31 May Chris Kitze Q&A with transcripts
A few community members requested that we publish transcripts of Chris Kitze’s Q&A that was recorded on May 25, 2019.
Chris Kitze 0:02
So basically where we stand with, with Tinkerine, everything’s still moving forward. And this is with Coinapps, the Coinapps company has been formed, there’s, you know, it’s basically sitting at the exchange right now, there are some things that have to get approved by the exchange. And all of the relevant paperwork has been turned in by the company. And they’re just waiting to hear back from the exchange for approval, which they expect to get. Well, hopefully sometime next week. As soon as this gets approved, they have emergency funding that they’re going to be doing, which is about $250,000, Canadian. And that’s, that’s enough to fund it until we have the general meeting. And then what we do is we, you know, will raise another $3.6 million Canadian, to go into the company, we’re already starting to tee up some of the first deals that could go in getting people, you know, on the sidelines, ready to go. These are companies or I should say, projects that need the wallet technology that we have, that can benefit from the, you know, forthcoming FLASH charting technology, which will allow us to issue other coins on our blockchain. And these would be primarily loyalty and community coins. You know, we can do utility coins too, but they’re a little bit tricky, because there are requirements in terms of supply their requirements in terms of pricing, they have to have a stable price, and then have redemption with, you know, generally with some kind of a shop, that’s usually what it is for, for products or services. So that’s the, you know, that’s the update on on Tinkerine. And that is, that’s what I’ve been spending most of my time on, is to get that across the finish line. And assuming that goes next week that we get approval. You know, it’ll be full steam ahead. We’ve got a number of investors lined up on the side. What this solves fundamentally, if David’s here on the line listening is it’s also the fundamental issue that you have of how do you finance these projects, because the ICOs are not a legal way to finance it, you’re basically issuing unregistered securities. And we solve that problem by doing a you know, a public security that’s that’s registered and listed in Canada, it’s the most efficient place in the world to do that. They’re public markets, the Canadian Stock Exchange, the the Toronto Stock Exchange, the Venture Exchange there. They’re all designed for things like this. And so they’re just now the regulators are just now getting their arms around crypto. You know, their main concern is the issuance of crypto. They don’t want to do any ICOs. They’re nervous about any kind of unlicensed exchanges. They’re nervous about, you know, a number of other things around crypto, but we’ve been able to get them comfortable with what we’re doing. And the reason is because it’s a software, it’s a software company. And it just so happens to do projects and crypto. That’s really the that’s the key here. That’s what we’ve we’ve been able to figure out and to get know, get this far.
So that’s that. The other update? Is Deepak on the line today. Yes, yes, he’s, he’s in here. Okay, well, I don’t want to steal any thunder from him and just go on, spout off about any other things. But that’s basically if that’s what we’re that’s what we’re focused on. Now, what you know, what does this do for us? Well, even Bitcoin has this problem, because there’s no central storage of any kind of coins. There’s, they’re just a bunch of people who got together and decided to do something. And they cooperate on a lot of things. And sometimes they don’t cooperate. You know, that’s when you have forks and things like that. But there’s mechanisms to handle all those things. But that’s the fundamental problem. Bitcoin has a way that you have to do it is you have to keep the blockchain completely independent. The blockchain is a community function has nothing to do with the company, you have to have a company or some other kind of vehicle that can be that can accept funding, can spend money on foundations, we don’t believe are the correct way to do it. Because at least in Switzerland, and Liechtenstein, where we used to have a foundation, fact, I think we still might have it. It’s not completely shut down yet. But the foundations there are not allowed to pay bills. They can make grants, but they cannot pay bills. So it’s, you know, people originally set up these foundations so that they could just go and pay their bills. And I don’t think that’s going to be viable in the long run. A lot of these things are being you know, they’re they’re concerned about being turned into money laundries, and, you know, other non legal uses of these things. That’s the issue. So that’s it. That’s all I have to report.
