We continue the interview with the “European Elon Musk”, Roberto Hroval from PatentReal Corporation. In this part, we are going deep with his most talked about achievement, top secret scheme Project Phoenix8. What is going on right now? In which stage is the project? How will PatentReal digital currency differ from the similar ones? How is about investment opportunities?
So, your digital currency will be supported by tangible business. Will that be official? Is that just a marketing touch, words on paper, or you will stand behind it?
It is very official and public. Our investors know that because we presented a business plan with expected financial gains to each and every one of them. Operation is based on tested technology with confirmed outcome, not on claims. The results – meaning, what is coming out of the process as an output and at what price we can sell it – are very explicit and straight forward. No guessing here.
I have to mention that we are quite different from a typical company with digital currency that usually bases its business on start-up with idea that nobody knows how will unfold. You know what I mean? Like, is the idea based on real facts or it is a wish in the sky? Is the business plan down to earth, supported by activities, or people are hoping that will manifest somehow? Is the roadmap real and based on facts? And most importantly, even in a case that the idea is put to work and realized in full – will the market accept it and pay the requested money for it? Not only now, but in the next three, five or ten years, as well?
You see, these are very important questions every businessman has to answer honestly. If you are a new kid in the block, you probably have no answers, just a romantic wish about building a business. But that is hard. Beside the implementing an idea, you have to manage people, take care of bureaucracy, manage all king of pressure, take some important and strategic decisions sometimes in minutes, and so on. Not to mention a hard skin and all kind of sacrifices, from time for yourself, to family commitments, and on and on.
But with years you build systems and manage stuff easily. This is our advantage. We are real business with decades of experiences at the first place, and a digital currency-based business as a second one. We observed the latter for the last two years, seeing it going up quite quickly and down even quicker. This market has some great advantages. Well, but it has disadvantages, as well.
The main advantage for our project for example is decentralized investment gathering. Meaning, you don’t need banks, institutions, long processes and endless documentation to launch a project. You just invite some investors, prepare a financial platform for them, shake hands, and that’s about it.
Up until now, a lot of companies gathered money with so called ICOs – Initial Coin Offerings. For me, that was a huge gray zone or borderline ethical: they gathered the money from the investors with no obligations to them. Even more, most of them haven’t had prepared an idea sufficiently, having started thinking about implementing the idea details, and especially about how to sell it to the market, only after they collected money.
A lot of them didn’t even have a clear plan and dedication to provide the value for the market, but to get money and “build a software” of some kind. Also, their investors didn’t have any idea what is going on regarding to the roadmap, because they weren’t able to see the intermediate phases. The company could easily say: “We are on time with our great software”. With nothing to show, they could have pump the project that had no value at all.
Luckily, the market went down and the number of new ICOs drastically reduced.
2018 was a good year for investors to evaluate their decisions and money transfers. Digital currencies market slowly matures and the structure of investors changes, as well. There are less “I want 100x profit overnight” investors and more classic, prudent ones, with longer time frame goals.
The best times are yet to come with some heavy regulations, I believe. Look, I am very straightforward guy, old school. A company must be directly responsible to the investors, and digital currency should be more dependent on business results of the company and less of other digital currencies, hype, and marketing budget. Well, at least I believe that.
We are very happy to enter the digital currencies market with a highly demanding products that markets is willing to pay top dollar for. Not only now, but at least fifty years ahead as well. That fact will distinguish our PP8 digital currency from the other ones.
Let me touch a bit a technical side of the Project Phoenix8. In one of the photos I noticed a big LCD screen. What is that for?
That was a giant, 1×2 meters (ca. 3×6 ft) wide monitor in a control room. We wanted it for a long time, but couldn’t find an appropriate graphic card to support it. It shows all the parameters of PP8 processes. It is a main control center where all the data is visible at one place.
The purpose is to sustain a desired quality control of the processes. We strive to the better and better quality of the output and to maximum efficiency. This kind of visible control makes our job easier. But it is not a standard equipment in our business. Actually, I doubt you will see it in any other similar company…
I am quite familiar with your output material, like diesel fuel and carbon black. According to your report, they are of the highest quality on the market. So, you literally transform trash into gold? That is, wasted material into highly demanding products that market is already established and ready to buy?
That is the whole point. It is not magic, but pure science. It took years of hard work, research, trials and errors, endless hours, millions of dollars invested, optimizations, and testing of everything. It was bloody hard, I tell you. And we are quite aware of the breakthrough we are bringing to the market.
Imagine, instead of having large, ugly garbage dump with ever increasing waste you have no idea how to get rid of, you have no visible waste, clear nature and big money in the pocket. Our technology is suitable not only for factories that produce or gather waste, but for cities and other municipal clients as well.
You see, this kind of “details” distinguish our business from start-ups. Not only we get input material – waste tires and scrap plastic – for very little money and degrade it into valuable products, but it is also important that the process is cheap. At the end of the day, all that counts is ROI – return of investment; how much did you put in and how much you get out.
