Gold Based Cryptocurrency and New Monetary System: Interview with Thomas Coughlin, CEO of  Kinesis

Kinesis is building a blockchain powered new Monetary System, with a digital currency based on physical gold and silver. The CEO Thomas Coughlin will be discussing the Kinesis project with us in this interview.

1) Please tell us your name and about yourself?

My name is Thomas Coughlin, I’m currently operating as the Chief Executive Officer (CEO) of Kinesis Limited as well as Allocated Bullion Exchange (ABX). Having worked in the investment, funds management and bullion industries for approximately seventeen years my professional portfolio management career spans the foundation of the boutique investment company, TRAC Financial, to the establishment of a highly successful Absolute Return Fund. I’ve dedicated a significant part of my career working collaboratively to build the complex systems of a cross-border international bullion market with an extensive global network of central bankers, brokers, fund managers and advisers.

2) What is Kinesis and what services do you offer?

Kinesis delivers an evolutionary step beyond any monetary and banking system available today. This is achieved by basing the Kinesis currencies 1:1 on directly allocated physical gold and silver.

This comprehensive monetary system encompasses (1) the Kinesis currencies, which can be sent and received via the Kinesis eWallet, (2) the Kinesis Blockchain Exchange, providing liquidity for the Kinesis currencies and other cryptocurrencies and (3) the Kinesis debit card, allowing for instant conversion of KAU (gold based) and KAG (silver based) into fiat currency anywhere in the world where Visa/Mastercard is accepted.  

Use is incentivised by attaching a unique multifaceted yield system. This promotes the use of Kinesis as a medium of exchange while distributing back the wealth generated according to proportionate holdings and velocity.

3) A Gold based cryptocurrency is both a store of value and a medium of exchange, what makes Kinesis unique?

Kinesis is not just a cryptocurrency, it is a monetary system which uses two of the most stable stores of value with an attached never before seen, return on investment for precious metals through our multifaceted yield structure. Giving users the option to liquidate their digital holdings at point of sale through the Kinesis debit card further adds to the real-world usability of this system.
Kinesis introduces yield-bearing digital currencies based 1:1 on allocated physical gold and silver.

What we have successfully been able to achieve is a merging of technologies from our existing institutional metals exchange ABX and blockchain technology. This has created the perfect rail system to deliver digitalised gold to be used as everyday currency.

4) How big is the market for Gold Based Cryptocurrency and what benefits will Kinesis bring to investors and to this market?

Precious metal market: Precious metals and many other physical assets have no yield attached to them – they instead typically cost money to hold securely. Precious metals stored in vaults have no liquidity – they cannot be used as they currencies they once were. Kinesis monetizes and gives yield to these precious metals, incentivizing their use and velocity by attaching multiple types of yield for varying degrees of passive or active participation. The Kinesis debit card allows for instant conversion of KAU and KAG into fiat currency anywhere in the world where Visa / Mastercard is accepted, even allowing Kinesis currency holders to withdraw funds at an ATM.

Fiat currency: With global low to negative interest rates, bail-in provisions, depositors’ insurance being removed, and with banks holding legal title to their customer deposits, it makes little sense to choose risk and nil-to-negative return over the alternative Kinesis system with negligible risk and high potential for return.

Investment assets: high valuations and comparatively low yields for stock market and property investment make the Kinesis currencies an attractive alternative investment with a passive yield attached.

Cryptocurrencies: Cryptocurrencies suffer from severe price volatility, limiting their utility as a currency. Slow speed of transactions and high, fixed processing fees limit the everyday use of existing cryptocurrencies. The high transaction speed, percentage-based fee model, physical asset stability and yield associated with KAU and KAG are incentives for crypto traders and holders to replace questionably-backed and non-yield-bearing stable coins with the Kinesis currencies.

5) Kinesis offers an allocated physical Gold and Silver Stored and insured in independent third-party vaults, audited semi-annually, we will like to know more about this and how it works?

Kinesis was founded by the Allocated Bullion Exchange (ABX); meaning it already has extensive infrastructure and fully operational exchange technology for the trade and storage of physical bullion in 7 locations around the world. 

Holders of the Kinesis currencies have allocated legal title to the underlying physical bullion holdings so that they can exchange their currencies for physical gold and silver if they wish, subject to a minimum withdrawal amount.

The “allocated” title ensures legal ownership of the precious metal which underlays the digital currency is in the name of the holder meaning only they can take delivery.

Audits are conducted bi-annually on all vaults by world renowned independent audit provider, bureau veritas inspectorate who are experts in the field.

 6) The Kinesis Currency, Kinesis Debit card and the Kinesis eWALLET, all work together to create a perfect Kinesis ecosystem, what should we expect from these products?

These products work together to provide a user-friendly system, accessible to everyone, allowing users to spend the balance on the Kinesis eWallet through the use of the Kinesis debit card, at point of sale, anywhere that accepts a debit card. The Kinesis currencies offer a stable store of value which also provide an efficient medium of exchange, through the attachment of a multifaceted yield structure.   

