ICO Analysis: iCumulate

iCumulate is a multifunctional social trading platform, which aims to make trading cryptocurrencies easier for the casual investor. Based on Ethereum, iCumulate will give traders all of the tools and information needed to build their own fiat product and crypto asset portfolios, without any of the negatives that come with owning the underlying asset tokens.

The iCumulate platform provides a simpler way to buy, store, and trade crypto. A one-stop spot for amateurs, professionals and content creators to interact.

From the company:

“Investable talent exists in all geographies and demographics, but needs an open environment to expand and flourish. New investors need access to the right tools and information to be able to make informed decisions whilst skilled contributors need to be compensated fairly and transparently to stay motivated. Social investing brings like minded people together in one place to share thoughts and ideas. iCumulate will enable these investors to research, share and execute these ideas in a secure, transparent and immutable way using Blockchain technology.”

The performance of iCumulate platform’s user portfolios will be monitored and displayed using industry standard analysis and performance metrics. The user can choose if they want their portfolio displayed. If they chose to display they become “ICU Managers”. ICU Managers will be ranked, and platform users will be able to follow them. For a fee, these users can configure a portion of their own portfolio to automatically copy the ICU Managers real-time trades. This means they will return the same performance as their Manager, without having to do any of the work. The pro traders who are followed, are compensated “fairly and automatically”.

iCumulate plans to provide the first 6 portfolios which are eligible for users to follow:

  • Active Bitcoin portfolio
  • Active Ethereum portfolio
  • Trend following portfolio
  • Top 10 crypto portfolio
  • Social top ICU Manager’s portfolio
  • Index portfolio

A major highlight of the platform, the Price Matching Engine, allows users to seamlessly transact between fiat, crypto, and commodities. It unlocks access to the liquidity of multiple exchanges and hundreds of crypto, fiat and hybrid products via iCumulates’ synthetic pair creation interface.

See pages 5-11 of the whitepaper for all the tech.

Token

The iCumulate token (ICU) is a utility token and will serve many functions on the platform and become an intrinsic part of the trading and investing ecosystem. Holding or spending tokens on the platform creates many benefits:

  • Purchase other tokens to build a portfolio.
  • Become an ICU Manager. Receive management and performance fees.
  • Become a content contributor and market your own reports, trade signals, and market analysis.
  • “Ability to take delivery of the underlying crypto assets”
  • Ability to receive interest on your “lock and lend” crypto assets
  • Enter in prize competitions
  • Access advanced platform features

Distribution:

  • 6.73% Platform liquidity, bonuses, and competitors
  • 11.27% Token sale bonuses, referrals, bounties
  • 50% Crowdsale
  • 20% Founding team
  • 12% Advisors and employee incentives

Use of Funds:

  • 13% Infrastructure and development
  • 11% Marketing
  • 15% Partners, advisors, staff, office costs
  • 9% Future Acquisitions
  • 35% Currency reserve system
  • 17% Legal

Team

Based in Gebralter, ICU only list 3 team members, all Co-Founders. All 3 share the same work history, pretty much. They currently work at Entity 54 Limited, a group of financial traders, developers and regulatory experts. Their goal is to disrupt aged business models in the fintech industry by implementing new technologies like distributed ledger and virtual reality data visualizations.

Angelos Diamantis – Co-Founder/CEO.  Currently the Head of Algorithmic Trading at Tamoris Commodities (5 years). Tech Analyst/Trader at Saxon (5 years). Futures Trader at Van der Moolen (6.5 years).

Charles Lagares – Co-Founder/CCO. 3.5 years as Director at Entity54 Limited. 9 years as “Regulatory” at Lagares & Co. 9 years as Director for Tamoris Limited.

Daniel McToldridge – Co-Founder/COO. 1.5 years as Director at Entity54 Limited, 9 years as Commodities Trader at Tamoris Capital.

Eight Advisors are listed: a tutor at City University, a blockchain researcher/consultant, a Head of ICO and Tokenization, a Professional MC, a Sales Manager at Oracle, and a partner at Applicature.

Verdict

This appears to be a “whitepaper ICO,” and so far it’s all words, no product. Their MVP is scheduled for release in Q1 2019 (one quarter after the token sale ends).

iCumulate mentions eToro as their number one competitor. eToro is the world’s leading social trading network with 6 million registered users across 170 countries. It is regulated by the FCA in the UK and CySEC in Cyprus.

The glaring problem with iCumulate is that they are not yet regulated by the FCA and the CySEC, like eToro. They have yet to be regulated by anybody. When I asked about this in Telegram, I received this generic copy/paste response.

“iCumulate is based in Gibraltar and will be one of the first companies to be fully regulated under the new Distributed Ledger Technology regulatory framework being established in the country. The DLT framework positions Gibraltar as a jurisdiction which facilitates innovation, whilst ensuring it continues to meet its regulatory and strategic objectives and understands the modern need for robust and speedy interaction with regulators in this fast moving area of business. Regulation is a fundamental part of financial trading and therefore iCumulate will be fully compliant with regulatory, legal and licensing requirements for the countries within which it operates.”

Risks

  • Tiny community; 308 Telegram members and 460 Twitter followers. -1
  • The token distribution stats are bad. The team and advisors receive a combined 32% of the distribution. -2
  • Only 11% of the funds raised will go to marketing. -2
  • All their business partnerships are actually just services to help them run their ICO. -1
  • The only evidence of work is this platform “demo”. you can’t interact with it. It’s just a screenshot that moves sometimes.-2
  • Regulation concerns. -2

Growth Potential

  • “The platform will be predominantly designed with the mobile market in mind, with a keen focus on efficiency and simplicity.” +3
  • A special feature allows for simulated accounts. This gives users the ability to practice build their portfolios without putting real funds on the line. +2
  • As the platform progresses they will look towards integrating with 3rd party platforms such as Melenport. +3
  • The PME explained earlier is a possible game changer. Their copy trading function is new and unique. Instead of the ICU Manager buying first, and the follower having to pay more to buy the same amount second, both parties buy at the same exact time. +3
  • Users will have the ability to “lock and lend” their crypto assets on the platform, receiving “market-leading interest rates”+3

Disposition

These guys are a year late. Not developing an MVP, or partnerships, before asking for $23 million is no longer acceptable in crypto.  4/10

Investment Details

All unsold tokens will be burned.

Featured image courtesy of Shutterstock.

Author:
Joshua 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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