SMS Software, Inc. has closed a seed round worth the equivalent of $600,000 in Bitcoin Cash (BCH) for its CoinText service; a software wallet with an SMS communication layer. Compatible with the BCH cryptocurrency, CoinText offers a service which allows anyone with any mobile phone to send and receive BCH without the need to be connected to the Internet, nor to own a wallet address.

CoinText is delivering the original promise of permissionless, borderless money to the unbanked around the world.” – Vin Armani (Co-Founder & CTO, CoinText)

A major distinguishing factor underpinning CoinText is its user-appeal, as no account, password, app, or complex cryptocurrency addresses are required to use the software. All that is needed to obtain a CoinText wallet is to texted the word ‘RECEIVE’ to the access number corresponding to your region, or when BCH funds are text through to you from another user.

Regarding fees, CoinText automatically collects a fee of 10 Satoshis per byte whenever users send messages through CoinText’s API. The fee is only collected on the message that results in BCH moving from the sender’s BCH address to another BCH address. According to a recent tweet from Armani, this fee structure “is going to change,” and may turn into an “on a per-country basis” model instead of the current global, flat-fee design.

Lead the Seed

The seed funding round – having raised the equivalent of $600,000 in Bitcoin Cash – was led by Yeoman’s Capital, the investment arm of an Austin-based family office that is overseen by serial entrepreneur David A. Johnston.

CoinText has the potential to drive the next wave of mass crypto adoption because onboarding new users is as simple and seamless as sending a text message.” – Johnston

Some crypto projects that Yeoman’s has participated in as an early investor are Factom (FCT), Polymath (POLY), Multicoin Capital, Open Garden, and TZero. Notably, Factom, Inc. – a system for securing millions of real-time records using blockchain technology – was co-founded by Johnston back in December 2014. Since its inception, he has remained on as Chairman of the Board.

Expansion Goals

Having recently launched its beta version in late-March, CoinText has been made available in eight countries: Canada, United States, Australia, United Kingdom, South Africa, Sweden, Netherlands, and Switzerland.

It appears that most of the invested capital received through CoinText’s seed round will go towards expanding the software wallet’s global accessibility. Indeed, Friday’s press statement revealed that CoinText plans to deploy “its service in at least fifty-four countries” over the next twelve months. By the year’s end, Armani revealed that he believes “nearly seventy percent of the world’s population will have permissionless access to cryptocurrency over SMS.”

Per their website, CoinText is also “developing a full suite of tools where transacting over SMS is necessary or beneficial like merchant and charity solutions, gaming and sports betting, ATMs and vending machines, smart-locks and much more.”

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