TenX (PAY) is one of many cryptocurrency ventures with ambitious plans that outside forces stifled.
For example, TenX created and distributed a cryptocurrency Visa card last year. However, Visa (NYSE: V) stopped the issuer of TenX’s Visa; Wave Crest Holdings, from issuing Visas in Fourth Quarter 2017.
To explain, to issue a Visa card you need Visa’s permission. However, Visa is refusing that permission to TenX. Hence, TenX has no working Visa card.
On the other hand, TenX still shows a picture of a Visa with its logo at its website. Yet it describes “card status” as “a work in progress.” Instead, people TenX is inviting people interested in the Visa to join a wait list for the card.
The TenX (PAY) Cryptocurrency Visa is still on Hold
I suspect the TenX Visa will be on hold indefinitely because major credit-card issuers are reluctant to get into the altcoin business.
In particular, Big Credit is afraid of central banks like those in China and India that keep blocking banking-system access to cryptocurrency accounts. Hence, I cannot blame Visa and MasterCard (NYSE: MA) for saying no to products like the TenX Visa. Avoiding conflicts with central bankers is good for business.
Additionally, there are serious technical issues hindering cryptocurrency connectivity to the financial system. Such issues include the “Oracle Problem” and the “Blockchain Scalability Problem.”
Why Visa said No to TenX (PAY)
To explain, older financial software cannot connect directly to the blockchain.
Connectivity is difficult because blockchain is a very different technology from legacy software. Blockchain applications have a time connecting with software made by Oracle Inc. (NYSE: ORC) hence the name Oracle Problem.
The Oracle Problem is big because Oracle makes a lot of the financial software used by banks, Big Finance, and Big Business. That means systems cannot process cryptocurrency transactions because altcoins are built from blockhain.
Equally vexing is the Blockchain Scalability Problem. In detail, older blockchains; like Ethereum which TenX uses, will process less than 20 transactions a second. Therefore Ethereum has a hard time connecting with systems like Visa’s network; which can theoretically process up to 1,667 TPS (transactions-a-second).
Thus, Visa will have to do a lot of work to accommodate a few cryptocurrency customers. Under those circumstances, the smart thing to do is say no to cryptocurrency and blockchain until the creators improve it.
Notably, higher capacity blockchain solutions like EOS (EOS) and Ripple (XRP) are entering the market. For example, there are unsubstantiated claims EOS processes up to 1,200 transactions a second. Additionally, Ripple’s creators claim their system will process 1,500 transactions a second.
Hence, it could soon be possible to build a blockchain payments platform with capacities that rival Visa’s. However, Visa and MasterCard are avoiding those blockchains too.
So what is TenX (PAY) anyway?
Therefore, TenX (PAY) has no Visa so what does it have? Basically, TenX has a digital wallet or protocol that converts cryptocurrency into fiat currency.
Such a wallet is a big deal because there are lots of people who want to convert cryptocurrency into fiat currency. Additionally, TenX has an application program interface (API) that can enable cryptocurrency transactions through smartphones.
However, TenX (PAY) has a lot of competition in that sphere. For example, Bancor (BNT) offers conversion protocols for both EOS (EOS) and Ethereum-based cryptocurrencies. In addition, both Uphold and CoinSwitch offer APIs that convert cryptocurrencies directly into fiat currencies.
Hence, TenX has some potentially valuable technology on its hands. The problem is that TenX seems to have no way of getting that technology out into the real world.
Can TenX (PAY) Make Money?
Though, selling, licensing, or giving its API away could bring TenX into wide use. Therefore, a smart strategy for TenX is work on getting its API added to existing products like PayPal (NASDAQ: PYPL) digital wallets.
Intriguingly, TenX is working with PayPal’s incubator start-ups program. However, the extent of TenX’s relationship with PayPal is unknown.
Plus TenX has the technology to make a cryptocurrency debit card work. Thus, TenX could be an acquisition target for companies like PayPal or Visa if they plan to offer a cryptocurrency debit or credit card.
TenX (PAY) is working on potentially lucrative projects
In addition, TenX is working on two other projects including the COMIT (Cryptographically-secure Off-chain Multi-asset Instant Transaction) protocol.
To elaborate, COMIT is a sidechain, a less encrypted digital pathway that acts as a short cut between blockchains. Sidechains offer a solution to the blockchain scalability problem because they can move transactions per second.
I think COMIT is an API that will connect sidechains and the blockchain. A COMIT API could be lucrative because commercial sidechains are in use right now.
Notably, Ripple is harnessing sidechains for some commercial purposes including remittances. Ripple is building a remittance network that reportedly serves 40 countries.
There are drawbacks to sidechains because they are a “blockchain-lite” with a lower level of security. That means sidechains are more vulnerable to hacking and cybercrime.
Therefore, TenX could leverage COMIT into a moneymaking solution. Though, it will take time for TenX to reach commercial customers with COMIT.
TenX is also working with CoBlox, a blockchain Research & Development Lab. CoBlox is developing several projects including possibly a blockchain transmitted through satellites.
Is TenX (PAY) a Good Cryptocurrency?
Under these circumstances, PAY’s value as a cryptocurrency is limited. However, Mr. Market disagrees.
Notably, CoinMarketCap gave TenX (PAY) a Coin Price of 29.4¢ and a Market Capitalization of $32.145 million on 1 December 2018. Beyond that there was a 24-Market Volume of $277,707; a Circulating Supply of 109.348 million PAY, and a Total Supply of 205.218 million PAY on the same day.
I think all these numbers show is that TenX has fans who like to speculate. There is no real value here, only hope for future. Therefore, speculators should stay away from TenX (PAY) until it unveils real products that are being used in the real world.
TenX is a speculative cryptocurrency you should avoid.
Note I changed the Market data on 1 December 2018 to make it a little more accurate.