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ICO Analysis: Coinvest

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As more and more asset managers begin to allocate a portion of their portfolio to cryptocurrencies, they’ll be seeking risk-adjusted returns from a diversified basket of tokens. However, the current index funds that are available may not be what they are looking for. This is because many asset managers are constrained by mandates and risk-controls, so the current landscape of index fund offerings may not be suitable for their given parameters.

Looking to capitalize on this emerging problem, Coinvest is creating a platform that allows both asset managers and individuals to create customized index funds. Additionally, the company is creating a single-token trading system that allows users to trade a variety of cryptocurrencies through a single token.

Token

The Coinvest token (COIN) will be implemented using the Ethereum ERC20. COIN holders generate value from the token as a “unit of account, record of investment, means of exchange, network access token, and store of value” on the Coinvest platform. With COIN tokens, holders can: buy and sell cryptonized assets, create an index fund, edit and rebalance that index fund, and close that index fund.

According to the white paper, 50% of the funds raised will go towards the company’s secondary reserve (a supply of unused cryptonized assets), 30% towards development, 10% towards marketing, and the remainder of the pot (10%) towards operations, administrative, and legal.

COIN tokens are valued at US$700 per 1,100 COIN. A hard cap of US$30 million is in place for the crowdsale.

The company intends to launch an exchange that will “support the purchase of COIN with fiat currency” directly through the Coinvest platform.

Team

Coinvest’s core team consists of two IT veterans, three senior professionals and seven engineers/developers. As compared with the majority of ICOs, Coinvest has a solid tech team that is well above average.

The company’s CEO, Damon Nam, was previously a 16 year IT services veteran at tech-behemoth Microsoft. Damon was most recently Microsoft’s US Services Partner Program Director, in which he managed approximately 75 partnerships translating to a total book of business over $90 million in revenue. The company’s technology director, Byron Levels, has over two decades of experience in the IT sector and has worked for companies such as: Microsoft, AT&T and American Airlines.

The company’s advisory board consists of two heavyweights: Tony Scott and Peter Cashmore. Tony has been the CIO of VMware, Microsoft and the Walt Disney Company. Additionally, he served as the third US Federal Chief Information Officer. Peter is the founder and CEO of Mashable – a global, multi-platform media and entertainment company.

Verdict

Coinvest presents a highly speculative buying opportunity for investors interested in long-term capital appreciation.  

The premise of being able to create a customized crypto index fund through one coin is compelling. Indexes typically have higher risk-adjusted returns than sole investments in individual assets (in this case, individual cryptocurrencies). This is because index funds create broader market exposure that allows investors to diversify risk – this is strongly needed since cryptocurrencies are highly volatile.

Additionally, Coinvest’s platform creates an ease-of-use for trading activity by simplifying the buy and sell orders of various cryptocurrencies. By using one token to trade various cryptocurrencies, users can centrally manage and track their P&L statements in real-time. With over 1,300 cryptocurrencies currently in the market (and growing), a single-token system to trade is becoming near-term a necessity.

Risks

Cybersecurity is the biggest risk to a new exchange. Cryptocurrency exchanges around the world have been subject to a myriad of hacking and fraud attacks. Poor security and lack of investor protection could mean millions of dollars in lost cryptocurrencies if hackers targeted the company. -2

Technological dysfunction could lead to network latency issues that hamper the profitability of trading. During the initial stages of Coinvest’s launch, low-latency will likely not exist. Therefore, traders will incur additional transaction costs than what is currently being marketed. -0.5

Coinvest’s core team has a lack of capital markets experience – lack of domain expertise could lead to a variety of functional issues. Beyond latency issues, traders will also have counterparty risk in the form of a) faulty software and b) misappropriation of funds. -0.5

Growth Opportunities

Scale in user base growth would have a positive effect on the price of COIN – the primary metric for tracking growth would be daily active users (DAUs). As DAUs and retention increases, the rising demand for COIN (coupled with a relatively fixed supply) would equate to upward price pressure on the token. +4

