One of the biggest problems with purchasing crytpocurrencies is that you cannot use it to buy stuff like Starbucks, Amazon items, gas for your car, or dinner for your girlfriend. The problem Zeex addresses is the same problem everyone in cryptocurrency is dealing with right now: actually spending crypto. Hardly any retailers accept cryptocurrency as a payment option, and, if they do, there are considerable fees associated with the transactions. According the Zeex website, they have current relationships with more than 350 retailers including popular names such as Nike, Adidas, Tesco, Sainsbury’s, Amazon, Foot Locker, Gap, Ticketmaster, Clarks, Xbox, Starbucks, and American Eagle Outfitters.
So, the first question I have for Zeex is who are the other 350 or so retailers you have relationships with and what are the terms of those relationships? Second, when can I expect to be able to use Zeex to buy a Skinny Vanilla Latte in a Denver, Colorado Starbucks? Finally, does Zeex plan on adding other cryptos to its current list of acceptable currencies (Ethereum, Bitcoin, ZIX, and Bitcoin Cash)?
Guy Melamed, Co-Founder and CEO of Zeex, addresses the first question about the other 350 retailers in an interview with Aaron Paul on the ICO 101 Podcast. He basically says to stay tuned for Zeex to release the names of the other retailers during the very near future. This can possibly mean several things:
- Zeex plans on releasing the retailer names over time to entice additional traffic, exposure, and investment dollars, which is a common growth model used in many public stock arenas.
- Zeex is still in negotiations with the retailers and cannot disclose information until the agreements are finalized.
- Or, Zeex simply has a list of the 350 top retailers and has not initiated substantial negotiations yet.
Of course, none, some, or pieces of the above could be true, and the purpose of this article is not to sling wild accusations at Guy Melamed, Ziv Isaiah, or any of the other talented members of Zeex’s team and advisory boad. Rather, the purpose is to try to bring light to the dark and vague areas of Zeex’s business plan so, the average reader and investor can have a better idea of what they are buying.
According to the white paper and the ICO 101 interview with Aaron Paul, Zeex has raised $50 million and plans to use $27.5 million to invest in discounted corporate currency, or gift cards. In the grand scheme of things, $27.5 million is only a drop in the bucket compared to Amazon’s net sales for the fourth quarter of 2017, which amounted to $60.5 billion. But, you have to start somewhere, and I’m guessing the Zeex business model has a profit margin directly related to how much of a discount they can negotiate from its pool of retailers.
The second question about when I will be able to use Zeex to buy a Skinny Vanilla Latte from my local Denver Starbucks is addressed in the company’s roadmap where they peg May 2018 as the live date for the web-based app, which will feature access to 100 brands (I’m guessing Starbucks will be one of those 100). But, the actual date when I will be able to use my iPhone Zeex app to buy a Starbucks is sometime in the third quarter of 2018.
The third and final question about whether or not Zeex plans on adding other cryptos to its pool of accepted currencies was not addressed anywhere I saw, but I’m sure will be an easy fix if their business plan experiences mass adoption by consumers. Zeex definitely addresses a big problem with cryptos, so we will just have to wait and see if they can deliver what they say they can deliver because I really want to spend some Bitcoin to buy a Starbucks…