ICO Analysis: Safein

As the internet becomes an everyday aspect of our modern lives, some things become easier with it, such as telecommunications, microtransactions and instant global payments, and other become a struggle, such as accessing multiple emails simultaneously, digital profiles and password management, to mention a few. Today we’re looking into Safein, a new start-up that attempts to take the lead in the new era of multiple digital accounting.

The past decade has made clear that the internet is latching on to all aspects of our lives, with hundreds of millions of users joining the global network as individuals or as corporate entities creating their own websites and networks within other networks.

There are several attempts from industry titans like Google to create a centralized database with all your information, access points and links to the web already established by your actions. But that is only on a small scale affecting only websites that are under the wing of Google or sites that are affiliated with the centralized database’s platform.

At the same time, distributed ledger technologies like blockchain-based monetary platforms keep disrupting the field of microtransactions, as well as wealth management and distribution. Digital wallets are necessary in order to perform such fast and accurate transaction over the internet, and again it won’t take long until we reach a point where managing multiple wallets and accounts will be absolutely impossible to handle.

A start-up project launched in late 2017, Safein addresses multiple e-commerce and cryptocurrency transaction problems of the technologically advanced era by showcasing a single-click sign-in verification and global payments functionality.

For users, that would mean they won’t have to register over and over again to new websites or/and other digital services. The KYC procedure for ICO investors will be a piece of cake due to the trusted, convenient and fast payments in fiat and crypto. Safein establishes with both physical and digital monetary platforms; at the same time, the company promises enhanced cybersecurity to serve and protect data privacy of each respective user.

For merchants, Safein provides free instant KYC models, lower cryptocurrency and fiat transaction costs, lower compliance costs, lower risks and buyer protection.

According to the whitepaper, Safein wants to create a database of digital identities that will be used on a global scale for payments, authorizations and transfers of goods and monetary value. For example, when you visit your local grocery store to buy some fresh tomatoes, nobody will ask for your ID, but they will accept your payment in exchange for the product of your choice as long as they serve it.

Safein wants to create this kind of relationship between online vendors and consumers and guarantee that one is qualified to buy a specific item without him being forced to showcase his government-issued ID and other personal information as Safein already has all of it and can approve the sign-in/purchase instantly.

Token

When it comes to token distribution, Safein has a slightly unique approach compared to traditional ICOs.

The total token supply is set to 1,000,000,000 SFN. 36,75% of which are reserved for the company itself with a three-year bond. Ten percent is reserved for the advisory board with a two-year bond. Ten percent will be distributed to the Safein Registration Pool and 5% for the Safein Referral Program. One percent will be distributed to token holders as “airdrops” – for those who hold SFN in the official SFN wallet and not on an exchange. Five percent goes to the Safein Login Pool and 32.25% to the Pre-ICO and ICO participants (2.25% for Pre-ICO and 30% for ICO participants, respectively).

The token will benefit both internet users/consumers and vendors/websites in various ways.

A commission fee of 1% will apply after a certain threshold when vendors accept payments, while there will be literally no fee up to that point.

According to their white paper:  “If a merchant buys $1,000 worth of SFN tokens during the ICO and the token price doesn’t change, that will save him $1,140 of Safein commission per year (1% commission on total transaction volume) and more than $2,000 yearly compared to other payment service providers charging commission and fees more than twice as large as Safein.”

Basically, if a new ICO starts a KYC procedure it will be better both for them and their clients to use SFN as the payment method instead of the traditional ETH-based ICOs.

