Deep Dive: Nauticus Coin (NTS)

Nauticus will launch a fiat & cryptocurrency exchange to support as many as 300 cryptocurrencies and 16 fiat currencies in the first year of operation.

Token name (symbol): Nautics Coin (NTS)
Category: Cryptocurrency trading & financial services
Token type: Utility token
Base chain: Ethereum
Token standard: ERC20
Initial token price: USD0.0471 = 1 NTS
Token Supply: 2.5 billion NTS
Country: Australia

About Nauticus

Nauticus will soon launch a fiat & cryptocurrency exchange in August 2018. It will support 100 cryptocurrencies and 7 fiat currencies (USD, EUR, JPY, HKD, AUD, CNY and ZAR) at launch and will expand to 300 cryptocurrencies and 16 fiat currencies within a year. Support for this many fiat currencies is one of Nauticus’ defining features and is something that competing exchanges lack, despite strong demand from users.

The exchange is powered by the Nauticus Coin (NTS), a utility token modeled after the Binance Coin (BNB). All trades involving the NTS token provide users with a 50% discount for the first year. Over 475,000 users have already registered with the exchange. A user base of this size on day one is an encouraging sign for the exchange’s and the token’s prospects.

In addition, Nauticus aims to eventually provide a one-stop-shop for all cryptocurrency, foreign exchange, payments and money transfer needs. Over time, they plan to provide the following six services, all involving the Nauticus Coin and aimed at individuals, businesses and governments:

  • Nauticus exchange: a multi-functional crypto and fiat currency exchange.
  • Sustainable blockchain mining center: utilizing renewable energy.
  • Low-cost e-commerce platform: a global marketplace enabling instant payments in crypto or fiat.
  • Merchants’ payment platform: for enterprises and governments.
  • Global KYC verification: letting individuals get verified by Nauticus so that they don’t have to repeat the process elsewhere.
  • ICO gateway: establishing resources and support for new ICOs.

The Nauticus Exchange will become the foundation for future Nauticus banking, global payments processing and eCommerce solutions. Nauticus is already registered with as an independent remittance dealer with the Australian Government regulator AUSTRAC.

Nauticus is in the process of licensing with banks and governments as each of their services is implemented. This is to ensure that all services comply with global Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) regulations, for example. Nauticus is also working towards obtaining an international banking license to ensure that it can provide a rich portfolio of exchange, payments and transfer services across borders.

These plans are very ambitious and will pit Nauticus against established competitors (e.g. Western Union and PayPal in remittance and payment services respectively) as well as regulatory hurdles. Nauticus will also need a sizeable revenue stream to fund their planned services. Their future expansion the areas mentioned above will likely be fueled by profits from their fiat & crypto exchange. Since this exchange will be powered by the Nauticus Coin, it is worth looking at the token’s role and value proposition.

Token roles

We will look primarily at the token’s role on the fiat & crypto exchange since many future services will be based on the exchange platform. Furthermore, the exchange’s success will likely determine whether Nauticus can proceed with their other service offerings.

Nauticus Coin (NTS) is an exchange coin, much like Binance Coin (BNB), Huobi Token (HT), or KuCoin (KCS). Like other exchange coins, Nauticus Coin will primarily be used as an intermediary token to buy/sell other cryptocurrencies. By employing a similar token usage model as other major exchanges, Nauticus is hoping that the Nauticus Coin will see similar value increases as Binance Coin (11,200% lifetime increase), KuCoin (330%) and Huobi Token (130%).

Nauticus Coin, Bitcoin and Ethereum will be the 3 currencies in trading pairs with most, if not all, of the cryptocurrencies on the Nauticus exchange. All trades made with Nauticus Coin will result in a 50% trading fee discount for the first 12 months after the exchange launches.

To see how NTS will be used, suppose that a trader wants to exchange Monero for Ripple, for example. First, they will need to exchange Monero for either Nauticus Coin, Bitcoin, or Ethereum. They will then use that intermediary currency to buy Ripple.

Since using Nauticus Coin as the intermediary provides a 50% trade fee discount, it should theoretically become the preferred medium of exchange.

Token value drivers

The key role played by Nauticus Coin on the exchange could influence the adoption, demand and value of the token. In other words, involving Nauticus Coin in most cryptocurrency trades could encourage ample trading volume of, and demand for, Nauticus Coin.

Demand for Nauticus Coin could further increase due to the following factors:

  • Growth in user base: more Nauticus exchange users transacting in Nauticus Coin should increase demand for the coin.
  • Additional cryptocurrency pairs featuring Nauticus Coin: Nauticus has already confirmed that up to 300 cryptocurrencies will be featured on the exchange in future.
  • Increased number of ways to purchase Nauticus Coin: Users will be able to purchase NTS with 7 fiat currencies upon exchange launch. The company intends to enable a total of 16 fiat currencies on the platform in future. Most other exchanges offer support for far fewer fiat currencies (Binance, the world’s largest exchange does not offer support for fiat currencies at all)

These demand drivers could be amplified since total supply will be capped at 2.5 billion NTS with no further token emissions and all unsold/unallocated tokens being destroyed. Additionally, the following factors should prevent large concentrations of tokens from flooding the market:

  • 80% of all tokens will be in the hands of users. Therefore, sales of founder/team tokens (if any) should not drastically increase supply
  • Team tokens will vest over 3 years
  • Tokens sold during private sales have a six-month lockup feature which prevents these buyers from cashing in and flooding the market as soon as the token starts to trade

However, numerous conditions must be continually met for token to be valuable on the platform, some of which are that:

  • The exchange should promptly list new, popular and high-quality cryptocurrencies: An exchange is only as popular as the coins that list on it.
  • The user base must grow: While it is notable that Nauticus already has close to 500,000 registered users, the biggest player in the industry, Binance, may have over 7.9 million registered users.
  • Nauticus must not fall afoul of international regulators and laws as they leverage their exchange services to offer other payment, remittance and foreign exchange services across international borders, for example. Such trouble could threaten the viability of the exchange and drive exchange users away from Nauticus Coin.
  • The token must quickly achieve widespread adoption and popularity and continue to be the preferred medium of exchange even when the 50% discount decreases or ends.

Token distribution

The total supply of 2.5 billion NTS tokens will be allocated as follows (with unsold tokens being destroyed):

  • 80%: Offered for sale
  • 9%: Referrals
  • 8.5%: Team
  • 1.5%: Advisors
  • 1%: Bounty program

More information about the Nauticus exchange and other services can be found on their website.

Nauticus Quick Links

Disclaimer: Investing in Initial Coin Offerings, cryptocurrencies, and digital tokens is highly risky and speculative. The material presented here is for information purposes only. This information presented here is not intended to provide any sort of investment advice, nor does it recommend any company, Initial Coin Offering, or digital token and should not be taken as the basis for any investment decision or strategy.

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