NetCents bills itself as a “next generation payment processor” that will be able to handle both traditional currencies and cryptocurrencies, thanks to its own proprietary NetCents Coin digital token acting as an intermediary. NetCents is currently in its ICO phase in order to procure crowdfunding to develop its payment processing platform.
What Is NetCents?
NetCents was, according to the LinkedIn profile of its CEO Clayton Moore, founded in 2008 and has been in development since that time. Moore is a Canada-based entrepreneur that, previous to founding NetCents, created Cybux, an integrated online payment system for Canadian schools.
A publicly traded company, NetCents is listed on the Canadian Securities Exchange.
NetCents is currently marketing two versions of its payment processing platform – one for businesses and one for personal use. Like most payment processors, the platform allows users to send funds and receive payments – in particular, NetCents provides support for Bitcoin, and Ethereum.
The business-centric version of NetCents also provides additional tools, such as loading funds from a bank, a credit card, or PayPal, API access, online selling, and similar business management options. Signing up for either account is free.
In addition to access to the payment processor, NetCents is also in “pre-launch” for its NetCents Coin ICO, providing investment opportunities for cryptocurrency enthusiasts. While the company isn’t calling it an ICO but instead making these coins available on “a proprietary currency exchange,” the difference is semantic at best.
The NetCents ICO was slated to begin on October 31 2017. There are 14 scheduled releases, with the price per coin starting at $1 and increasing with each release. You must have a NetCents account to purchase these coins; being a NetCents member may reveal further information that is unavailable on the NetCents website.
NetCents as a payment processor looks like a solid application, though details such as transaction fees are not included. Knowing the details of these fees would make it easier to evaluate the core service, but again this information is not readily available.
As far the NetCents Coin opportunity, any ICO is fraught with risk. Proprietary coins that are pre-mined and that are strictly price-controlled by their governing body are not exactly decentralized, nor are they open source, making them even more high risk. The NetCents Coin firmly falls into this category.
NetCents says that its token is designed to be used as a universal token within the environment of its payment processor. How this will function in practice is unknown, as it’s an ambitious project that has yet to be successfully implemented by other cryptocurrency developers. We’d be interested to see where NetCents goes, but ultimately the platform will only be successful if it engenders widespread adoption in both the personal and the business sector.
It may be worthwhile to invest modestly during one of the NetCents Coin’s earlier releases, when the price per coin is relatively low. However, there’s simply too much risk involved to invest heavily or in later releases when the coin’s value is set arbitrarily high.