BlockTalks x TOZEX AMA Transcript!
Hello! BlockTalkers & Blockchain Enthusiastic!
We recently hosted an AMA with TOZEX, on 22nd May 1PM UTC. Many of you might have participated or many of not. But we make sure no one missed out from the knowledge shared by Remy André Ozcan,CEO at TOZEX & Christophe André Ozcan, CTO at TOZEX. So here we are up with AMA transcript, for those who missed the live session, this blog post will be saver & feeder of knowledge for them.
Introduction Question Asked By BlockTalks
Q1. Can you introduce yourself to the community? What’s your position on TOZEX?
Remy André Ozcan — I’m Rémy André Ozcan, co-founder and CEO of TOZEX. As an experienced Blockchain expert, i decided with my brother and associate to create TOZEX the first end-to-end crypto-asset platform for issuing, listing and trading crypto assets.
We previously cofounded in 2015 Crypto4All, one of the largest European Blockchain engineering and consulting services company. Central Bank of Luxembourg, ATOS, DCNS Naval and CREDITS Platform (Ethereum competitor) are few of their clients.
I actively contribute to the development of the ecosystem as public speaker, consultant for the European Parliament for the construction of the Blockchain European regulation and contributor on EU Focus Group on Blockchain DLT. I’m also as an expert Member from the International Blockchain Committee (ISO TC 307) building Standards applicable to Blockchain technologies and Instructor at the well-known Paris University of Dauphine.
I discovered Blockchain Technology in 2013, my enthusiasm over Blockchain technology stems from both the technological and financial aspects. Since then “Merge Blockchain technology with real-world economy” became my watchword.
Christophe André Ozcan — I’m Christophe Ozcan the CTO of Tozex platform. I’m in charge to conduct all the technical aspects of the project. I have been on this industry since few years and I’m glad now to start our own product to provide a fundraising solution for SMEs.
Q2. Can you describe 2–3 unique features of TOZEX?
Ans — TOZEX has been designed to facilitate the tokenization of our current economy within one ecosystem for all the stakeholders. TOZEX aims to align the interests of entrepreneurs, investors and traders to bring them into a fully regulated and transparent ecosystem. Tozex is a fundraising platform which use blockchain technology for SMEs raising capital. TOZEX allows to set up a token based crowdfunding campaign dedicated to finance SMEs project with an embedded trading market place.
Tozex is composed of 3 major components : Tokenpad which offer a way to create, manage and distribute digitall Asset. The Digital Asset Vault which offers a way to store your digital assets by yourself and Embedded trading market place for exchanging digital assets issued with Token pad.
We have a unique concept for primary and secondary market for which we don’t own any money or assets of our customers.
Tozex is distributed platform allowing to help SMEs, investors and traders to have a unique trustless platform. The main components of Tozex are :
1)Tokenpad : Allowing to create and issue your own cryptoasset without the need to understand how Blockchain works. We provide you a Tozex Library of smart contract
2) Investpad : Investors will use their own wallets to invest on listed projects. We never hold their funds and the distribution of tokens are directly done by the smart contract itself
3) A decentralized order book : Traders will be able to trade in total security without the need to send us their cryptocurrencies. The order book is auditable by anyone.
Q3. How TOZEX ensures top security of user’s funds? What’s in your security layer?
Ans — TOZEX TEAM WILL NEVER HAVE ACCESS TO CUSTOMER’S ASSETS IN ANY CASE. We will not have access to your private keys thanks to our decentralized architecture. You will be able to verify by yourself where are your digital assets and where they will be transferred and stored.
Quite all major centralized exchanges suffered from hacking in 2 previous years like Binance, Bithumb and Coinbene. In 2019, 292,665,886 USD worth of cryptocurrency was stolen from 11 cryptocurrency exchanges. This is a world record.
First of all, Centralized exchange operate as escrows for their clients and transactions are not recorded on the blockchain. This a major difference with Binance. Tozex is an hybrid model between decentralized exchanges and centralized exchanges.
Having a decentralized approach doesn’t means that we will offer our services without to be compliant with relevant regulations. Every customers will need to follow KYC and AML process according to the 5th Anti money Laundering directive only if you invest +1000K USD. This European regulation is applicable to every crypto exchanges.
Regarding to the fact that certain assets exchanged through Tozex will be qualified as financial instruments such as tokenized shares of SMEs, we will be fully compliant with MIFID European regulation and Market Abuse directive. In long term perspective, we will have the same approach with every regional part of the world where will offer our services such as Japan and USA.
