09 Mar 2022 · 3 min read

Consumer Protection Comes to Crypto Through MTO

Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.

There are many benefits to be had from using cryptocurrency; fast and seamless transfer of funds, potential profit during market shifts, and so on. There are also, unfortunately, some downsides to using cryptocurrency, one of the biggest being the lack of consumer protection. 

While tapping in decentralized currency means that consumers are unrestrained by account freezes and withdrawal limits, it also leaves them without the protection that centralized exchanges offer. 

This is most evident when it comes to the permanence of token transfers. If you send cryptocurrency to the wrong address or the wrong blockchain, it is irreversible and nothing can be done. Unlike a debit card, you can’t get a chargeback or dispute the transaction. 

This has been a major roadblock to crypto adoption by some people who would have otherwise loved it. 

Centralized Decentralized Tokens?

In response to this issue, a number of firms have tried to fill the gap by acting as some sort of middlemen for crypto users. The problem is that this defeats the purpose of cryptocurrency. After all, people flock to crypto to avoid middlemen and if they still have to go through them, what is the point? 

Since the initial crop of solutions did not actually solve the issue at hand, HIPS created the Merchant Token (MTO). The token is created specifically for merchants conducting transactions and allows them to send and receive different tokens while still enjoying consumer protection. 

For the buyers themselves, this protection is also available because if there is any dispute about what is paid for, their funds are not gone forever with no resolution. On both ends of the purchase spectrum, MTO offers support and protection.

This protection is gotten through users of the ecosystem who are incentivized to help solve disputes between different parties. The company behind it, HIPS, also has over 2 decades of experience facilitating payments to merchants through different mediums. 

Because the current payment landscape is so complex with so many options, HIPS works to take care of all payment-related issues such as payments, infrastructures, acquisition, issuing, and licensing Payment Card Industry (PCI) certification, while its merchants focus on the actual running of the business. 

The Creation of MTO

Following a successful ICO and the delivery of the initial product, MTO development began and within just seven months verifiable code was released on Github. As the Alpha version is about to be released and the website is also to be updated, it was announced that MTO would be creating a bridge to the Binance Smart Chain as a means of cutting down on purchase fees which had been a major complaint from users. 

This fee reduction and incoming Alpha launch mean that the value of the MTO token will likely go up in the near future. So far, MTO has been listed on centralized exchanges like Bitrue, Whitebit and Hotbit, with more to be announced soon.

It is also worth noting that the primary use case for MTO is only going to get more relevant over time. The more popular cryptocurrency becomes, the more people will use it for merchant transactions and the more MTO will be used. This is even more so because MTO is in limited supply, with only 92.5 Million tokens in existence and within the market. 

In the long term, MTO represents a more effective and hopefully a final solution to the problem of consumer rights in the cryptocurrency space.