I’m curious how long until after everything settled with this, are we looking at a turnaround time for starting projects with this. But with Coinapps and everything?
Chris Kitze 6:03
Well, as soon as, as soon as it gets approval, the projects could even start as soon as we get approval could start even this week. And the reason I say that is because as soon as it gets approved, they can close on they can close on the on the original transaction, they can do that. That’s what they’re getting approval to do. As soon as that happens, you can create subsidiaries. And a subsidiary, all it is it’s just a wholly owned subsidiary, which would, let’s say that you have company XYZ, company XYZ has, has a token, and has software and a team and revenue and things like that. For it could be for marketing promotion, it could be for search, it could be for any number of different functions that are all things that are that are necessary. So in other words, you could have a loyalty coin that is designed to do search. Well, they have to go clean up their, their, their ICO Oh, maybe they did an ICO XYZ company, or project, they did an ICO and now they they have a problem, they still have money in the bank, they want to become legal because they have a viable business. And they need a structure. And they need some technology, they need the wallet, they need a number of other things that we’re doing to be able the ability to allow people to store the coins themselves. Because, you know, if you’re holding things for other people, you are custodian, and now you have to go through a whole bunch of legal and regulatory things. And it’s probably going to be to the point where that happens in all the different countries you want to be in. So you want it to be, you want everything to be as decentralized as possible, you want people storing their own keys being responsible for their own things. But yet, you want to have a good way to recover everything in case people have a loss, they lose their keys, they forget the password, all those kind of things. And that’s what that’s what our wallet technology is all about. So the next step is we can start subsidiary sons and are talking to companies and what happens is, is we just put a copy of our technology, customize it for whatever it is that we want to work together with. And then that gets bought out and our shareholders the coin, app, shareholders would end up with, you know, Tinkerine, and coin, shareholders would end up with an equity ownership in the spin up. That’s how it would work. And that could start very quickly. I mean, that’s I was actually very pleasantly surprised to find that out on a phone call. But that’s how the, that’s how the Canadian, you know system works is that soon as you have the approval, you can get going. And you don’t even have to have all the other things done, because you can start the process of creating the subsidiaries. And, And that, to me is the most exciting part about this from a financing point of view, because now, it’s not just about getting one company finance, it’s about helping lots of these different projects. And people have said, well, you’re going to be like the home for the way word projects that that you know, have these legal issues that they need to remedy. And that’s not the long term goal, because that’s only probably one to two years of that kind of activity. But really, what we end up with is a very large network, because we’ll be able to piggyback with all these other projects, all of their traffic, everything that they have, will be able to help people. And in return, our shareholders will hopefully get enriched.
Chris, you talk about all these projects, like from a contributor standpoint, from a community standpoint, these projects that relate directly to the Tinkerine around the Coinapps, or is that something that we as the end can be helping with in the world both sort of working on trying to figure out the, the social media side of things, and we get in there, but is there anything we can do to help these projects that you talked about
Chris Kitze 9:58
Well if you run into product, so here are the things that we’re looking for, for these types of projects, we could do one of these things, I mean, every six weeks or eight weeks, I mean, it just depends on what the what the regulators allow. But this is a very common type of an approach. And it’s a it’s almost like a holding company, I’m not going to call it a holding company. But it’s almost like that. What our community can do is you guys are out there talking to lots and lots of people. FLASH isn’t the only coin that you hold in all other coins, you know, the other people in these other projects, maybe those other projects could benefit from something like this. And you know, all you have to do is just, you know, send an email or pick up the phone and just say, hey, go talk to Chris or go talk to the people at Tinkerine. And let’s see what kind of a fit we have. And that’s pretty much it. I mean, really, what we’re talking about is building this network of related companies. And the glue that’s going to hold a lot of together as the wallet, the wallet technology turns out that you really have two key