CoinsPaid is one of the biggest crypto payment providers in the world, and its new $CPD token will connect its 800+ merchants to tools like multichain swaps and yield farming — with lots of added utility for regular DeFi users, too. It’s worth looking at this asset in detail, as its business model should work equally well in both bull and bear markets.
Why does a company with a $6B volume need a token?
CoinsPaid enables over 800 merchants to accept payments in cryptocurrency. In 2021 alone, the company processed around 6.4 billion dollars worth of crypto — that’s 350% more than in 2020. The number of transactions grew 175% year on year. In other words, CoinsPaid is a booming B2B business.
Most of the companies served by CoinsPaid don’t actually have any experience with crypto, let alone DeFi, so millions of dollars worth of cryptocurrency idly accumulate on their balance. With $CPD, that revenue can finally be put to work.
A major source of $CPD utility for merchants is discounts. Merchants can get up to 40% for holding $CPD in their balance and paying the fees with $CPD. The discount can even reach 50% for those merchants who participate in the co-marketing program, helping to promote $CPD.
Even more importantly, CoinsPaid is working on a user-friendly DeFi dashboard that will be integrated into the merchant dashboard/B2B wallet. With the dashboard, even those merchants who have never actively participated in crypto will get easy access to yield farming, multichain token swaps, and other DeFi tools.
No matter which DeFi feature merchants choose, they will need $CPD to get the most out of it. $CPD will make them eligible for discounts on swaps and deposits in liquidity pools, increased rewards, access to specific protocols, etc. In short, the token acts as fuel for the whole CoinsPaid DeFi ecosystem.
Soon CoinsPaid will also integrate $CPD utility into its freshly released personal crypto wallet. Holders will get discounts on token swaps, buying crypto with a bank card, and — in the future — CoinsPaid-branded crypto card. CoinsPaid is already testing a new liquidity aggregator to facilitate swaps at the best exchange rates — and has partnerships in place to take care of the legal aspects of crypto cards.
Main $CPD use cases
We’ve already discussed such $CPD use cases as staking and DeFi dashboard, but it’s worth listing them in a systematic way.
- Staking: both merchants and regular wallet users will get discounts on most CoinsPaid fees: payment processing, swaps, etc.
- Yield farming: there are already two $CPD farming programs running on BSC and Ethereum.
- $CPD as a means of payment: merchants will be able to accept payments in $CPD through the CoinsPaid processing gateway — and get an additional discount.
- Cashback: personal wallet users who hold $CPD will get part of the paid fees back.
- Affiliate rewards: both B2B product resellers and wallet affiliates will receive rewards in $CPD.
- Paying for the services of CoinsPaid Media and CoinsPaid Academy (both programs are planned for Q4 2022).
The ultimate vision for $CPD and the CoinsPaid Foundation
The long-term vision is for $CPD to become like ‘BNB for the payment world’, a digital asset that will be used by both B2B (businesses) and B2C (regular crypto holders) to streamline payments — just like BNB plays a major role in DeFI swaps, staking, etc.
To achieve this vision quicker, the company is launching CoinsPaid Foundation — a non-profit organization registered in Zug, Switzerland, and dedicated to the promotion and strengthening of the $CPD ecosystem. The Foundation will protect the interests of $CPD holders, negotiate with exchanges on listings, secure partnerships, and so on.
Once the Foundation is set up and running, $CPD will be listed on the first centralized exchange (CEX). At the moment, you can buy $CPD on Plasma Finance, QuickSwap, PancakeSwap, Uniswap, and Sushi Swap.
Advantages of $CPD over other DeFi tokens
1) High potential volume and demand.
Many of CoinsPaid’s merchants receive millions of dollars in crypto in payments from their customers every month. In 2021, the average check per user reached $695. Once a significant part of the 800+ merchants starts staking $CPD to get discounts on processing fees, their demand for the token will constantly grow. This is especially since the merchants will also spend $CPD to pay the fees, so they’ll need to keep adding to their balance in order not to lose the discount.
2) Low selling pressure. Since a merchant needs a certain amount of $CPD on their balance to be eligible for discounts, there is no incentive for them to sell the tokens — only to buy more.
3) Bear-resistant business model. Even during the recent bear market, CoinsPaid’s business kept growing very fast. In 2021 alone, the company’s portfolio grew from 300 merchants to 800. No matter what happens to the price of Bitcoin, crypto payment volumes will keep increasing, together with the number of merchants that accept them. So the demand for $CPD will keep growing even in a bear market.
4) Utility as a means of payment. As the CoinsPaid gateway adds $CPD to its list of supported cryptocurrencies, merchants will be able to add the token to their list of payment options. They will be motivated to do so since every payment in $CPD is eligible for a 50% processing fee discount. Thus, $CPD will become one of the very few DeFi assets that are accepted as payment online together with BTC, ETH, USDT, etc.
What CoinsPaid has achieved with $CPD in just a few short months is very impressive. 2022 can become a landmark year for $CPD and its DeFi ecosystem, so it’s definitely worth keeping this token on your radar.
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$CPD (CoinsPaid): the missing link between real-world business and DeFi was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.
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