Scallop AMA (10th March, 2023)
Last updated
Last updated
Hello everyone, Welcome to the Scallop AMA.
Let’s jump into the details. Let me update you on Scallop’s progress in the crypto space before answering any questions you might have. We recently opened up our whitelist and released our app to European users. We’ve already seen a few thousand registrations, with some actively using our services and others testing the app out. Additionally, many have ordered our debit card and some have already received it.
Our full-fledged banking services, including IBAN and a debit card, are available for EU residents, allowing them to receive and send payments in euros, as well as buy, sell, and use crypto. Unlike other crypto-based cards, Scallop’s auto top-up feature allows users to spend their USD without having to sell it first.
Our banking services have been well received by the community, as we offer features that are not yet available from other providers. We’ve also made it possible for users to spend their money anywhere in the world. While we’ve released the details of our fees and limits in our FAQs, we’re not currently applying any fees or limits for the time being. We’re letting our users spend their money without charges for a few weeks to take advantage of this opportunity.
Some users have asked about our iOS app, but we’ve had to adhere to strict regulations put in place by Apple. As a financial app, we must be licensed to provide services in every jurisdiction we operate in; both for crypto and FinTech or banking. We’ve already secured our licenses and are excited to announce that we’ll be launching on iOS soon. Unfortunately, unlicensed apps will soon be banned from the Apple Store, so it’s important to choose regulated and licensed companies like Scallop.
We’re proud to say that Scallop is fully licensed and regulated in Europe, not just in banking but in crypto as well. We’ve even obtained licenses in more than one European country. We’ll be announcing additional licenses soon, as we’re ready to offer more services.
Regarding our app, we would like to encourage more people to use our services and spread the word. I also want to address a concern raised by a community member about b2b. We have successfully onboarded five users so far. In our last update, we had onboarded three companies, and now we have five. We have more than 10 in the pipeline, but the process is quite rigorous. It’s important to note that at Scallop, we don’t take shortcuts when it comes to onboarding companies. If you want to work with us and provide services through our platform, you can expect a regulated and thorough process.
To onboard a company, they are required to submit their KYB, and we thoroughly verify their addresses, source of wealth, and source of funds. We use various tools such as Chain analysis, elliptic, and hummingbird to ensure compliance. We also assess their business practices and sources of funds. This process typically takes three to four months for each company. Some companies may take longer to submit their documents, while others submit them quickly. We do not encourage companies to engage in illegal or unethical practices. While we have onboarded five b2b companies, they have a reach of over 20 million users through our banking system, which will be made available soon.
Scallop will use the scallop app as an on-ramp/off-ramp system, and more services will come through B2B. Recently, there was an announcement that they will offer a €199 referral bonus, and some people questioned why Scallop is posting this if they are unable to get companies. However, Scallop got all their successful companies through their own referral program, and they are encouraging others to refer legitimate companies to them for on-ramping/off-ramping or liquidity in Euros. Scallop can provide liquidity of up to €10 million in one go, and settle in one hour, unlike other on-ramping/off-ramping companies that take one day. Scallop has deep liquidity access to the top two exchanges in the world, making them the only ones with such access. Scallop’s chain is under rigorous testing, and we have successfully resolved all bugs. Scallop does things slowly and carefully, keeping things in beta for a long time. The marketing will begin with the release of iOS.
Several exchanges will soon be adopting Scallop as an on-ramp/off-ramp system. This means more services will become available through B2B partnerships. Recently, we announced a referral bonus of 199 tokens, which has caused some confusion among users who question why we need to promote ourselves in this way. However, this line of thinking is misguided. Referral bonuses are a common practice in the crypto industry, and many legitimate companies such as Crypto.com, Revolut, and Wise offer similar incentives. Our referral program is simply a way for us to expand our user base and has been successful in attracting users to our platform. In fact, all five of the legitimate companies we work with were brought on board through referrals.
Referring a company for on-ramping and off-ramping services is a simple yet effective way to promote legitimate businesses. By encouraging companies to submit their documents, we can attract more services and establish a strong referral program. In fact, all five of the successful companies we onboarded were acquired through this method.
If you know of a company that could benefit from on-ramping, off-ramping, or liquidity in Euros send them our way! For each successful referral, you’ll earn a generous 1 99 euro bonus, and if you refer 10 companies a month, you can earn up to 2000 euros without any hassle.
We only accept referrals from companies engaged in legitimate business practices. Through this program, we are able to bring in more legitimate companies and provide better services to our clients. So don’t hesitate to refer a business and earn some extra cash!
We have exciting news to share — soon we’ll be launching a referral campaign for the Scallop app in Scallop tokens, which will attract even more users to our platform. Some people may wonder why we’re offering a 199 euro referral bonus, but let me clarify — this is simply part of our strategy to grow our user base and spread the word about Scallop. We’re proud to say that we have a strong network of legitimate companies who use our on-ramp and off-ramp services, and we acquired many of them through our referral program.
