International remittance, the transfer of money by a foreign worker to an individual, normally a family member, in their home country. These payments are necessities for millions of people who leave home to a wealthier country to support their family back home.
One of the most expensive types of money transfer is international transfers. The most common ways of transferring money abroad is via international banks who charge vast amounts for these transactions.
Araneobit is a Russian based project that wants to make remittance payments, cheaper, faster, easily accessible and decentralised. Taking away the middleman, the banks.
Using blockchain technology, they will build a new social-oriented infrastructure providing peer-to-peer communications. Cross-border communication in the system will be carried out by specialised software, which is reliable and safe thanks to the use of their Z-token.
Who will use the Araneobit Network?
Araneobit will ultimately benefit everyone, beginning with those that are sending small amounts to family members, to those looking for international loans or those who want to invest in foreign assets. The transfer of funds becomes fast and cheaper.
Unlike lots of business models who aim for high net-worth clients, Araneobit is doing the opposite. It is targeting the little guys first, which is both ethically kind and business savvy. How are they doing this you may ask? It's simple, they are swallowing all costs for transfers below $100, that means 0% commission and service fees. This will make a huge difference to millions of people who are sending small amounts to their families back home. Some companies have been found charging up to 10% for such transactions.
Once you cross the $100 threshold, you can then be charged anything from 0.2% to 2.0% max. The rate will vary for multiple reasons, for example larger transactions will cost less. Despite that sounding like it helps the wealthy, it is simple business, the fact that the company will make more on larger sums for the same amount of work means that they can reduce those fees. Nothing new there.
This business model aims to attract 16 million users, by getting low net-worth users to use the system they build a solid base quickly. Another way to build this base of clients is to make the product so easy that anyone can use it. Araneobit recognise that mobile transfer are the way of the future, so they are developing a brand new app that will make this process absolutely seamless.
How to get involved in the ICO?
The public ICO will officially begin on August the 1st this year. You will need to request an invite to register for the ICO, you can do so through their website and this link.
Like most ICO's nowadays, you can contribute by using Ethereum to buy Token Z, which will be released on the Ethereum platform. The top side target will be 25,000 Ether, which at current valuation makes their target over $12 million.
See below for their token distribution.
When investing in ICOs, you are always told to do your research but often people forget that you should research those who are driving the project. Araneobit have a team with pedigree and it is easy to check their credentials because they are very open about their founders as well as advisors. This upright approach is both refreshing and encouraging for angel investors.
For more information about the project you can go to their website, where you will find their whitepaper, roadmap and all upcoming news. They also have social media platforms (Twitter, Telegram & Facebook) that they regularly update and answer any queries.