Increases in the frequency of trading would also have a positive effect on the price of COIN. As cryptocurrencies continue to go mainstream and adopt more users that actively trade, COIN will be a significant beneficiary. The ease of using one coin to trade multiple cryptocurrencies will likely be attractive to a large volume of future adopters. +3

Coinvest offer the ability to create customized index funds – this will likely be a strong selling point for the asset management industry. Wealth managers will be able to create an index (basket of cryptocurrencies) to trade on behalf of clients that meets their exact needs (risk tolerance profile). Institutional investors will also be able to hold diversified positions in cryptocurrencies using Coinvest’s platform without the need to hold each token directly (thereby reducing downside risk and liquidity traps). +3

Disposition

While Coinvest has some risks that need to be addressed (particularly: cybersecurity and transaction costs), the vision for the company is strong and focused. The company’s vision of creating a single-token platform that’s capable of trading a basket of cryptocurrencies is highly useful and needed. While there are already other companies that offer index funds, Coinvest’s value proposition is that any individual or asset manager could create a customized index fund – they get to choose which tokens they have exposure to.

As the cryptocurrency market continues to grow, more efficient means (a sing-token platform) to trade a variety of tokens will become a necessity. Even though Coinvest has yet to launch their platform, the product they offer will be highly valuable (provided they can fully develop the technology and execute their plans).

Against this backdrop, we believe that a score of 7 out of 10 is warranted.

Investment Details:

  • Type: Crowdsale
  • Symbol: COIN
  • Pre-Sale: January 2018
  • Public Sale: Q1 2018
  • Payments Accepted: ETH

Disclaimer: no position in Coinvest at the time of writing.

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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7 Comments

  1. demetrist

    January 22, 2018 at 4:35 pm

    How different is this from iconomi (https://www.iconomi.net/)?

  2. thosuperman

    January 22, 2018 at 5:27 pm

    I see its features and website just very similar to https://blockport.io/

    • scottolson

      January 22, 2018 at 8:53 pm

      Yes, but Blockport looks more advanced and has very amazing functionality than the coinvest, and the price is cheaper

  3. jimmywh

    January 23, 2018 at 6:36 am

    Hey.

    Thanks for the great preview of Coinvest. However, I am a bit annoyed that it lands long after whitelist and pre-sale closure. It’s like someone finding the cure for cancer 2 hours past your spouses death from the same.

    Not to call Coinvest the cure for cancer, but it’s a good ICO I wish I had heard of earlier.

  4. Hendrikm083

    January 24, 2018 at 11:13 pm

    Please could you post the web address where we will be able to sign up for this ICO

  5. snow4me

    January 27, 2018 at 9:21 am

    Can US Citizens invest in this? I don’t know by reading this. How hard is it for the authors of ICO reviews to simply tell us off the bat who can invest in these ICOs?

  6. snow4me

    January 27, 2018 at 9:22 am

    i.e investment detail Who can participate? Is that too freaking much to ask?

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ICO Analysis: BitSong

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The music industry is ever-evolving alongside new technologies. Smart contracts and blockchain are currently changing it again. Over the past year, numerous music blockchain projects have come onto the scene as ambitious entrepreneurs try to get in on the action.

BitSong, is an Ethereum based project that wants to put the entire process on one platform. Music creators will stream their songs or videos, manage their fanbase and work out advertising deals all on the BitSong Platform.

According to the whitepaper:

“The BitSong Platform will be a holistic one -stop shop approach, choice is given to the user, to watch videos, stream music and have the ability to use whichever device they own to partake in Bitsong. This also permits the artist to manage their social media fanbase from one source, their Bitsong channel, thereby retaining their fans on one single decentralized music platform”

The platform allows users to do the following;

  • Upload new songs/videos and create your own music channel.
  • Sell your songs, listen to them and get donations.
  • Earn BTSG token during your plays.
  • Support the artist by making a donation through the BTSG token.
  • Listen to your songs on any TV, Smartphone or PC.
  • Sponsor your business or your songs in full autonomy.

