It’s been a tumultuous year for the cryptocurrency market.
Bitcoin and Ethereum are down over 70%. However, in the altcoin world, many coins have fallen well over 90% and even worse as the bull market hysteria suddenly stopped.
Looking for breaking news, updates and market analysis? Sign up for the Invezz newsletter today.
Request Finance is one of them, a decentralized payment system whose native token is down over 90% from its peak. It offers invoicing services and other payroll solutions, and has seen even more volatility than usual lately. I interviewed Request Finance’s content lead, Ivan Hong, to gain insight into how the altcoin has fared as it battles a wave of selloffs across the industry, and Request’s plans for the future. rice field.
Invez (IZ): The Request token has surged over 80% before plummeting 40% earlier this week and is now back to roughly its original level. Compared to its previous high, it’s still down more than 90%. Do you think the coin’s extreme volatility and relatively low liquidity is a bad thing?
Ivan Hong (IH): Volatility is only bad if we are talking about stablecoins that aim to facilitate the flow of value in the economy.
On the contrary, volatility is a good thing for investors of all kinds. For investors with a long-term view, volatility allows investors to accumulate desired tokens at target prices. For short-term investors, volatility is the very source of profit.
In fact, $REQ’s volatility is good for awareness and growth. It also suggests that investors of varying beliefs are starting to take note of our efforts.
It’s important to remember that Request Finance is an app built on top of the Request Network protocol. If Request Finance succeeds, so does $REQ.
The economics of tokens are designed so that as Request Network usage increases, the supply of tokens decreases. All things being equal, this should increase the value of the $REQ token in the long run.
Request Finance helps reduce $REQ supply by accelerating payment requests on the network.was hit Total payment of about $250 million Since its launch in January 2021.
We hope Request Finance’s consistent, often double-digit, monthly growth shows other builders the value of building other applications on top of the Request Network.
The team is constantly improving the app and making it easier to use. Recently, Request Finance Escrow function using smart contract Crypto payments to make user funds safer.
IZ: As a monthly biller, I am familiar with the billing process. How easy can requests make it, and what advantages does it offer compared to similar processes outside of blockchain? What exactly does blockchain help with?
IH: The difference is day and night. Especially if you are doing business globally. Invezz.com is a global company and we understand that many freelancers charge your company in cryptocurrencies.
How are these cryptocurrency invoices managed today? They are usually PDF files sent by email. This creates all sorts of administrative problems.
First, there is the issue of payment. Most businesses have a spreadsheet with a list of wallet addresses in one column and names in the other column. When paying an invoice, you will need to manually copy the payment information from the PDF invoice or this spreadsheet. This is time consuming and highly prone to human error.
At Request Finance, every wallet address is linked to a name and email. No chance of paying the wrong amount or to the wrong person. With our batch payment feature, you can verify, authorize, and pay hundreds of different wallets with various tokens in just 3 clicks.
Second, there is also the issue of financial operations. With Request Finance, you are freed from the endless back and forth of unnecessary back and forth between freelancers and your company’s finance department.
You can schedule recurring invoices for monthly billing. Or automate email reminders to track upcoming or late payments. You can also enable email notifications to let everyone know when an invoice has been submitted, rejected, approved, or paid on-chain.
But wait. We have others, too. A common and annoying issue that businesses experience with invoices is that mistakes can be made with incorrect billing information such as company name, tax ID number, or address. This may cause unnecessary delays in processing payments.
The “InvoiceMe” feature allows you to send a QR code or link to freelancers and contractors. This automatically creates an invoice with your business information pre-populated. Just fill out the rest of the bill. Now you can accurately charge anyone with just a few clicks.
Third, there is the issue of bookkeeping. All PDF files come in different layouts and must be manually downloaded and saved to a file with an appropriate name. Their data must be extracted, edited, and uploaded to bookkeeping or accounting software such as Xero. But how do you account for volatile historical exchange rates on cryptocurrency bills, or fiat exchange rates? What about gas prices?
This is all automated with Request Finance. You have a single clean dashboard where you can view all your invoices chronologically and filter by name, address or payment status. All this data, including historical exchange rates and gas prices, can be easily exported to your tax or accounting software with just a few clicks.
IZ: I have been paid in cryptocurrency before and this was a seamless experience made by sending my wallet address to my employer. Where does Request fit in this process?
IH: Request Finance is designed to meet the operational and compliance needs of enterprises. The easier it is for them to manage hundreds of freelancers like you, the less likely they are to make mistakes or face late payments.
However, freelancers and contractors also benefit from being paid in cryptocurrency.
