Gelios v. Bitconnect: The difference couldn’t be more obvious.
Gelios v. Bitconnect: The difference couldn’t be more obvious.
We at Gelios have been hard at work over the last few months preparing for our Pre-ICO, which
launched just a week ago. We have made a huge effort to get to know the cryptocurrency community and to find out what issues are most important to them.
Over the last couple of weeks, in light of some recent, major, news stories, we have been getting one question over and over again:
How is Gelios different from Bitconnect?
We at Gelios believe there is no comparison between our platform and the Bitconnect ponzi scheme. We can back up this claim with real evidence.
Difference #1: Background
The most basic difference between Gelios and Bitconnect is our background — Gelios is an ICO project that is being launched by a well known and successful company, called Brainysoft. With a proven track record and a team of experts that can be contacted via social media, Brainysoft’s reputation makes certain that you can trust Gelios.
Bitconnect was a scam set up by an anonymous group of people who had set out to steal as much money as they could during their ICO campaign and as far into the future as possible. They had nothing behind them when they started, and current lawsuits against them may fail to compensate victims, simply because it’s hard to determine who the criminals were.
Difference #2: Technology
Gelios is built using cutting edge technology, engineered by programmers and other experts. At the core of the system is a decentralized credit bureau based on hyperledger fabric blockchain technology. Advanced algorithms are implemented in order to enable lenders and borrowers to be matched and for other participants on the platform, including debt collectors, risk analysts, and webmasters to be more successful. “Know your client” procedures on the platform are just one way that users can be sure that other participants are who they say they are.
Bitconnect was hardly a platform at all. Instead it was a multi level marketing structure — more accurately a ponzi scheme. Token holders were led to believe that the more people who used the platform, the more money they would earn. This is clearly nothing more than marketing fluff — not advanced engineering.
Difference #3: Promises
Gelios is very clear in its white paper about one thing in particular: there are no guarantees that token holders will have certain success on the platform. It is very clear to token holders that there are many risks involved in token ownership. Gelios’ only promise is that they will try their hardest to meet their goals as outlined on their roadmap
Bitconnect claimed that token holders would earn huge profits — 40% per month. Such a claim before a business launches is just ridiculous!
Difference #4: Actually being a lending platform.
Gelios is a P2P cryptocurrency lending platform. When you make a loan on Gelios, you are not loaning money in any way to our company. Instead, you are making a loan to another independent individual. Every part of the procedure is recorded on the blockchain and is visible to everyone. You may choose to use the services of other platform participants — webmasters, risk analysts, and debt collectors — but, again, all transactions with these users will be on a P2P basis and transparent.
Bitconnect asked users to loan money to them to enable the exchange of other cryptocurrencies. This is no way made Bitconnect a lending platform. This made Bitconnect a money-sucking scam.
Artem Zhilin; David Langellotti
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The Gelios Pre-ICO is LIVE!
The OFFICIAL smart-contract address: 0x5c7621f7afb14b9ab20fefede40b428d9b4429f2
Investor personal area: https://ico.gelios.io/
Stay safe — only accept information about the ICO from official Gelios channels. Verify that you have the correct smart-contract address by checking at least THREE of these sources:
Got questions? Read the Gelios ICO how-to guide: https://www.dropbox.com/s/treew18td2agb5d/invest.pdf?dl=0
Gelios.io pre-sale is LIVE
Gelios.io pre-sale is LIVE
????????Pre-sale is LIVE????????
Reserve your GLS with 30% bonus NOW! ????????
Website — https://gelios.io/ ????
Investors area — https://ico.gelios.io/ ????
OFFICIAL Smart-contract — 0x5c7621f7afb14b9ab20fefede40b428d9b4429f2????
Instruction — https://www.dropbox.com/s/treew18td2agb5d/invest.pdf?dl=0
Gelios.io presale: important info
Gelios.io presale: important info
OFFICIAL smart-contract address: 0x5c7621f7afb14b9ab20fefede40b428d9b4429f2
Pre-ICO starts January 21st 01:00 PST
Investors personal area is OPEN for registrations! https://ico.gelios.io/
How to invest on presale: https://www.dropbox.com/s/treew18td2agb5d/invest.pdf?dl=0
IMPORTANT: check it at least in 3 social media sources and website!! Beware of SCAM.