At Scallop, we offer a unique advantage in the market — the ability to provide deep liquidity of up to 10 million euros in just one hour, unlike other companies that take a day to settle transactions. In fact, we have access to the top two exchanges in the world, giving us an edge that no one else has. So if you know of any companies looking for reliable liquidity in euros refer them to Scallop and earn 199 euros per client per month. It’s a win-win situation for everyone involved, as we continue to expand our network of reputable businesses.
And we are the Guinea pigs trying that system before it goes live to everybody. So anybody looking for any businesses, OTC dealers on Rampers off Rampers looking for a deep euro liquidity. Start sending them to scallop, you get 199 Euro every month for it. Yeah, that’s what it means over there. Now again coming to the chain, a lot of people keep asking where we are with the chain, and what we are doing. So the chain is under very rigorous trust testing right now. We recently finished 10 million blocks successfully and we will be now pushing into the transaction basis, where we will be doing a lot of transactions. Internal, secondary, and internal audits are finished. We have successfully resolved all the bugs. A lot of people asking when will be the definite. I mentioned this, it’ll be in q3.
At Scallop, we believe in a methodical approach to implementing new systems, so we take our time with everything we do. Currently, our chain is undergoing rigorous trust testing and we have successfully finished 10 million blocks. Next, we will move into transaction-based testing and continue with internal and secondary audits to resolve any bugs. We anticipate the chain will be ready for DevNet in Q3, at which point we will have hackathons and other exciting events.
For those wondering, DevNet is essentially a beta version of MainNet, which is the official, production-ready network. We prefer to keep things in beta for a while, so we can carefully test and refine our systems. This goes for our exchange, our app, and now our chain. We’ll continue to work on the chain in DevNet mode, running transactions with restrictions, until we’re confident it’s ready to move to MainNet, which we hope to do by Q4 or Q1 of 2024
In the meantime, we’re also launching a referral campaign for the Scallop app, in Scallop tokens, to attract more users. If you know of any businesses looking for OTC deals, on-ramp or off-ramp services, or deep liquidity in euros please send them our way. You’ll earn 199 euros every month for each new client you refer. Finally, I’d like to clear up some confusion about our recent 199 euro referral bonus announcement. It’s not because we don’t have users, it’s simply a way to incentivize our current users to spread the word about Scallop
We’re constantly monitoring the market, and depending on how it performs, we’ll make the necessary adjustments. But rest assured that our chain is very stable, with an average transaction time of just one second.
As for marketing, we’ve been getting a lot of inquiries lately, especially with the upcoming launch of our iOS app. We’ll be triggering our initial marketing efforts soon, and will release more details in the coming weeks.
And speaking of the market, based on our knowledge and understanding, we believe we’ll be hitting the bottom soon. So, for those who believe in the power of crypto, it’s a good time to invest. Stay tuned for more updates!
The crypto industry is undergoing significant changes, with many major players leaving the scene. As a result, Q3 will be a period of transition and adjustment, as we allow the dust to settle. I’m closely monitoring the situation and planning accordingly. While some people may be unhappy or upset, we will stick to our plan and move forward.
To kickstart our marketing efforts, we’ll begin with a slow and steady pace in the upcoming week, gradually ramping up with the help of several influential individuals we’ve already identified. We’ve divided our marketing strategy into three categories and are currently in talks to execute each of them.
Our marketing strategy will leverage both online and offline channels, with a strong emphasis on the digital realm. Specifically, we’ll be focusing on three key platforms: YouTube, Twitter, and Telegram. To help spread the word about our product and its use cases, we’ve secured partnerships with several prominent influencers who will be working with us to promote it.
It’s worth noting that we won’t be discussing token prices or any other financial aspects of the project. Instead, our goal is to showcase the product and demonstrate how our token can be used in conjunction with it. Some of our influencers will even be giving live demonstrations of the app, and we’re eagerly awaiting their feedback once they receive their own Scallop cards to test.
As you can imagine, coordinating all of these moving parts can take some time, but rest assured that we’re working hard to ensure everything is lined up for a successful launch.
To keep our community engaged and talking about Scallop, we’ll be offering Scallop tokens to our top influencers as part of our marketing efforts. This means that some of the marketing tokens will be moved out of the testing contract, allowing us to reach a wider audience.
Additionally, we’re working on securing exchange listings, starting with level three and eventually moving up to level one. We’re also excited to announce several new partnerships with other blockchain projects and on-ramp providers, which will help us expand our reach even further.
All of these efforts are geared towards promoting the product and its use cases, and we’re confident that they’ll help us build a strong community around Scallop. Thank you for your support, and we look forward to sharing more updates with you soon.
In the world of crypto, banking services are becoming less and less necessary. We have planned accordingly and will be moving liquidity tokens to exchanges as needed. Starting next week, we will begin executing our plans and showcasing our products. This will allow us to market our products, onboard users, and let them use our platform. I’d like to address some of the questions from the community, which will hopefully answer any additional questions you may have.
What is your assessment of the current events with Silver Gate and what do you say about the fact that Crediton is planning to open a bank?
