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TokenCard wants you to know about their vision of what the Ethereum economy is going to look like. In the mind of Mel Gelderman, the founder of the project, ETH and other ERC20 tokens will no longer be assets that are primarily transferred between exchanges or traded back and forth for BTC by speculative investors looking to make a quick profit. The key to bringing the Ethereum economy past speculation and into public awareness is to make it usable in peoples’ daily lives. This means being able to swipe your card at the grocery store, tap to pay at the gas pump, order stuff online, and pay for your Netflix subscription as easily as you can with your bank card.

TokenCard developers envision a future where everyone is able to effortlessly spend any affiliated tokens to execute transactions without having to convert between different crypto or fiat currencies. This is a key feature to implement, because when it comes to commerce, it’s essential to make any payment process as painless as possible if you want to attract users.

Provided their plan works, it will provide much-needed liquidity to smaller currencies while also increasing their value and contributing to the reduction of the volatility that scares many casual users away from blockchain currencies.

This project, which had a rather noteworthy token sale at the beginning of May, where over $15 million was raised in ETH and ERC20 tokens, is a debit card built through the utilization of Ethereum smart contracts, and it will be usable at payment terminals worldwide. Users are able to fund the card from compatible Ethereum wallets. Users decide which Ethereum based tokens they want to spend when they swipe, and they will be able to set it up so that each transaction spends multiple currencies at the same time. At launch, the available tokens include the team’s proprietary token (TKN), ETH, and eight other tokens: REP, MKR, DGD, MLN, GNT, 1ST and SNGLS.


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The card’s mobile app has the goal of removing the need for a traditional bank account. The app allows users to manage their tokens, review spending, and execute transactions, as well as set up their allocation of tokens they want to spend for each purchase. A user can, for example, set it up so that 5% of each transaction spends ETH, 40% spends DGD, and 55% spends SNGLS.

Payments made with the TokenCard app using non-TKN tokens will incur transaction fees from the card issuing partner in exchange for a license fee as remuneration for use of the TokenCard protocol, according to the TokenCard white paper. The TKN asset contract accrues a 1% fee on debit card transactions using non-TKN tokens. For users who use TKN for transactions, there will be no fee.

Decentralization And Security

TokenCard’s development team believes cryptocurrencies have not yet reached mass adoption because they have not addressed the problem of compromising decentralization to provide security. TokenCard has been designed to securely store assets without compromising usability.

Because storing digital assets can be cumbersome, users of most cryptocurrencies store their assets under a third party’s control – exchanges.

TokenCard offers a plug-and-play mechanism that can be integrated across transaction platforms.

Ethereum provides the tools to create a distributed banking replacement that can solve all these issues and outperform traditional banking structures in efficiency, transparency and flexibility.

In short, TokenCard wants to replace your bank account with a cryptocurrency wallet. Users who keep their cash in crypto will be fully invested at all times, rather than having the value of their savings inflate away.

Users Manage Their Contracts

TokenCard users will launch their own token contract wallet to join the platform or grant allowances to their existing wallets. The contract wallet will act as a bank account that holds funds and follows security parameters, but under the user’s control.

The Token App is the main tool for interacting with the contract wallet. The app operates the wallet and gives users a way to access their token portfolio and manage their debit card.

Future Integrations

The TokenCard platform is token agnostic. Users will have the freedom to hold and transact value. Regular users will have access to an expanding pool of assets within the token app.

An additional feature the team wants to implement is to allow people to buy into the Ethereum economy using fiat currency. For example, someone could transfer money to TokenCard from their fiat bank account and have it converted into an allotment of cryptocurrencies that they choose.

Token Sale Results

TokenCard initially planned to raise $4.5 million worth of TKNs in exchange for ETH and other tokens from initial token partners. Tokens were sold at a discount to early buyers at a sliding rate from 150 TKN to 1 ETH down to 100 TKN to 1 ETH.

In the week leading up to the token sale, word got out among the crypto community, and a huge surge of interest coincided with the sale. To account for this, the project founders put a hard cap of $12.5 million in ETH for the sale.

TokenCard’s smart contract for the token sale triggered this hard cap 26 minutes after the sale began, ending the crowdsale.

Funds raised from the initial sale over the minimum will be used for marketing and acquiring customers.

TokenCard minted an amount equal to 15% of all TKNs that were not offered during the initial sale. Such TKNs will not be sold, but locked in a smart contract as reserve tokens. TokenCard will seek guidance from TKN holders before offering any of the reserve tokens for sale. The founders of TokenCard took 20% of the tokens, which are on an 18-month lockout before they can be accessed, and the advisors were awarded 5%.

Wavecrest Partnership

On May 25, payment solutions firm Wavecrest announced its formal partnership with TokenCard. Wavecrest will provide the debit card that TokenCard users will be issued. Users will be able to use the debit card on Visa’s international payment network.

Wavecrest is leading the way with payment solutions in the fintech industry that are helping to bring cryptocurrencies mainstream.

This is a sponsored story.

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Posted by Lester Coleman

Lester Coleman is a media relations consultant for the payments and automated retailing industries. He is available for writing and media relations assignments.