Official website: https://gelios.io/
Gelios Co-founder Victor Orlovsky Conquers Silicon Valley
Gelios Co-founder Victor Orlovsky Conquers Silicon Valley
Transitioning from a position at one of the world’s biggest banks to a career as a venture capitalist does not happen overnight, admits Orlovsky
(This is the translated version of original: http://www.forbes.ru/finansy-i-investicii/354737-resurs-grefa-byvshiy-it-direktor-sberbanka-viktor-orlovskiy-pokoryaet )
In the year 1812, the Russian-American Company founded Fort Ross, a Russian fortress in Northern California, located about 140 kilometers outside of San Francisco. The settlement, which was the southernmost Russian colony in North America, existed until 1841 (now it is a historical park) and was used to support the fur trade and to ensure the transit of supplies to Alaska. After 205 years, California — and in particular Silicon Valley — is seeing the rise of another Fort Ross with Russian roots: Dubbed as such is a venture company under the direction of Victor Orlovsky.
Orlovsky came to Sberbank in 2008 from IBM (he was then 34 years old). Previously, he had occupied high positions at Alpha Bank and ABN Amro. At Sberbank, he was responsible for the IT transformation program. “At that time at the bank, there were no blocks like IT. There were about 120 people under my direction, and the other 15,000 worked in a few dozen regional banks. Other than legal structures, nothing united them,” remembers Orlovsky.
Having experience in the field, and having done something similar on a smaller scale at Alpha Bank, he already knew what centralization was. They started with the front office — and, more precisely, with a united bank account — so that clients of the bank would not need to open several different accounts at different Sberbank branches. Also centralized were the CRM, the distribution of cards, and processing. Back-office centralization was much more difficult — it was a “system like in a zoo,” according to Orlovsky, as the client database had only about 75,000 entries.
“We wanted to do a cosmetic renovation, but we ended up having to tear everything up, including the foundation, all while there were 100 million clients continuing to use the system,” explains Orlovsky. The whole process began in 2009, and by around 2013, after a year’s delay, the centralization program was integrated. According to Orlovsky, this was an unprecedentedly short timeframe. He estimates that the five-year budget of the program came out as 4 billion dollars. Along the way, Sberbank added to its arsenal an online bank, mobile banking, credit cards, CRM, call centers, data processing, and the “Sberbank tekh” and the “Sberbank Servis” services.
After five years, a large amount of work had been carried out, but Orlovsky had not counted on the massive load on the new platform. “At that time at Sberbank, there were up to 350 million transactions per day, 40 million of which were in an online format. There was not a single system at the time that could work with such a load. The Sberbank platform was bulging at the seams,” he remembers. In 2012, Sberbank experienced a number of setbacks. On the sixth of July, processing stood still for an hour and a half, attracting national attention, including from the government. Orlovsky was required to explain the situation to Russian leadership on a secure line.
“Although I offered to resign, Herman Oskarovich did not accept the proposal. Nevertheless, I understood that my days in IT were limited, and I felt extremely guilty and went through a hard time afterwards,” remembers Orlovsky.
Gref did not move to fire Orlovsky, instead moving to name him senior vice president of digital business at Sberbank and leaving him with not 15,000 people above him but two. Orlovsky began to develop additional client services, basing his work on the processing of massive amounts of data. After all, Sberbank knows more about the client than Google does. After two years in this position, Orlovsky had invested Sberbank funds in eight tech companies, which shared their development teams with the bank.
Now, after four years, Orlovsky has placed a billion-dollar value on Sberbank’s digital business. In August of 2017, for example, the bank announced that it would invest 30 billion rubles in an e-commerce platform based on “Yandex.Market.” It was then that Orlovsky understood he wanted to go into the venture investment business. “I’m an inventor; I love experiments. I can’t live without changes, and I find unusual innovative solutions. I can’t invent the suitcase or the wheel, but I can bolt a wheel to a suitcase.”
The SBT Venture Fund, with a volume of 100 million dollars, and its managing company SBT Venture Capital (later renamed to MoneyTime and then to FortRoss Ventures) were created by the state-owned bank in 2013. Sberbank made this company independent, which significantly limited its decision-making power, explains Orlovsky. After some time, he himself was called to direct the fund. Gref agreed, but only under the condition that Orlovsky put some of his own money into the fund. “Everyone knows what to do with the money in a bank, but I want you to earn and to lose together with us, taking care of that money like it’s your own,” says Orlovsky, paraphrasing Gref. Around 90% of the fund’s resources come in the form of money from the state-owned bank. The rest is money contributed by Orlovosky and Yakov Nakhmanovich, the general partner at FortRoss Ventures.