Let’s break down this question into a few points: What’s happening with Silver Gate? Can Scallop replace Silver Gate? And what’s the deal with Craig and Bank?
First, let’s discuss Silver Gate. The company has had some issues that have been known within the banking industry for the last two to three months. However, it’s important to acknowledge that Silver Gate has been handling these problems properly, unlike some other clumsy blockchain and crypto companies (such as FTX). As a bank, Silver Gate is winding down its operations in a respectable manner, and they are returning all funds to their clients since they are a custody bank. It’s important to note that Silver Gate only provides services in US dollars, also known as a single IT in the crypto industry. They are the only company providing on-ramping, off-ramping, and custody services for US dollars.
Moving on to the next point, many people have been wondering if Scallop can replace Silver Gate. However, it’s important to understand that Scallop is not a bank and does not offer the same services as Silver Gate. Scallop is a decentralized exchange platform that allows for trading between different cryptocurrencies.
Lastly, let’s discuss Craig and Bank. It’s unclear what exactly is happening with Craig and Bank in relation to Silver Gate, but it’s important to keep an eye on any developments that may arise in the future.
Silver Gate’s handling of their situation has been commendable. It’s important to recognize the value of when blockchain and crypto companies execute things properly since they can often be clumsy (e.g. FTX). As a bank, Silver Gate is winding down their operations in a respectable way, announcing it and giving all funds back to their clients since they are a custody bank. This will have an effect on liquidity, given that Silver Gate is the only company providing on-ramping, off-ramping, and custody services for US dollars. It’s worth noting that Silver Gate only offers services in US dollars, which is also known as a single IT in the crypto and custody industry.
Let me clarify some points about Silver Gate’s integration in the custodian industry, which began nearly four years ago. To explain, when Fire Blocks, a crypto custody company, first started, they allowed people to store crypto. However, settling transactions between different currencies (e.g. USD to EUR) required an effective custody solution. Although crypto transfers between liquidity providers and exchanges can happen quickly, it’s difficult to ensure that the appropriate USD amount is transferred. Fire Blocks realized they needed an integrated, free custody solution, leading to Signature Bank’s creation of Cignet.
Certainly, there are additional fees involved. Indirectly, we do provide this service, but the answer is no in a direct sense. Signature Bank cannot be replaced by Scallop because they only deal with dollars, while we only deal with Euros. It’s common knowledge within Scallop that we have not handled dollars for some time now. As I predicted, the situation has unfolded precisely as anticipated. However, we can convert Euros to dollars, which falls outside the SEC’s jurisdiction, and we’re happy to offer that service. A word of caution to those in the crypto industry: if you convert your crypto to dollars, expect to see increased fees very soon. Many larger exchanges are adopting the same process. From next month onwards, expect double the fees if you convert to US dollars compared to Euros. That answers your previous question. Now, onto CU Bank. They are attempting to acquire a bank, but the question is whether they can do so in a suitable jurisdiction, given recent events. They’re exploring different options outside of America. As for us, we’re not overly concerned because they have their own liquidity and plan to offer services to users through that. Nonetheless, having more regulated individuals and entities in the crypto community is beneficial, and we welcome it. In the crypto industry, what we really need are more trusted custodians to help address the current problem. When people talk about the market cap of crypto, they often overlook stablecoins such as USDT and USD. For instance, when FTX reportedly lost $40 billion, they didn’t really lose it as it was simply converted into USDT or USDC. The difference is that if you compare stablecoins to dynamic coins, there is indeed a loss of value. However, if you compare crypto to fiat, the market cap of crypto with stablecoins included is over a trillion. Nonetheless, while there are large reserves of stablecoins, there is still a lack of free liquidity in the market. The current issue in the crypto industry is the lack of liquidity, which is where the crunch comes in. Therefore, we need more people to enter the industry and support the fiat side of liquidity. As someone who comes from a regulatory background, I am very supportive of this move. I have even talked to some tier-one exchanges about it, and they have received it positively. The goal is to achieve a balance between fiat and crypto, which will lead to a healthy market. This is why we welcome more people coming into the industry. However, it’s important to note that none of these individuals or entities have a regulated blockchain. Therefore, at some point, all these exchanges will need to use the Scallop chain to support their banking. In the crypto industry, we refer to fiat directly on a chain as an E-token or CBDC. This will make fund movement faster and more efficient. Who knows? Perhaps Kraken might also consider using the Scallop chain soon, given their knowledge of it.
At which trade fair can you meet scallop next?
We are excited to announce that we will be showcasing Scallop at Token 2049 Singapore. Our goal is to promote our B2B services to help facilitate the conversion of crypto to cash and vice versa. We have seen a significant interest in our services, especially after the events with SilverGate. People are seeking proper banking service providers rather than OTC dealers to convert their assets.
Let’s take Moon Pay, for example. While people talk about it a lot, they only let you buy crypto and not sell it due to licensing and banking infrastructure limitations. With Scallop, you can buy, sell, and convert up to a million with a snap of a finger, provided that you submit all the necessary documents. This is because we have a full banking infrastructure that allows you to hold multiple currencies, including euros, and up to 50 multicurrency wallets, along with FX and remittance services that are available for B2B only. We have a lot of interest from big players who are looking to access liquidity in euros and convert into the FEX system through Scallop.
