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ICO Analysis: UnikoinGold

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UnikoinGold is offering a decentralized eSports betting and utility token that is powered by the Ethereum blockchain.

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UnikoinGold opened its crowdsale to the public on September 23rd. The Mark Cuban-backed eSports betting token is backed by VCs with founders with veteran tech backgrounds.

The Unikoin Gold presale closed the day before it’s public crowdsale with $21 million raised from Mark Cuban, Blockchain Capital, Pantera Capital, CoinCircle, and more.

Unikrn aims to build a seamless and secure wagering platform around the rapidly growing community of esports users. The white paper states: “We aim for UnikoinGold to become a standard token for the esports and gaming ecosystem, an ecosystem backed by Unikrn – a company that holds integrity and complying with legislation in high regard.” UnikoinGold will be accessible around the globe and helps users earn money, prizes, hardware, and exclusive features.

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Unikrn intends to expand beyond Australia and the UK for Unikoin betting. The team assumes that upgrading to an Ethereum-based utility token will increase utility and usage for its users.

UnikoinGold is currently targeting $100 million in its token sale.

Team

Unikoin is owned by Unikrn’s wholly-owned subsidiary Unikrn Bermuda Ltd.

There are a few meaty points concerning the team around UnikoinGold, so let’s jump in.

An important distinction to make about UnikoinGold is that unlike the many token sales launched by inexperienced startups with no existing product and vague concept of future revenue, Unikrn is already a leader in its respective industry of eSports. It has already seen significant user growth and product adoption.

Unikrn, established in November 2014, is currently the only eSports bookmaker that is fully regulated and licensed. It also has ties to Tabcorp, Australia’s largest betting company.

Unikrn’s CEO is Rahul Sood, who created the first incubation fund for startups at Microsoft prior to Unikrn, and also launched Microsoft ventures. Sood’s experience as a serial entrepreneur span 18 years, including luxury and gaming computer manufacturer Voodoo (acquired by Hewlett-Packard). Sood has a substantial background in entertainment and video gaming, and currently is on the board of one of the largest gaming companies in the world, Razer. He is also an active advisor and early investor in Vrvana, a Montreal-based leading Mixed Reality hardware company.

The rest of the Unikoin team is stacked with accomplished members taking on roles in marketing, tech advisory, and legal. The team largely consists of people with deep experiences in startups, cryptocurrency, marketing, accounting, growth, betting, and growth.

It’s important to note the type of investors who have already invested into UniKoin.

In 2015, Unikrn raised $10 million dollars in venture capital from a seasoned panel of investors including Mark Cuban, Ashton Kutcher, Guy O’Seary, Shari Redstone, Elisabeth Murdoch, Tabcorp, Indicator ventures, and Hyperspeed ventures. Many of these investors including Mark Cuban joined in on the Unikoin ICO, putting together $21 million for the ICO before the public crowdsale.

Unikrn’s board of advisers include Anthony Di lorio, one of the co-founders of Ethereum and JAXX Wallet CEO Anthony Di lorio.

Unikrn also partnered with CoinCircle, a company that provides end-to-end token solution, to help design, engineer, and sell the UnikoinGold token.

The Opportunity

In order to better understand some of the potential of UnikoinGold and other eSports cryptocurrencies, we have to look at the eSports industry at large.

The eSports economy is expected to grow to $696 million in 2017, with year-on-year growth of 41.3%. Brands are estimated to spend a total of $517 million, broken down in the following order:

  • $155 million on advertising
  • $266 million on sponsorship
  • $95 million on media rights

Additionally, consumers are expected to spend about $64 million on tickets and merchandise in 2017. $116 million has also been invested into the eSports world by game publishers via partnership deals.

Brand investment is also expected to double by 2020, which would value the total market at $1.5 billion.

It’s important to note that the above value of the industry doesn’t even reflect the betting market around eSports. Traditional sports markets don’t include betting or sponsorship from betting companies since the two industries are separate from one another. Sports betting is largely a much bigger business than that of sports media rights, consumer revenues, and sports media rights put together. For example, NFL, the most commercial league in the world, generated around $13 billion in 2016, but the surrounding fantasy leagues and betting made upwards of $50 billion.