parts to crypto projects, the blockchain and the wallet. What’s happening is the functionality of the wallet, it started out wallets were just basically, you know, places to store stuff. But what’s happening now, and we’ve seen this for a long time, we designed it from the beginning. And this is why we decided to build our own wallet. The wallet is actually the key because it allows you to to do more than just store you can actually do in wallet exchange, you can do many, many things in a wallet. That is an independent piece of software that is operated independently of, of any entity. So in other words, you also saw the damage that was caused by crypto. When they failed when they went into liquid they basically handed the keys to somebody else. And now your coins that were sitting out there exchange, who knows what the courts are going to say about the property rights on those? And you know, bankruptcy laws are different everywhere around the world, but they’re similar in a lot of regards. They now say you notice one of the one of the pronouncements was we’re going to do the best for all of the stakeholders. Well, who are the stakeholders? Well, that’s the people they owe money to. Those are creditors. And you know, the liquidators, the liquidators are looking at this, like, you know, you got Grant Thornton, which is a pretty good sized firm. And I’ve used them before in another company, they’re good firm. But they they will not take something like this unless there’s at least one or $2 million. Now where’s the one or $2 million going to come? It has to come from the coins that they hope. So the question is, what are they going to do with someone else’s private property, even though as one our community members who is a bankruptcy licensed bankruptcy trustee and Canada pointed out, he said, these coins according to the terms of service, were in trust, they were supposed to be in trust. So that means that they’re not actually legally held by the exchange. So then that’s the question is who controls the trust, and you don’t have any of these problems. If you have your own decentralized wallet, people are of course responsible for their own things. And it takes a little bit of extra work. But it turns out that the wallet is actually the key. And a lot of people are starting to recognize this. And now when someone has a project, the first thing they’re going to have to do is they’re all going to have to get a wallet. Now, if your wallet automatically ties into a number of exchanges, it’s got an API, it’s got all these different features, everyone’s gonna have to have a wallet are going to have to, and who are they going to join up with, they’re going to want to join up with with somebody who has a lot of usage. And somebody where they could get some benefit from having this kind of financing vehicle combined with a with this wallet, networking type of an approach. That’s what I’m looking at. And so when our community comes to us and says, What can we do to help, that’s what you could do to help give us suggestions for the wallet will add those things into the wallet. Let’s go and find projects that are and we have a list of probably a dozen people right now that we’ve been talking to, that’s what we should be doing, go find go find these projects, now we’re not looking for scam coins, we’re not looking to bail somebody out, we’re looking for the viable ones, the ones that have real usage that have real potential that have a real potential business case. And that, you know, are not like a complete train wreck, right? So we’re looking for things were people are going to be given a choice, the way it’s going to work, it’s going to be there’s going to be basically some kind of rescission offering that’s going to have to be done by the by the original issuer of the ICO or whatever it was, they will then offer to buy people back, you know, with bitcoins, cash, whatever it was that they used. And they’ll also have enough, which is or you can take our other offer, which is to do this deal with the Tinkerine Coinapps, and you can then have your coins, you know, converted into equity. And there has to be a mechanical process, I think it has to be bought for cash, there has to be a certain amount of cash that goes in because I think the exchange will require that, but there’s a way to do it. And that’s what’s exciting to me is that a lot of these projects, they’re good people, they’re good projects, they just got caught up in this hysteria this this mania. And, you know, in now they just need a little bit of help and a little bit of polish and get them on the right track. That’s what we’re looking for.
So real quick, you said a lot of things there. Right. Thank you for giving all that information. And I have I’m sure many folks have many questions about those points that you made. But right off the bat, one thing that I’m thinking of when you saying let’s invite projects for different different kinds of partnerships, right off the bat, are you saying that one no ICO coins and two coins that are not necessarily community back but a coins that have some funding? And and, you know, some some equity behind them? Is that what we’re saying in essence?