There are some exciting developments happening in the world of crypto, with upcoming events like Token 2049 and progress being made to expand services into more jurisdictions. There has been a lot of interest in converting crypto to cash and vice versa, and Scallop seems to be a popular choice for those looking for a proper banking service provider. They offer multicurrency wallets, FX, and remittance services, and can handle large transactions easily. I have been traveling and connecting with people in Asia and Europe, and there may be some exciting news to come in the next few months. More details about upcoming fairs and events will be released soon.
A lot of questions here. Okay. Any plans to launch a website version of this scallop banking app?
We are currently focusing on enabling the B2B app for personal users, but it won’t be available right away. It’s worth noting that many companies, including Uniswap, are converting their apps into web extensions after being rejected by Apple. This is beneficial for Scallop since we have observed more traffic and interaction happening through apps than through the web. Currently, the Scallop banking app is strictly for banking purposes. However, we may consider expanding in the future, but it will still be through the same business app.
Is there a way for me to raise a grievance?
We always appreciate your feedback and strive to improve our services. You can leave your feedback in our main group or through our feedback form, and our moderators will be happy to assist you. Please note that due to a high volume of messages, it may take some time to receive a response from us. However, we will do our best to address your concerns and make the necessary changes to enhance your experience with Scallop. Thank you for your continued support!
Any updates on partnerships?
We have exciting partnerships in the pipeline, and we’ll be announcing them very soon. We’ve been in talks with various blockchains and other entities, but we need to wait for the right moment to make the announcement. It’s like waiting for a dust storm to pass before moving forward, as there’s no point in walking blindly. We want to make sure we’re heading in the right direction and can see clearly where we’re going. Stay tuned for more updates!
Are there different fees for different fiat to certain cryptos?
We’ve noticed that there have been many inquiries about our fees, and we’d like to clarify that all fees and limits have already been published by the community. For your convenience, one of our moderators will repost the detailed fees for both businesses and personal account users. For instance, we do not charge any fees for deposits, and withdrawals are also free for personal account users. However, there is a flat 1% charge for any kind of exchange, whether it’s between fee and crypto or crypto to crypto. We do have daily and monthly limits, such as a €5,000 limit per card transaction. Despite this, we are currently encouraging our users to utilize our card as much as possible. Also, We have good news! We have removed the restrictions on our basic card, so you can now use it without any fees, even beyond the previous limit of 300. This offer is active for the next few weeks, as we want to encourage more people to use our card. The more transactions we have, the more discounts we can secure with Visa, with whom we have established a great partnership. These discounts will enable us to expand our services worldwide. We encourage everyone to order their card, which should arrive within 10 days, and to use it for all their online transactions. Using our card will benefit both you and us. We have some exciting news to share with you. We will soon be offering cashback and rewards as well, so stay tuned for that! Just to clarify, I have already explained all the fees and discounts for taking advantage of our services. For example, if you take 20K SCLP, you get a 20% discount for a minimum of six months. We did have a couple of issues with fixed four-year staking, but those have been resolved. If you still have any issues, please contact us and we will help resolve them for you. Additionally, We are introducing all the robots to the banking app as well. And we will be adding more and more services down the line.
The app is working amazingly, And I only have one question at this moment. Yes. The top-up, it’s only with the USDT, right?
Yep, USDT is only stablecoin. The TOPUP only works with stablecoin.
If in the future, can we choose something else to add, as a TOPUP coin?
Our upcoming additions to stable coins will include e-money tokens and USDT/USDC. The purpose behind this move is to simplify transactions for our users.
For instance, if you have Bitcoin and want to make a purchase when the BTC price is at $22,000, it can be challenging to keep track of the value as settlement time approaches. This is especially true for automatic operations, where the process is live and immediate.
To address this issue, our automated system sells and converts cryptocurrency as needed, ensuring that users can make purchases with ease. At Scallop, transparency is our top priority, so we strive to make our processes as clear and straightforward as possible.
Our focus is always on providing clear transparency, and we believe that stablecoins are the best tool for achieving this. We will be adding different stablecoins, such as e-money tokens and USDT/USDC, to enable automatic conversion for account holders running low on fiat. This feature is especially useful for those who need to make immediate purchases without worrying about settlement times or currency fluctuations. In the future, we plan to remove all other tokens and only support e-money tokens to encourage the use of Scallop cards with the Scallop chain. Our goal is to link all products to the chain at some point in time. Therefore, stablecoins are the only option for this process to provide our users with a seamless experience.
Question:I wanted to discuss is regarding the new pool staking rewards. Some of us have noticed that our rewards seem to be incorrect by several percentage points on the APY (Annual Percentage Yield). Tickets have been created, and we have been given the rewards that were owed to us, but the issue has not been resolved yet. Do you have any information about this issue? If not, could you please address and fix it? And if you do have information, when can we expect a solution? This is important for ensuring the accuracy and fairness of the rewards system.