Betting in eSports is one of the most talked about topics in the real-money gaming world. Betting companies see eSports as an enormous opportunity due to the massive and rapidly growing user base and a much larger variety of potential games to bet on. There are even claims that the eSports betting market could be bigger than the current eSports economy itself.

The global eSports audience is expected to hit 385 million in 2017 with about an even split of viewers (191 million enthusiasts, 194 million occasional viewers). Enthusiasts are expected to grow to 286 million by 2020.

The Catch

Initially, the Unikrn site only allowed fans in the UK, Ireland, and Australia to make bets as high as $250. Unikrn wasn’t able to function in the United States because this type of online gambling isn’t legal. To move around this, Unikrn introduced a virtual currency specific to Unikrn called “Unikoins”.

Unikoins could be used to enter raffles and win prizes such as gaming PCs and other items. However, they couldn’t be redeemed for money.

Unikrn aims to use UnikoinGold to not only allow users to place bets, but to help its users host tournaments and have access to premium features.

The goal of UnikoinGold is to help Unikrn’s users to legally and fully engage in the live betting aspects of its platform via cryptocurrency.

The benefits of being a holder of UnikoinGold are, in my humble opinion, extremely limited. Some of the most notable features are:

  1. The opportunity to purchase additional raffle tickets for prizes using UnikoinGold
  2. The opportunity to bet on skill and spectator eSport products.

Chances are if you’re not into eSports, eSports betting, or have never used the Unikrn platform, you read that last part and thought “Ok…so what?” That’s exactly the point that I’m trying to make. What use case does Unikoin Gold have other than being on the Unikrn platform?

Distribution:

The ICO price is around $.50 cents based on their ICO cap rate of $100m. Only 20% of the 1 billion total tokens being offered in the ICO.

The current token distribution is as follows:

  • 5% Unikrn Betting Reserve
  • 10% Team Pool Token Distribution
  • 25% Marketing & Partnerships
  • 20% Token Sale
  • 10% Development & Contractors
  • 20% Company Cold Storage

The Verdict

Before we get into the verdict, I want you to understand that when I write these analyses, I try to give you an “angel and devil” on the shoulder approach. This isn’t financial advice, but rather information to equip you to make a decision on your own.

That being said, I see some potential in UnikoinGold, but a lot of red flags.

Risk:

  1. A big red flag I see is that only 20% of the tokens are going to be on sale. No matter how good an ICO is, whoever owns 80% of the tokens can manipulate the price at ease. -4
  2. In the whitepaper, one of the statements stood out to me. “The proposed ERC20 token, UnikoinGold, will give alternative methods of possibly turning over their winnings on the Unikrn platform.” Keyword: possibly. While the UnikoinGold team is stacked with experienced lawyers, the absence of certainty revolving around perhaps the most critical component of UnikoinGold is unnerving. -.5
  3. Something worth noting is that $21 million (about ⅕) of the ICO went to investors and venture capital firms. It wouldn’t be a far-reaching assumption to say that these VCs and celebrity investors got way better terms than any investor in the public ICO would. -.5
  4. In order for UnikoinGold to have any real tremendous value, the Unikrn site needs to grow its user-base at an exponential rate. I believe they have a good team in place to do so, but they have their work cut out for them. -1
  5. The concept just isn’t unique enough to justify massive growth. There are already a couple of different ICO eSport betting sites, as well as eSport cryptocurrency sites. There’s even an extremely similar eSport betting coin opening its ICO in a few days. -1
  6. The CEO stated that UnikoinGold is meant to be a stable currency for Unikrn users, and not for investors. -2

Good:

