NeuCoin Teams With Tech’s Top Executives To Bring Cryptocurrency To The Masses

Journalist:
April 14, 2015

An engaged core team comprised of some of the most established investors and strategic partners in the cryptocurrency space believe the world needs NeuCoin.

The potential for cryptocurrency to go mainstream and transform the world is clear, but NeuCoin wants to take advantage of some of Bitcoin’s biggest weaknesses; namely, its lack of simplicity on the user-end for regular consumers.

What NeuCoin wants to bring to the cryptocurrency world is a consumer-focused, well-funded, transparent and experienced cryptocurrency option backed by credible investors with a long term plan to increase utility and value.

NeuCoin’s $2.25 million in funding, and recent sale of 200 million NeuCoins for $1 million to strategic angels, has put the firm out in front when it comes to easy, free to test, and mainstream-minded cryptocurrency options.

As the first digital currency to be strategically distributed to reward and incentivize all participants who increase its utility and value, NeuCoin has generated much buzz among crypto-currency enthusiasts. CryptoCoinsNews (CCN) sat down with NeuCoin’s co-founder Dan Kaufman to learn more about the “zero friction” cryptocurrency.

Interview with co-founder Dan Kaufman

Thank you for chatting with us

Thank you for having us!

Tell us about the Presale pricing of the NeuCoin tokens?

The main purpose of the presale is to enable the broader crypto community to join NeuCoin’s own community. Therefore, the initial price of $.01 (in BTC) per NeuCoin is only two times the price paid over the past year by NeuCoin’s strategic angel investors. NeuCoin’s strategic angels, invited to invest based on their ability to forge partnerships and help drive consumer adoption, include the co-founder and Chief Architect of King (Candy Crush Saga), the SVP of Business at Uber, the President of Hotwire, the Head of Growth at Facebook, Producers of television shows American Idol and X-factor, and dozens of other top tech, media and VC executives and entrepreneurs.

However, the NeuCoins sold in the presale will be completely unrestricted, while all NeuCoins held by the founding team, seed and angel investors are subject to strict re-sale provisions for five years, so that holders may only sell 2% of their holdings per month in the first year, 3% per month in year two, 4% per month in the year three, 5% per month in year four and 6% per month in year 5. These re-sale restrictions were put in place to ensure that the founding team and strategic angels are committed to the successful development of NeuCoin over the long term.

What market cap does the Presale put NeuCoin at?

When comparing NeuCoin to other currencies on Coinmarketcap, which lists currencies by available supply, the market cap will be $1 million, ranking NeuCoin around number 30, with a lower valuation than coins such as Clams, ShadowCash, DNotes and CoinoUSD and way below Stellar’s $13 million and Ripple’s $285 million.

If you look at total supply, NeuCoin’s market cap would be $30 million, compared to $270 million for Stellar and $890 million for Ripple.

How will NeuCoin use the proceeds from the Presale?

Unlike many other token sales, the proceeds won’t be needed to develop NeuCoin’s main functionality, which has already been funded and largely built over the last year, such as the core NeuCoin code, the industry’s most comprehensive white paper on PoS, an Online Wallet – MyNeuCoin.com – that is as user-friendly as any leading Bitcoin wallet (Circle, Coinbase), a consumer-friendly cloud mining service that lets users effortlessly earn PoS awards through “growth accounts” and on-boarding websites such as GetNeuCoin.com – a game-like tutorial designed to convert mainstream users in a fun and educational way. All this has already been funded and largely built.

The proceeds from the presale will be held in escrow and will be returned if the NeuCoin isn’t up and running by September. Upon launch, the proceeds will be distributed among NeuCoin’s non-profit foundations and used to fund future core development, consumer marketing and projects that increase NeuCoin’s utility – particularly the micropayment platforms for premium content and tipping NeuCoin is developing in partnership with MondoMedia, a video content producer with the largest animation channel on YouTube to develop, Jango.com, a streaming music service with 8 million monthly listeners, and RadioAirplay.com, an artist promotion company that works with 250,000 emerging musicians.

Your angel investors include founders and top executives from companies like King (Candy Crush Saga) , Hotwire, Facebook, Uber, XAPO, American Idol, X-factor, etc. What does it mean to you to have investors from companies of such caliber contribute to NeuCoin?

Having such high caliber investors of course means a lot for the project. They have the same consumer focus as we do, we know them well and have worked with many of them in the past, all successful entrepreneurs, executives and investors – from tech companies putting the consumer experience front and center, just like NeuCoin. Our investors were invited to invest based on their ability to forge strategic partnerships and help drive consumer adoption. Their support and advice will be invaluable for getting NeuCoin to reach mainstream adoption.

What is NeuCoin’s relationship to Peercoin?