RAJWe understand that some users are experiencing discrepancies in their staking rewards, with some being off by a small percentage while others may be off by more. We are aware of this issue and are actively working on a solution, which will involve a complete deployment of all the contracts. Please note that this issue is not affecting everyone at the same pace, and we are working to ensure that all users receive their owed rewards on a monthly basis. If someone misses a month, we will settle it on a monthly basis. We may not be able to check or resolve issues from six months ago, but we are committed to resolving current and ongoing issues as quickly as possible. Rest assured that we are making progress and working to ensure that everyone receives their tokens. Thank you for your patience and understanding.
Question:The next question is about the chain. Can you give us a little bit more update than that? Do we know exactly where we’re at? Are we a month away or six months away?
RAJWe have a definite goal to launch the chain in Q3, and we’re working towards that timeline. The process is slow, but you can keep track of our progress on Scallop Scan. The biometric bridge has improved significantly, with new user interfaces and upcoming versions. We’re also updating the look of whitelisting and the bridge. Our backend team is working on the systems for the DevNet, and soon we’ll have a new look for it. In short, we can create a server and deploy the same code as DevNet.
Other blockchains typically rely on influencers and marketing tactics to promote their tokens and generate hype, but that’s not our approach. While we could follow that path, we choose not to. Instead, we’re focusing on preparing the infrastructure for the DevNet. We’re improving the biometric bridge, white listing, and wallet to ensure that they’re user-friendly and efficient. We’re even revamping the wallet to make it more advanced than the Phantom wallet system. Our goal isn’t just to launch a chain; it’s to provide users with a functional and optimized system.
The team is working hard on improving the code system, unlike other blockchains that only make minor changes. The biometric bridge has undergone a complete overhaul, and new details are being introduced. Although it will take some time, the team is dedicated to delivering a quality product, and the chain is currently running smoothly with no issues as evidenced by one 10 million blocks recently. It’s important to be honest with everyone about the progress, which is why the launch is planned for Q3. The team wants to ensure that all aspects of the infrastructure, including the bridge, whitelisting, and wallet, are fully optimized for a seamless user experience at launch.
Our average transaction time is still very fast, around one second, but we’re anticipating even more transactions in the near future, which may cause some slight delays, perhaps up to three seconds. We expect to be processing between 2000 to 5000 transactions every day. In addition to this, we’re aiming to maintain our gas fees at the usual 10 to 15 range per transaction, which I had already mentioned a while back. However, we’re facing some challenges with this that have not been tackled by anyone yet. For instance, if you look at the BSC chain, their fees are always fixed at five per year, no matter the circumstances. As a result, the BSC chain’s price tends to fluctuate slightly. Our goal is to keep the Scallop price as stable as possible, but we acknowledge that it may also experience fluctuations.
We are exploring a new approach to gas fees. Unlike other chains with fixed gas fees, we want to create a dynamic pricing system that adjusts based on network usage. This involves fetching data from external sources via an Oracle and processing it through our chain’s ZK Roll up. The gas fee will then be adjusted accordingly, even on a per-call basis for smart contracts. This is a complex process, but we have made significant progress and are already 10 times better than before. While you won’t see the costs and details yet, we are working hard to make it happen. The pricing can vary from a hundred to one cent or even less. Our aim is to introduce a novel dynamic pricing system, which uses Oracles to fetch prices from external networks. The blockchain then processes this information through ZK roll-ups and adjusts gas fees accordingly. For instance, on the Scallop chain, a smart contract receiving more than five calls will cost a certain amount. This complex process is what we are working on, and we have already achieved a tenfold improvement from our previous efforts. As of now, users cannot see the costs and other details. We have made significant progress, but these developments will initially be visible on the test net. We will roll out all updates on the test net and eventually transition to the main net. Further down the line, we will also push it to the devnet. While outsiders may perceive it as a simple process, we prioritize proper execution. Our goal is to ensure that our actions align with our words. While some may only talk, we focus on delivering quality products, which we believe will endure in the market. A lot of development has taken place, but these changes will first be visible in the test net. We will implement all the changes in the test net before moving them to the main net. Eventually, we will also implement these changes in the Devnet. This is the process that we follow to ensure that everything is done properly. From an outsider’s perspective, this process may seem simple. However, we want to ensure that we create a high-quality product that will succeed in the market. It’s important to note that some people may talk a lot but fail to deliver, whereas we prioritize action over words. Ultimately, only the right products will survive in this market. Considering the current state of affairs and what is yet to come, only a very small number of crypto projects will survive. I strongly advise everyone to conduct their own research and develop their own strategies. It’s important to remember that everyone’s approach may differ. Please avoid unlicensed projects on iOS. In a few months, all projects will have to be web-based as they will no longer have licenses to operate as mobile apps.
Question (STEVEN):Next question, You mentioned iOS in a few days. Do we actually have the approval from iOS for the update?