  • A very substantial chunk of the UnikoinGold tokens, about ¼, is to be devoted to marketing and partnerships. If there’s something the majority of ICOs lack, it’s the ability to get users other than speculative investors. The Unikrn CEO stated that they are not looking for speculators, rather people who actually use the platform. I’m assuming the marketing team will reflect this in their strategies. +2
  • UnikoinGold is linked to Unikrn, which already has proven success and a dominant team and set of advisors that could take UnikoinGold far. Additionally, the arsenal of investors in both Unikrn and UnikoinGold’s ICO thus far have experience in growth-focused companies. +3
  • It’s hard to dispute the numbers of how fast eSports is growing. By already being a leader in the industry, Unikrn is a pretty good position for capitalizing on future growth. +3
  • UnikoinGold is VC-backed. There are two sides to every coin (pardon the pun). None of the investors behind UnikoinGold strike me as eSports evangelists willing to sacrifice a profit for the sake of eSports betting. This creates an antagonistic relationship between the Unikrn team’s desire to create a stable currency for its players, and their investors’ desires to profitably exit from their ICO investment.  +2
  • The ICO has star power. You rarely see an ICO with celebrity investors such as Ashton Kutcher and Mark Cuban, as well as several VC firms. The ICO world is filled with so much anonymous and unknown instability that having credible and popular investors such as one of the main guys from Shark Tank can be a very enticing signal. +2

Disposition

We land at a loaded +3 of 10 for UniKoinGold.

The UnikoinGold ICO is unlike the majority of ICOs.

It’s not its own company (UnikoinGold), yet a piece in the puzzle for a larger company (Unikrn). This can be interpreted as advantageous or disadvantageous for investors. Since the coin will be tied to a company dominating its industry with a functional product, one can hope that it will be a success as well. However, since only 20% of the coins will be on the market, the price can be easily manipulated to suit the needs of Unikrn, which is likely will be.

Again, you are ultimately responsible for your investment decisions. I think it’s easy for the average investor to get swept up in the mix of ICOmania, the eSports figures reflecting massive growth, and UnikoinGold’s star-studded investors and accomplished team.

Ultimately, I think the shadow cast by the red flags points can’t be overlooked.

  1. Only 20% of tokens are available to the public.
  2. The UnikoinGold use case just isn’t anything impressive for anyone not using the Unikrn platform.
  3. UnikoinGold is simply just a feature for a company. If you’re looking at it as an investment opportunity, realize that this is kind of like putting your money on Snapchat’s dancing hotdog filter if it was a cryptocurrency.
  4. The CEO literally said UnikoinGold is not for investors.
    1. In a YouTube AMA, Rahul Sood stated “We have to be super clear with people that buying a token is not an investment. Buying a token is buying a product that were selling that can be used on the Unikrn platform. People should not be looking at this as an investment. If they are looking at this as an investment, they’re making a mistake. Tokens are not investments. You’re not getting equity. You’re not getting voting rights. There many or may not be volatility. It’s important for us to make the tokens stable and justify the value over time. People who are using it are going to be betting with it. If they bet with it, they want to know that when they bet and win, they can cash out. They want to feel comfortable that there is stable value there. It’s important to maintain stability. We are not interested in the idea of speculators coming on to pump it up and bring it down.

Investment Details

To see more details on the ongoing ICO pre-sale (28 days left), go to https://unikoingold.com/sale.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



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6 Comments

6 Comments

  1. motboy

    September 24, 2017 at 8:18 pm

    Just wanted to say thanks Alex. Think you do a great job, objectively as possible, presenting the pros and cons.

    If it was your money – and I get these are not apples vs apples – but would you go here or Bitdice?

    • Alex Moskov

      September 24, 2017 at 10:44 pm

      Thanks, I appreciate the feedback!

      Personally, neither really present too compelling of an opportunity for me. If I had to choose between those two, I would go with UnikoinGold. I’m interested to see where the team takes it.

  2. hoodun

    September 24, 2017 at 10:37 pm

    Thanks, this reassured my decision to pass on this one.

  3. motboy

    September 24, 2017 at 11:36 pm

    Not sure that’s what Alex is saying. Ultimately it’s the team that will make these ICOs turn into something of substance and this has too many of note to ignore.

    I watch with interest.