Question Asked on Twitter For TOZEX!
Q1. How does the Tozex Fundraising program work & are there any plans for attracting new projects towards Tozex? How do you convince investors of using the BRO fundraising approach, as what is paid is in the form of tokens which are sure to increase & decrease in price in the market?
Ans — The “Believers Reward Offering” (BRO) aims to offer a sustainable alternative to Initial Coin Offerings and Security Token Offerings as a new token based fundraising mechanism. The #BRO allows to significantly decrease the pump and dump phenomenon, limit volatility and fosters growth by providing equal treatments of all contributors called “Believers”. When you combine the use of stablecoin for investment, dilution of token distribution over the time and offer a reward for holding, BRO offers a sustainable new way to raise funds without suffering from challenging issues existing with ICOs and/or STOs.
Each investor will be able to get a positive Return On Investment.
TOZ Token will be distributed during the fundraising campaign based on the innovative protocol Believers Rewards Offering
This is an innovative crowdlending based on stablecoins which means that the initial invest amount (capital) will be fully reimbursed with 50% stablecoin (DAI) and 50% with Toz Tokens.
The specificities of this mechanism aims to create a sustainable token which will allows reduce significantly the volatility of Toz tokens :
1. Reward staking mechanism : It is a token stabilization mechanism designed to encourage long-term holding by offering an additional reward for those who do not sell their tokens but hold them. Token holders (Believers) will received an additional bonus interest of 10%.
2. Tokens distribution is diluted over time through the quarterly distribution between all investors : every quarter each investor receive a portion of capital reimbursement and interest paid. The date of the period of reimbursement (12, 15 or 18th month) will start when the investor made the investment. It is calculated as follows: D = C + Delta (O — V). Means that the date when each investor receives $TOZ Tokens will be different from another investor who has made its investment on a different day.
There is no such kind of mechanism which offer such guarantee and transparency on the market.
We are proposing a Tozex Smart contract Library (ICO/STO/BRO) all mecanisms are differents but all will be done using smart contract capabilities (automatic distributions of the fund and tokens). Investors needs to have a standard process to invest on projects and not every time trying to understand the proposal of each SMEs conditions. Moreover the fact that we are compliant with the regulation will allow them to be confident of the quality of the projects listed.
Q2. What can we expect about the strategic partnerships of Tozex in the future? And how does it help to grow the development of the project?
Ans — Partners are very important for Tozex. We have decided to work closely with Blockpass for making all the KYC process which guarantees each users to not suffer from a risk of hacks on Tozex services which could impact their privacy.
Partners have a crucial roles as well for mutual promotion which will reinforce our credibility.
Q3. How could the Tozex Reserve be used by the cryptoassets listed on the platform and how much control and domain do they have over the reserve?
Ans — TOZEX Reserve is a set of Multisignature smart contract deployed for each cryptoasset listed on the platform allowing to improve the governance of the Tozex Reserve. We will not have any control on it, it’s an automatized fund which apply liquidity ratio. It provides a new decentralized liquidity mechanism to the market by involving the project owner and market makers at different stages of the crypto asset lifecycle.
Q4. The TOZEX Tokenpad offers automatic issuance of tokens, same with Binance Launchpad, Kucoin Spotlight and others. How can you attract investors to use your launchpad? What are the benefits of choosing TOZEX Tokenpad?
Ans — TOZEX aims to improve cryptoassets liquidity because it encourages widespread adoption of cryptoassets from the
belief that the market deserves a safer and more efficient exchange to facilitate trades between consumers within
the network. Presently, a lot of cryptoassets traders have to place their faith and trust in centralized exchange.
Liquidity is a major problem when your cryptoasset enters on the secondary market, due to a lack of enough market
makers. In that fact the bid-ask spread becomes more important, as selling prices become too high and the asking
price, too low. When this happens, the cryptoasset affected is becoming illiquid. TOZEX Reserve provides a new
decentralized liquidity mechanism to the market by involving the project owner and market makers at different stage
of the cryptoasset lifecycle:
Indeed, the project owner often called the team behind the project stays after the successful completion of the
crowdfunding phase with an important amount of their native tokens around 7 to 15 % of the total supply. A portion
of this amount could be affected to provide more liquidity on the market instead of staying vested for years.
