What is ModulTrade?
From opening an account to moving money between accounts, even for something as simple as buying online, banks charge you fees for everything which adds up over time.
While some may argue that charging fees for services are justified, individuals are still let down every day but the inefficiency of these institutions that are using outdated systems and practices not fit for the modern era.One of these inefficiencies can be seen in international trade for micro-small-medium sized businesses (MSMEs).
First, the idea of an international trade is far beyond the capabilities of many MSMEs. Even if they want to trade internationally, they don’t know where and how to start which represents a gap in the market.
For these MSMEs to even enter international trade, they would have to go through some sort of trade financing to ensure that trades go smoothly without breaking the bank.Unfortunately, 56% percent of trade financing proposals from MSMEs are rejected compared to the stark contrast in multinational corporations where only 7% of proposals are rejected.
Proposals are often rejected because MSMEs don’t have the resources to overcome the high entry costs of trade financing. The complexity of these trades is also too much for small businesses where deals are rather simple and straightforward.The main problem, however, comes from the inherent lack of trust in these trades.
Simply put, will the buyer pay the seller for the goods received or vice versa?
This problem is currently solved with risk-reducing steps like a letter of credits or bank guarantees but these solutions are not effective for MSMEs because they are expensive and the customer experience during the process is not always going to be a pleasant one.
ModulTrade, found online at ModulTrade.io, is a blockchain technology company that aims to help small businesses trade globally.The platform, if successful, aims to change the way we trade around the world. It would allow small businesses to compete with larger businesses on a global scale.
ModulTrade is being developed by a London-based company. The token pre-sale started on October 3, with a general crowdsale taking place throughout October and November.
ModulTrade was developed as the solution to this problem.ModulTrade is a blockchain startup in the trade finance sector with an aim to allow small businesses all over the world to involve themselves in international trades efficiently, securely, and easily.
The ModulTrade platform which is based on a smart contract ecosystem will provide MSMEs with a complete range of financial services as well minimizing transactions and supporting international trade with current and emerging markets.With the ModulTrade ecosystem, millions of MSMEs across the world will be connected to negotiate, agree, and execute trades that benefit parties involved fairly.
Businesses will only be matched with trusted suppliers that have their reputation verified. All funds involved in trades will also be transparent while trades recorded in ledgers are 100% verified as goods are tracked to the point of delivery.
As a result, ModulTrade helps to build trust and complete transparency in trades while helping MSMEs to widen their reach further than local markets hence increasing profits and growth.
How About Concept?
ModulTrade, one of the first blockchain projects in the trade finance sector, comes to market with a new digital trade concept, to allow small businesses from around the world to trade efficiently, securely, and with ease. A smart-contract based eco-system, ModulTrade will provide micro, small and medium enterprises (MSME’s) a comprehensive range of services, minimise traditional charges and support cross-border trade with emerging markets.
While mainstream institutions have rested, the London based company has identified the struggles and barriers MSME’s face with the current banking system, and have undertaken the first steps in laying down the foundations to utilise blockhain technology to build a robust eco-system that is fit for purpose.
ModulTrade’s proposition leads the way in using blockchain technology, famously known for supporting the creation of digital currencies, to its full potential, and applies the ground-breaking lesson of the distributed ledger to trade, leaping over legacy systems and operations.
Within the ModulTrade Value Eco-system, millions of MSME’s will be connected to meet, commit and execute trade. Businesses will be matched with suppliers, with funds and reputation verified and clear trade ledgers, as goods are tracked to the point of delivery. As a result building trust and transparency, all the while expanding their reach further than currently possible, widening MSME’s status from local to global.
A disruptor in the market, the innovative core of ModulTrade’s proposition will democratize global trade by connecting the heart of blockchain technology to real life trade transactions, diminishing the lengthy letters of credit process, which often results in the end of the trade cycle for many MSME’s. With decisions made automatically through its’ smart-contract technology, ModulTrade’s Value Eco-system will completely streamline the full trade process, saving time and money.
How Does ModulTrade Work?
The ModulTrade platform aims to standardize global trade by implementing the blockchain technology.
As mentioned earlier, the blockchain technology allows ModulTrade to connect over 400 million MSMEs with each other to not only negotiate trade agreements efficiently but also to get help with trade-related issues easily.
The blockchain is used in the platform in two unique ways:
- A smart contract platform that replaces traditional financial instruments like credits letters or bank guarantees as well as removing intermediaries like banks and lawyers
- Introducing the MTRc token, an Ethereum ERC20-based token or cryptocurrency which enables seamless trade on the platform thanks to a global currency. The MTRc token will be accessible to all businesses as well as allowing MSMEs to use the token in negotiating and executing trades
With the MTRc token, ModulTrade hopes to become one of the few pioneers who want to improve the trade finance industry by connecting millions of MSMEs as well as enterprises in an efficient, trustful, and easy way.