  4. motboy

    September 24, 2017 at 11:54 pm

    Alex just out of interest, and apologies if this has been covered in the past, but at what weighing do you consider a buy? 6-7 and above?

    * obviously the decision is that of the trader who’s own research should drive any investment.

    • Alex Moskov

      September 25, 2017 at 10:23 am

      Personally, I would focus more attention on the risks than the overall weight. Many ICOs have lofty ambitions and put together good teams, but ultimately if you’re thinking long-term, you want to be very aware of what could go wrong before thinking about investing.

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ICO

ICO Analysis: Gimmer Token

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The impeccable rise of algorithmic trading has ushered in a new wave of do-it-yourself (DIY) algorithmic trading bots. With the success of these DIY bots in traditional financial markets, it was only a matter of time until they entered the cryptocurrency market.

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For algorithmic trading, volatility creates opportunity sets. And with cryptocurrencies still trading in an inefficient market, volatility runs rampant. This level of volatility creates an ideal environment for even the most rudimentary algorithmic trading strategies. However, there is a lack of DIY automated trading bots that are available for use by amatuer cryptocurrency traders. With this in mind, Gimmer is looking to take advantage of this need.

According to the company’s website, “Gimmer offers easy-to-use advanced algorithmic trading bots that require no programming skills, no previous trading experience and no in-depth knowledge of cryptocurrencies.”  

Essentially, Gimmer is hoping to position itself as the leading DIY algorithmic trading bots for individual cryptocurrency traders. While the company may never be the “Quantopian” of the cryptocurrency space, Gimmer does provide a novel solution for amateur traders.  

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Token

The Gimmer token (GMR) will be implemented using the Ethereum ERC20. While GMR tokens will be visible in participants’ ERC20 wallet, the tokens will not be tradable until the close of the public sale on January 31, 2018. GMR tokens will issued starting from January 3, 2018. GMR holders generate value from the token as a form of payment for the rental cost of Gimmer’s trading bots. For users, the rental cost scales proportionately to the level of sophistication desired – more sophistication equals higher return (at least in theory).

According to the whitepaper, 45% of the funds raised will go towards development and operations, 35% towards marketing and acquisition, 15% towards the founders and team, with the remainder of the pot (5%) going to legal and compliance.

Gimmer Tokens are valued at 1 Ether (ETH) per 1,000 GMR (plus applicable bonuses). The total amount of tokens to be sold is capped at 100,000,000 GMR. However, an additional 6,000,000 GMR will be created for advisors, reserves, and the team, with another 4,000,000 GMR created for bounties.

The company has not yet stated its intention to list the GMR tokens on any major crypto exchanges.

Team

Gimmer’s core team consists of two senior developers, a global macro hedge fund manager, and a creative design veteran. As compared with the majority of ICOs, Gimmer’s team is in-line with the relative standard – the quality of team meets basic expectations.  

The company’s CEO, Philipe Comini, is a senior-level UX/UI designer who is also balancing two other jobs (according to LinkedIn) – typically, not a good sign. The company’s CTO, Persio Flexa, is also a senior developer who recently launched 2 other start-ups – again, not a good sign. The company’s COO, Paul Lindsell, is a creative design veteran with over 12 years experience that is seemingly committed to his role – not balancing multiple jobs. The company’s CIO, Masaichi Hasegawa, is currently a global macro hedge fund manager and an executive of a shoe manufacturing company – the third C-suite executive of Gimmer to balance two other jobs.

The rest of Gimmer’s team consists of a marketing director, a user experience director, two developers, a customer researcher, a commercial director, and a journalist.

Verdict

Gimmer presents a highly speculative buying opportunity for investors interested in short-term capital appreciation.

Creating profitable algorithmic trading strategies is incredibly difficult. Hedge funds typically employ a large staff of mathematicians, experienced machine learning engineers, data scientists, and the like – Wall Street refers to them as “quants.” Quants typically hold a PhD in finance or quantitative mathematics and have years of hands-on experience with both statistical analysis and engineering (Python and C++). Does Gimmer employ any quants? No, not even by the slightest measure.

