ICO Analysis: ICOBOX (ICOS)
Continuing our series of ICOs which are geared toward ICOs (or meta-ICOs, as this author likes to call them), today we review the ICOBOX ICO. ICOBOX, as you may know, is an Eastern European shop which will set up a company with an ICO from start to finish for between one and two hundred thousand dollars at current prices of Bitcoin. They say they have successfully created 10 ICOs so far. For obvious reasons, they don’t list the ICOs they have worked on to date, but we happen to know that the Paragon ICO associates itself with ICOBOX for some reason.
The purpose of the ICOS token is to democratize and crowdify the selection of ICO projects at ICOBOX. Basically what they’re offering is the opportunity to vote on start-ups which will be launched through the ICOBOX platform. The other major benefit is that you will be able to exchange the ICOS token for tokens generated in ICOs offered on ICOBOX.
When a new project launches its presale, a set amount of its tokens is placed on ICOS platform where ICOS token holders may exchange their ICOS tokens for such new ICO project’s tokens. The more ICOS tokens their holders exchange the less ICOS tokens and votes they retain. The exchange rate is fixed at the end of ICOS sale and does not vary from project to project or from day to day of any ongoing new ICO. […] At their standard price of 0.01 BTC, ICOS tokens are exchangeable for other projects’ tokens at an average rate of 1:4 in value. Essentially, this means that on average ICOS token holders get new projects’ tokens at a 75% discount.
That’s the long and short of what you can do with the ICOS token. If you believe that ICOBOX is going to be a premier launcher of ICOs in the future, you can have some influence on what projects come to the fore. You also then get roughly a 75% discount on tokens in any ICOs you are interested in, but in order to retain your voting power you are disincentivized to do so.
Projects which get a passing vote from the token holders will not have to pay a fee for the surfaces. This is non-material to the token holder since they do not derive any part of ICOBOX’s profits in the first place. In one respect, the ICOS token is a way for start-ups with lots of merit but not money to get hold of ICOBOX services for free, and potentially have a better launch.
ICOBox is an SaaS (software as a service) product in which all standard ICO elements are automated and simplified, and although the project team is directly involved in the launching of the offering, the entire ICO process is directed by experts in each of the respective ICO component fields. Such format produces the shortest project launch time and the lowest cost, and the customers no longer need to wait for an external agency to take on their project.
The ICOBOX Offer
ICOBOX is made up of mostly marketers and programmers who can write Ethereum smart contracts as well as audit and improve them. They offer start-ups the ability to transcend the muck and mire of gaining traction in a market that is cryptic as all get out for newcomers, pun intended.
This arrangement allows prospective ICO projects to conduct their own ICO paying with their future tokens, and do it at high quality and efficiency (starting at 2 weeks from the date of application to the date of PR campaign start, due to standardization and automation of processes). ICOS token holders can receive tokens of quality projects they selected at an average discount of 75%. The market gets hundreds of great projects screened by the ICOBox experts, selected by ICOS token holders and implemented by the new ICO projects using ICOBox’s tools and guidance.
If Paragon was created with the help of ICOBOX, then we can say that the package appears to be all-inclusive.
Are ICOs A Fad?
When considering the longevity of a project like ICOBOX, one has to consider the market parameters they operate in. Currently there is massive interest in initial coin offerings and everything related to cryptocurrencies. Unfortunately we have seen this before. In 2013, when the price of Bitcoin reached $1000 for the first time, lots, and lots, and lots of altcoins were created. Some had pre-mines and pre-sales of pre-mined tokens and these were called initial coin offerings. The advent of the Counterparty and Ethereum platforms have made tokenization a much more streamlined process than creating an entirely new blockchain.
If ICOs slow down or are less interesting for most people in the near future, then the potential value of the ICOS token will slow down as well. Remember, its real utility is in its ability to increase your buying power on projects that others won’t even have heard about yet. It gives you the opportunity to be on the ground floor, but you have to first commit to the idea that that is a floor you want to be on.
Every industry needs services for businesses and consumers to properly interact with said industry. It may seem a bit myopic to say that there are simply too many services for the niche market of ICO start-ups, given that the market is in the billions upon billions of capital raised and committed, but it does seem obvious that ICOs are a niche enterprise.
The ICOS token appears to be a life raft the ICOBOX team are trying to throw out for when things do slow down. They’ll have funding from everyday people who want to take part in voting on platforms and get early opportunities. This is a suspicion of the author and is not fleshed out anywhere in ICOBOX’s documentation. Yet, truly, the ICOS token offering appears to be a way for ICOBOX to diversify.
ICOBOX is generating their tokens a little different from the usual manner. Instead of a fixed supply from which they deduct a certain amount for themselves and others, they are allowing for as many tokens to be created as people want to buy. The cost of the ICOS token is .01-.012 (more under “Investment Details”) BTC each, or about $40 at time of writing. For every 100 tokens they sell, ICOBOX will generate another 20 to be distributed to “partners, advisors, bounty participants, and the team members.” Until yesterday there were discounts of up to .002 BTC for each ICOS token, if you were purchasing a sizable amount.
Things get interesting when you consider that they are accepting multiple currencies – BTC, ETH, LTC, DASH, Zcash, and USD. This means that contributions aren’t being tracked on a smart contract, and often invites problems of token redemption. It also provides a measure of opacity as to the final result. We have to keep in mind that no token holder is likely to have physical access to any of the parties involved, and so on. In short: people who buy this token are putting a lot of faith in the people they’re buying it from to actually deliver the token, let alone the rest.
In the short-term, as long as ICOs are booming, the ICOS token can be a very powerful addition to any trading toolkit. It enables the trader to have advantages over those on the open market, but in our community this inherently carries its own risk: there is a good chance traders in other exchanges will simply refuse to pay more than 25% of the opening price on ICOs launched through the platform. The ICOBOX name could become more of a millstone.
Given all that we understand, we are prepared to offer two separate numerical ratings for the ICOS token.
First, if you are a short-term trader who is active in the ICO space, we call this a 7.0 for you. We think your odds of profiting by the token in the short-term are pretty good, and imagine you would get most of your value returned in the form of tokens from projects within the ICOBOX platform.
Secondly, if you are a regular crypto enthusiast or someone looking for long-term growth products, then ICOS is probably not for you. It has a shelf life directly tied to the ICO craze, whereas many ICOs have longevity based on their actual function and utility. Thus, if you just took a gamble and bought a few tokens and did nothing with them, we can imagine small gains, but nothing like you would realize (.01BTC being the starting price) if you used the tokens for their intended purpose. So, for you, we call this a 4.0.
Until the 17th of August the price of each token is .01BTC. On August 17th at 12PM UTC, the price goes up by .001BTC. It remains there until September 1st at which point it increases to .012 and stays there until September 15th. You have to buy at least one ICOS token. You need to create an account at https://tokensale.icobox.io/users/sign_up in order to invest – please be very careful in so doing.