We believe that the role of the project owner is to contribute to make the market as much as possible liquid for the
benefit of the project ecosystem.
TOZEX Reserve’s has several advantages with the combination of a decentralized stochastic order book. The
TOZEX Reserve will be managed with smart contract capabilities; automated trigger point rules with a distributed
governance mechanism to avoid as much as possible any manipulation.
TOZEX Reserve is a set of Multisignature smart contract deployed for each cryptoasset listed on the platform.
Each project owner has the possibility to enable this option by providing an amount of his cryptoasset to the TOZEX
Reserve. Once the reserve is created the project owner will provide his public key to take part on the governance of
the reserve.
All the fund will be stored on a 1 of 2 Multisignature contract allowing to refuel the market in case of liquidity needs;
one key will be owned by the platform and the second one by the project owner himself. The TOZEX Reserve
Multisignature “TRM” contract will allow to send back the reserve to the owner in case of non-agreement about the
liquidity set up conditions using the fund reserve. When the liquidity conditions are met the fund will be stored in a
cold storage and the decentralized stochastic order book which is charge to execute the triggered ask & bid spread
orders will take it into account when trading conditions are met (time, liquidity and deep market parameters).
The TRM contract will be initially funded by the project owner with an amount representing 5% of the total supply in
circulation. In the future the liquidity service will be also available for market makers who have a key role to play for
the sustainability of cryptoassets liquidity.
The decentralized stochastic order book “DsOB” has a crucial role to manage an average price and execute bids &
asks orders which can be identified by all traders on the market.
For more information please read our whitepaper :
We offer something what Binance and Kucoin are not able to offer : friendly and automatic issuance of tokens on agnostic Blockchain approach.You can automatically generate your own tokens and can simply choose whether you wish to use Ethereum, Ethereum Classic, RSK and Credits as your underlying Blockchain technology. Users just have to file the form with the information related to the project (Name, ticker, decimals, token price, total supply, token discounts, crowd sale rounds, amount of funds to be raised, token allocation, KYC value, etc…). More Blockchain infrastructure will be available for our community depending on their needs.
Q5. About Tozex “fundraising campaign” How will the smart contract solve the problem if fundraising campaigns are not successful?
Ans — Contribution of all Believers allows us to significatively accelerate our development while creating a real community of entrepreneurs, investors and traders.
Although Believers Reward Offering belongs to the family of token based fundraising mechanism like ICO & STO, structuration, spirit and objective of the BRO is singularly different.
All the terms of the BRO are specified transparently in the smart contract. The parties involved cannot modify them because they inherit the immutability of the blockchain which means that it ensures that all stablecoins and TOZ tokens will be distributed automatically without possibility for anyone to change any of initial terms of contribution made during the BRO campaign.
There is no place for bad faith in TOZEX ecosystem.
The BRO is solving the fact that a fundraising campaign is not sucessfull because it’s a loan mechanism with the reimbursement of capital and interst directly coded on the smart contracts. Our project is using this method to accelerate the development of the project and not to execute it which is something very different from ICOs or IEOs.
We have already made a seed round to finance the development of the platform however we need more support to compete with existing centralized platforms like Binance.
Question Asked by our BlockTalks Community Members during live Session for TOZEX team.
Q1. What are your strategies in building a big and strong community? Do you agree that the power of the community will lead your project to grow globally? What are the services you offer to the community?
Ans — We expect that our user will trust the technology instead of us the team itself. We have designed the infrastructure to allow every stakeholder of the industry to find what he is looking for and own full control of it assets. community is really important to us that’s why we have designed TOZEX and specifically BRO which align interest of all stakeholders. Project without community is like a Boat without captain.
Q2. Would Tozex be willing to finance any type of token even without knowing if it will be a good long-term investment? What requirements must projects meet to qualify for this financing?
Ans — No we cannot let anonymous projects to run something on our platform. Legit projects have a proper company identification with founders. We are conducting a due diligence to select valuable projects to list on our platform.
Q3. As a TOZEX is a crypto platform that enables you to manage token sales, investment and trade. How can you ensure that the platform will never be used for various illegal activities such as, fraud, money laundering etc?
Ans — It’s very simple KYC is still mandatory when the investment is > 1000 $ per user and per wallet. We have made strategic partnership with Blockpass which provide KYC/AML services to ensure that our ecosystem stay safe and secure.