Overall, Gimmer’s DIY algorithmic trading bots are likely just a novel tool-kit for amatuer cryptocurrency traders, nothing more, nothing less.

Risks

Gimmer provides no data on slippage modeling, meaning users have no idea of all the transaction costs that are associated with a higher frequency of trading (including: fees, commission, and slippage). These costs can be significant and add up quickly. -1

Gimmer’s core team does not seem to be dedicated (balancing multiple jobs) or qualified in any sense. With Gimmer’s team lacking any real trading platform experience, unforeseen issues with their algorithms may lead to sizable losses for users. -1.5

Gimmer provides no data on latency, meaning users do not know if the company’s algorithms are deployed to proximity-based execution servers in attempt to achieve low-latency performance no matter where the user is located. For all trading strategies, latency must be measured and managed in order to maximize the probability of success. -1

Growth Opportunity

Provided that Gimmer’s trading bots run successfully without any technical glitches, users could benefit from enhanced risk management protocols, thereby insuring their principal investment through more downside protection. +2

Copy trading techniques could benefit novice traders, as they can publicly see high level information such as start date, running period, currency pairs and percent gained. Based on the public information, users can copy seemingly successful trading strategies and rent the same bots. +3

Automated trading strategies will allow a larger pool of traders to invest in cryptocurrencies. Since the market is still subject to large, volatile price swings, more passive traders could use Gimmer’s platform to execute automated trades (based on pre-set parameters) without having to monitor the market on a day-to-day basis. +2.5

Disposition

While algorithmic trading in the cryptocurrency space is a smart strategy, Gimmer lacks the sophistication of even the most basic trading platforms. The biggest concern beyond Gimmer’s lack of sophistication, is the pedigree of the core team. With no quants on staff and a couple UI/UX designers creating the algorithms, technical issues are likely to occur. And with that in mind, faulty algorithms or platform glitches could easily lead to the loss of principal investment for users.

For amateur traders interested in novel tool to play around with, Gimmer is a great choice. For veteran traders with solid programming and statistical skills, move on to a better platform.

Against this backdrop, we believe that a score of 4.0 out of 10 is warranted.

Investment Details

  • Type: Crowdsale
  • Symbol: GMR
  • Pre-ICO Sale: November 24, 2017
  • Public Sale: January 3, 2018
  • Payments Accepted: ETH

Disclaimer: no position in Gimmer at the time of writing.

Featured image courtesy of Shutterstock.

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ICO

ICO Analysis: Lendoit

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Lendoit is a next-generation peer to peer decentralized lending platform based on Ethereum, which connects lenders and borrowers all over the world using the advantages of smart contracts.

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The Lendoit platform provides professional scoring and verification, APIS for each country, a loan marketplace where lenders set rates on loan applications, a default market where failed loans can be traded, syndicated loans, and the ability to sell a loan to another lender if needed. Lendoit will be the only lending platform on the market that does not take collaterals. The company believes that, “in a world of crypto micro-loans, managing collaterals is not sensible.” In their view, this is “like lending USD by using EUR as collateral.”

Because there are no collaterals, the Lendoit platform combines four methods to mitigate the chances of lenders losing money: Smart Compensation Fund, Syndicated Loans, 3rd party scoring/verification from local companies, and a collectors market where debts can be sold.

The following is a simplified guide to Lendoit’s loan process.

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  1. The borrower applies for a loan by filling out an application. This takes about three minutes.
  2. The borrower uploads any relevant verification (i.e. government-issued photo ID) according to their particular country’s regulations.
  3. Lendoit sends the loan app and verified information to verified scoring providers to receive a score for the current loan.
  4. Lendoit will publish each smart loan contract in the blockchain and marketplace.
  5. Lenders Tender is a process of raising loans for funds requested by the borrower.
  6. The borrower can now withdraw the funds using his or her wallet.
  7. When the date to pay back the loan arrives, the borrower receives a notification.
  8. The borrower now repays the funds with interest to the smart contract.
  9. The lender withdraws his money in the same currency he loaned it.
  10. The lender receives interest in the form of LOAN tokens, the amount based on an automatic conversion algorithm put in place by the Smart Conversion Contract.
  11. The Smart Compensation Fund Contract helps lenders recover a small portion of their money, if the borrower fails to pay. The amount is not confirmed, but it seems like it will be around 20-30%.
  12. If the borrower fails to pay the interest and the loan becomes defaulted, the smart loan contract is offered to a collectors tender. The collector who wins the tender buys the debt, which minimizes the loss of funds for the lenders.