Chris Kitze 16:44
Well, here’s the thing that ICOs the ones that did ICOs, we have a way that we believe can legally clean these things up. So the answer is, if it’s a if it’s an ICO that’s too messy. So you know, some of these ICOs people like they literally absconded with a bunch of the funds. There were people who were, you know, there was really nothing there, they took, they collected all kinds of money. So it’s just shocking to me how much how much how much these people were able to raise. But you know, there’s some greater fool kind of environment. So to answer your question, the ICO is, we can work with them, we can, but they have to meet certain criteria. And we’re in the process of developing that right now. But you know, if it’s, if it’s an ICO that wants to convert into a legitimate registered security, with a and turn the token, into a community coin, or some kind of activity, or loyalty type coin, those are the people we can help communities, obviously, we will help communities, any chance we get, we are big believers and community coins. And you know, those, a true community coin will have any need for any of the equity or any of that, or the fundraising generally, but what they’ll do is they’ll need some of the technology and, you know, obviously will work with people on that. So that’s, you know, we want to support those people. And one of the things that, you know, one of my dreams is to actually be able to do larger projects, because there are a lot of places in the world where the, where the credit monopoly, which is the banking system, has just completely ignored. So let’s say that you have a town of 10,000, 20,000 people in India, or Latin America, or West Africa. And you don’t have a good water system. So people can’t drink the local water, you have it coming out of the faucet, and it’s not good, the quality is terrible. And there’s disease and all kinds of things. If we can find a way to fund through some donations in crypto currency, and then to create a local community coin that is accepted by the merchants and whatnot, that is a vehicle to allow the local people to help to pay for their water system. And it’s like water and sewer. Right. So complete system. And that to me would be that’s one of my one of my dreams is to help people like that. And this is this goes against issuing something like a bond, which is it debt, which has to be paid. And generally, whatever it is you’re doing will end up costing two to three times as much as what the original actual cost is. This is a way for the community to issue itself credit, you’ll need to get donors to pay for the hard costs and and some of the basic labor costs. But the rest of it will be funded by the community. That’s the kind of thing that I’m that I’m hoping that we’re going to be able to, to do. And I think once we see how the model works, it’ll it’ll go very quickly.
It’s it seems like it guys, if anyone has any questions, feel free to let me throw another question real quick, Chris, at you. With with us spinning Coinapps development team and you know, there will be a set of proprietary software that goes along with it, right? How where do you draw that delineation that line that separation between the community development effort, and the Coinapps block and effort?
Chris Kitze 20:39
Well, here’s what we here at. First of all, blockchain itself is completely separate. So all the blockchain development work is outside of the scope of Coinapps has nothing to do with Coinapps, it’s all done by donations, people make donations to the team, there will be a separate team, the teams being separated right now. So you’ll have a completely separate team. Alongside that, you will have open source software, which is supported by the community. And that means is supported by donations and whatnot. All of the code that is that goes to to Coinapps, which is proprietary, which was paid for by a number of people in the community just to put their own money into in order to continue funding that we had to find a vehicle because it starts to get expensive. We wanted to be able to charge people, you know, their projects and companies that want to want to use this wallet technology. And we just don’t have a good or good way to legally take care of those kinds of things. So the thing we the conclusion we came to was put the put the wallet technology into company. So its proprietary, and it’s separate from the blockchain technology. Now, one of the requirements we had was we wanted them all to have an open source version of the technology. Now, to protect the company, of course, and the investors in the company, they’re going to need something that special as well. So the way we put the demarcation was, if there’s if it is an independently help key if there’s no other services that are required. So for example, if you’re using the wallet, and you want to look up someone’s email address, you have to go hit a database for that, well, someone has to store that database, and then you’re going to have all of the legal and regulatory things from a centralized database, like GDPR, and the EU, like all the privacy laws, and all the other parts of the world. And then of course, you have to have security and all these other things. But it’s a very convenient thing to be able to look somebody up by their email address, as opposed to by just a, you know, public address from the coin. So that is that is how we decided to do it was to take all of the if something is a is a service that requires any kind of centralization, it goes through the Coinapps company, if it is a decentralized object that goes into the community. So that’s how we decided to do it. And as you know, there are two factors, there’s convenience and security. Convenience is of course, at odds with security, because it means that there’s centralization, to be able to look somebody up by their email address or their phone number. What that means is, it’s very convenient, it’s like PayPal or any of the other payment services and those things have evolved over 20 years, to be the way they are now, people are all used to working that way. Crypto with security is much better, because you don’t have any centralization. There’s no place for people to steal stuff. Now people can still get break into your phone, your email your computer and whatnot, and try and steal your keys. But if you’re careful about storing your private keys, and you keep them offline in some kind of a hardware wallet or hardware device, or you just have a complete machine that you just only plug in when you want to do transfers, that’s the best way to do it. Now, that’s not convenient by any stretch, and most users will not want to do that. They will want the convenience and there is the business. So you have the two factors, which is the security and the convenience. And people who want the convenience will end up having to give up something, they’ll give up some privacy, and they’ll give up some security and my opinion. Now, that’s just we’ll see how that goes. But that seems to be the best way to to demarcate this whole thing.