A brief chat with a Safein representative led me to the following information regarding the token sale (this information was missing from their white paper):

Pre-ICO period:

  • First 1,000 ETH: 1 ETH = 12,000 SFN tokens
  • 1,001 – 2,000 ETH: 1 ETH = 10,500 SFN tokens

ICO period:

  • First 4,000 ETH: 1 ETH = 9,000 SFN tokens
  • 4,001 – 12,000 ETH: 1 ETH = 8,500 SFN tokens
  • 12,001 – 22,000 ETH: 1 ETH = 8,000 SFN tokens
  • 22,001 – 30,000 ETH: 1 ETH = 7,500 SFN tokens
  • 30,001 – 38,000 ETH: 1 ETH = 7,000 SFN tokens

Team

The Safein team looks young and fresh, but that is not uncommon in this disruptive scene.

Co-founders Vladas Jurkevičius, Audrius Slažinskas and Lukas Deksnys have worked together before at Atlantis Games and they carry Masters degrees from Cambridge, Utrecht University, Glasgow University and their native Vilnius University, specializing in Law, Economics, Mathematics and Mechanical Engineering.

Mushegh Tovmasyan, Safein’s Fintech Specialist, is also the man behind Equiti Group, a global scale FX and CFD brand and broker provider. Joseph Steinberg, head of Cybersecurity for the project, is a NY College MA owner in Computer Science and adviser for various cybersecurity firms.

While there are no “rock-stars” on the board, the Safein team looks solid with a long pre-history in multiple working business models that are still on the play.

Verdict

The project itself is very promising if we take in advance that technological evolution and the mass adoption of the internet will eventually be the reason to transfer all our transactions, log-in information, passwords and other authorization methods on the line.

On the other hand, that would mean that one single entity could control or at least have access to most if not all of your personal information.

Given the current political discourse, people will debate whether that is a good or bad thing, which could make investors skittish over the long-term prospects of such a project.

What we can say for sure is that technological advancement has made clear that the internet is not only unavoidable but it is now one of our best options for advancing society forward. Therefore, projects like Safein may see bright days in the near future concerning the ethical aspects underlying the technology itself.

Risks

From an investor’s perspective, the following facts are important to consider when weighing Safein:

  • The company itself is fresh and although they have a decent team with some history, we couldn’t spot a single major name that could be considered a “key” asset on the team. -3
  • The focus of the company is super precise and they will have to barter with if not surpass industrial barriers like Google (i.e., Google Chrome Password System). -3
  • 1,000,000,000 SFN tokens are quite a lot for a short/mid-term investor. It might take several years if not more before an investor sees the fruit of their investment. -2

Growth Opportunity

  • If Safein manages to integrate its mechanics in a variety of upcoming ICOs in 2018 and 2019 it might attract more investors and could even take over Ethereum’s job when it comes to investing in new technologies. +3,5
  • Avoiding KYC procedures and protecting your information while at the same time getting the product or services you want without sharing personal information is tempting – at least for most internet users. +3
  • The price of ETH recently dropped significantly and since the token model is bound to the 1 ETH per x SFN units, it could create a significant boost to your investments. +4
  • There is plenty of time to join both the pre-ICO, ICO and public sale with discounts ranging from 80% to 15% throughout the sales period. Even if you sell immediately when it hits the markets, that would do an easy x3 to x5 return. +2,5

Disposition

As previously mentioned, it will be a hard task to compete with well-established companies like Google when it comes to multi-password services, although the automated KYC procedure could untie investors’ hands when it comes to ICOs.

Many key players from the blockchain scene, including NEO, Stellar and Waves to mention a few, tried to compete with Ethereum on the ICO, but have so far failed. It will take a lot of hard work and innovative approach for Safein to succeed where others couldn’t.

A score of 5 out of 10 is reserved for Safein, based on present facts.

Investment Details

  • Type: Utility token
  • Symbol: SFN
  • Platform: Ethereum
  • Pre-Sale: Apr. 3, 2018
  • Public Sale: Apr. 25, 2018
  • Hard Cap: 40,000 ETH
  • Payments Accepted: ETH (KYC Required)
  • Jurisdictions Barred from Participating: United States

Disclaimer: The writer has no position in Safein at the time of writing.

Featured image courtesy of Shutterstock.