Hi, how I see it, there is a possibility to buy ETN in the app that also includes exchanges in the equation.
Buy Pool
Electroneum could set up a “buy pool” (with let’s say 10.000.000 ETN) that people could purchase from using the app which would require you to register your VISA/MC/AMEX card (or similiar).
So if you want to buy 10.000 ETN at current rate of roughly $0.005 you would be debited $50 (plus transaction fee) and Electroneum would transfer the ETN to your account using the Instant Payment system, taking it from the “buyers pool”.
What happens if the funds int that pool go low?
The engineers at Electroneum could write automated services that automatically buys the amount of ETN needed from exchanges, using their API’s, and automatically transfer the ETN from the exchange to the “buyers pool”.
The threshold could be set at 50% of “max_pool_size” and the pool size could vary in size for what the needs at the current time. Or maybe buy chunks of ETN that are X in size every Y minute, which would vary depending on the needs, so it doesn’t have to go down so low.
Which exchange would the pool buy from?
There would be need to use maybe 5-10 exchanges with volume enough. The automated service could buy in from the exchange that has to lowest exchange rate at the moment.
Actually, the whole procedure could be automated so you could eliminate having the “buy pool”, having the exchange sending you ETN directly to your account/wallet using standard blockchain transfer.
What would Electroneum do with they fiat cash the receive?
Naturally they have to pay the exchanges for the ETN, so they would transfer the fiat to them somehow, maybe by bank transfer or by purchasing BTC of the exchange, which is used to buy the ETN sent to you or the buy pool.
What do you think about this?