In June of 2015, Orlovsky left Sberbank. “I understood that in my new role, I would be more useful to the bank and to myself. Additionally, this was a major call to begin doing investment activities, a completely new field to me. The main thing, however, was that I wanted to leave the fantastic comfort zone that all Sberbank’s top managers experienced,” shares Orlovsky.
Transitioning from a position at one of the world’s biggest banks to a career as a venture capitalist does not happen overnight. “Here, I’m nobody, and as far as the local community is aware, I’ve achieved nothing. I’m starting everything anew,” admits Orlovsky. Arriving in a small town in Silicon Valley in the summer of 2016 with his wife and five children, he now works from his home office (although the fund also has an office on University Avenue in Palo Alto) and holds meetings at a neighborhood café — Peet’s Coffee, a down-to-earth California chain where customers order cappuccinos themselves at the counter. “The elephant learns to be a unicorn,” he jokes.
In October of 2017, FortRoss Ventures announced the launch of SBT Venture Fund II, with a volume of about 75 million dollars. By the end of this year, the number should grow to $200 million. In contrast to SBT Venture Fund I, which has already been invested in 11 companies, the share of Sberbank funds in the second bank is lower than 20% (an exact number has not been revealed).
“We are unique in that we are an absolutely independent venture fund, despite working with corporate money,” says Orlovsky. “This includes Sberbank — the biggest, but not the only, corporation that we work with.” Such corporations are few, but Orlovsky cannot reveal the exact number and names, saying only that among them are no public companies. The average investment amount? Seven million dollars. The investors are primarily Russians.
What kind of relationship does FortRoss have with Sberbank? The bank makes available all its R&D resources to provide due diligence and an examination of the investment projects. Sberbank spends about 40 million dollars per year on specialists who work in research laboratories and whose exclusive expertise can be used by FortRoss. No other fund in the world has such competencies, claims Orlovsky. The top managers of Sberbank are also involved in running FortRoss Ventures. The first deputy chairman, Lev Hasis, is on the investment committee of the first fund and communicates weekly with Orlovsky. Meetings with Gref are a little less frequent.
In addition, Sberbank helps to publicize the products and services of the startups in which FortRoss is invested. For example, thanks to Sberbank, the company GridGain gained as clients 20 financial institutions outside of Russia. The startup is developing software that helps to carry out calculations in the operative memory of a computer. The SBT Venture Fund I, together with Sberbank, invested 8 million dollars in the company in 2016, a deal that was announced by Gref on the Gaidarskii forum. What’s more, Sberbank can help in leaving a deal, and thanks to the connection to the bank, FortRoss has the ability to sell startups, says Orlovsky.
The SBT Venture Fund I became a shareholder in Uber (Orlovsky calls the share “tiny”). According to Orlovsky, it was Sberbank that helped Uber to integrate into the Russian market. “One day, Kalanick [Travis, the founder of Uber] cited as an example Sberbank and its CEO Herman Gref at an event attended by investors and the press: Never at any other world bank has such a synergistic effect been obtained. And for me, that was like — wow! This means we know our stuff,” recounts Orlovsky, who was present at the meeting.
Currently, FortRoss is registered in the Cayman Islands and operates in the US, Russia, and Israel. The specialties of the company are projects related to AI, the Internet of things, cloud technology, fintech, and digital marketplaces.
“The Internet of things is summed up as a united system of sensors. It’s not just about a ‘smart home’ but a ‘smart everything,’” explains Orlovsky. “There are a ton of sensors and cameras in this room,” says Orlovsky, looking around the café, “but they are not yet connected. In the Internet of things, such sensors will become more common. They will learn to interact with one another, speak a single language, and share data, which will help them draw conclusions and make decisions.” A Boeing-787 airliner collects 20 terabytes of structural data during a four-hour flight. “This cafe turns into a Boeing-787 every five to seven years. Everything here will be connected to sensors — for example, when your coffee is finished, the sensor will transmit this information, and a waiter will come and refill your cup,” explains Orlovsky. FortRoss, in particular, has invested in software that will process all this information.
The fund operates under the following model: The management commission is 2% of the cost of the assets and 20% of the profits after success. “Practically all the money goes to support the team and to search for and close deals. I earn almost nothing, and my life is far from chic. Even on flights between San Francisco and Moscow, I fly economy, ” says Orlovsky.
