ICO Analysis: Gigzi Black

The speculative market of cryptocurrencies is rightly called the wild-west of financial assets, thanks to its high volatility. For instance, Bitcoin, the most well-known and top cryptocurrency by its market cap has lost almost 70% of its value since the beginning of the year, from $20,000 to about $6,000. The case does not look better when it comes down to altcoins as well since most are 80%-85% down from their ATH.

Thus, many projects are being launched to solve this volatility problem when it comes to cryptowealth management. USD Tether (USDT) and TrueUSD (TUSD) are the most popular crypto answers to volatility and are pegged to the value of the United States dollar. Although most stable coins are pegged to fiat currencies, others are pegged to precious metals, given that the precious metals market is one of the world’s most established markets and they are usually accepted to be a safe haven in times of volatility and economic breakdowns.

Gigzi essentially is a platform for stable cryptocurrencies pegged to precious metals such as gold, silver, and platinum. It consists of Gigzi Black, metal currencies, a wallet, an exchange, and a treasury.

  • Gigzi Black: Gigzi Black (GBZ) owners are incentivized to hold their tokens as at the end of 90 day rewards cycles, 60% of transaction fees collected in GBZ, GZP and GZS will be proportionally distributed to GBZ holders.
  • Metal currencies: Gigzi offers a wide selection of currencies pegged to the international price of precious metals: Gigzi Gold (GZG), Gigzi Silver (GZS) and Gigzi Platinum (GZP). The proportion of transaction fees to be distributed to GBZ holders are converted to and stored as GZG. One Gigzi Metal currency is equal to 1 gram of its respective metal and they are redeemable on demand. These precious metals which have a purity of 99.99% are sourced from the Perth Mint of Western Australia, an established worldly known organization. It should be noted that as the Perth Mint does not cast Platinum bars, any demand for them will be converted to Gold or Silver bars.
  • Treasury: The presence of a treasury enables the Gigzi platform to hold and redeem precious metals in return for Gigzi Metal currencies.

Gigzi’s partnership with IriTech allows platform users to have enhanced security thanks to a biometric security device called Gigzi Iris. This hardware iris scanning device will store the owner’s iris and its data will be used for the authentication of transactions and gaining access to accounts. The wallet with 1st generation Gigzi Iris biometric security options will be available from Q1 2019.

Token

Gigzi Black (GZB) owners will have the opportunity to be proportionally redistributed 60% of transaction fees, which are determined to be 0.2% of any transaction, in the platform at the end of 90 day rewards cycles. The remaining 40% of transaction fees will be retained by Gigzi S.A. (the company behind the project).

In the on-going sale, a bonus of 45% is offered for investments over 1600 ETH, 30% for investments over 531 ETH. A juicy bonus of 15% is available to anyone as no minimum amount of investment is set as of the time of writing.

The initial total supply of GZB is 1,000,000,000 tokens with the following token distribution:

  1. 10% crowdsale by smart contract
  2. 90% natural economic growth

The team is planning to use the token sale proceeds as follows.

  1. 75% development team
  2. 25% reserves

Team

Fahad Shiltagh: Shiltagh has worked as a lead project manager at Digitas UK, a marketing and advertising company located in London.

Slava Gornostal: Gornostal was a software engineer at Samsung Ukraine.

Advisors

Daehoon Kim: Kim is the CEO of IriTech, Inc.

James Brookfield: Brookfield has been working for Costain Group PLC for almost nine years.

Partners

IriTech, Inc.: IriTech is a worldly known biometric security technology company which will provide Gigzi iris scanners to enhance user security.

The Perth Mint of Western Australia: The Perth Mint will provide precious metal bars when platform users redeem their precious metal tokens for bars.

Verdict

Below is a breakdown of the risks and growth potential of Gigzi Black.

Risks

  • The existence of projects with similar or more ambitious goals that have more extensive services. (-1.5)
  • The team does not have work experience in Fortune 500 companies while teams of similar projects do. (-2)

Growth Potential

  • Gigzi Iris, a biometric security device, is developed thanks to a partnership with IriTech. This shows how much emphasis the team puts on security. (+2.5)
  • Precious metal bars with a purity of 99.9% will be provided by the Perth Mint of Western Australia. (+1.5)
  • 60% of transaction fees will be proportionally redistributed to GZB holders at the end of 90 days rewards cycles. This is a great incentive to hold GZB tokens. (+3)

Disposition

The extreme volatility that cryptocurrencies face is one of the most important reasons that people tend to avoid crypto-investments. Bitcoin’s losing almost 60% of its value since the beginning of the year exemplifies this phenomenon the best. To provide alternative solutions for this issue, many stable cryptocurrency projects have been launched, most pegged to fiat money such as USD and Euro. A handful have chosen to take a slightly different road by pegging their currencies to precious metals which are deemed to be a safe haven in times of high volatility. Gigzi is a project that offers a wide range of precious metal cryptocurrencies with enhanced security and passive income opportunities. 60% of transaction fees in the platform are proportionally distributed to Gigzi Black (GBZ) token owners at the end of 90 days rewards cycle and creates a great incentive to hold tokens. It is also possible to convert Gigzi Gold and Gigzi Silver tokens to actual precious metal bars, casted by the trustworthy Perth Mint of Western Australia. It is a rightful worry that the team has not experienced the highest level of business in Fortune 500 companies, yet the team has been working on the project since 2016 and unless they decide to shut the project down completely , these precious metal tokens will offer price stability and wealth management even if there is very little demand for Gigli Black tokens. Gigzi Black receives a 3.5/10.

Investment Details

  • Type: ERC20 – Utility
  • Symbol: GZB
  • Platform: Ethereum
  • Crowdsale: Unspecified
  • Minimum Investment: $0
  • Price: 0.0025 ETH
  • Hard Cap: 250,000 ETH
  • Payments Accepted: ETH.Restricted from Participating: Unspecified

For More Information

Featured image courtesy of Shutterstock. 

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