Spotcoin: interview with Guram Rukhadze
Spotcoin is one of the most interesting and promising projects in the territory of the CIS and the Black Sea region. The project managed to attract the attention of large investors and leaders in the field of blockchain technology. The digital marketplace has broken barriers. Spotcoin embraces the universality, putting digital assets to work for everyone. Co-founder of Spotcoin Guram Rukhadze spoke about the new product concepts, and explained why this Spotcoin is unique. Along with that, he disclosed the official date of its launch.
In my opinion, Spotcoin is one of the best projects in Russia and Ukraine. These guys are the first who made the OTC platform for bitcoin transactions in the post-Soviet space, and also in the Black Sea region. How did you come up with this idea?
Good question. I have four partners, we used to deal with payment solutions business before. We first heard about bitcoin in 2016, there were many stores which started to use it back than. But it wasn’t easy to buy something with cryptocurrencies. People had to deal with the exchanges. Unfortunately, exchanges set a lot of restrictions on transactions, and they don’t work well in this particular region either. We had decided to create our own exchange solution, so we began to take actions through European financial institutions and some Georgian companies. At some point, cryptocurrencies had became so popular that we made a decision of creating an official company. My partner Andrew had gone to America and raised $1 million investments there, we hired a director and 30 employees.
And now the launch of our ICO will take place on the 10th of April.
Tell me more about the issues of regulator. How do you solve the legal aspect?
We work with Juscutum. This is a well-known, respected company.
They (Juscutum) are my favorites actually. They are the best from those who operate on CIS territory.
Yes, I’m fond of them too. They are very cool, I can recommend them to any project. I even invited them to Georgia. From the legal point of view, they help us a lot. And Georgia is a crypto-friendly country, as well as Moldova, by the way.
At the beginning, we’re going to deal with dollars and euros. But in future we hope to negotiate with each country about cryptocurrency transactions.
Next question is about the technology itself. Why do you use NEO? There are a lot of other blockchains, much more convenient for an ICO. Those Chinese smart contracts are very difficult to understand.
The answer to this question requires many hours of talk. But I'll try to explain in a few words. NEO is neither a Proof-of-Stake nor a Proof-of-Work, but rather a hybrid of those two systems. It includes many functions that do not allow investors or miners to make a fork or somehow influence the main chain. Transactions are free inside the NEO’s blockchain, and that’s the second main feature. The NEO’s philosophy is different from other platforms out there. They want to be absolutely legal and transparent. They have seven consensus nodes which decide whether to conduct a transaction or not. Those nodes include some significant companies, like, for example, banks, or mobile operators, which have heavily invested in NEO. Also, NEO has not spread in this region yet - we even have partly translated NEO documentation to Russian and Ukrainian languages. We try to localize NEO, and promote them as an alternative and a convenient platform for multipurpose usage, not only for ICOs.
What’s the main point of view for Spotcoin?
Spotcoin is a platform for several projects. We want to create a payment system for stores that will join our exchange platform and get the option to accept payments in any crypto or fiat currency. We think of it as a business solution.
What is your hard cap target?
We have a $5 million soft cap and a $30 million hard cap. Our privatе placement will take place on 10th of April, and public ICO will start on May, 1st.
It’s really hard to start a project, when you’re working on a product, and investors care only about the money. A little later we want to establish an academy in Georgia. In Ukraine this sphere is much more developed, Ukraine has always been very strong in the IT field.
There are very few people who understands that we here, in Ukraine, have become kind of a center for the CIS blockchain society. What do you think?
I was here with you on March 15th at the opening of the Blockchain Hub, and I saw there a lot of programmers, enthusiasts, investors. The whole sphere is very interesting, but so far there is no infrastructure, both here and in Georgia.
Well, you’re now creating a solid infrastructure for Georgia and other countries.
We see that it won’t be enough.
Chinese and Japanese markets are oversaturated with similar projects. But here we have nothing like that, Spotcoin will be the first.
It’s also a big responsibility. Yesterday we’ve conducted three presentations simultaneously in three different countries. We join the conferences, present ourselves, consult others. A lot of people already know about us.
Let’s talk about your plans for the next six months. What are you going to achieve?
Let's see how the ICO project will start. We have a period of inspections from investors. It is important to be trusted and to get investitions, but it's even more important to distribute it correctly. Many others will watch how we’re going to spend the money.
What are the three main points for a successful business?
The first important thing is a good team. We need to find a team which is ready to work day and night. I'm very happy with my teammates. By the way, they are also working hard right now. The second ingredient is an idea. Nowadays you can do crazy stuff with the blockchain technology, limited only by your imagination. And the third point is the legality of all actions. We must do everything correctly to keep the project afloat.
Is Ukraine a good place for business?
Ukraine is the most suitable country in this region, which has also always been strong in IT. Many global companies have regional offices here. For example, Juscutum is a company that helps us with legal issues, and it also works with the government. Many factors indicate that the sphere is developed rapidly here. I can predict that Ukraine will be one of the first countries which uses blockchain on a massive level.
Did you have any difficulties with the introduction of your product?
We have not started operations here yet, we are still at the ICO level. But I keep talking to people here. Ukraine has very friendly ambience. I didn’t heard of any particular obstacles during the new projects establishing.
Many people say that the ICO is just a scam. What guarantees do you offer to your investors?
Sure there were cases when the guys had collected money and then ran away. But people themselves invest to projects without cross-checking of the information. We have nothing to hide. First of all, Spotcoin uses a legal scheme with regulators, licenses and other formalities. All project information is available for verification. You can find all the details of our team and our partners. We visit conferences, communicate with people. We also have a lot of experience, we have dealt with great amount of companies. Therefore, our brand is the main guarantor. Also, our technology is based on NEO, whose creators work as a very enthusiastic team, they value their reputation as much as we do.
Reputation seems to have an important role in crypto environment. This business gains a risk to leave the path of innovation and enter the world of marketers, don’t you think?
The idea of cryptocurrencies is still very fresh. Many people got rich without having a special background, and these people have a unique vision. They have understood the essence of blockchain technology and used the opportunities correctly. In fact, many of them don’t even have the experience of a well-thought-out investment. Thus only few can predict the potential success of a project. And there is another factor for small startups to get their popularity: a lot of people from Asia has instantly got rich. For example, many Chinese citizens suddenly got cryptocurrencies on their wallets. But it is extremely difficult for them to exchange crypto-to-fiat. They are virtually rich, and they invest the cryptocurrency in new projects. Therefore, many scammers use the naivete of people and arrogant marketing moves. One well-known example is Banana coin. Who can possibly buy these tokens?
Dmitriy Kryshtal, Cryptodealers
Nadiya Osmokesku, Blockspoint