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08.12.2020
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Q&A Session with Credits’ CEO, Igor Chugunov, Dec the 8th.

Hello all. 

Below I have covered questions related to the company strategy, vision, and business, received from our community. 

Q: “Where are the weekly videos from @ArjanCrypto ?”

A: Arjan is recovering from Covid. We might have more videos with Arjan in 2021.

Q: “Hello can anyone explain to me. I remember CS internal test since the beginning was 1.3million tps, then after some years of development, it's now at 20k tps based on the latest article? That means old test wasn't correct and not true?”

A: Since the time that test was performed, the blockchain has gone through several updates and improvements. We have built-in additional protection, transaction verification, etc, hence its work slowed down. Also, please note that previous tests were performed in safe test conditions (in a “sandbox”). So technically these are two different tests. With your reference to the results of 20k TPS we have now in internal tests, they are not final. We are only getting ready for the Public Speed/Load Test. There you will be able to see the TPS we can reach now.

Q: “When US access to app ? Decentralized but limited, do explain?”

A: Entering a new market starts from a comprehensive study of the business and legal conditions as well as potential market size. We have carried out this research by now and have got an understanding of how to get there. 

However, we are not seeking to launch a product around the globe yet. Our approach is exercised via thorough business management. 

First, we plan to present a range of products in Europe and apply key scenarios for user gain acquisition. Upon a fully successful project launch in this region and attracting a critical mass of users there, we will certainly be able to move to new key markets, including the United States. So it's a matter of time.

As for the second part of the question on decentralization. We are subject to European legislation and cannot be completely decentralized. So I hope it clarifies this term of decentralization with limits...

Q: “last week I asked about BTC and ETH liquidity for this cs app - where is it coming from - any answers yet? Botstorm said it comes from different pools BUT what pools, where are these pools? This is a key question I don’t know why anyone else hasn’t even asked it”

A: We have answered this question in the last Q&A session. Liquidity for BTC and ETH is provided from Bittrex and Bitfinex.

Q: “For buying or exchanging, what is the advantage of using Credits neobank instead of Binance for example? What usability credits wallet give that other exchange don't?”

A: We believe this is a wrong understanding of the Digital Bank. It is not a Binance competitor we are creating.  The trading option just comes in hand with the rest of the functions of the Bank. 

We are working on improving add-on services that bring benefits to the current user experience. We strive to bind the user with the universality of the product. We aim to offer a large number of options to work with financial assets, in particular with cryptocurrency.

We are focusing on a large part of the audience, that still has expensive rates for access to cryptocurrency as remaining tied to local small platforms. One of the goals of the purchase/withdrawal of cryptocurrency service in the Digital Bank is to lower the threshold for price access to cryptocurrencies and their conversion in interaction with fiat pairs.

Binance-type exchanges offer services for buying cryptocurrencies through intermediary companies, which rates are the average for the market. It is worth taking into account the commission included in the coin purchase rate. 

Unification of the purchase solution, expansion of payment methods, bringing the purchase price to a single cost standard, and localization of the service by the market will allow determining the key-value and usefulness of the service, achieving the required volume of transactions for successful scaling and improving the purchase/withdrawal service in the future. 

At the same time, exchanging one cryptocurrency to another remains a necessity for the user's basic financial operations with cryptocurrency.

Q: “IF someone purchases CS from the app, where does that CS come from?

Q: “Where does the app buy/sell CS from? Thanks”

A: CS coin in the Digital Bank comes from the Kucoin exchange. 

Q: “How these partners(IBM, Lenovo etc...) supported blindly, attracted investors to finally go away, they not verify the fact(blockchain working well) first?”

A: These partnerships didn't go away. Some of them were for the pilot projects and are successfully completed. Some are still in work now and are under NDA. We stated numerous times, that it was a management decision not to search for new partnerships like these, as they do not bring any revenue. We spent 2 years on collaborations with big corporate names. They are great for technological reputation building, but they are not bringing monetization, unfortunately. 

The current strategy of the company is to focus more on user acquisition for our product range. 

When in the future, blockchain adoption proves potential revenue, we will be happy to search for new partnerships.

Q: “is it true that all the transactions inside the application will be off-chain? or it will be on the mainnet for (cs transaction) and it's better if there is a good explanation the mechanism works in general”

A:  The application works with the blockchain, otherwise it would not be possible to replenish the wallet, withdraw money from it, and update the balance.

More details on how it operates:  
The external transactions are going via blockchain, examples are: 1) outside the application to wallets registered in the application - via blockchain; 2) from the application to external wallet - also through the blockchain.

The internal transactions ARE NOT going via blockchain, for example: 1) transaction from an account registered in the application to the other also registered in the application - not via blockchain.


I hope I have provided here full answers and thank you all for sending us questions!

Please remember we collect them in our social media and TG chats during the week, and answer them each Tuesday. Anything else you wanted to ask us, please do so on our channels!


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