Wirex IEO: The Revolut of Crypto?

(UPDATE) June 13, 2019 – The Wirex Team has postponed the pre-sale IEO and changed the 200M WXT Token private allocation to a number based on how many people are interested. You can read more details and sign up for the pre-sale here.

If you’ve ever looked at crypto debit cards and crypto payment platforms, you’re probably no stranger to Wirex and its Wirex Visa card.

With over 100 employees and well over 2 million registered users on its platform, Wirex aims to solve one of the biggest concerns in the crypto space – adoption.

What is Wirex?

Wirex is a UK based, FCA-regulated fintech company providing digital money solutions for both individuals and businesses. 

Screenshot of Wirexapp and Wirex Visa
Wirex App and the Wirex Visa, as depicted in Wirex's website

The Wirex app currently has three main features:

Storing Currencies – The Wirex wallet provides a banking solution for users to store both cryptocurrencies and traditional currencies in one account. It currently supports over 25 different currencies ranging from cryptocurrencies like Bitcoin, Ethereum, and Litecoin to traditional currencies like USD and EUR.

Transferring Payments – The Wirex app also allows users to conveniently receive and send cryptocurrencies with ease. One unique aspect of Wirex is that it also allows users to send and receive traditional currencies like USD via SEPA, SWIFT and Faster Payments.

Exchanging Currencies – Lastly, the Wirex app allows users to instantly exchange any type of currencies they support at OTC rates. That means you’re able to easily convert crypto to fiat or fiat to crypto without going through multiple exchanges.

In addition, Wirex was one of the first companies to issue a crypto debit card, having issued their first Wirex Visa card back in 2015. The Wirex Visa card allows users to pay with crypto anywhere that accepts Visa payments.

Currently, Wirex has over 2 million users registered on their platform, with 700,000 customers on the waiting list for their Wirex Visa card.

An interesting thing to note is that Wirex is backed by SBI Group, a publicly listed corporation headquartered in Tokyo and a financial services company.

In summary, you could say that Wirex is like the Revolut of Crypto.

Initial Exchange Offering (IEO) announced for Wirex Token (WXT)

OKEx and Wirex has recently announced the 4th initial exchange offering (IEO) on OKEx’s Token Jumpstart platform, along with Wirex’s new token – Wirex Token (WXT).

A summary introducing the token is shown in the screenshot down below, from Wirex’s website:

OKEx listing excerpt for Wirex
IEO Introduction as seen on Wirex's website

Reviewing Wirex’s Token Utility

Wirex’s (WXT) token utility model is quite similar to the utility models for existing exchange tokens such as Binance Coin (BNB), in that it provides a fee discount for users on the Wirex platform.

One additional nice perk of holding WXT Tokens is that it also provides enhanced crypto cash back returns for your Wirex Visa card, up to 1.5% in enhanced cash back versus the original 0.5%.

Eventually, there will also be perks similar to that of traditional high end credit cards, providing access to air lounges, travel insurance, exclusive merchant offers and more.

Both the fee discount and the enhanced cash back amounts are calculated based on how much WXT Tokens you hold.

The tiered structure is as followed:

WXT_tiered_model
Discount & cash back amount based on WXT tokens held

Wirex Token’s (WXT) Token Sale Details

The Wirex Token Sale will take place on OKEx’s Token Jumpstart platform on June 26. Below are the details for Wirex Token’s (WXT) token sale, as depicted on their whitepaper:

Wirex Token's (WXT) token sale information, shown on their whitepaper

Quantifying Wirex’s Token Utility

Looking purely at the token utility model, the utility of WXT Token seems vastly superior to other exchange tokens such as Binance Coin (BNB).

Even without looking at the 1.5% cash back or the lounge perks, we can see that holding 500K WXT tokens will provide a whopping 100% discount on platform fees.

This includes everything from “exchange fees, bank transfer fees, withdrawal fees, credit/debit card top-up fees, monthly management fees, ATM fees and SWIFT charges”.

To put that into perspective, SWIFT fees on Wirex alone costs $15 USD per transaction (this is already twice as cheap as banks).

If you run two SWIFT transactions per month, you already save $360 USD per year.

Suppose you also trade on the exchange and run about $10,000 in monthly trading volume. If we assume a 0.1% exchange fee, that would be $10/month and $120 USD/year.

You might top up your card a few times a month, which’ll also save you another 1% per top up.

For the sake of simplicity, let’s assume you can save $1,000 USD in trading fees each year, which seems quite reasonable based on our calculations above. You would make back your initial investment of $5,000 in 5 years AND you wouldn’t lose a single WXT token.

And that’s not all.

The initial circulating supply is 200M tokens, which essentially means only 400 users in the beginning can reap the benefits of a 100% discount in fees.

That means there’s tremendous upside because if there are 400 users who find the fees saved to be worth their investment, you’ve essentially locked the circulating supply if the token price were to remain constant.

As you can see, just the fees saved and the upside potential is well worth the investment. The other perks, are just a bonus.

Wirex Token Presale – Starting June 13!

In case you’re already feeling the FOMO, we have some good news for you – Wirex is having a token presale for verified Wirex users starting June 13, 2019!

The token presale will be available to all verified Wirex users, which is simply a matter of signing up and going through their KYC process.

The token presale will be first come, first serve, with only 200 million tokens (2% of circulating supply) available. We highly recommend checking it out if you’re interested in the project.

However, note that any tokens purchased during the presale are subject to a 6 month token lock up period.

Conclusion

We recommend keeping an eye on Wirex Token (WXT), especially considering that recent IEOs have been performing extremely well.

To top it off, Wirex app already have registered users of over 2 million, and with the attractive utility model for the Wirex Token (WXT), there’s a good chance that Wirex may perform just as well as previous IEOs.

One takeaway is that with the current hype of IEOs, it’s looking very reminiscent to the 2017 ICO space. It’ll be very interesting to see whether the 2019 IEO space will perform just as well as the ICO space did in 2017.

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