Perhaps the coolest feature of BitSong will be how they incorporate advertisements into the platform. The user will be paid for their “User Attention,” the producer will receive earnings in real time and the advertiser will be able to optimize the campaign after viewing the reports.

Token

The BTSG token will be essential for: sponsorship, making a donation, purchasing a song, voting, buying tickets and purchasing merchandising.

Use of funds:

  • 50% Business Development and Expansion
  • 15% Technology and Logistics
  • 15% Research and Development
  • 20% Marketing and PR

Two percent the tokens were sold at a 40% discount during the pre-sale in late May.

Team

This is a rather large and spread out team. Lots of different countries involved and most of the team are former DJs/producers.

Angelo Recca: Co-Founder/CEO from Italy. LinkedIn says he has been CEO of this cloud storage company SpazioRC since 2012. Spazio has only one employee listed on LinkedIn and the twitter only has 340 followers and hasn’t been active since Novemebr 2017.

Rino Ticli: Co-Founder. The only work history listed is “DeeJay” since 2002. He doesn’t seem to be a very popular DJ/producer, either. He’s had Twitter since 2012 yet only has 800 followers that give him zero love or retweets.

Julian Anghelin: EMEA Manager. Despite typing a long and vague description of his skills, the only work history he has listed is as a publications guy for Royal Caribbean Cruises for ten months in 2016.

Giovanni Melfi: CTO and Blockchain Developer. Out of the 12 team members, he is the only developer. And it looks like he has no work history to brag about. He did describe himself on LinkedIn as follows:” Passionate about cryptocurrencies and blockchain, 2 languages speaker. Coming from an experience in software engineering and a passion for software development with some programming languages such as PHP. I participated in some group work on the robotic system, on linux programming and on StartUp Manager, and I think these experiences are the most important for professional growth.”

The website goes on to list 19 international DJs/producers that are supposed to be a part of BitSong. However, after checking all of them, only a couple ever mention BitSong. No mentions of the token sale.

The most popular is a guy named Tadeo, who gained almost 300,000 Twitter followers for being on an MTV reality show. He does not mention the BitSong crowdsale on his twitter.

Nicola Fasano is a DJ with 16,000 followers on Twitter.

Mossel is a DJ with 10,000 followers but doesn’t mention Bitsong ICO

Verdict

We usually don’t do analysis on projects that already had their pre-sale. However, after seeing these ratings, it seemed like our opinion was needed. These high scores are out of line. The only explanation is that the reviews were done a few months ago, before the bad news bears arrived to spoil everyone’s shill fest.

Nobody here expects YouTube, Spotify and record companies to just step aside while smart contract/blockchain projects move in. Said blockchain projects needs to be extra special with an extra special team in order to even stand a chance of competing.

Based on team inexperience and lack of MVP alone, this gets an unfavorable rating.

Risks

  • The team is not experienced at all in business or blockchain. -1
  • It doesn’t look like they will come close at all to reaching the hard cap. They have a large team and payroll. It’s going to take a long time for both BitSong and Ethereum to work properly. There’s a strong chance they run out of money by then -1
  • No MVP, only one blockchain developer listed on their team, plus many other small things that lead us to believe they might not be really trying to build this thing. -1
  • GitHub is not active at all. This supports the above theory. -1
  • Competition. The author has reviewed 4 different blockchain music ICOsin the last year. He ranks this one 3/4. -1

Growth Potential

  • Ambitious roadmap on page 15 of the whitepaper. +1
  • One of these blockchain music projects is going to be popular. BitSong has an outsiders chance. +1
  • The crowdsale will run for three months, ending in November. Perhaps the market will be bullish by then. +2
  • They make a really bold claim on their site about having 177,404 users. When asked who these users are, the reply was, “177,404 users interacted with our bot and registered in our wallet.” This is kinda hard to believe, but if true those type numbers will definitely help them scale. +3

“Together with our community (about 180,000 users) we want to create a special environment, a new way to hear, see and enjoy music,where every artist can be his own distributor, sponsoring it on world music channels, where clarity and transparency rule and users can be rewarded for listening and viewing advertising.”

