ED Publications

ED July 2018

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ED Magazine July 2018 35 theEDPub.com club Expose; I visited their headquarters and met some key people there over two years ago. After I saw how easy moving bitcoin and value around the world was, I knew it would be the future. I have several businesses and one of them is traditional ATMs. I've had dozens of them throughout San Diego since 1999 and still have over 30. So it was an easy step when I agreed to allow a BTM to be installed in my club. I think I had one of the first BTMs in all of San Diego and I was for sure the first adult club to host one, maybe in the world. I saw it as an additional revenue stream, but also a way to bring in a community of people who are not accepted by traditional financial companies and banks. A lot of my employees and dancers are no longer welcome at banks for various reasons. Also more and more banks hate cash, plus operation Choke Point puts an even greater strain on our "non-traditional" industry. ED: How much traffic did that first BTM bring to your club? PALMIOTTO: Literally the first day I had the machine and it appeared on coinatmradar.com I had people coming to use it. I just wanted to see if it worked so I set the Bitcoin price under the few other local BTMs that started popping up. Eventually we would see people lining up before noon when we opened just to buy bitcoin. Adult clubs have much later hours so they are perfect for BTMs and there weren't a lot of them out in public yet. ED: In layman's terms, what's the biggest difference between "smart" ATMs and traditional ones? PALMIOTTO: Traditional ATMs sell $20 bills to the general public. They do one thing. Smart ATMs can provide many, many services, such as crypto buys and sells, paying bills, buying gift cards and sending money overseas. But, not only does the Vault Logic ATM have about five revenue streams instead of just one, they also solved my increasingly expensive cash management problem. Basically, the ATMs in the network balance themselves and so I'll rarely, if ever, have to pay for Brinks or Loomis or some other service to open the machine, pull out wads of cash and take to a bank—with this I don't need a bank. ED: Where does Capital Hero come into play and how is it related to Vault Logic? PALMIOTTO: I realized that this cash as a service/cash management, "vaulting" ATM network they came up with was so revolutionary that I wanted to be part of it. Really, the Vault Logic ATM is just a hardware and software platform and so I saw the opportunity to help them launch a third-party app. That app became its own company called Capital Hero. So really, it's Capital Hero that is deploying the Vault Logic ATM platform in my club and other locations. Think of it like a giant smartphone: the hardware might come from Samsung, LG or Apple, the operating system can be Android, Windows, or iOS, and tons of companies can make apps that do all kinds of things. So, Capital Hero is one of many apps on the ATM that allows people to buy and sell crypto-currencies. Currently we offer Bitcoin, Litecoin, Dash, Bitcoin Cash, and Ethereum. We'll be adding more as these machines roll out. It's made a huge splash in the crypto-space, so these machines and the apps on it are very popular. Club owners can set how much price spread they want to receive when customers buy or sell the cryptocurrencies through the Capital Hero app. Plus they also get revenue from the other apps that share the Smart ATM's cash vaulting, dispensing and accepting abilities. Plus, it's also a regular ATM, so there can be revenue sharing with that app as well. ED: Because you guys work with cryptocurrencies, what would you say to those club owners who may be wary of working with blockchain-based digital money? Does the ebb and flow of cryptocurrency impact these Smart ATMs at all? PALMIOTTO: They can, depending on the public interest of the various blockchain crypto-assets Capital Hero supports. But that just means greater revenue for the club owners because they make money whether someone is buying or selling. Owners don't need to know anything about Bitcoin or blockchain in order to benefit from the constantly growing interest in cryptocurrencies and digital tokens. I believe that this is the future of money and it's not going anywhere. I would encourage everyone to get involved. ED: From a club owner's perspective, what are the benefits of these apps that are live on the Vault Logic platform? PALMIOTTO: Since these Smart ATMs and Capital Hero provide club owners with an out-of-the-box, turn-key solution, all they should notice is decreasing maintenance costs of ATMs and increased foot traffic as Bitcoin and other cryptos gain popularity. ED: You're clearly making an investment as a Title Sponsor for the 2018 Gentlemen's Club EXPO, so what are you hoping that investment reflects to the industry? Why should club owners be sure they visit your booth? PALMIOTTO: Very, very few clubs have embraced this future of money, blockchain revolution. I want to see all of us benefitting from this. Come visit our booth and use the Capital Hero app on the ATM and see how easy and lucrative this can be! Capital Hero is an EXPO 2018 Title Sponsor, and the main sponsor of the 2018 ED's Awards Show. For more information, visit vaultlogic.com or see them at their EXPO Tradeshow booth. "Owners don't need to know anything about Bitcoin or blockchain in order to benefit from the constantly growing interest in cryptocurrencies and digital tokens." - Palmiotto

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