We have a very good relationship to Peercoin. NeuCoin owes its existence to Sunny King and Peercoin, who invented Proof-of-Stake, and Peercoin’s core developer Michael Witrant is a technical advisor to NeuCoin.

What makes the NeuCoin team cautious about Bitcoin?

We think cryptocurrency is the greatest invention since the Internet itself, and Bitcoin obviously pioneered that. But Bitcoin hasn’t taken off in terms of consumer adoption. It’s techy and inaccessible to mainstream consumers and doesn’t yet have enough real applications that regular consumers care about. Not surprisingly, for all its buzz and media attention, Bitcoin has made very little headway in six years of existence in terms of consumer adoption.

Also, Bitcoin has looming issues with centralization, the probability of higher transaction fees in the long run – and an increasing divergence of interests between corporate miners and holders in general. We also think that Bitcoin’s distribution to just miners is hindering its mainstream adoption. Looking at Ripple and, more recently Stellar, we saw there were alternative technologies that would let you use coin distribution as a strategic tool for growth and adoption.

Our secure Proof-of-Stake design, recently laid out in our 39-page white paper, solves all these problems. NeuCoin is as secure as Bitcoin, less centralized and certainly more cost-efficient. The technology enables us to distribute the currency in a way that facilitates growth and adoption: some for free to consumers to try it out, some to companies that help make NeuCoin useful, such as exchanges and payment processors, and companies that accept NeuCoin as micropayments, etc.

How do you see NeuCoin and Bitcoin’s evolution alongside one another?

NeuCoin is focused on making micropayments super easy and fun for regular users. For any product or service to get adopted by the mainstream it has to be easy and provide some obvious benefit, fill a need, solve a problem, be fun and engaging. Same thing for digital currency: it has to offer some actual benefit over traditional payment methods, otherwise why would a consumer bother? Being able to make anonymous transactions isn’t something most mainstream consumers care about. Buying a computer at dell.com is actually easier with a credit card than with Bitcoin, so that’s not it either.

International transfers is one area where crypto has huge potential. Micropayments is another, it offers consumers and digital content providers a new experience that hasn’t been viable with traditional payment methods, like being able to pay 5 cents to watch a video, or 20 cents to get rid of all video ads for the day, or 50 cents for a micro subscription, or for tipping your favorite content creators.

To get consumers and content providers to try this new experience with as little friction as possible, NeuCoin’s micropayment platforms will be powered by freemium distribution of NeuCoin to users, who will be able to try premium content for free – a significant advantage over micropayment platforms using Bitcoin. NeuCoin will also give user acquisition bounties to participating content providers for all new users that sign up for free NeuCoin, to keep the circle of adoption going.


How does NeuCoin’s design solve mounting cost and centralization inherent to Bitcoin?

In PoS, miners compete for newly issued coins based not on the amount of electricity and computing resources spent, but rather on the number of coins owned. This eliminates the operating costs incurred in PoW mining and replaces them with the capital costs of holding coins.

Also, mining rewards are typically not a fixed amount (as in 25 per block in Bitcoin) but proportionate to the number of coins owned and the amount of time held by the miner, making them more like “interest payments” on the miner’s coin holdings.

Based on these two differences, PoS doesn’t suffer from gradual centralization as PoW does, because all PoS miners earn the same rate of return on their coins (the “interest rate”) regardless of computing hardware or electricity costs. Also, with virtually no operating costs in PoS, transaction fees can be far lower than in PoW in both the short run and long run, regardless of transaction volumes.

In NeuCoin’s implementation of PoS, we make several modifications to increase security relative to Peercoin and other existing PoS currencies. In our white paper we show that it’s just as secure as Bitcoin, rebutting all the PoW community’s “nothing at stake” objections to PoS and mathematically demonstrating that all commonly cited attack vectors would fail against NeuCoin’s design. As a result, NeuCoin’s design solves both the mounting cost and centralization problems of PoW, and the security and centralization problems with earlier PoS coins. As such, NeuCoin is the first peer-to-peer cryptocurrency, regardless of technology, that is secure, cost-efficient and decentralized in the long run.

Is NeuCoin the first peer-to-peer cryptocurrency?

NeuCoin’s innovative PoS design solves both the mounting cost and centralization problems of PoW, and the security and centralization problems with earlier PoS coins. As such, NeuCoin is the first peer-to-peer cryptocurrency, regardless of technology, that is secure, cost-efficient and decentralized in the long run. This enables NeuCoin to use coin distribution as a strategic tool for growth and adoption.

Can you tell us a bit about NeuCoin bounties?

In accord with NeuCoin’s foundational principle – “distributed to all who grow utility and value” – the NeuCoin foundations will be awarding bounties to reward members of the cryptocurrency community who provide constructive feedback. Right now, we’re offering bounties for feedback on NeuCoin’s two main documents published on NeuCoin.org: the technical White Paper and the Strategic Plan.

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