Apparently, even big, multi-billion companies contacted you to partner with you?
This happens all the time. It started years ago with our beta series plant. We presented it to some potential business partners and a lot of them were interested, but they didn’t decide to support us at that stage. “Call me when the product is finished and you are ready to go public,” they said.
This is how it works in the real life. As long as you are developing a project, very little people will support you. They rather stay at the side and wait to see how the situation will unfold.
If you succeed, they will join. If not, they will pass. No brainer here.
But we decided not to invite them when the PP8 plant was ready for the market. We rather decided to invite larger number of small investors. I personally welcome the idea, because people who never had a chance to invest in earliest stage of such a huge project, are now buying investment from the source directly. That way, they will make much more money. Of course, I am not supposed to give any financial claims, but this is my opinion anyway.
Are these big companies still call you regarding investing in Project Phoenix8?
Not so long ago I received a call from one of these companies. Completely unexpected, I admit. A guy said that they observed the progression of the project and they are familiar with the success. They congratulate me and the guy said they decided to invest in the project anyway.
He asked for some financial predictions. Of course we have it, for twenty years ahead. I decided to send it over. I don’t know why, maybe I just wanted to brag and show them that we have built a monster here.
At the evening of the very same day, the president of the company I have never met called me directly and said: “You have yourself a deal.” And I said: “What the heck are you talking about? What deal?” And he says: “Tell me how much money would you like to have and I will grant it. We want to be in.”
To make long story short, he put the phone down on me and the next day his lawyer called: “The boss told me to prepare papers, would you give me a number of your lawyer?” He started talking about documentation and stuff and I stopped him very quickly. “Hello? We haven’t agreed on any deal, I have no idea what are you talking about.”
And he said, my boss this and my boss that. And I said: “Listen, tell your boss that we asked him for support when we were in need for money very badly. Today, we don’t need it any more. And we don’t want to support people who decline help when needed but come back when they smell the money. Maybe we will contact you in ten years. But for now, please don’t call us anymore. Tell this to your boss.”
I am very glad that we gave the opportunity to the people who believed in our story ahead of the time. When our technology with three patents is publicly presented to the market, everybody will want to have a piece of a cake. But we will rather reward the original, early investors.
Let me go back to digital currency. Due to the nature of the project, will your currency be a so-called security token? It is not easy to issue it, do you have all the licenses and confirmations?
Project Phoenix8 will be based on utility token, not security one. The project has no connections with financial malversations, financial instruments, and the like. We will offer our goods on the market and our investors will be able to change tokens for our products – carbon black of diesel fuel – if they want to. Tokens are commodity, goods as well, so this is a clear process. Of course, the investors will be able to sell their tokens on a digital exchange as they like, and when they like.
The other important information is the roadmap of tokens. Investors have bought it from the financial Fund and the same fund will buy it back from original investors and burn them. Of course, if the owners will be willing to sell. This way, there will be less and less tokens on the market, that will additionally increase the price of tokens.
The Fund is obligated to use money for buying of tokens every year, so this is not mandatory. But let me take a step back, because I need to explain a little more how this Fund works.
For the investment, the Fund demanded a pledge of annual profit payment of 30% for at least fifteen years directly from PP8 factory. The Fund will devote more and more cash each year to the purchase of tokens. It will do it in accordance with the business profit, to the approximately $ 350 million per year finally, according to pessimistic financial forecasts. The goal is that Fund buys back every token on the digital exchange.
Let me get this straight. Is Project Phoenix8 a deal of a lifetime for a conservative investor?
If you ask me, it is a deal of a lifetime for every investor. PP8 is long-term, tangible opportunity, with all factors known. No guessing here. We already have contracts for input material and output goods, and we have a great, highly efficient process to transform “trash into gold”, as you stated.
Besides, this is completely green process, based on robust and easy to maintain machinery, built to last for decades.
Last but not least, we are on the right place at the right time, because we solve two big, world-wide problems every country is facing right now. The first is, what to do with all the ever-increasing waste, and the other is, how to produce strategic, and highly demanding raw material. We not only have an answer to both questions, but we have the best answers.
Finally, how much time will you need to build a factory and set the plant to start making money?
We have already starting the process, by buying first parts of machinery. As said in the beginning, I am more under-promising and overdelivering guy, happy to positively surprise people, so I don’t want to build hype around it.
But I can say that we will build a factory earlier than expected. Also, before entering the digital exchange, we will prepare a special presentational movie, special new website and we will release white paper with all the details included. As already stated, right now we are finishing a distribution platform that will allow smart contracts and blockchain to take place.
Along with that we carry out some smaller activities, like final design of the token, a logo, a special jubilee coin, and so on. We are working very hard to exceed expectations of our investors and nothing is left to chance.
This is the second part of the interview. For the first part, click here.