Answered my question, thank you, sir.
Anyone else have any questions for Chris?
Yeah, I just want to connect the dots. So James is obviously working his butt off like the rest of the community. But it seems as though he’s doing a lot. And he’s over there in Nigeria right now. Do you have any updates on where he’s at on that trip? Like, how you connected with him on that? How you guys working together? Because I, I see, I see James on the frequent and minimal passionate human in general. But this is his this is his big project in Nigeria right now.
Chris Kitze 25:48
Well, James is James, I will say this all in with FLASH and with, with the vision that we have for really helping people with with cryptocurrency See, and you know, he is a big course in the whole community coin notion. And, you know, as an alternative to the banking system, I mean, no one saying, replace the banking system, we’re just saying we’re going to do it better for people who can’t get a banking system. That’s the primary mission of FLASH. So and quite frankly, it’s not worth the time or money if the banking system to serve these kind of people because they just don’t have the money. And they have not been traditionally part of the credit system. So for that point of view, it’s a, it’s a, it’s a win. Now, James, I just was talking to him today, he’s got a number of people in Nigeria, Nigeria, actually is a fairly wealthy country. They have oil riches, they have some very intelligent people, lot of hard working people, very good people in Nigeria, you know, we’re not going to talk about the Nigerian prince scam and all this stuff that kind of got a bad rap from that. I know a number of Nigerians who are very upstanding people, and I really like him a lot. So what I think what I think is going to happen here is that we’re going to be very close to getting some deals with, you know, white label wallet versions, and this is going to be for Coinapps. But all of these places, part of the deal is when we did the deal with point apps is that the FLASH coin has to be included prominently in the wallet. So it’s the first coin people will see. So that’s the that’s the goal is, you know, we support Bitcoin, Ethereum, all the other coins that we have in the FLASH, wallet, Litecoin Dash, they’re all in there, we’ll put in the local coin for whatever the local exchange, maybe they have an exchange token and whatnot. But James is there right now, his primary purpose, there’s a couple of conferences going on. And he’s in the process of meeting a lot of people over there and getting to know them, and selling them, basically the wallet stolen and the technology that we have, and that’s going to be going into Coinapps. So, you know, we’ve already, you know, Tinkerine already drafted the contract for Coinapps, so that, you know, we can start getting contracts going, as soon as we sign the deal with Tinkerine, will start to bring in revenue. So that’s the good news is that, you know, James is he’s I would, I would call him the business development person for, you know, for all of this for Coinapps. And for for FLASH. So remember, every time something happens for Coinapps, FLASH is going to get taken along with it. And so over time, you’re going to have a lot of compatibility built into the FLASH token and the FLASH ecosystem. So that’s basically you know, that’s in a nutshell what’s going on with James. So I just heard from him this morning, he’s got another a new person that never heard of before, who is interested in in the wallet and all we have to do is integrate the local there’s a local payment system that we have to integrate in the wallet and I’m looking at that right now. Doesn’t look like it’s going to be that hard to do.