Over the past decade, there have been different concepts for different cryptocurrencies and use cases for the blockchain technology, in general, trying to incorporate cryptocurrency into day-to-day receipt and payments. If truth be told, while cryptocurrencies claim to be the future of payments only a countable number of these digital currencies have been able to do this.

While the future is not certain and unpredictable, some cryptocurrencies have been bent increasing its adoption to be used as a day-to-day payment currency. Some have even come up with the idea to reward its users. An example of such is the MTL cryptocurrency or Metal as it is called in crypto world.

What is the $MTL Cryptocurrency?

MTL is the ticker for the metal cryptocurrency. Metal is the name of a new ERC20 token and also the name of a payment processor app which will use metal tokens and other digital currencies for payment.

In simple terms, look at the MTL App like a PayPal App but supports cryptocurrencies as well as fiat currencies. The app will also support fiat to crypto and also crypto to fiat conversions based on the metal market price at the moment.

This is the next generation payment processing app because it aims to support popular digital currencies through a vault-like platform combined with fiat all in one place and boosted by an encouraging reward mechanism.

How Does Metal Cryptocurrency Work?

Metal aims to encourage its community to adopt cryptocurrencies in day-to-day receipts and payments and also enhance seamless blend and conversion between crypto and fiat in a manner that is fair.

To accomplish this, it makes use of its custom MTL tokens which are issued on the Ethereum blockchain implying that there is a fixed supply and it remains open and free to anyone to audit. To also encourage crypto adoption, the metal platform rewards its users to carry out transactions using its custom metal app through an incentive mechanism it calls Proof of Processed Payments {PoPP}. This reward system also serves as the process by which new MTL tokens are been introduced into the system.

To put it in your language, the Popp system always as a certain number of token that is usually locked and can only be unlocked and distributed as rewards to users when there is a conversion transaction of fiat to crypto via the metal app.

To confirm that a conversion transaction has taken place, an inbuilt micro bank is created for you the first time you set up a metal app. So when the transaction occurs, a percentage of the transaction amount is paid as rewards to both the sender and the receiver. This percentage is programmed at 5% of the transaction volume paid at the value of MTL.

Let me simplify it. Assuming $200 worth of metal is being sent or received when the value for MTL is at $1. For this transaction, both parties would receive 10 MTL tokens each. These rewards are capped at $1000 worth of MTL tokens per month for individuals while it is limited at $5000 worth of MTL tokens per month for businesses via the Popp incentive system.

Market Cap & Token Supply.

Stats from Coimarketcap as at the point of writing this piece, the circulating supply of Metal is at 41,130,950 MTL and 1 MTL was worth $0.37. The market capitalization is approximately $22 million and ranked at #187 on CMC.

As for token supply, MTL token has a fixed supply of 66,588,888 tokens issued over the Ethereum blockchain. Out of this number, the Popp issuance and reward system has a total of 26,341,112 tokens to be distributed as new issuance and rewards to users. This is where the 5% previously discussed comes from. Meanwhile, the 5% reward will only be valid as long as this reserve is still remaining.

MTL, Metal vault and the Banking Industry

Also part of its plan is to provide FDIC insured bank accounts starting from the US. This will assure the safety of users’ funds in the event of the collapse of the bank. This account would be just like a normal bank with routing number, checking account, and debit card and so on. As time goes on, this would be extended beyond the US to other countries also.

The metal vault on the other, as the name implies would be an inbuilt vault-like wallet. This wallet would support digital currencies like bitcoin, metal token, Ethereum and other ERC20 tokens. The private keys of the wallet always remain with you meaning that you don’t have to depend on any third party for security.

How to Buy and Store MTL

As at the time of writing this article, MTL has started trading on several major exchanges including Binance, Kyber Network, Huobi, Cryptopia, EtherDelta, Livecoin etc. supported pairs include MTL/BTC, MTL/USD, MTL/ETH. However, purchasing MTL directly with fiat currencies such as GBP, EUR and USD is at the moment very difficult.

Good news is, metal is an ERC20 issued token. This implies that you have plenty of options as to where and how to store your MTL token. This is because any wallet that can safely store your Ethereum and other ERC20 compliant tokens safely would also store your metal cryptocurrency securely. Check out the list of best ERC20 wallets available.

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Conclusion, Verdict and Future

The first issue to consider is the metal banking roadmap. I look forward to how the app would fair once it is been used in real time. This is putting in mind that crypto, blockchain and banking are not really a good mix at the moment.

This prompts the second issue. To make the banking relation work, metal has to do a rigorous KYC for its users, both individuals and businesses. This factor might greatly limit its users to people who feel comfortable with these KYC processes thereby losing a large number of people not comfortable with KYC.

Next, are the reward and issuance style of the metal token. Though it rewards both parties with 5% of the amount involved, it could eventually cause dilution of the actual market value of metal token which would be caused by a constant increase in token supply.

Well, I hope we have learnt a thing or two about the metal cryptocurrency. That is a roundup from me on the fundamental guide on MTL token. Please, feel free to drop your opinions, thoughts and questions about the MTL token in the comment box below.