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Myriad blockchain and cryptocurrency projects are popping up ‘out of the ether’ just about every single day. While most of their use cases are quite esoteric, an increasing number have developed around functionality in the so-called ‘real-world.’
One of these projects is Ethercoin, a blockchain network that plans to eventually power a series of coworking spaces in cities across the globe. Finance Magnates spoke with Ethercoin’s LaTanya Davis about the future of the network last month.
The Birth of ’Etherspaces’
“Ethercoin is a multi-faceted utility token built on the Ethereum blockchain,” said LaTanya. She explained that the network utilizes “a peer-to-peer, autonomous voting system that determines which direction Ethercoin should go.” More specifically, the voting system is in place to help investors make decisions about Etherspaces, coworking spaces that exist in the physical world.
“The first location will be voted on by the investors, and we’ll develop a business plan in terms of [where the next Etherespace] will be built. In time, we want to be global.”
Exactly what can these ‘Etherspaces’ be used for? For starters, “new investors can receive training to learn about the cryptocurrency space,” LaTanya explained.
Additionally, “we know that a lot of entrepreneurs can’t really afford office buildings,” she said. This is who the Etherspaces will serve–the owners of small businesses. “What they’re trying to do in the [Etherspace] will determine their pricing.”
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“[Etherspaces] are open to anyone that needs the space,” she said. She explained that the inclusive nature of the coworking spaces could cause more people to use cryptocurrency, specifically Ethercoins.
This is because although Etherspace users will be able to pay their rent in USD or Ethercoins, they will receive a “significant” discount on their charges if they use the latter. “We’ll have stations set up [in each Etherspace] to show people how to buy Ethercoins from exchanges,” LaTanya said.
Etherspace users will also be able to purchase other in-house products and services at the coworking spaces with Ethercoins.
Ethercoin for Investors: Earnings on Rent, AI Trading Bot
“Once the spaces are up-and-running, investors will also receive quarterly earnings” from the income that each space generates. The amount that they receive will depend on how many Ethercoins they own.
LaTanya explained that in addition to earnings from the Etherspaces, Ethercoin investors will have access to an AI trading bot. “It’s a user application that can be downloaded to personal computers running on Windows, Linux, or iOS,” she said.
The AI uses algorithms and trading indicators to develop a trading strategy. “[The strategies] get back-tested, and if they work, they get live-traded.”
LaTanya said that the bots are connected to at least five trading exchanges–”all [users] have to do is put their API in…it’s very user-friendly.” The trading bot can only be purchased with Ethercoin.
A Balancing Act in a Changing Regulatory Landscape
How is Ethercoin staying compliant with changing regulations in the US? “We’ve been trying to make it clear that we are not considered a security. One of the criteria of the Howey Test is that the investors have total control over their investments. [On our network], investors can press the cancel button and have access to their tokens at any time,” LaTanya said.
She explained that Ethercoin is also in the process of working with BitSecure to provide insurance for investors.
Contrary to what many firms holding ICOs are choosing to do in the changing regulatory climate, LaTanya said that Ethercoin’s ICO will not have any KYC requirements for participants. “It would not be necessary because of the transparency in what we are doing as a business. It’s pretty straightforward.”
“When you have an ICO, you’re saying ‘hey, this is my project, this is what we’re planning on doing.’ You’re trying to get investors to see the potential, to see the vision of what we’re trying to do with Ethercoin,” she said. In terms of regulatory inquiry, LaTanya said that she is “sure that we would be prepared to handle any questions that come our way. That’s where we are right now.”