RAJEverything is all set. It’s important to note that only a few apps such as Scallop, Revolut, and Wise are currently licensed. This applies to banking-based products only, as most crypto projects are unable to demonstrate that they have the necessary licenses. To be frank, banks are the only ones who have been honest and loyal in this field. Unfortunately, it seems that only 1% of crypto projects are honest and loyal, while the remaining 99% are not. This is a regrettable situation
Question (STEVEN):when can we expect an update as to the next step for the public to be involved in the node process?
RAJStart of Q3 or end of Q2 In terms of node operation, higher specifications are not required. We have received numerous requests for nodes, and two individuals have already submitted their KYC and KYB information to run the node. I appreciate their willingness to provide this data, and We are currently reviewing their applications. It can be challenging to participate in Scallop’s node operations due to the application process, but there is a significant opportunity for interested parties. There is no harm in submitting the necessary documents early to qualify. We will provide more information on the process, including filling out forms and expressing interest, by the end of Q2. we will be releasing additional information soon about the process for becoming a node operator, and we will verify all the details provided by interested parties. If you have tokens in multiple wallets, we kindly request that you consolidate them into a single wallet and submit those wallet details to us. This will streamline the process and make it easier to move forward. We will provide more details in the future.
Question:What if several people or a group of people want to get together and operate a node, would that even be possible by combining all the wallets into one and one person or entity doing their KYC?
RAJI can see that you already found the crack in the system, If a group of people want to operate a node together, it is recommended that they form an entity to do so. This entity can appoint one or two directors to complete the necessary KYB and KYC procedures, and then operate the node on behalf of the group. However, the details of this arrangement should be agreed upon by the individuals and the entity.
You mentioned, or did, did it skip to me the B2B business? The names or is it NDA?
I have mentioned a few of our partners earlier, including Chain analysis and some Dubai-based companies. We also have three more partners, one of them being QT. I can’t reveal the other two until they complete compliance and are fully onboarded. We only announce partnerships once they are confirmed, as rejecting them later would be dishonest.
Apparently, Scallop is not widely used yet, but we are converting its entire system into a payment method through banking infrastructure, not cards. Our team is working on this, and we hope to launch it within the next two months. This will enable a lot of projects to use it as an onramp and offramp through the banking ecosystem in Europe. It will benefit exchanges, third-party platforms, and even e-commerce sites, making it easier for them to buy, sell, or use crypto via Scallop.
The Equity Rounds still on?
Yes, we have made commitments related to crypto, and some people are currently comfortable with the situation. We will provide more information in the future, but since the markets are volatile, there may be some changes to our plans. However, we are not in a rush to make any big moves right now, as we are content with our current position. We plan to announce more details about our plans in the coming months.
Raj, you’ve mentioned previously the new jurisdiction. Are you in a position to tell us where that is today?
Unfortunately, I cannot disclose that information at this time. However, I can tell you that we will be offering crypto cards in multiple jurisdictions across several countries. It may take some time to make an official announcement due to the volatile nature of the market. Our team has been working hard to secure partnerships and meet with governments and regulators to expand our services. We anticipate serving over 300 million people and are currently focused on developing the technology to support such a large user base. We will provide more details in the coming months as we continue to make progress.
Raj quick follow-up. There was a use case that you were expected to announce? Has it been announced yet?
Yes, the discount program has already been implemented. For instance, users who hold scallop tokens can receive up to a 20% discount on all fees charged within the Scallop app. This benefit is available for both individual users and businesses. So, by staking tokens, users can receive not only PR rewards but also discounts on their fees. The program is fully functional, and some users are already receiving benefits.
I’m not sure if you caught the latest on the Coinbase wallet as a service. Is it not similar to something that scallop was also planning in terms of B2B and other institutional services?
No, our service involves providing direct custody for client funds and storing them in Scallop. This differs from the Wallet-as-a-Service approach taken by companies like Coinbase, where the UI can be customized to create a Holder wallet, but the funds are still stored on Coinbase’s platform.
The Coinbase wallet model can be described as a form of custody service. By using the Coinbase wallet, you can customize it with your own name and provide wallet services to others. Essentially, this means hosting your wallets on platforms like Fireblocks and customizing them to your liking. As the market becomes more competitive, there are several ways to generate income from these services. Coinbase’s approach is intriguing and worth exploring. while Scallop offers a wallet-as-a-service option where users can customize their interface, we provide custody-as-a-service where client funds are stored directly on Binance. This is a unique and pioneering service, as no one has done it before. Our relationship with Binance allows us to offer this service, which Coinbase has also started to offer.
Our original roadmap had the banking app and main net planned for Q3, and the Minnet for October 2022. However, there have been some changes and delays that are currently on everyone’s mind.
It’s inevitable that competition will arise in any industry. However, we should note that there are limitations to what Coinbase can do compared to us. For instance, they can offer wallet services but not banking services like we do since they are primarily based in the US. If Coinbase had pursued what Binance is doing, they could have done it a long time ago. But they chose a different path with the money they had. It’s worth noting that catching up with licenses, regulations, and building banking infrastructure takes time.
