I hadn’t seen this no wonder the buying today HUMBL (TSNP): An All-Star In The Making
Feb. 1, 2021 11:59 AM ET|About: Tesoro Enterprises, Inc. (TSNP), FORW Summary HUMBLPay app is ready to launch in 40 countries in February 2021 ahead of schedule.
There is a gap in inequality of supply & demand of global proportions. HUMBLPay is well positioned to fill this gap.
HUMBLEPayhas already established ground games, partnerships in multiple foreign marketssuch as Mexico, Brazil, India, and the Pacific Asia.
HUMBLPay can be the next $SQ and $PYPAL (Venmo), just faster (same day settlement), better(HUMBLHub, HUMBLFinance integration), and bigger (40+ countries).
Without further ado, I present to you HUML (OTCPK:TSNP). (OTCMKT: $TSNP, soon to be $HMBL).
In 2021, nothing excites me more than a Fintech startup with disruptive business model leveraging block chain to fill the supply/demand gap left by $SQ and $PYPL. HUMBL has built enough moat (Financial and Technological) to become a dominant player in the international P2P money transfer business.
First things first. Why is HUMBL being traded as $TSNP (OTCPK:TSNP)?
Basically, HUMBL reverse merged with $TSNP. You can read about the details Here (HUMBL Completes Merger with Tesoro Enterprises, Inc.; Sells Warrants with Provision for $50 Million In Funding) which was released on December 9, 2020. They’ve immediately filed the paper work for ticker symbol change which is due any minute. You’ll also see that they’ve raised $50M in warrants (more on this later) as they consummated the merger.
Financial Moat
The warrants. Who backed up the truck and bet $50M in this startup? None other than George Sharp of Forwardly (OTCMKT: FORW). As many of you know, George Sharp is the Robin Hood (not the broker, but the one in tights :wink:) of the OTC. As self-described in his Twitter profile (as of 1/24/2021, 12PM PST), Mr. Sharp is a “Well-known exposer of OTC fraud. Advisor to public companies & SEC attorneys. Former consultant to OTC Markets Group. President of Forwardly, Inc (OTC: FORW)”. You can read more about him here (Reconsidering George Sharp: An Enigmatic penny stock crusader) and read his own words there (https://twitter.com/GeorgeASharp) and form your own opinion of him. As for me, I believe that he’s on the side of the retail investors and does his best to shield them from the shady personalities of OTC. It is difficult to see him as someone who will pump $50M so that he can just dump it a year later. $FORW acquired 500 million (Forwardly, Inc. Acquires Warrants to Purchase 500 Million Shares of Tesoro Enterprises, Inc.) in warrants that can be exercised into 500 million common shares. The deal was agreed on Nov 23, 2002 and executed on Dec 10, 2020. George/$FORW can’t offload those shares in the open market for another year per agreement.
Here’s an interesting angle, per George’s Twitter post dated Jan 13, 2021, “when $TSNP is $.19, $FORW is in the black on its warrants to the tune of $.159 per share. For every penny that $TSNP goes up, the value of $FORW's warrants go up $.0113 per share in value.” So if you’re looking for a leveraged proxy play but are fearful of the massive stock dump in a year by George, $FORW is something for you to consider.
Truth of the matter is, someone reputable in OTC was willing to bet $50M when it’s market cap was $250M. Smells like confidence.
Technological Moat
What is HUMBL and what do they do?
Their website (www.humblpay.com) can’t be any clearer as to what they do. They have the following three verticals:
Mobile Pay (think Venmo), aka HUMBLPay (This article) Marketplace (think Amazon), aka HUMBLMarketplace/ (Next article) Financials (think SoFi, Charles Scwab, Vanguard). Aka HUMBL Financial (Next next article) At a first glance, the knee jerk reaction is “oh, just another Fintech”. In fact, one might argue that a start-up should dig one well instead spreading itself so thin in digging multiple wells. A startup shouldn’t bite off more than it can chew right? That is until you dig down deeper and realize that the three verticals are truly symbiotic and synergetic. Today, we’ll deep dive into HUMBLPay and I’lll write about HUMBLEMarketplace and HUMBLFiancial in the next article.
You can get a general idea of their strategy if you can imagine Alibaba (BABA) and their ecosystem. HUMBLPay to send, receive money. HUMBLMarketplace/Hub to connect its merchants and POS to its patrons, and HUMBLFinancial to store and grow your money in blockchain ETF.
In this article, we deep dive into their first vertical, the HUMBLPay.