Since smart contracts work directly between two parties, fees involved in transactions are reduced significantly which allows ModulTrade to not only mimic traditional banking systems but to also introduce an all-time low transaction fee of only 1%.
To simplify the process of using the ModulTrade platform, the team has developed a step-by-step process implemented in all transactions that makes it extremely easy to use, even for a non-tech individual.
A typical transaction on the platform goes like this:
- The seller creates a trade proposal in the platform
- The trade proposal is sent to the ModulTrade marketplace where it is filtered and refined so that only relevant buyers see the proposal
- A buyer checks the proposal as well as the products and agrees to buy; the money is then deposited by the buyer
- After the trade is agreed, the goods are tracked until they are delivered at which the funds will be released to the seller
This efficient process eliminates fraud by ensuring that every step in the trade is monitored and the purchase agreement is confirmed via smart contracts. For ModulTrade users, they do not have to worry about the complexities of Ethereum or the blockchain as everything is done by the platform.
This will also help with global trades for MSMEs as businesses do not have to rely on technical skills or large financial resources for them to trade across borders. Instead, they can use a platform where literally the goal is to help MSMEs trade efficiently.
Combining the development of ModulTrade’s Value Eco-system with the launch of the new ModulTrade crypto token (MTRc) will provide the golden ticket to buy and exchange directly within the platform. Architected on Ethereum and complying with the widely-accepted ERC-20 token standard, users of ModulTrade will be able to exchange value in real-time. MTRc will also be compatible with all ether wallets and can be easily added to common crypto-exchanges for trading.
With an average of 20 years of experience in financial trade, the ModulTrade team have joined forces to revolutionise the industry, with a shared passion to re-invent the way MSME’s operate and trade. On the concept, Evgeny Kaplin, ModulTrade CEO, commented: “We are passionate about giving all businesses, no matter their size or location, the same opportunities to build, develop and grow their companies akin to big corporations.
How About MTRc Token?
ModulTrade launched their main token sale as a means of allowing users to participate and support functionality of their blockchain-based global trade platform for micro, small and medium enterprises (MSMEs).
Cited as one of the Top 20 Most Promising Blockchain Technology Solution Providers, the ModulTrade platform taps into the heart of blockchain technology, providing users a secure platform, with a simple digital end-to-end trade process, and transactions in real time. The application of smart-contracts legally and efficiently replaces conventional financial trade instruments, such as letters of credit and bank guarantees. Overall, ModulTrade provides a new opportunity to MSMEs, minimises costs and time in a trusted digital marketplace, which allows businesses to meet, commit and execute trade securely.
Through continual development and testing of their minimal viable product, the ModulTrade technical team has found themselves in a position which rises above others, with bringing forward the launch of their fully functioning platform — a new digital marketplace which is now live and ready to trade on.
Currently, the ModulTrade platform accepts ETH (Ethereum) in addition to MTRc (the ModulTrade token) for funds, with plans to soon accept other ERC20 tokens, along with fiat (USD, EU, £ etc.). To allow entrepreneurs to use the ModulTrade Platform, some MTRc has been released for free float in the system. Users may buy and sell MTRc at a nominal price of 1ETH = 700 MTRc at the exchange, Etherdelta.com. Soon, the ModulTrade platform will buy MTRc at a nominal rate for fiat from merchants.
Commenting on the start-up, ModulTrade co-founder and CEO Evgeny Kaplin, said: “We launched our pre-sale in early October, our pre-sale has so far attracted participants to raise $1.5mln, or 3.5mln MTRc. We are very pleased with the progress of the sale, as much as with the development of our fully functioning platform and we are in the process of working with a German-based merchant."
The company has attracted some of the best experts in the financial trade, global currency and facilities management industries, who sit on the advisory board. These include author of "The Future of Money" Bernard Lietaer, LAToken CEO Valentin Preobrazhensky and co-founder and Chief Investment Officer of GTR Ventures Kelvin Tan, to name a few.
The ModulTrade system will change the way companies trade, open networks across the world and provide a newfound opportunity to make MSMEs go from local to global players.
- ModulTrade opens its main token sale on Nov. 28, 2017.
- Tokens to be distributed: 30’000’000 MTRc
- Soft cap is set at: 5’000’000 MTRc
- Hard cap is set at: 30’000’000 MTRc
- Token price is set at 1 MTRc = 1/700 ETH
- Payment is accepted in ETH, BTC, LA, fiat.