Q4. How does TOZEX enforce compliance to cope with rising market regulations? What are the documents required for your KYC and how does the scheme work? And, can I withdraw my funds without even passing it?
Ans — KYC/AML process is applicable in consideration of AMLD5 Eu directive. We will require only ID verification for investment higher than +1K€, it’s compulsory to withdraw your TOZ Tokens.
Q5. Trust is very important in security, special with OTC. what makes investors, customers and users feel safe when working with Torex?
Ans — Because we provide all necessary tools to preserve your own rights, only users will have access to their funds. Tozex is using the smart contract capabilities as a trusted layer for all operation conducted on the TokenPad (Issue Token, launch a crowsdale campaign (ICO, STO and BRO). We are very sensitive to prevent any security failure that’s why all our smart contract libraby was audited by Quillaudits, We have chosen them to audit our Tozex Smart contract Library where all our standards of smart contracts are published.
More information about this partnership :https://medium.com/@tozex/new-stage-of-security-tozex-is-happy-to-announce-partnership-with-quillaudits-8b212c2e0965
Q6. What are the ways in which TOZEX generates profit and what is its economic model? How can it be profitable for both the investors and your project?
Ans — Very simple you pay for deploying smart contracts (Token (ERC20 …), ICO, STO, BRO and Digital Vault (Multsig). Investors are not paying any fees. Traders will pay the trading fees based on their volumes.
The TOZ tokens allows to pay our services and invest on projects at a discounted price. Traders will get some additional services if they pay in TOZ tokens their trading fees.
Q7. How works the TRM contract and DsOB order book together?
Ans — All orders will be submited using a cryptographic key hold by Tozex so it means that you cannot use our Decentralized Order Book if you are not a Tozex user.
Q8. Can you please tell the investors that currently how many people working as a team , their backgrounds & credentials, and their achievements. And what companies are you partnered with or seeking to partner with in future ?
Ans — TOZEX Platform is powered by Crypto4all, top French blockchain engineering company. We are well experienced in terms of building infrastructure based on Blockchain technology. We are not new in this industry have learn from successfull operation and unsucessfull too since 2013. Regarding my position as official EU advisor regarding Blockchain technology, i’m well placed to anticipate regulatory policy evolution. Our team is composed of blockchain architect, legal and financial analyst, UX/UI designer, cybersecurity expert.
Q9. Do you consider that Tozex is easy to use for people who are not very technological?
Ans — Tozex has been designed for them. You don’t need any technical skills. Hiring Smart contract dev will be an old souvenir after using TOZEX. Users have just to fill the form and answers questions to create Digital Assets and launched token based fundraising mechanism like ICO/STO/BRO.
Q10. Community is key element for literally all companies so i’d like to ask what plans do you have for Tozex community? How do you plan to expand it?
Ans — We are at the moment expanding it. The next steps are to have a local community working to support us to provide us as well local legit projects/investors/partners. The power of Blockchain is behind of the community of users and we know it.
Q11. Are you guys having Fully Decentralized Platform?
Can you tell me about the main Vulnaerablities about it?
Ans — Tozex is an hybrid model between centralized and decentralized. We take the best of those 2 models to create a more perfect one as described on the whitepaper. No stolen of assets possible because of decentralized infrastructure, centralization for KYC/AML verification, P2P transactions, decentralized order book which prevent fake volume and market manipulation.
Q12. Does I need KYC to start using on Tezox? Any guide for new comer?
Ans — Case study and more tutorials will be published really soon. Check previous ones on our Blog https://medium.com/@tozex
Q13. Can you tell us the motivation and benefits for investors to hold TOZ token long term? What plans do you have to help drive demand and scarcity for the token ?
Ans — Every quarter you will receive portion of your TOZ tokens. Every quarter you will have a choice to withdraw them or to stake them. If you stake them you received an additionnal bonus as reward mechanism for your continued Believe on the project which let us more time to finalise our development.
Don’t forget that TOZ tokens can be used to pay all fees required for Services available on the TOZEX Platform or from Third Service Providers (use of Digital Asset Vault, creation of digital assets, use of Initial Token Offering smart contracts, etc…), invest with a leverage on token based fundraising project and vote to select digital assets to be listed on the Platform.
Here are some important links of TOZEX👇
https://twitter.com/tozexofficial
https://drive.google.com/file/d/1m_LdMgz5V654BKv6buBYJOJCEJgNwmLy/view
