The Company will demonstrate its novel ATM platform at the TechCrunch Tel Aviv event on June 7, 2018
Virtual Crypto Technologies Ltd. (“Virtual Crypto”, or the “Company”) (OTCQB: VRCP), a technology company dedicated to making cryptocurrencies accessible to the public, announced that it will launch its bitcoin ATM at the TechCrunch Tel Aviv event tomorrow (June 7, 2018).
In contrast to most bitcoin ATM platforms, which only allow the purchase of bitcoin, Virtual Crypto’s NetoBit ATM is a bi-directional platform that enables users to sell bitcoin as well, i.e. convert bitcoin currencies to regular fiat money, and to buy bitcoin, i.e. convert fiat money to bitcoin. NetoBit ATM is the world’s first and only ATM that allows real time conversion, purchase and sale of bitcoin. The product, which already supports most common currencies, is available for purchase globally.
NetoBit ATM is the second product in Virtual Crypto’s NetoBit software and hardware products portfolio. In April 2018, the Company launched its first product, NetoBit Pay, a retail point-of-sale (“POS”) device that enables businesses worldwide to securely receive payments in bitcoin in real time, while enjoying protection against exchange rate volatility and guaranteeing transactions up to a value of $3,000.
The cryptocurrencies ATM market, in which Virtual Crypto operates, enjoys exceptional growth rates. According to a study by Coherent Market Insights from October 2017, the size of the market in 2017 was around $14 billion, but it is expected to grow at a compound average growth rate of 46% between the years 2017 and 2025.
NetoBit solutions, including Netobit ATM, are different from many other solutions in at least three ways. First, Virtual Crypto’s validation algorithm can very precisely and quickly predict if a cryptocurrency transaction will be approved immediately by a blockchain at the moment of the transaction, before the block is digitally signed. This quick process allows the approval of the crypto transaction within seconds to minutes, rather than between 10 minutes and 24 hours and following a process of six confirmations, as is the case today. This way, Virtual Crypto can create a pleasant and immediate transaction experience, minimizing the risk of fraud, which can occur in the usual lengthy transaction approval processes. Consequently, NetoBit ATM users can draw cash and transfer money from and to their digital wallets in seconds.
Second, cryptocurrency trading platforms usually allow the customer carrying out the transaction to interact with only one crypto exchange, shackling the customer to the exchange rate which that exchange offers. Virtual Crypto allows the customer to work with several crypto exchanges simultaneously for each transaction. In this way, the Virtual Crypto algorithms can immediately locate the best crypto deal and offer the most attractive exchange rate while the transaction is underway. This ability enables the Company to protect the transaction from currency volatility that is liable to occur during the current lengthy transaction approval process and offer guarantee for transactions of up to $3,000.
Third, the implementation of Virtual Crypto’s financial management system allows the operation of a large number of cryptocurrency ATMs and points of sale and provides tools that help manage and track the flow of money in each and every terminal. The back-office capabilities include setting currency price limits for each transaction, defining the KYC (Know Your Customer – customer identification), conforming to different regulations and configurations in different countries, managing risk and providing useful statistical data on transactions and points of sale. These capabilities are different from many other solutions that offer back-office capabilities which can manage only one transaction center.
Alon Dayan, CEO of Virtual Crypto Technologies Ltd. commented on the announcement, “We continue to set standards for the burgeoning cryptocurrency sector. Our proprietary algorithm reduced the typical transaction time from 10 to 60 minutes to several seconds. At this stage, NetoBit ATMs combine that speed with the convenience of an ATM, giving customers the ability to buy and sell bitcoin with fiat money. The result is a vastly improved trading experience for customers, which we believe will be attractive to our business partners as well as consumers.”