Helps simplify the billing process. You can automate recurring invoices to bill your clients on a monthly, weekly, or streaming basis. Or schedule email reminders to track upcoming bills or delay past due payments.
It will also let you know when it was paid. You can also enable email notifications to let you and your clients know when invoices are submitted, rejected, approved, or paid on-chain.
Finally, it serves as definitive proof of income. Suppose law enforcement calls you and suspects you are laundering money for an international fraud ring. Or the tax authorities will accuse you of illegal tax evasion. Sending your Etherscan wallet history is of little use.
This has already happened to some of my colleagues who work in crypto. Unfortunately, they had to endure the inconvenience and horror of hours of interrogation, and their assets were frozen before they were finally declared innocent weeks later.
The pseudonymity of crypto wallet addresses and the long alphanumeric strings of transaction hashes are not suitable for financial reporting or tax liability calculations.
But with Request Finance, all this is easily documented and human readable. All wallet addresses are also linked to real-world identities in a deterministic way. It is very unlikely that the wallet or payment label will be accidentally mislabeled.
IZ: What is the idea behind the Request native token? Can a service exist without it?
IH: The $REQ token is designed to facilitate transactions across the request network ecosystem with several features.
- Anti-Spam: A per-request transaction fee curbs the use of malicious networks and reduces spam. No spam transactions means better network performance and better user experience (UX).
- Governance: Request Network is a decentralized protocol that utilizes an off-chain governance structure. Through this mechanism, participants can vote on key decisions that affect the long-term success of the network. The project team plans to introduce an on-chain governance structure in parallel with the development of the Decentralized Autonomous Organization (DAO). Under the overhauled governance structure, voting will require $REQ utility tokens.
- Deflation: Transaction fees charged to users are accumulated in an Ethereum smart contract that forms the basis of the $REQ crypto supply’s deflationary mechanism. This mechanism helps stabilize the value of the $REQ token by reducing the circulating supply.
- Staking: Users can stake $REQ tokens on Bancor in a single-token liquidity pool that provides temporary loss protection. Additionally, Request plans to introduce an internal staking concept for node expansion. In other words, staking $REQ allows users to interact with nodes to provide end users with a more streamlined experience.
- Discounts: $REQ crypto holders will be eligible for discounts on products as they become available.
- Independence: The $REQ token allows the Request Network to operate on multiple blockchains (or its own dedicated blockchain) simultaneously. $REQ is built as an interoperable utility token that can be migrated without negatively impacting network performance. As a result, network performance is independent of both the service provider’s tokens and technical infrastructure.
IZ: There are many crypto startups operating in similar areas. How competitive is this space and how many do you think will ultimately survive this bear market?
Competition is a good sign. This indicates that many consider the opportunity worth pursuing. New entrants are always free to enter the field. Existing players may also decide to compete in this space by acquiring cryptocurrency startups like ours.
But I think gaining user trust is probably one of the hardest things for an enterprise SaaS company. Her CFO for a large crypto company that handles millions of dollars each month is responsible for ensuring customer support when things go wrong or requesting new features, integrations, or continuous improvements.
Request Finance is very well-capitalized and has large and well-known users such as The Sandbox, Decentraland and Aave, many of whom are also our backers.
The reality of the free market is that most cannot survive a bear market. Look at all the failed dot-com hopefuls of the 1990s. However, we believe that companies like us who can continue to build bear markets and demonstrate continued growth despite unfavorable macroeconomic conditions are well positioned.
IZ: The bear market is clearly brutal, with prices collapsing across the board. Do you think coins such as Request will recover while the macro environment continues to deteriorate, or a long-term recovery contingent on a broader economic (and crypto) recovery and an ever-evolving Request? Do you think it will be built?
IH: If I can say for sure where the token price is going, I am either a genius, a scammer, or an idiot!
Since there are many determinants of token prices and their interactions are numerous and complex, price movements can also be viewed as largely stochastic.
Anyone looking to profit from a short-term position should do so with extreme caution and never put more capital than they can afford to lose. It is certainly not impossible to trade altcoins profitably this way. But the vast majority of casual investors end up losing money in the delusion that they can.
Generally speaking, most people should take a long-term view of a project and evaluate its merits as strictly as possible based on fundamentals. There are many evaluation models, from traditional to esoteric. As such, we are currently receiving offers from a number of Tier 1 global venture capital funds.
Invest in cryptocurrencies, stocks, ETFs and more in minutes with our preferred broker. eToro.
68% of retail CFD accounts suffer losses