Disposition

It’s just way too good to be true. The silver lining is that we’ve seen several projects succeed in the past with this same strategy. A brilliant whitepaper idea with no MVP, and an untested team. However, in today’s paranoid market, most investors are now needing evidence of work, not just a whitepaper and a dream. +2/10

Investment Details

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.1 stars on average, based on 23 rated postsJoshua Larson is also known as the "Bullshit Man" for his ability to spot it a mile away. Avid ICO researcher and contributor. Former professional poker player/backer. Spent 10 years analyzing hand history, stats, and player data. Discovered blockchain in late 2016, and never looked back. He now uses his analysis skills to investigate ICOs full time. What a perfect match, because in today's crazy world of ICOs, information, passion, and diligence = dollar bills!




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ICO Analysis: Hedera Hashgraph

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Hedera Hashgraph is another project in the blockchain space aiming to take blockchain to the next level: fast and ready to take on widespread usage by the mainstream as well as enterprises.

Currently, distributed ledger technology faces a number of challenges:

  1. Scalability
  2. Security
  3. Governance
  4. Stability
  5. Regulatory Compliance

Hedera Hashgraph’s team believes that only when these challenges are addressed and surmounted will mainstream markets trust blockchain enough to adopt it en masse.

With regards to the aforementioned challenges, Hedera Hashgraph aims to address them in the following ways:

  1. Performance – Hedera is built on the hashgraph distributed consensus algorithm (“hashgraph” also is used to refer to Hedera’s blockchain), invented by Hedera’s CTO and Chief Scientist Dr. Leemon Baird, who worked as a Professor of Computer Science at the US Air Force Academy and has multiple patents and publications in peer-reviewed journals. According to the Hedera Hashgraph whitepaper, the platform can handle hundreds of thousands of transactions per second in just one shard (let alone the entire network). Confirmations also happen in seconds and not minutes, hours, or days.
  2. Security – Hedera Hashgraph is secure through asynchronous Byzantine Fault Tolerance (aBFT). While other platforms are susceptible to Distributed Denial of Service (DDoS) attacks, the hashgraph platform isn’t. Moreover, aBFT provides both fair access and fair ordering for transactions on the platform. Appendix 3 of the whitepaper gives a full definition of the hashgraph algorithm and its fairness properties as well as proofs of aBFT.
  3. Governance – Hedera’s governance consists of Council Governance (management of council concerns) and Consensus Model (determining transaction consensus order).
    • Council Governance is done by an elected Governing Board that deals with council membership policy, network token regulation, and platform codebase changes. The Governing Board will consist of up to 39 leading organizations in their respective fields, bringing expertise previously lacking in past blockchain platforms.
    • Consensus Model deals with how nodes reach consensus on the platform’s order of transactions. In the Consensus Model, nodes cast one vote for each Hedera token that they own and since many nodes are expected to join the network and be compensated for maintaining the hashgraph ledger, it’s expected that Consensus Model voting privileges will be distributed amongst thousands of nodes.
  4. Stability – Hedera Hashgraph’s stability will be ensured with both technical and legal controls.
    • Technical – Hedera Hashgraph has Swirlds technology, which has the effect of protecting users of the platform from unofficial forks of the platform as well as ensuring that only software clients running the latest version are able to modify the hashgraph.
    • Legal – The Hedera Hashgraph codebase will not be open-source but be available for public review so that anyone can read the source code, recompile it, and verify its legitimacy. No licenses will be required to use the platform, write software that uses the platform, or build smart contracts on the platform. Thus, Hedera will provide a transparent codebase open to innovation so that the market can use it for its own purposes.
  5. Regulatory Compliance – Hedera has an opt-in escrow identity mechanism that gives users the choice to attach verified identities to their otherwise anonymous cryptocurrency accounts. Therefore, on the one hand, anonymous users can maintain their anonymity, and on the other, users that need to be verified for official purposes can do so without having to worry about regulatory backlash.

