ICO Analysis: Safinus
It becomes easier and easier to invest in crypto-assets day by day, but this does not necessarily mean that it is sufficiently easy for a person who is not tech-savvy to make his or her first investment in crypto-assets. Although many projects such as CoinBase make this process relatively easier, it is still unnecessarily complex, does not cover all geographical regions and allows investors to buy only a few selected coins. Creating wallets and accounts in cryptocurrency exchanges, and holding your own private keys to maximize the security are way too hard and complex for an average joe.
Furthermore, even if you know the basics, deciding which cryptocurrency you will invest in requires immense knowledge of projects, technology and the market sentiment. It takes a great amount of time and effort to acquire even the minimal knowledge before making an investment decision. Many coins lack fundamentals to fulfill their goals, some are basically money-grabs for their teams. Without knowledge, it is practically impossible to tell which project is legitimate and which one is a scam.
Investing in already existing projects is a hurdle and extremely risky, but there is an even wilder area out there that can be called the ICO zone. An ICO is basically a funding process, quite similar to IPOs you hear in finance news, but for cryptocurrency projects. ICO participants get tokens in return for investments they make in fiat money or cryptocurrencies. Yet there are so many ICOs all the time ongoing and many are scams. It is truly hard to distinguish one from another.
Safinus is a platform which aims to connect seasoned crypto-investors with newbie-investors, allowing newbie-investors to “lend” their crypto-funds to experienced investors so they can run these funds better than newbies and yield a higher rate of success. By making it easier for newbies to participate in the market, Safinus takes the initial entry barrier down.
The most important component of the Safinus platform is portfolio joining mechanism. This feature allows seasoned veterans to create crypto-asset portfolios and these players can enable crypto-investors with less experience to “imitate” the same very portfolio, thus increasing the possibility of a successful portfolio. These experienced investors take a certain cut in return for their efforts, called a commission, thus they are incentivized to use the platform.
What distinguishes Safinus from other similar projects is that Safinus allows crypto-investors to participate in ICOs. Usually, ICOs are divided into several sale stages in which people investing early and huge amounts are given quite high bonuses either in form of free tokens or a discounted price. Small investors are not able to participate in these early sale stages, so they miss these bonuses. Safinus allows not only people that to invest in ICOs, but also portfolio managers to pool funds to participate in projects very early, thus increasing the possibility of a higher return on investment.
The SAF token is similar to Binance’s BNB token and used to pay fees within the platform. Platform managers have to pay ten percent of their cut to the platform and while it is not necessary for them to pay in SAF, doing so will allow them to have a discount of 50% of total fees, making it merely a 5% of their cut if paid in SAF.
In the early stages of the sale, Safinus has offered bonuses up to 50% to investors in several stages. No vesting period for these bonus tokens are mentioned so far, but any unsold token will be allocated for the team and will be locked up for one year.
The initial total supply of SAF is 37,000,000 tokens with the following token distribution:
- 72% token sale
- 15% team
- 5% public relations
- 5% advisors
- 3% bounty
The team is planning to use the token sale proceeds as follows.
- 35% international marketing
- 40% platform development
- 5% legal expenses
- 20% liquidity fund
CEO Alexey Scherbin: Scherbin has worked with, but not for, Gazprom and Henkel on several IT projects, though the extent of his involvement is not stated in detail.
Edwin Van Der Berg: Van Der Berg is a senior lecturer at International Finance Management at Saxion University, Netherlands.
Robert Greysman: Greysman was an account executive at Sungard Availability Services and a sales manager at T-Mobile and AT&T.
Below is a breakdown of the risks and growth potential of Safinus.
- Competition with already existing projects such as Genesis Vision. (-1)
- Good use case for the token. (+1)
- Such projects are much needed in the cryptoverse. (+1)
- Allows portfolio managers to participate in ICOs. (+2)
Portfolio management projects are definitely needed in the space to break the entry barrier for new and unexperienced investors. Although Safinus is one such, due to the lack of an MVP it is too early to tell much at the moment. The existence of many projects with similar goals implies high competition and Safinus needs more to shine as far as we can tell. Safinus receives a 3/10.
- Type: ERC20 – Utility
- Symbol: SAF
- Platform: Ethereum
- Crowdsale: September 12th
- Minimum Investment: Unspecified
- Price: $1.00
- Hard Cap: $16,000,000
- Payments Accepted: BTC, ETH
- Restricted from Participating: United States, South Korea, Hong Kong, China, Singapore, Vietnam, Iran, North Korea, Syria, Sudan and Cuba.
Featured image courtesy of Shutterstock.