A revolutionary solution for SMEs around the world
In the run up to our attendance at yet another prestigious international conference, this time in San Francisco, where the spotlight will yet again be on Hive Project, we have continued to boost our recognition and overall presence among SMEs in the CEE region too. As our first market, it is absolutely crucial that we establish powerful levels of general recognition and trust among SMEs in the region. And, as you can see from our progress to date, we have already made huge inroads. Now, however, it is time to step things up a notch.
We are therefore delighted to share with you an interview by our CEO, Jure Soklic, which was published at (direct translation: a bank for SMEs). Organised by Slovenian bank Gorenjska banka and other partners, we are wasting no time when it comes to connecting with our user base.
We are thrilled about the recognition we are getting from key financial institutions in the region on a daily basis, and we are sure you would agree that this is yet further evidence that we are well and truly here to stay.
Our CEO shared his thoughts about the future of Hive Project, drawing attention to precisely how our platform will solve the liquidity problems encountered by small businesses. In addition to helping build general awareness of Hive Project, Jure’s interview has been included as a key story in their mailing list — reaching over 20,000 small businesses in Slovenia!
Those of our contributors who can understand Slovenian can read the interview with Jure HERE. However, for the majority who don’t understand the language, we have provided a translation into English below. Onwards and upwards!
Hive Project: a Revolutionary Solution for SMEs Around the World
With cryptocurrencies and tokens now the buzzwords on everyone’s lips in the world of finance, the prices of bitcoin and other cryptocurrencies are skyrocketing. And there has been a similar rise in the number of crypto companies on the market that issued tokens in exchange for funds raised during their Initial Coin Offerings (ICOs).
Although there are several credible companies on the market with a focus on doing things the right way, there are also an increasing number of fraudsters that threaten to damage the whole industry. The recent widespread enthusiasm for all things crypto related has been a popular breeding ground for scammers and unscrupulous characters. They take advantage of people with next to no knowledge of crypto with promises of vast sums of money to be made. However, with either no product or a product with no value, these millions in raised funds do nothing to sustain the token’s long-term value.
“Unfortunately, where there is money to be made, there will also be individuals looking to take advantage of people who have not done their due diligence,” explained Jure Soklic, CEO of Hive Project, a fintech company that will be launching an online factoring platform soon. The Hive Project Platform is based on blockchain technology, and awareness of its benefits are only just becoming known to the general public. These advantages include a continuously growing list of data records that are linked by a blockchain network. When doing that, you get new blocks and new block programme codes, which are secured cryptographically, checked by multiple users, and are dependent on the information contained in previous blocks in the chain.
Jure Soklic and I both agree that there is a pressing need to help the general public learn more about cryptocurrencies, the ICO fundraising process and blockchain technology in general, which serves as the basis for many of the products proposed. There is also a popular mistaken belief that tokens will always rise in price. It is crucial to remember that any investment in blockchain technology projects comes with risk. You could lose everything you invest, so a cautious and prudent approach is advised.
The Hive Project team is international in scope, comprising financial experts, platform developers, marketing and communications experts from all over the world. Although headquartered in Ljubljana, Slovenia, part of the development team are based abroad. “All key decisions are taken here,” Jure Soklic explained, “and that will continue to remain the case”.
Hive Project’s ambitions and potential for growth have earned the trust of over 2,200 contributors, with just under USD 9 million raised in funding.
Q: You won Best ICO of 2017 at CoinAgenda Global. How did you go about convincing the judging panel?
The judging panel, which comprised several global blockchain experts, were persuaded by the concept behind Hive Project and the proposed product, the platform itself. They took the view that the team had the right blend to fulfil potential for substantial growth. The critical factors, however, were the platform’s global nature and its ability to open up affordable invoice financing solutions to small businesses around the world.
The judging panel took various factors into consideration. These included the strength of the team and the marketing strategy in place — we also delivered a live presentation, which was crucial. The spotlight fell, in particular, on our developers since technical expertise was considered a critical factor. In Barcelona we were up against several new blockchain projects, but our team’s international experience proved to be (and remains) a big advantage for us.
Q: Your platform is based on platform technology. What kind of problems does it solve?
Hive Project will open up a new source of liquidity to small and medium sized enterprises (SMEs) around the world. To be more precise, we will be changing the way they get access to liquidity. Using blockchain technology to automate the factoring process will give small companies entry to a market — and all the associated benefits — that has until now simply been too time consuming and costly, leaving a vast market unserved.
The credit data we collect will give us the opportunity to offer credit scoring services on SMEs to invoice purchasers, which will be made available for them to buy so that they have all the information they need to assess their risk appetite. This will be launched prior to the launch of our peer-to-peer (P2P) lending phase.
What will the Hive Project Platform focus on?
Our platform’s key assets will be its speed, process automatization and transparency. Since user-friendliness will be paramount, SMEs and liquidity investors will only need to carry out just a few simple steps to get up and running. As our Proof of Concept (PoC) demonstrates, the Hive Project Platform is the answer to the lengthy and complicated procedures we have become so accustomed to in the so-called “old” economy.
When will your platform be available to the market?