Also, It’s important to understand that developing a comprehensive banking infrastructure takes time. For example, Revolut provided e-money services for five to six years before becoming a banking system in Europe, which took them two years. Our project, Scallop, raised 2.5 million which has allowed us to achieve a lot already. It’s worth noting that other blockchain projects have raised much more money, but we have been very effective with our resources. Just like cooking, the outcome depends on the quality of the fire. It’s inevitable that competition will catch up, but not everything they can do, we can do, and vice versa. Coinbase, for instance, can’t offer banking services like we can because they are primarily based in the US. While they may catch up with licenses and regulations, it takes time to build the necessary infrastructure.
The intensity of the flame determines the cooking time. A pan heated by a candle takes longer to boil and cook. The analogy applies to our situation. I understand your point, and I agree that what we have accomplished is significant, and it will be difficult for our competitors to catch up. We anticipate surpassing crypto.com in a few months, and that’s why we are raising funds for marketing and other purposes.
I noticed that eight people asked about competition, and I believe that healthy competition is always beneficial. However, we are already in the industry with significant players, such as Coinbase. Nonetheless, Coinbase will never be able to offer banking services, debit card services, and a regulated blockchain as we do.
Sometimes, you remind me of Charles from Cardano. He’s a perfectionist, always striving for perfection. However, look at the fate of Cardano. Despite being their main product, the Cardano chain hasn’t made much progress in recent years. In contrast, the Scallop chain is the bloodline of our ecosystem, and we need to focus on its development.
Scallop chain is only one of ten products in discussion. It’s important to remember that when TG happened, the chain was not the main focus. I always pitch the money for accounts, cards, and other features, with the chain added later. If you go back to my earlier messages, you’ll see that I always emphasized that the primary focus is on banking systems and cards for Scallop, and the chain comes later. The regulatory system and everything related to the chain came much later. So, I want to correct the misconception that chain is the main product for Scallop. It’s the crown jewel, but without the base of banking and regulation, the jewel cannot stand. The scallop chain is useless without the banking system and cards. It’s the infrastructure that runs everything on the blockchain. The chain will be the last product to come, as it cannot exist without all the other pieces in place. The scallop chain cannot function without the banking system, cards, and other related components. These are necessary for the regulatory system to operate on the blockchain. Therefore, I need to clarify that the chain is not the main focus of scallop, but rather comes last after everything else has been integrated. As I have mentioned in my previous messages, the chain will be the last product to be developed, as it requires all the other components to be in place, including the regulatory system, bank accounts, and e-tokens. These pieces are all part of the banking infrastructure that runs on the blockchain. I understand your point. It’s important to correct any misunderstandings about the role of the chain in the Scallop ecosystem. As you mentioned, the chain will be important, but it will come last in the process. It’s also important to note that Cardano started with a single chain, but it’s not clear where they are now. In contrast, Scallop began as a banking platform with plans to issue cards and develop the Scallop app, as seen in YouTube videos. It’s important to clarify the goals and priorities of a project to avoid any confusion or misinterpretation. From the beginning, it was clear that chain would be the last product to develop, even among the 10 products. We must complete each product one by one before moving on to the chain. And the use case will come later. We started with a simple FTD token or Casey token, which will eventually lead to the chain. However, we cannot rush the process because it requires a significant amount of resources. Today, blockchain resources cost around $120,000, and there are many expenses to consider. We are proceeding with our development plans as scheduled and will release updates accordingly. We have experienced some delays, which I have acknowledged and explained the reasons for. We appreciate the understanding and support of our members during this process. While we recognize the significance of the chain use case and its potential for expansion, it is important to establish the banking systems first to ensure the proper use of the token on the scallop chain. All components are interconnected in this process. I hope this explanation makes sense.
The slow user growth is concerning. Currently, our number of orders on BSC scan is below 6,500. In contrast, other projects are seeing tens of thousands of orders, with daily additions of one or two wallets. This lack of progress is disheartening, especially since we want Scalp to thrive.
Yes, we plan to implement marketing strategies in due course. However, the success of the marketing campaign is largely dependent on the amount of funding the project has received. It is possible to invest $250,000 to $500,000 in influencers who may promote the project, but this may result in artificially inflated numbers through fake news or fake marketing (also known as FOMO). I prefer to avoid such tactics and instead focus on promoting the real product and its use cases to attract genuine users. This approach will result in organic growth rather than relying on short-term tactics that could potentially harm the project’s reputation in the long run. We aim to achieve authentic growth that is sustainable, unlike other projects such as Luna or FTX that have relied on such tactics.
Can you please inform us where we can find the current status of the chain? Is there a way to check the actual status of the chain, such as the DevNet? Is it possible for us to access this information?