Easiest way to visualize HUMBLPay is to think of it as the next Venmo that is faster, safer, and international. $PYPL (Venmo) and $SQ as big as they are, is mostly limited to the US market. Initially, I didn’t think much of HUMBL because I immediately thought “I can just Venmo some in Mexico”. Once you Google “can I Venmo someone in Mexico, you’ll get the following results”
It gets more complicated as you replace “Venmo” with “Zelle”, “Square”, “Cash App”, “PayPal”. As backwards as it may sound, there just isn’t a convenient, intuitive, secure, nor cheap way to send and receive money internationally. It’s a problem. Venmo is limited to US, CashApp only supports US/Great Britain market, and PayPal is not seamless (alternate Mexican account required) and SQ is limited to less than 5 countries. Sending money overseas has always been slow, cumbersome and expensive (Western Union, Xoom, etc). Did someone say the market is not served? Slow? Cumbersome? Expensive? Sounds like a supply/demand disparity. Sounds like it is ready for disruption.
This is where HUMBLPay comes in. You can send, exchange, receive, and pay using their app with the countries that have been largely ignored. Hence the play on word, HUMBL. HUMBLPay does the following
Send, receive, and convert FX. Peer-to-peer, customer-to-merchant You can do this with INSTANT settlement of funds. Patent pending. Eliminate middlemen through tokenization -> reduce cost and fees, up to 50% in estimated savings. HUMBL does not keep your money, the money never goes through “Bank of HUMBL” but it is truly a node-to-node financial transaction. They are the facilitators of your money and NOT the keepers of your money. You can choose to (For now, not available in US) let HUMBLFinancial be stewards of your money and you can invest in ETx (blockchain ETF). Instant FX (foreign exchange) To be launched in 40 countries by Feb 2021 Option to tether to USDC (Stable coin, blockchain/crypto) if you want to Mr. Disruptive Technology? Say Hello to Hard Work.
Great disruptive technology right? Sounds catchy and all, but it takes actual ground work in the localities (Mexico, India, Singapore, and etc) to make this work. Clearing the regulatory hurdles, setting up partnerships, syndicates, and setting up the sales pipeline is part of the disruption. It’s the blocking and the tackling that precede the play execution that wins the game. Can’t do it with the disruptive talent alone. MANY wannabe disruptors can’t get over his hardwork hurdle. HUMBL is different. HUMBL has already inked partnerships all over the world and is in the process of talking and consummating arranges with with many more governments and business partnerships (Investor Call | HUMBL). In Mexico, they’re even building the pay/merchant infrastructure from the ground up. They are already signing up hundreds of merchants in a matter of days per their December investor relations Investor Call | HUMBL). Following is the summary of their hard work:
Expanding business and signing up merchants by the hundreds each day (Investor Call | HUMBL) HUMBL mobile app and HUMBLHubs has already delivered successful pilot transaction in Latin Americas (HUMBL® Mobile App and HUMBL Hubs™ Merchant Solutions Deliver Successful Pilot Transactions Between United States and Mexico) HUMBL is already partnered with DIP of India (U.S. Fintech HUMBL Partners With Digital India Payments To Enter India's Market) HUMBL partners with Cyberbeat for Asia Pacific and Pan Indian markets (HUMBL Partners with Cyberbeat to Expand into Asia Pacific and Pan-India Vertical Markets) HUMBL and OneKiosk team up on Africa Home delivery network (HUMBL® and One Kiosk® Team Up On Africa Home Delivery Network) HUMBL is already partnered with Bexs Bank for Brazil penetration (HUMBL and Bexs Bank to Pilot Expanded, High Speed Digital Payments Platform Between United States and Latin America) Already signing syndications, partnerships, with foreign governments and partners (Investor Call | HUMBL) There are two investor relation presentation in their IR website. Everything they promised in December 2020 IR, they’ve exceeded expectations in their January 2021 IR presentation. Watch their two investor presentation, Treasure trove of verifiable nuggets that I may have missed in this article.
I still don’t get what HUMBLPay does, paint me a picture.
If you can’t fathom what a HUMBLPay launch in 40 countries serving population of 2.8 Billion looks like, let’s just take one piece of the revenue stream- the remittance flows and see where the money leads. There are millions of Mexican diaspora living in the US and they send billions back to Mexico. This is known as remittance. According to the Pew Research (Remittance flows worldwide in 2017), pre-pandemic levels for remittances from US to other countries was ~$150B, and Mexico carved up over $30B of that pie. This is just ONE revenue stream for HUMBL. Mexican immigrant currently can’t “Venmo” money to Mexico. They have to go to Western Union or Walmart, stand in line, pay expensive fee and foreign exchange fee and send money back to Mexico which may take a couple of days to settle. At least $30B of money travels this way to Mexico from US. Beginning February, they can “HUMBL” their money to Mexico that settles instantly.