Token

By replacing proof-of-work consensus mechanisms with virtual voting (nodes cast one vote for each Hedera token that they own), high throughput, low fees, and micropayments are all made possible.

DApp developers on the network will use Hedera tokens to pay for network services like processing transactions, executing smart contracts, and storing files.

As mentioned earlier in the analysis, anyone running a node will earn Hedera tokens for doing so. The amount they earn is proportional to the amount of Hedera tokens they stake in one or more accounts for which they have the private keys. (This stake is also used to weight their votes in the Consensus Model). However, users are still able to spend their stake at any time – though of course spending some of the stake means receiving less rewards for running a node.

Users who don’t want to run a node (e.g. not wanting to invest in computing resources and/or the maintenance of them) can “proxy stake” Hedera to someone else’s node. This means that the user with no node gives a node “credit” for their stake and splits ledger maintenance awards with the node that they credit with their stake. (The ratio of the split is negotiated between the two parties). Proxy stake funds are in control of the proxy staker, who can spend the stake at any time, turn off the stake, or even redirect the proxy stake to another node.

As mentioned, fees are low, but they do exist. There are node fees, service fees, and transaction fees:

  • Node fees – a platform user can use platform services (e.g. transferring crypto from one account to another) by contacting a node, which submits the user’s transactions. The platform user pays a fee, negotiated between the user and the node, to the node for its service.
  • Service fees – users that use platform services (e.g. storing a file in the hashgraph) without going through a node pay a service fee.
  • Transaction fees – transactions handled by the network incur a fee to cover the associated costs of nodes exchanging data about the transactions, temporarily storing them in memory, and calculating consensus on the events containing them.

Token distribution is “expected” (taken from the Hedera Hashgraph crowdsale FAQ – “What is the token distribution?” section) to be as follows.

  • 65% Hedera Council Treasury
  • 17% management and employees
  • 13% SAFT purchasers and developers
  • 5% Swirlds

Hedera has already raised $100m in funding from institutional and high net worth investors and is currently conducting an accredited investor crowdsale ($20m target).

Accredited investor verification (whitelisting) will stop when $20m in funding is reached or August 15th, whichever comes first.

Token price and token release schedule for both first round and accredited investor round are the same:

  • Option A: $0.12 per token. 20% of tokens issued six months after network launch, with the rest vested in 10% installments over 8 months.
  • Option B: $0.096 per token. 20% of tokens issued six months after network launch, with the rest vested in 20% installments over the subsequent 4 years.

The majority of founder tokens are vested in 4 to 6 years.

If all funding goals are met, the project will start with a $360m market capitalization (based on expected circulating supply on day of token release).

Total token supply is fifty billion.

The offering is a Simple Agreement for Future Tokens (SAFT) in accordance with SEC regulations and there will be no ICO.

Minimum contribution is $1,000, and maximum contribution per person is $250,000. However, investors who want to invest >$250,000 can email saft@hashgraph.com (?), according to the Hedera Hashgraph crowdsale FAQ, which is confusing.

All raised funds will be used to grow the platform (engineering, sales, marketing, developer advocacy, community development, legal, etc).

Team

Co-Founder, CTO, and Chief Scientist Leemon Baird – Baird invented the hashgraph consensus algorithm, has worked as a Professor of Computer Science at the US Air Force Academy, has a PhD in Computer Science from Carnegie Mellon University, and has many patents and publications in peer-reviewed journals and conferences in the fields of computer security, mathematics, and machine learning.

Co-Founder and CEO Mance Harmon – Harmon also has an Air Force background as former Course Director for Cybersecurity. He was also Program Manager of a large-scale software program for the US Department of Defense’s Missile Defense Agency and senior executive for product security of an unnamed $1.7b revenue organization.