“Naturally, what overshadows the venture work are the sanctions imposed on Russia, as well as the bad press for the country,” recognizes Orlovsky. For example, it is difficult for FortRoss to open a bank account and to interact with certain funds. “We don’t violate any laws, but when I arrive at a bank to open an account, they cannot explain to me why they can’t do it,” shares Orlovsky. FortRoss carried out a full legal audit of its funds and all partners, verifying full compliance with legislation pertaining to sanctions. Nevertheless, this is not enough for the banks. Eventually, the fund was able to open an account at a bank specializing in venture investment.
Admittedly, sanctions have had almost no effect on working with startups, which, by nature, are used to a high degree of risk and working with barriers, notes Orlovsky. Startups come to the fund in several ways thanks to ties to other venture funds in the US or in Israel, which Orlovsky and his partners are now actively building through connections and the reputation of Sberbank. Gref takes Orlovsky along on all meetings when he comes to the Valley. Also, connections with large companies like IBM and Oracle help significantly. Additionally, FortRoss is carrying out its own research to create a short list of the 10 to 20 most interesting companies. Out of these, the fund will choose the five best in each category. They will first bring them to Sberbank as potential clients, and if they like each other, and if the research and the pilot program produces results, then a dialogue about investment can begin.
Among Orlovsky’s plans include the launch of a third fund in two to three years, with investments primarily from China and the Middle East. There may not even be any Sberbank money in this fund at all.
An Analysis of P2P Cryptocurrency Loan Platforms
An Analysis of P2P Cryptocurrency Loan Platforms
Gelios is designed as a platform which can enable loans via cryptocurrency by bringing lenders and borrowers together. In essence, Gelios provides something called P2P lending.
In order to provide better service to all participants on its platform, the Gelios team has done a thorough analysis of the P2P Cryptocurrency loan market. In doing so, they have found that there are three kinds of P2P cryptocurrency loan platforms:
Classic P2P platforms that use cryptocurrency
Tokenized microfinance organizations
ICO P2P platforms
An Analysis of Existing and Failed P2P Cryptocurrency Loan Platforms
Nebeus, a new cryptocurrency banking startup, sells itself with the catchy slogan “Become the Banker with Nebeus.” Its team aims to do a number of interesting things: To issue a bank card that can make both fiat and cryptocurrency payments, to create a streamlined platform for the exchange of cryptocurrencies, and to obtain an official banking license.
On the cryptoloan front, Nebeus completes user authentication using a united KYC procedure. Applicants who have completed this procedure are issued a loan manually by an individual. Nebeus is selling a security token during its ICO, and aims to raise a massive 40 million dollars.
BTCJam was a service that ended operations earlier this year, following pressure from regulators and due to issues regarding the volatility of cryptocurrencies. Before facing those challenges, however, they managed to raise around 10 million dollars in funding via venture investment.
While the company has closed down, it did manage to prove certain aspects of the cryptocurrency loan concept. Loans were made and paid back in Bitcoin and the process did actually work largely as planned.
BitBond is another company that is proving the concept by providing loan services in Bitcoin. They have been able to secure a legal status within the European Union, having received a banking license from a German regulatory institution.
The loans offered by Bitbond are at the moment only in BTC, and are focussed on the needs of small businesses. The company has the ability to evaluate and accept or decline loan applications automatically, using information provided in the user’s profile. The platform establishes a rating for the user based on their actions.
BitLendingClub is another service that is no longer available, having closed in 2016. This mostly had to do with pressure from Bulgarian regulators. Before closing down, the platform hosted loan transactions that totalled 8 million dollars in cryptocurrency.
Humaniq is a new company that held its ICO in April, raising a total of 5 million dollars. Their aim is to provide microloans via cryptocurrency to the third world. Their idea is that they can collect data for scoring clients with a mobile application.
Micromoney is another company that aims to provide microloans to improve life in under-developed countries. Recently, the company completed its ICO, reaching its soft-cap of 10 million dollars. They have already begun to issue microloans in Southeast Asia as a decentralized credit bureau.
Salt Lending is an interesting platform that asks users to place collateral in order to receive a loan. This is an alternative to scoring borrowers in terms of credit. The Salt platform in essence operate likes a pawn shop, taking a certain amount of a digital asset, and returning it when the loan itself is returned.
Conclusions from the Market Analysis
Overall, it is obvious to the Gelios team that it is impossible to make a fully decentralized P2P cryptocurrency loaning platform. This has to do with four key issues:
A large number of exceptions in credit products
The necessity for credit scores
The need for quality KYC
Clients trying to work-around the scoring or KYC systems by making multiple accounts.
