Weld Money project’s team held an ask-me-anything (AMA) session for Incrypted, a well-known Ukrainian media dedicated to the blockchain and cryptocurrency industry. This AMA session was the first one intended for a Russian-speaking audience. The Incrypted readers asked us a lot of tricky and complicated questions, which we tried to answer as fully as possible. Here are the most interesting questions from the crypto community.
The full version of the AMA session can be found here (in Russian).
Let’s get acquainted with Weld Money. What is the project about and what problems does it solve?
We designed a Visa card allowing you to pay for purchases directly from the accounts of Binance, Kucoin, FTX, and other crypto exchanges easily and without additional fees. To achieve it we issue a Visa/Mastercard co-brand card, which can be added to Apple Pay and Google Pay.
How does the process allowing users to transfer money and make cryptocurrency payments with external agents including banks, shops, restaurants, etc. without any problems?
We issue a regular Visa card, which can be added to ApplePay and GooglePay. The user connects his exchange wallet via API keys using the Weld application. Then he can pay for purchases via PayPass on his smartphone.
At the payment time the processing center sends us transaction data (for example, $2 for coffee), we transfer the amount (2 UDST) from the user’s wallet, for example, FTX wallet to our FTX, and allow the bank to make the payment. The bank opens a short-term overdraft on the card and transfers the fiat to the merchant. At the business day’s end, we convert the crypto into fiat and transfer it to a bank account closing the overdrafts of our users.
Are there any transaction limits or the payment amount?
The limits will be $1,000 per day for one user. But if you want to buy a Macbook for $ 1,200, you need to stake the WELD tokens and increase the daily limit for any amount. These limits ensure smooth payments and the absence of suspicions from the side of bank AML offices. Since the amounts are small, such transactions don’t have signs of money laundering.
What about fees? Will there be any transfer inner app fees?
The fees will depend on the transaction type. Payment by card — from 1.5%, withdrawal in ATM — will be a little more expensive. But for those who stake WELD tokens, the fees drop to zero.
In which countries the product will work? And is it possible to get a plastic card?
The product will primarily start for Ukrainians, but paying by cards all over the world will be allowed. It’s needed for boosting MVP and tracking speed. By the end of the year, we plan to launch Europe, Russia, and other CIS countries.
The system’s description notes the Weld will freeze the required amount on the client’s crypto wallet. Does this mean the system will have full access to my wallet and assets on it?
The Weld company opens corporate accounts on each exchange integrating with, passing the corresponding KYC procedure. By adding API keys to our application, the user can always specify our wallet in his whitelist. Even in case of system hacking, the money will only be transferred to the Weld corporate wallet within the current exchange, but not to the attacker’s wallet. Which, accordingly, doesn’t make any sense.
What are the token functions?
lifting the daily/monthly withdrawal limits
ordering of premium Visa Infinity cards
We make monthly token buyback for 10% of the real processing business profit. The transaction volume, fees amount, buyback volume will grow correspondently with the number of Weld users.
It will produce a positive effect on the token price, as the buyback will wash the liquidity out of the market. This aspect we took from the well-known Binance Coin model, so we are counting on a similar ‘to-the-moon’. Later, we plan to launch several additional financial services, including staking, insurance, loans, and token deposits.
The only Weld competitors (Cryptocom and Swipe) provide various additional benefits, such as membership discounts and cashback. What unique advantages does Weld plan to offer to increase its market share?
The major Weld advantage is the ability to connect not a single specific exchange, but any exchanges and on-chain wallets. Nowadays it’s difficult to surprise anyone with any sort of cashback or and bonus, we also have it within the Visa programs. We will mostly develop all sorts of DeFi features & benefits, applying and combining them with the fiat world.
Will your project be regulated, and if so, how?
Sure. The project is subject to licensing both as the crypto and as a fiat one. In terms of the crypto industry, it’s an Estonian Virtual Assets Service Provider License for a legal entity. In terms of fiat, there are some payment partnerships with a license to money transfer, open accounts to individuals, MPS, and banks. The project will follow all the same KYC/AML requirements as a classical financial company.
How do you intend to ensure the full investors’ protection?
The answer to this question lies in three planes.
The Weld service and application is part of a company group with a 9-year history. All our companies, including Weld, are audited, advised, and supported by the Crowe Erfolg international audit company, which is in the top 9 of the world ranking.
It guarantees users transparency of beneficiaries, legal, financial, and accounting models, as well as compliance with international and local regulatory requirements. All companies are regularly thorough externally audited.
The Weld project is part of the technical infrastructure of the PayRun international payment system, which is licensed by the National Bank of Ukraine (NBU) and annually technically audited and PCI DSS certificated.
Kyte Global is an exclusive partner of our security system technical audit, which guarantees compliance with strict international standards for financial institutions making payments and transfers.
The Weld service opens corporate accounts on each exchange which integrating with, passing the corresponding KYC procedure.
By adding API keys to our application, the user can always specify our wallet in his whitelist. Even in the case of our system hacking, the money can be transferred only to the Weld corporate wallet on the current exchange, but not to the hacker’s one. Which, accordingly, doesn’t make any sense.
Where and how the pre-sale will take place?
Totally $250,000 in WELD tokens will be available. We want to allow our community to enter the project at the lowest token price (much lower than at IDO) and become the first users and testers of Weld crypto cards!
WELD token pre-sale price is $0.06. IDO/Listing price — $0.075. IDO is scheduled for September.