President Tom Trowbridge – Trowbridge is President of the Hedera Hashgraph Council and has a strong finance background, having started and ran the New York Office of UK-based Odey Asset Management. He also has held positions at Goldman Sachs, Lombard Odier, Atticus Capital, Bear, Stearns & Co., and telecom and media private equity firm Alta Communications, where he was responsible for 10 deals.

Verdict

Below is a breakdown of the risks and growth potential of Hedera Hashgraph.

Risks

  • Very bold claims but no working product (-1)
  • High hard cap and initial valuation but other projects that have done well have had the same (though uncommon) (-0.5)
  • Similar to EOS – bold claims, no working product, lots of hype – except the EOS team probably had a more relevant background (CTO Dan Larimer was behind popular and proven projects like Bitshares and Steemit) (-0.5)

Growth Potential

  • A lot of hype (e.g. large Meetup community) (+4)
  • Some DApps have already committed to the platform, and many developers are interested in the platform (e.g. their developer – not general public – Discord channel has nearly 5,000 members as of writing) (+4)

Disposition

  • Hedera Hashgraph promises to pack quite the punch similar to projects like EOS. The hype is definitely there, but can the team deliver?
  • Hedera Hashgraph receives a 6/10.

Investment Details

  • Type: Native – Utility
  • Symbol: Unspecified
  • Platform: Native
  • Crowdsale: Ongoing
  • Minimum Investment: $1,000
  • Price: $0.096 or $0.12
  • Hard Cap: $120m (institutional round and accredited investor round combined)
  • Payments Accepted: BTC and USD (via wire transfer) – can’t mix BTC/USD to pay for one SAFT (but can purchase two SAFTs separately using BTC for one and USD for the other)
  • Restricted from Participating: The SAFT is being offered to accredited investors in 63 countries. (Anyone from a country NOT on the following list is restricted from participating). The countries are: Andorra, Argentina, Australia, Austria, Belgium, Bermuda, Brazil, Virgin Islands (British), Bulgaria, Canada, Cayman Islands, Croatia, Cyprus, Czech Republic, Denmark, El Salvador, Estonia, Finland, France, Germany, Gibraltar, Greece, Guatemala, Honduras, Hong Kong, Iceland, India, Republic of Ireland, Isle of Man, Israel, Italy, Jamaica, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Mexico, Moldova, Netherlands, New Zealand, Nicaragua, Nigeria, Norway, Panama, Poland, Portugal, Puerto Rico, Romania, Saudi Arabia, Singapore, Slovakia, Slovenia, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, United Arab Emirates, United Kingdom, United States.

For More Information

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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ICO Analysis: Emotiq

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Who will become the most scalable blockchain ready for mainstream adoption?

Emotiq is yet another contender in the “next-generation blockchain” space that claims powerful scalability and privacy while making smart contracts easier and more accessible.

In their own words, they want to be the Apple of blockchain vs. other blockchains, which are more like Android and Windows (don’t shoot the messenger). Emotiq is developing a blockchain interface so friendly and natural that even kids will be able to use it! Quite the claim when you consider that most adults can’t currently use blockchain!

Emotiq’s smart contracts are written in Ring, a plain English programming language that’s as easy as reading the news. Not only does Emotiq offer an easy way to read and write smart contracts, but it will also support most Ethereum smart contracts (written in Solidity).

Emotiq is aiming at processing 1 million transactions per second, using zero-knowledge proofs for transaction privacy, and scaling through sharding. Secure cryptographic purging of spent transactions will ensure that Emotiq’s blockchain stays small and manageable.

Emotiq, like other similar projects, will allow for ICOs and DApps. Also, it will feature a decentralized exchange.

In essence, Emotiq wants to be the next Ethereum or Stellar but scalable, private, and accessible.

Token

There will be 1 billion total Emotiq (EMTQ), which will be distributed as follows.