The Gelios Solution
Gelios is building a cryptocurrency loan system that operates as a “clean” platform. This mean that it does NOT do scoring, KYC, or other evaluation of the clients. These roles are taken up by participants on the platform. Platform participants include creditors, risk-analysts, collectors, webmasters, and KYC service providers.
Gelos’ “clean” platform means that the participants that provide the best results will see the most success, and that successful strategies will eventually be taken up by all participants. Among P2P cryptoloan platforms, it seems that Gelios is the most likely to lead to true, successful innovation.
Gelios provides a “white-label” solution which makes it easy for partner organizations to link up their business and website with the platform. Gelios does not do the lending itself — it provides a platform for lenders to get matched with borrowers. The same goes for risk-analysts, collectors, and webmasters. In this way, Gelios is most certainly set to be the first truly successful P2P cryptocurrency loan platform
Share your thoughts! The Gelios team welcomes the input of the community, and would be happy to hear your feedback! You can contact the team at firstname.lastname@example.org
For general information about the Gelios platform and ICO, visit https://gelios.io
KYC Providers for Gelios Marketplace Users
KYC Providers for Gelios Marketplace Users
Although blockchain technology was initially conceived as a decentralized means for money transfer, lately it has become so much more. Business leaders are realizing every day just how huge blockchain tech’s potential is for the improvement of both product quality and customer experience.
Right now, we are seeing companies use the blockchain to facilitate the transfer of money, to attract funds, and to enable systems of voting and decentralized management (DAO). For these businesses, however, there was a question that remained for some time unsolved — customer identification.
Knowing who the client is, is of the utmost importance when dealing with money transfers, crowd sales (or ICOs) and voting procedures. Today the question is well on its way to being solved. A number of companies and institutions are developing highly-effective know-your-client (KYC) solutions.
The main concept of Gelios is providing platform for different services (KYC also) and different roles of people, envolved in lending process — lenders, borrowers, collectors, webmasters and KYC providers.
This article is an overview of the best of these solutions.
Civic is one of the more popular KYC services on the market. Clients make an account and are validated using an aggregation of a number of identity validation services, which include government institutions and private financial institutions.
According to our research, Civic provides reliable verification of the identities of real individuals. A downside we see is that the service relies on a partner network. We fear that there are too many moving parts in the system.
We’re sure everything will be worked out soon. Civic expects to release a fully-functional version of their product at the end of 2018.
The team at Oz Forensics have released a KYC solution that verifies user identity using advanced machine learning technologies. The platform (Oz Photoexpert) is an AI interface, that streams a video of the client. Then, the client is asked to show his or her passport.
The system compares the appearance of the client in the video to the photo that is on the passport. Oz Forensics’ technology is able to tell if the video and the passport match. The idea is that the AI verifier can do exactly what would be done in real life, if the passport were to be verified by an employee at the bank or in some other physical location.
Cryptid is an interesting solution that provides three-factor identification. They have developed a platform that requires users to upload a photo and a fingerprint scan. For a non-governmental institution, the team is on to something quite innovative.
The team at HYPR goes a step further in using biometrics to help companies and institutions validate the personal credentials of their clients. Already, their services are trusted by some Fortune 500 companies, and by major credit card companies, banks and automakers.
The Open Identity Exchange
The OiX is a platform where KYC systems and corporations can exchange data. By aggregating this data it intends to make access easier for companies and the process more user-friendly for clients.
Estonia has developed a groundbreaking new system for online verification and digital business called e-residency. Individuals from all over the world can apply to become electronic residents of the northern European country. This gives them the right to open and a business in Estonia, to open bank accounts, to sign contracts, and to pay Estonian corporate taxes, all online, all over the world.
Individuals who are granted e-Residency must appear in Estonia or at any Estonian embassy or consulate to provide biometric data (a scan of the individual’s thumbprint). From then on, the e-resident can prove who they are to the Estonian government and to thousands of online services, from anywhere.
Similar programs are being explored in Singapore and in Zug, Switzerland. It seems that online verification may soon be taken as a responsibility by traditional government structures all over the world.
Since Gelios is a P2P cryptocurrency lending platform, proper identification and authorization of users is extremely important. It is for this reason that the Gelios team is devoting a lot of time and energy in order to figure out the best solution.
The Gelios team welcomes the input of the community regarding these KYC platforms, and would be happy to hear your feedback! You can contact us at email@example.com
For more information about the Gelios platform, visit https://gelios.io