ICO Analysis: COTI

Supported by a native digital currency, Currency of the Internet (COTI) is a payments transaction network created to be used as an alternative to traditional payment systems like Visa, Mastercard, and PayPal. COTI is a currency and a payment platform designed to be simple, transparent, trustworthy, instant and scalable for global commerce. COTI is creating a scalable and blockless protocol (Trustchain Protocol) that can be utilized by any industry that has need of high throughput and trust to operate. Based on a directed acyclic graph (DAG) data structure, COTI’s distributed ledger will allow 10,000+ transactions per second.

COTI consists of an innovative trust mechanism, decentralized mediation system, multi-currency wallet (Fiat and Crypto) and native currency exchange. The driver of the COTI ecosystem will be the COTI token. COTI network users will have the following benefits: a robust Trust Scoring Engine, a decentralized Mediation System, full buyer-seller protections and low-to-zero fees.

Without compromising COTI’s commitment to scalability, instantaneity and low-to-zero fees, the DAG data structure will enable COTI network’s base layer protocol to achieve full decentralization. COTI will use an innovative DAG-based distributed ledger technology that will use Trust Scores as the key mechanism by which new, unconfirmed transactions select prior transactions to validate. The Cluster, which is COTI’s DAG-based distributed ledger technology, uses COTI’s Trust Chain Algorithm to reach faster consensus when confirming transactions. Scalability is achieved through the use of parallel source selection and transaction confirmations, as well as COTI’s Trust Scoring Mechanism. The Cluster will be able to eventually validate up to 10,000 transactions per second (TPS).

Free space will be set aside in COTI’s transaction bundles for future information layers to be stored. Companies will be able to use these layers to run information based on the cluster, deploy smart contracts, or transfer other currencies and datasets across the network.

The COTI Wallet

COTI users will be able to make instant, secure transfers to anyone who holds a COTI wallet. Transfers will be instant with low-to-zero fees. Using their COTI wallets, users can transfer funds from one currency to another by posting market or limit orders on COTI’s exchange. The currencies supported at the outset will include USD, EUR, GBP, and several leading digital currencies, including COTI tokens. Without having to withdraw their holdings from their COTI wallets, users will be able to pay/receive funds in whichever currencies they choose, regardless of their counterparties’ preferred currencies.

Debit Cards

To connect the COTI network with other payment rails, COTI users will be offered access to debit cards that link directly to their COTI wallets. The cards will allow payments from users’ COTI wallets even when dealing with companies that haven’t integrated with COTI. The card-linked currency, through use of COTI’s exchange, will automatically convert to the purchase currency which will mitigate third-party currency exchange fees.

COTI consumer benefits include:

  • Buyer-seller protections
  • Instant payments
  • Simple peer-to-peer (P2P) payments
  • Personal details aren’t given to merchants

COTI merchant benefits include:

  • Low-to-zero fees translate to higher profits
  • Increased cash flow due to instant settlements
  • Reduction in unnecessarily declined transactions (false positives)
  • Equitable chargeback mechanism
  • Micropayment processing
  • A secure and private payment network
  • Full KYC and AML regulation

Token

COTI tokens will initially be issued as ERC-20 tokens until the launch of the COTI main net, at which time the tokens will be converted to COTI native tokens on the COTI network transaction ledger. Consumers, merchants, mediators and node operators will use COTI tokens for all interactions. COTI tokens will serve as the common denominator of payments, fees, and mediation and incentivize node operators in the COTI network.

The ico price will be 1 COTI = $0.10 USD with a total supply of 2,000,000,000 COTI. 30% of tokens are available for purchase with a hard cap of $30,000,000 USD.

Token Distribution is as follows:

  • 30% Token Sale
  • 22% Reserve
  • 15% Team (Vested 2 years)
  • 10% Backers, Partners, Advisors (6 – 24 month lock-up)
  • 13% Incentive Program
  • 10% Liquidity

Team

The COTI team consists of over 30 members with experience and expertise in financial services, payments, software engineering and cryptography. A few members of the executive team include:

Shahaf Bar-Geffen – CEO

  • CoFounder & Director – Maple
  • Co-Founder & Director – Positive Mobile
  • Co-Founder & CEO – WEB3

David Assaraf – COO

  • Former Chief Internal Auditor – HSBC

Dr. Nir Haloani – CTO

  • Co-Founder & CTO – Articoolo Research
  • Former head of research of Real-Time Compression – IBM

Yair Lavi – CFO

  • Former CEO & Finance Director – Plus500

COTI also lists an impressive total of 17 advisors including Dr. Matt McBrady (CIO of BlackRock), Greg Kidd (CEO of globaliD, former CRO of Ripple Labs), and Theofanis Alexoudas, Ph.D. (Senior Advisor for McKinsey & Company, former Firmwide Market Risk for J.P. Morgan).

Verdict

Mass adoption is a major key to COTI’s success and by partnering with processing.com, the companyis on track to provide its payment services to individuals and merchants globally, with over 10,000 merchants in the process, ready to accept COTI as a valid form of payment. If implemented successfully, COTI could quickly become a major player in this space.

Risks

  • Although the idea, whitepaper, and team are impressive, the end product will ultimately decide the success or failure of this project and the alpha net launch (MVP) isn’t scheduled until Q3 2018. -1
  • There will be major competition such as Visa, MasterCard, PayPal as well as other blockchain players already within the cryptocurrency space. -1
  • Token metrics such as the hard cap, percentage of tokens available during the token sale, team tokens, etc. are important to ICO investors. Overall, the COTI token metrics receive a thumbs up. However, the $30 million USD hard cap is slightly on the high side in today’s market. -0.5

Growth Potential

  • ICOs with partnerships tend to do well in the current market. COTI has aggressively focused on and developed strategic partnerships with companies such as Bancor, Processing.com, Stox, Wings, Transact Europe, GlobaliD and WEB3. +3
  • Not only is COTI providing a means of digital currency for payments, it is also providing a native wallet and a native currency exchange which will make transactions easier and simpler by providing these products/services together. +2.25
  • Although facing fierce competition with other online payment companies, COTI has tremendous potential if able to attain only a small fraction of this massive and growing industry. +2.75
  • Fair or not, speculation and hype play a major part in today’s ICO market. COTI has implemented an excellent marketing strategy encouraging community involvement and building hype with currently over 18,000 followers on Twitter and over 40,000 members on Telegram. +2

Disposition

Aiming to be the “Visa” of blockchain, the vision and ambitions of COTI are lofty and bold, to say the least. However, if successful, COTI could be another breakout ico of 2018. COTI receives a rating of 7.5/10.

Investment Details

  • Symbol: COTI
  • Platform: Ethereum
  • Price: 1 COTI = $0.10 USD
  • Hard Cap: $30M USD
  • Total Supply: 2 Billion COTI
  • Available for Purchase: 30%
  • Public Sale: TBA

For more information regarding Coti:
Website: https://coti.io/
Telegram: https://t.me/COTInetwork
Twitter: https://twitter.com/COTInetwork
Medium: https://medium.com/cotinetwork
Facebook: https://www.facebook.com/COTInetwork
Reddit: https://www.reddit.com/r/cotinetwork/
YouTube: https://www.youtube.com/channel/UCl-2YzhaPnouvBtotKuM4DA/

Author:
Kent - Co-Founder of CryptoMarketBeat.com, where we are building Pro Crypto Analysis Tools and share crypto related investment info.