Three months after our successful campaign, we presented our Proof of Concept at CoinAgenda Global in Las Vegas, and we are now working on the beta version of the Hive Project Platform. Although we are setting ourselves almost impossible deadlines, the team has hit every milestone promised. We will have presented the updated beta version of the platform by the end of the year, and we will launch the platform in early 2018.
How many people are there in the team, where are your premises and where do you see yourself being located in a few years from now?
The Hive Project team is international in scope, comprising financial experts, platform developers, and marketing and communications experts from all over the world. Full details of our team can be found here (insert link to team page). Although headquartered in Ljubljana, Slovenia, part of the development team are based abroad. However, all key decisions are taken here and that will continue to remain the case.
You raised money through an Initial Coin Offering (ICO). How much did you raise?
We concluded our campaign on 14 August this year, raising almost USD 9 million in the process. This was a huge success and we fully understand that we now have a responsibility and duty to deliver on what we promised over the long term.
What is an ICO?
“ICO” is an acronym for Initial Coin Offering. It is a way of raising of money, and is a similar concept to the more traditional IPO. In our ICO, we sold cryptocurrency tokens to contributors in exchange for funding. The tokens issued, which are called Hive Tokens (HVN), can be used by the contributors to trade on crypto exchanges all over the world.
Many are predicting that cryptocurrencies will disappear — but that blockchain technology will stay.
Well, blockchain technology is already changing the world, in much the same way as the Internet revolutionised everything we do. However, in the early days of the world wide web, we had little idea what lay in store and so I would be hesitant to make any predictions now. And when it comes to cryptocurrencies, since we are talking about startups, the future is even more ambiguous. What is clear, however, is that the cryptocurrency issuers that deliver on their key objectives and products will survive. That’s why we are doing everything in our power to ensure that our platform is delivered as promised and that it will be used by small businesses around the world.
What does blockchain technology have in store for us over the next 10 years? Will it make life easier for people and businesses?
Yes, both. But not only that — blockchain technology will be used by the public sector too. Take the health sector, for example.
Have big companies already integrated blockchain technology into their day-to-day business? Can you, as a small company but with a very innovative idea, offer them something more?
Some leading global companies, including banks, are already testing blockchain technology in their day-to-day processes. But progress doesn’t happen overnight. When it comes to innovation, even the biggest companies in the world need start-ups to help out — that is the fastest way to develop, test and rollout any high-quality product. Slovenia is one of the leading countries in this industry, and so we always see many familiar faces at the blockchain tech conferences we attend.
Does the general public understand what blockchain technology is and what the differences between cryptocurrencies are?
It is true that the general public does not have enough knowledge about cryptocurrencies, and we support any efforts made, whether it be from newspaper articles, lecturers or round tables, to get people educated about blockchain technology and help spread awareness. There is not enough open discussion about the high risks involved with buying cryptocurrencies. As the old saying goes, all the glitters is not gold.
The biggest financial institutions are investing in this new technology. It’s a hot topic all over the world, including Slovenia. Are there any legal or other obstacles to overcome? Do you enjoy the support of regulators?
Thus far, we have not experienced any legal or regulatory issues, and we support any efforts made by legislators to regulate this new industry.
Are we Slovenians really pioneers in the crypto-world?
Well, perhaps not quite pioneers — there are so many great projects from various countries all over the world. However, the media spotlight on some Slovenian companies has been particularly high. We hope that, despite Slovenia’s relative small size, we can show the world that we can come up with some big solutions.
More and more outspoken and successful investors from the financial world are issuing public warnings about the dangers of cryptocurrencies, with some even calling them pyramid schemes. When there aren’t enough people who want to buy bitcoin to push price up, everything will collapse. Why have we seen so many warnings like this in recent months?
Where there is money, you will also find unscrupulous and dishonest people who want to take advantage of naive people or those who have not fully researched the industry. I would advise anyone looking to trade currencies to take all necessary precautions to ensure that their decisions have a solid basis and rationale behind them. Take care not to let greed influence a rational decision. Wise investors allocate only a very small part of their portfolio to crypto and disperse their investments widely to mitigate risk.
It looks like that the crypto industry attracts scammers who want to take advantage of people who are naive and lack knowledge about crypto. How big is this problem?
It is the responsibility of law enforcement institutions to deal with scammers and other undesirable characters. And it is crucial that we all focus on our responsibilities — towards the media, other companies and the authorities. We would urge those looking to purchase tokens to take time to do their research. Thoroughly investigate the project, leave no stone left unturned and look into the people behind it. We have been moving at such a rapid pace in such a short time, and we’re all so busy, I don’t really have the time to scrutinise every project out there in detail. Almost all of my time is dedicated to Hive Project.
Will bitcoin or any other cryptocurrency ever overtake fiat currency or at least become its equivalent?
That is a difficult question to answer because this decision is in the hands of the central banks, and the likelihood of this happening will vary from country to country. However, Christine Lagarde, executive director of the International Monetary Fund (IMF) delivered a recent speech in which she said that cryptocurrencies will become a reality in the decades to come and will complement national currencies.
