ICO Analysis: Blockport
Blockport is creating an easy-to-use cryptocurrency exchange with a social aspect that benefits novice and experienced investors alike. There are two unique aspects to Blockport that you may be interested in:
1. Hybrid-decentralized exchange
Blockport takes features from centralized and decentralized exchanges to provide the first and only social-based hybrid-decentralized exchange.
On the decentralized side, you’re in full control of your funds and private keys. You don’t have to worry about a third-party exchange freezing your funds or someone hacking into your wallet.
Utilizing centralized exchanges, the trades that you make are executed off-chain on an exchange other than Blockport. This gives Blockport the liquidity it needs to run effectively.
2. Social trading
On the Blockport platform, you can follow and directly copy the trading portfolios of other investors. This is advantageous for beginner investors who may be overwhelmed by the seemingly infinite number of coins to choose from.
Blockport is attempting to build a community of investors through social trading as well as a community forum and knowledge base.
If you choose to participate, you’ll be purchasing BPT in the ICO. BPT can be used for a few different things on the Blockport platform.
You must pay a BPT fee to follow and/or copy another trader’s portfolio. 90% of this fee is given directly to the trader while 10% goes to Blockport.
You can also use BPT to purchase premium services and pay discounted trading fees.
Ideally, as the social trading platform gains popularity, users will be willing to pay more and more to ride on the coattails of successful traders. Because there’s a fixed amount of tokens, the price of each BPT should rise accordingly.
The Blockport team is headquartered in Amsterdam. They work out of the Google and KPMG sponsored tech hub TQ.
The team is led by Sebastiaan Lichter and Kai Bennink. Bennink studied blockchain technology at the Delft University of Technology and Lichter has years of experience in IT and business management.
The CFO of Ark, Lars Rensing, is a member of their advisory team. This advisor agreement is part of a larger partnership with the entire Ark ecosystem project. Blockport has also formed partnerships with Deloitte and Luminum solutions.
Tokens and Distribution
The Blockport ICO pre-sale began on January 3rd and ended within 3 minutes reaching the team’s goal of 1666 ETH. BPT were sold during the pre-sale at a rate of 1 ETH = 3840 BPT.
The ICO crowdsale will start on February 1st and will close at the end of the month. You can purchase 2840 BPT for 1 ETH during this time. The Blockport team has set a 15000 ETH target for the crowdsale.
The token distribution is fairly straightforward. The total supply of BPT is fixed at 69,440,000 BPT:
- 71.4% (49,600,000) will be distributed to ICO participants
- 14.3% (9,929,920) will be reserved for the team, advisors, and seed investors
- 10.0% (6,944,000) will be used in the Token Shop
- 4.3% (2,985,920) will be given to the community, 3rd-party service providers, and bonus allocation
The Blockport team will receive their tokens (5-10% of the total supply) through a 3-year vesting schedule after the initial release.
In their whitepaper, Blockport also outlines how they intend to use the funds raised in the ICO:
- 50% is set in a trading reserve managed by the Blockport exchange accountant
- 16.2% for marketing costs
- 14.2% for the development of Blockport 2.0 and 3.0
- 10.4% towards business operations and maintenance of the exchange
- 9.2% reserved for legal and regulatory costs
The vesting schedule and relatively small amount of coins that the team holds is a positive indicator that they’re in this for the long haul.
Blockport is working to solve a big problem in cryptocurrency investing – initial friction. This initial friction is generally caused by confusing interfaces and lack of general knowledge about the industry.
Blockport solves this first issue by designing a sleek and intuitive exchange interface. Investors of all skill levels should be happy with their trading experience.
The second problem is solved through social trading. Giving new investors the ability to follow and copy the trading strategies of pros empowers them to actively invest even while they’re still learning.
The BPT token has value as a medium of exchange for discounted trading fees, trade portfolio copying, and premium features.
- The crypto exchange space is already crowded, and Coinbase is a behemoth that’s going to be hard to overthrow. -2.5
- Blockport has a lot of untested theories with a product that isn’t on the market yet. Concepts like social trading and hybrid-decentralization may fall flat in the real world. -3
- BPT tokens don’t include profit sharing bonuses seen in other exchange coins like Binance. -1
- Even though there are numerous exchanges, crypto investing is absolutely massive and is continuing to grow in popularity. There’s room for several success stories. +5
- Blockport’s partnerships with Deloitte and Ark will give them strong community, technological, and business support. These established companies want to see them succeed. +4
- The most common theme I’ve noticed on trading forums is people asking for advice on which coins to invest in. Blockport’s social trading has huge upside potential if it can convert this interest to the platform. +3
- Blockport already had a successful pre-sale that hit its goal in minutes. That’s a strong sign. +1
That gives us a +6.5 out of 10 for Blockport – pretty good. The biggest risk involved with this ICO is the stage that the company is at. Without a working product and established user base, it’s hard to tell how successful they’ll be.
Fortunately, Blockport has formed strong partnerships and has seen success (albeit in a limited fashion) so far. If the team continues to hit milestones and deliver on what they’ve promised, Blockport could be a serious competitor to Coinbase.
As always, you should do your own research and read their whitepaper before making any investment decisions.
The Blockport ICO crowdsale will begin on February 1st and end on February 28th. To participate, you first need to get whitelisted by registering here.