As the end of the year approaches the list of ICOs with perspectives in which every self-respected investor should invest gets shorter. A new idea has come to surface from the conglomerate of business brains. An idea which combined with Bancor could solve major problems in the business industry.
We’ve spoken with Martins Liberts the co-founder of, Debitum Network and he let us know some project insights.
Martins Liberts: It is an ecosystem that brings together small businesses that allows them to access finance and at the same time it allows investors to deploy capital. It is based on trust that is created by a decentralized network.
CS: What are your perspectives on Debitum Network token sale.
ML: I don’t know if you head but it’s good that we are talking now because we’ve changed something about our token sale. The biggest thing we’ve decreased our Hard cap it’s set now at 50,000 ETH. Before it was set at 200,000 ETH for all the business development stages and now we concentrate only on the first stage. We will have two rounds, the first round is on December 7 and we will sell 4000 ETH worth tokens with a 30 percent bonus.
The second round will be on January 25 and that will be for the remaining tokens.
CS: I saw that Debitum will use smart contracts. How will they work in this case?
ML: We have a hybrid smart-contracts and non-crypto because when we talk about borrowing we can’t rely only on smart-contracts. Because if you would do transactions with smart-contracts if the borrower would take the money from the smart-contract there will be no more money there to pay it back. Therefore we needed to create a hybrid.
We will have a smart-contract for the asset (the loan). The smart-contract will keep track of the loan and the borrower. It can also be one asset and one loan with many investors. And the all the other service providers will have their own smart-contract (e.g risk assessor, insurer etc.) which will be linked to the asset smart-contract. This will allow the trust rating to grow.
At the same time, we have fiat loans, because in 2018 business, unfortunately, it’s not possible to borrow crypto it’s too volatile, to hard to account, the accountants lack a consensus. So that’s why we will use also fiat money.
CS: What is your aim?
ML: To bring our experience in IT and Finance on a global level not by growing ourselves, but by connecting a lot of smaller companies and solve the problems together.
CS: Who came with the idea of Debitum?
ML: Me and another co-founder of Debitum we established an IT company six years ago and we had trouble with financing it. We had a good agreement but after a while we needed more money to grow, to employ new developers.
We’ve tried to get finance but we were not able to do it even if we had a lot of customers, and that was because the company was too young. We’ve tried to get financed by banks and they refused us so borrowed money from friends and family in the beginning. But that was not enough for our business perspectives. So, in a couple of years, we’ve established a finance company that provides small loans to small businesses. Since then the company has become one of the leaders in its niche in Lithuania.
It’s actually quite funny because we were coming from an IT company without enough money to grow and we went over it and we managed to establish our own finance company. At the moment the portfolio is at around $3 million. And what happened then, and this is how Debitum started, we thought that we are really helping people and companies so we wanted to do it on a bigger scale and move to another country [from Lithuania]. We wanted to expand, and then we’ve tried to expand in Latvia my country.
We had everything prepared. While we were doing the market research we understood that the market even though it’s a neighbor country [to Lithuania] it’s very different. From data for risk assessment, debt collection, to insurance etc. it’s very different.
Then we understood that if you want to solve small business financing problems you have to do it through a network of smaller companies that are locally specialized. So that’s how the Debitum appeared.
CS: This is a great story because you found a solution to an existing problem and it just started to grow.
ML: I know and every time I remember it I realize that we were in a difficult situation because we did not have money. But it continued to grow and we are not stopping now we want to solve this problem on a global level.
CS: I personally think that the ICO will be successful because I saw that you won a prize at the d10e ICO pitching contest in Gibraltar, you have experience in IT and Finance and so on.