Ecommerce site, Qoo10 to launch a new blockchain-powered marketplace minus merchant fees

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Leading online retailer based that is based in Asia, Qoo10 announced that it will be launching a new blockchain-powered marketplace called, Quube (pronounced as “cube”).

The new marketplace is currently available in beta and will be in full operation on January 1, 2019.  What makes Quube unique from other cryptocurrencies is that it use smart contracts which automate the process of verifying transactions between merchants and shoppers.

As reported by Tech in Asia, the new marketplace will be powered by a new cryptocurrency which will be named, Q*coin. This cryptocurrency is currently the only mode of payments accepted in Quube and is available now from 7-Eleven stores in Asia. The bad news is that Quube might now allow other cryptocurrencies. The reason according to Qoo10 is due to the volatility of Quube as of now.

More competitive pricing model sans merchant fees

And now for the best part and perhaps to encourage shoppers from using Quube, Qoo10 CEO Ku Young Bae said that their marketplace offers more competitive prices. This is made possible by a revenue model that eliminates the 10% merchant fee and payment gateway fees that are usually charged by traditional marketplaces. This gives Quube merchants a chance to compete with other ecommerce platforms. So how does Qoo10 earn from their new platform then? By offering advertising spaces wherein merchants will be charged a certain fee.

Q0010 CEO Ku Young Bae has this to say:

“You usually [put your] money in the bank; you wouldn’t put money into a private company’s [mobile wallet]. The company could go bankrupt, they could just change the data, or [money] can be stolen. Unless trust is built, you can’t be very sure that top-ups into the wallet can be the same. Those hurdles are sorted out by blockchain because the blockchain wallet is not something that we can change and access.  Only you can access it.”

Qoo10 is aiming to gain as much as US$1 billion gross merchandising volume in two years. This is despite the struggles of other blockchain companies and with only .71% of the world’s population already using cryptocurrencies.

Baby steps toward becoming a major player in the blockchain marketplace

As of the moment, Qoo10 is hoping that Quube will not suffer the same volatility of other cryptocurrencies such as bitcoin.  This is important if the company wants to make Quube suitable for transactions. Q*coin currently sells for US$1 but Quu10 b is set to be revise this value once one million Q*coins are sold.

Quu10, with  headquarters in Singapore has 6 million daily active users in Asian countries such as Indonesia, Malaysia, China, and Hong Kong. Its founder, Ku Young Bae is said that the company’s blockchain goal is not just to embrace the blockchain technology, but he is also hoping that Quube will serve unbanked markets such as Indonesia and Myanmar. Will this user base be enough to propel Quube to gain market leverage? Only time can tell.

About Arnold Zafra

Arnold Zafra is a freelance tech blogger from the Philippines who is enthusiastic about cryptocurrency, decentralised apps and other emerging developments in the tech industry.