This is not all.
As HUMBL integrates their Mexican merchants (they are booking them by the hundreds) into their ecosystem, they’re preferred method of payment will be HUMBL. Do you see the synergy? Snowball effect?
HUMBL is uniquely targeting the international market that has largely been ignored by $PYPL and $SQ. It is also leveraging the block chain technology to offer a better product than the competition. Sound familiar? AliPay anyone? I have been visiting China for work for the past 15 years. In matter of couple of years, the street vendors went from accepting RMB coins only accepting Alipay for a $2 transaction. Today, there are over 1.2B Alipay users and they’re just getting started. The Chinese merchants went from cash only to Alipay skipping credit cards all together in matter of couple of years. Its more convenient for the consumer, and the merchants get to keep more of their money. It’s a win-win. Whenever there is a win-win scenario, adoption will follow. It happened in China, it will happen in Mexico, Honduras, Brazil, and on to Africa and Pacific-Asia.
All the Fuss about the Blockchain
In 2020, CEO of every publicly traded company and their mothers have tried to capitalize on the words “blockchain” and “COVID”. In Brian Foote’s case, he’s never uttered the words “COVID” and he’s the real deal when it comes to block chain. If you’ve heard of Crypto, you’ve likely heard of Brian. And if know of Brian Foote, you definitely have heard of Crypto. He is a well-known authority on blockchain and is actively integrating its technology to all of its product offerings. Without blockchain, everything is so legacy. Wow. Did I just call $SQ and $PYPL (Venmo) legacy? Check out this video (BLOCK 30 Labs - DigiByte Summit Amsterdam 2019) of him talking about blockchain. There is no question that he is leveraging the blockcahin technology to enable HUMBLPay to be faster, safer, and reliable than its competition.
In the January 2021 Investor Relation presentation, Brian Foote has recruited Calvin Weight of Coinbook as the CIO (Chief Investment Officer) and has acquired Block30 (www.block30.com). Just in case you haven’t noticed, Brian is all in. Maybe can promote himself to be CEO & CBO (Chief Blockchain Officer).
Sky’s the limit
For all the growth that $SQ and $PYPL (Venmo) has seen in the mobile payment marketspace, globally speaking, this is just the beginning. We are just looking at the tip of what is to become the hockey stick curve growth as the demand for digital wallets explode. Here is a snippet from the HUMBL December investor presentation. Looks like a hockey stick to me.
In Brian’s own words, “We didn’t build HUMBL for the 450 million digital customers using Apple Pay®, but for the 7 billion people for whom money has a totally different set of global pathways, access points, and cost structures,” HUMBL is doing everything to position itself to build moat and tap into this global market. According to the second investor relation presentation, Brian alluded that he doesn’t own digital assets anymore.
To date, Brian’s team has delivered in everything that they’ve promised and then some. $HMBL ticker change is just around the corner and so is the app release In February weeks ahead of its schedule. As they go live in 40 countries, more partnerships and regulatory approvals will be announced. Yes, there are 5 billion shares outstanding. Yes, the market cap is at $1.2B “already”. Yes, there are some questions surrounding the Block30 “acquisition”. However, more and more shares are being locked up by the day (see George Sharp’s Twitter) and one can only imagine what Brian Foote has done with all the digital assets that he’s liquidated (per last investor relations). Brian is on the prowl for more acquisitions, which will likely be done with HMBL shares.
Going forward, I will be monitoring the HUMBLPay adoption rate, potential quality issues, failed partnerships, regulatory roadblocks, and cash burn rate (think PayPal and X.com) and reassess as I go and will publish
Conclusion
The investment thesis is simple. The CEO has identified a fundamental supply/demand inequality of global proportions and has come up with the solution leveraging the blockchain technology. The CEO and his team are working relentlessly to exceed on the promises made. Furthermore, they are doing everything in their power NOT to screw the investors by partnering up with a proven baron of OTC in George Sharp and the CEO may be throwing millions of his own wealth into the company. Ticker change is around the corner and so is their app that will launch way ahead of schedule in 40 countries in February. All things considered, this looks like an All-Star in the making and we have the chance to draft it right out of high school without paying the All-Star price.
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