  • 51.3% token sale
  • 16.7% development
  • 10% marketing and ecosystem
  • 10% reserve
  • 10% team
  • 2% advisors and backers

EMTQ is deflationary (max token supply decreases over time). A fixed percentage of yearly transaction fees will be burned. This will be done to increase the value of EMTQ and also to help prevent attacks on the EMTQ network.

In terms of its usage, Emotiq’s FAQ page says that EMTQ will be used the same way that ETH is used for Ethereum. In other words, we can expect EMTQ to be used to pay for resource consumption (sending payments, paying for services, creating child tokens/launching ICOs, etc.) on the Emotiq network.

There will be no public sale but Emotiq is currently in its third round of private sale (4 rounds total). If you are interested in participating in the private sale, contact sales@emotiq.ch with information about you / your fund, allocation you are interested in, and how you can help Emotiq grow.

Here are the details of private sale rounds and seed round thus far:

  • Seed – 150m EMTQ (15% of max supply), $2m cap, 100% lockup – linear release beginning 3 months after mainnet launch (12.5% per month)
  • Private round 1 – 140m EMTQ (14% of max supply), $9.8m cap, 50% released and 50% lockup – locked up tokens are released linearly starting 1 month after mainnet launch (20% each month)
  • Private round 2 – 60m EMTQ (6% of max supply), $6m cap, 70% released and 30% lockup – locked up tokens are released linearly starting 1 month after mainnet launch (33.3% per month)
  • Private round 3 (ongoing) – 139m EMTQ (13.9% of max supply), $18m cap, 75% released and 25% lockup – locked up tokens are released linearly starting 1 month after mainnet launch (33.3% per month)
  • Private round 4 – 23.5m EMTQ (2.35% of max supply), $3.2m cap, no lockup

Private sale inquirers who are deemed qualified will receive further details about past rounds, such as price.

Token sale proceeds will be used to do things like expand the Emotiq ecosystem through educational programs, build a top-notch research team, explore different smart contract languages for their ability to accelerate mass adoption, and provide venture funding for Emotiq-based projects.

Team

Emotiq is led by CEO Joel Reymont, who has 25 years of experience in technology and management. For example, he was Director of Prime Brokerage Technology at Deutsche Bank and CTO of Aeternity, another popular blockchain project.

Ann Soederblom, VP of Marketing – Soederblom has worked as a project manager for multinational companies like Citigroup and Holcim (8th largest Swiss company by revenue) and also runs her own marketing agency.

Vladimir Lebedev, VP of Engineering – Lebedev has an impressive background, having served as CTO of the Russian stock exchange, executive at VEON (telecoms company with more than 200m subscribers), executive at Mail.Ru group (biggest Russian Internet media company), and executive at Sberbank (biggest Eastern European bank).

Verdict

Below is a breakdown of the risks and growth potential of Emotiq.

Risks

  • Bold claims (1m transactions per second and so on) but no mainnet (launch “expected” end of Q4 2018) or even testnet yet (-0.5)
  • Some tokens released after mainnet launch – what if there are problems with launch? Has happened before (-0.5)
  • Lacking in hype thus far (-0.5)

Growth Potential

  • Decently experienced team (+4)
  • Based in “Crypto Valley” (Zug, Switzerland) – favorable regulatory environment and good ecosystem to be a part of (similar to how being a tech company in Silicon Valley means proximity to leading members of the tech community) (+3)

Disposition

Though Emotiq’s ambitions are bold and they have a strong team and favorable working environment (Crypto Valley), their ambitions are as of yet unsubstantiated and hype regarding the project is – to date – lackluster.

Emotiq receives a 5.5/10.

Investment Details

  • Type: Native – Utility
  • Symbol: EMTQ
  • Platform: Native
  • Crowdsale: Private sale ongoing
  • Minimum Investment: $100k
  • Price: Contact sales@emotiq.ch for more info
  • Hard Cap: $39m
  • Payments Accepted: ETH
  • Restricted from Participating: Iran, Sudan, Libya, Syria, North Korea and the rest of the countries on the US sanction list are restricted from participating. Accredited investors from the US are allowed to participate.

For More Information

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Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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