7) On the Kinesis Velocity Token (KVT) Initial Token Offering (ITO) , tell us more about the KVT token, how do we get the token and what benefits should investors expect?

The Kinesis Velocity Token (KVT) is a utility token and isn’t an asset-based currency. This is what is currently being offered in our public sale for our ITO that is running until midnight of November 12th, 2018.

KVTs reward participants proportionately to the growth of Kinesis Monetary System, meaning early adopters can stake a claim to an entire monetary system. KVTs are limited to 300,000 only, without a chance of future dilution.

Holders of the KVT tokens will receive a passive 20% proportional return on the transaction fees accumulated from the Kinesis Monetary System. This creates an additional, passive form of potential return for token holders on top of the value of the token itself.

Payments are issued monthly to the holders eWallets in Kinesis currencies KAU (gold based) and KAG (silver based) which are fully redeemable for the underlying precious metals.  

To get involved start an application through the Kinesis website which will take you through the step by step process on how to successfully apply.  

8) Do you have any major investors or partners you will like to share with us?

We’ve had a lot of interest from Venture capital funds and family offices throughout our capital raise. There have even been instances of companies interested in purchasing large volumes of our tokens, which we’ve declined in order to peruse a system which works for everyone, not just large corporations.

We’ve been able to secure some major partnerships in various respective industries, some of them include:

  • FINEMETAL ASIA was started in Hong Kong by an innovative Swiss trio and has managed gold refinery and minting since 2012, servicing individuals and businesses. Finemetal Asia deliver liquidity for the Kinesis user, overseeing the mining, certification and purchase of precious metals, facilitating the collection of physical gold/silver bars.
  • THE ALLOCATED BULLION EXCHANGE (ABX) is a premier gold exchange, enabling traders to use their regulated platform to buy and sell precious metals since 2013. ABX have strategically partnered with Kinesis, in order to leverage ABX’s vast knowledge base and sector network.
  • UNIFIED SIGNAL provides operations and business support systems for over 2 million clients. Its white label frameworks allow organisations to offer robust branded platforms, including telecoms. Unified Signal developed a bespoke Kinesis e-wallet, allowing participants to use precious metals to pay for purchases anywhere that Visa or MasterCard is accepted.
  • ETHERALABS are a New York City-based blockchain venture accelerator have partnered with Kinesis in order to accelerate growth and lend strategic expertise.

9) Please tell us about your experienced team of experts behind this project.

Through Allocated Bullion Exchange (ABX), founded in 2011, our team have been involved in both private and state/government operated crypto and blockchain projects. Involvement in these projects as partners started several years ago and provided us with the necessary blockchain knowledge, skills and expertise to successfully launch and commercialise the Kinesis Monetary System.

We’ve secured an outstanding advisory board set to refine and enhance our mission of creating a stable currency for the benefit of all. It is key that we have the knowledge and resources to ensure our success in digitalising precious metals.  

10) On what stage of development is the Kinesis project and what is next on your roadmap?

We are currently in the public sale of our initial token offering of the Kinesis Velocity Token which is currently running until midnight on the 12th of November.

Following this will be the release of the Kinesis currencies, set to launch by March 2019, based on precious metals as well as all features of the Kinesis system including the Kinesis blockchain exchange as well as the Kinesis currency suit which will give users of the system access to movement of funds.

The Kinesis debit card will also be issued to users of the system allowing for instant liquidation of funds stored in the Kinesis eWallet.

Marketing efforts will only increase following the end of public sale to ensure the system is adopted by as many users as possible. Development of the infrastructure has already been built and tested, our mission for the foreseeable future is to ensure we reach as many individuals as possible.   

11) Gold could be a good store of value, but how Safe is Kinesis, would you like to discuss your legal and security measures?

Kinesis has successfully merged one of the most stable stores of value with the technological advances of blockchain technology providing security and stability to its users.

Having successfully passed both vault audits and technology audits we are proud of what we have created and are confident in its security for the community.

All development of the Kinesis currency suit, Kinesis blockchain exchange, eWallet and all other technical products have all undergone vigorous testing guaranteeing usability for mass adoption on a highly scalable system.    

Having come from the precious metals space, we have taken extra steps to ensure holders funds are protected not from any future political or legal issues due to the nature of the precious metals being issued on a fully allocated non-segregated model. This ensures only the individual who owns the eWallet will be able to take delivery from the third-party vault providers.
Kinesis does not own any gold or silver, ownership is on the titleholder.   

   12) Do you have more information for our readers?

Using the Kinesis Monetary System users will be able to make purchases, both large and small, pay bills with ease and even manage international payments with lower transfer rates offered by banks and other international payment services.

No need for complex byzantine systems of the past for managing our finances.
Kinesis is bringing back a truly decentralized, digitalized asset, based on blockchain technology.    

Stay up to date with the latest updates and developments from Kinesis, sign up via our website.

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