All the testing details for Scallop Chain are available to the public on scallopchain.com. You can find information about the whitelist and provide listings on whitelist.scallopchain.com. You can test and use the chain based on the information provided. As for DevNet, we are currently working on developing the backend system. Once it’s completed, we will push it to the live system and test it on the testnet. We will make an announcement when it’s ready for testing. If you require further details, please let us know, and we’ll be happy to provide them. However, if you’re specifically asking about pool requests or anything that’s IP-protected, we have not made that information public yet. We will release those details at a later date.
when will scallop token be in the scallop app?
It’ll take a bit more time but once it is live, we will definitely let you know
For a time, the Github repositories were open for review. Has all development been taken fully private?
We will begin marketing next week, but at a slow pace. The market will start slowly and gradually pick up momentum. We are waiting for influencers to receive their own card, and then they will provide their analysis of the app and promote it accordingly.
As a CEO, is it acceptable to make statements suggesting that there will be a “blood bath” in the company?
I believe in honesty, whether as a CEO or a friend. I don’t want to deceive people and then later regret it. When I mentioned “blood bath,” I wasn’t specifically referring to Scallop, but rather the whole market. I don’t want people to lose their money, so I’m openly sharing my opinion. Even if you see me as a CEO, I consider you a family member and that’s why I address everyone as such. Some people have questioned me for being candid, but I believe it’s for your own benefit and wellbeing. Investing money in crypto should be a careful decision. I believe in taking care of one’s family, including parents, wife, children, and grandparents, before investing any money. This kind of advice may not come from other CEOs, but as a CEO from the FinTech industry, I value transparency, honesty, and the protection of client funds. If you trust our values, stay with us, and if not, then don’t. Some people may suggest investing in meme tokens that have no real use cases but have billions in market cap. However, it is ultimately up to you to make the decision.
We are currently lagging behind in terms of daily trading volumes compared to other products, particularly newly launched projects with potential and solid products that have reached 10,000–12,000 volumes in just a few weeks or months. As far as I know, we have only reached 7,000 volumes. Do we have any strategies in place to attract more users without simply wasting money on marketing campaigns? Are there any programs or campaigns in the works to achieve this?
That’s what I was trying to convey, our app will be showcased by influencers in the near future. We are also utilizing digital marketing and attending events to promote our products. Our goal is to bring our products to users worldwide and we are working towards achieving that. It’s important to note that our current technology is only limited to Europe, but we want to expand globally to make blockchain accessible to everyone. We are addressing any issues and planning to expand our reach to other regions. Eventually, the blockchain will follow suit.
With regard to the con lagging timelines I mean Canada originally, Canada was August last year. Do you have a projection for Canada having functional services?
Last time, I mentioned that Canada and other countries will fall under the global category once we have resolved the global issues. So, at some point in time, it will be resolved and made available.
So, considering the chain and the token’s utility, wouldn’t it have been more logical to start with an equity raise to kickstart the business, rather than a token raise? Currently, all the money needed for the project is unrelated to the token, and it’s being built towards it. If the plan was to raise equity and then do a token sale once the chain was close to going live, it could have avoided the friction and animosity caused by tying a $2.5 million raise to something that has the least value in utility. What was the reasoning behind doing a token raise first instead of equity?
No, it is not possible to do an equity raise for a project that involves buying and selling cryptocurrencies. We have tried to raise equity through platforms like Cedars and Crowdcube, but we were rejected because we are an exchange that allows people to buy and sell cryptocurrencies through banking. This is not a new concept, as other exchanges like Let us Stay Coin and Binance have also started as exchanges before introducing their own tokens. The token utility for our project is a crucial piece of the puzzle and will be implemented in due course. We are operating in the crypto industry where similar approaches have been taken by other projects without any issues. We were transparent about raising funds for the banking side first and the chain being developed later. We followed the correct process and provided accurate information to investors. Ultimately, it was up to each individual investor to decide whether or not to invest. We believe we did everything appropriately and hope that answers your question. Doing an equity raise is not feasible for our project. Even established companies in the crypto industry like crypto.com have a token despite not having an exchange or banking service initially. So, I don’t see how this question relates to Scallop and the impact we have made. Our token sale was specifically for the banking side of our project, and we provided all the necessary information to investors. Ultimately, investors have the right to make their own decisions, and we followed the appropriate procedures.
In the ongoing discussions, do you believe that the Scallop token falls under the category of security or commodity?
No, the Scallops token does not fall under the security category as long as people are allowed to trade it. However, there are different cases and jurisdictions that may consider it under security laws. For example, under the SCC, there are different rules to follow. But since Scallops never had any involvement with US dollars and operate under European laws, they do not fall under the jurisdiction of the SEC. Therefore, the answer is no, the Scallop token is not considered a security.
It’s definitely jurisdictional, and we have a good understanding of European regulations. As for the discussion of whether scallop tokens will be considered a security in the future, it’s hard to say for sure. But as of now, we don’t see any indications that it would be categorized as security under European law.
In terms of security, it would take considerable time to make any changes. Currently, we are just a token, but by the end of this year, we will become a coin, which will function as the gas fee for the entire system. If a regulator were to say that a particular token providing a service would become a security, it would apply to every token, not just Scallop. As of now, I cannot comment on how regulators will classify Scallop in the future.
