to repay, Debitum Network will ensure that all transactions will interconnect with trust arbitrage smart contract that will provide objective trust rating for each single counterparty as well as communities of counterparties (i.e., risk assessors community in a single country).

To ensure the objectivity Debitum Network’s trust arbitrage smart contract will be based on hard blockchain-based facts like services’ smart contracts engaged in, loan principal amount worked with and other. Each positive experience that you have using our platform (like successful execution of a service smart contract) will add some trust rating points, while each ‘negative’ experience (like failure to provide service in prior agreed period of time) will deduct some trust rating points. This is in a bid to enable investors to clearly see the trust level of involved counterparties in every single financing deal as well as will motivate borrowers, service provider communities and individual counterparties to act responsibly.

The Debitum Network ICO

The initial coin offering of the Debitum Network will be used to generate the capital necessary to develop and launch the platform, and the sales of the coin will begin on the 30th of November 2017. They intend to release one billion DEB tokens that will be released during the crowdsale; this will be based on the Ethereum ERC223 standard. The crowdsale will end on the 30th of December 2017, with a three-tiered pricing structure.

For the step 1 of the crowd-sale, the price of DEB will be 3,750 DEB for 1 ETH, which will increase to 3,300 DEB for 1 ETH in Step 2. And lastly for the step 3, 1 ETH will be valued at 2,888 DEB. 60% of the tokens released in the crowdsale will be available for public purchase, while the remaining 40% will be distributed between supporters, reserve, and the Debitum team.

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