Lendoit has an alpha version of its platform available here. It is not very impressive yet. The real technology (smart contracts) has yet to be created.

They plan to release the beta in Q1 of 2018, and the fully operational version Q3 of 2018.

The Token

  • Symbol: LOAN
  • Platform: Ethereum
  • Presale: Dec. 13 – December 27, 2017 (125 million for sale. 1 ETH = 13,000 LOAN). Must register for whitelist in order to contribute.
  • Token sale: Jan. 18 – Feb. 18, 2018 (475 million for sale. sale starts at 1 ETH = 12,000 LOAN)
  • Total Supply: 1 billion
  • Hard Cap: 50,000 Eth (currently $22 million USD)

The LOAN token plays several roles. Here are a few of the most important:

  1. Lenders can use any ERC20 currency to loan, but must hold 10% of whatever amount they loan in LOAN tokens. For example, a lender wants to loan someone $1,000 ETH must hold $100 worth of LOAN in his account.
  2. Borrower must use LOAN to publish the Smart Loan Contract.
  3. All the fees charged on the platform are paid in LOANs.
  4. All the interest payments will be paid to the lenders in LOANs. This will take place automatically via the Smart Conversion Contract.

The Team

The company is located in Israel but incorporated in Gibraltar. The company maintains a large global team that extends far beyond its in-house operation. However, after researching the four co-founders of the company, nothing particularly striking stands out. One would have expected a more impressive track record for those launching a platform of this magnitude.

Seven advisers are signed on to the project, including Richard Titus and Michael Terpin. They also have eight developers, which is fantastic, as it shows they really are trying.

The team picture (above) leaves a lot to be desired, as it is not very professional.

The Verdict

This project has great long-term potential. Its biggest challenge is going to be whether or not it can successfully build the various forms of smart contracts it proposes to launch. There are no known smart contracts in existence that can do what Lendoit promises its contracts will be able to do.

Risks

  • The concept of not needing collateral to receive loans could be a disaster. Why would lenders want to use this platform when the possibility of getting stiffed is so high? They can just use one of Lendoit’s competitors to guarantee their returns. -2
  • The project faces legal hurdles galore. Sure, the plan is to be decentralized, which could reduce certain regulations, but the company is going to be verifying borrowers’ identities in great detail. I could see governments clamping down on projects such as this one if enough lenders start getting ripped off. -2
  • The technology required to run this platform does not exist yet. The demo/alpha provided as an example of is extremely basic. It’s a strong possibility the team fails, and this never gets off the ground.  -2

Growth Potential

  • The company has several partners, including Bloom, Hive, RSK, and Wings. I tried to dig deeper into these partnerships but didn’t find anything substantial. These seem to be decent projects, and LOAN can use each to grow.+2
  • Some of these other new lending ICOs have done pretty well so far on the markets. SALT token, for example, is extremely hyped. One of the main differences between SALT and LOAN is that SALT requires borrowers to put up collateral, while LOAN does not. One would think this would bring more borrowers to the platform +2
  • If they do what they claim to be able to do – build these genius smart contracts – they can change the lending game permanently. In this way, the sky is the limit. +4
  • The team has put a great deal of emphasis on development, as evidenced by the number of developers they have on board. +2

Disposition

As previously stated, the most important aspect of this project is the technology. Can they build these contracts? According to the roadmap, we won’t see the beta version for two or three months, and we won’t be able to judge if the contracts are fully functional for at least six months. This has long-term potential, but a rocky short-term.  Against this backdrop, we assign a score of 4 out of 10.

Token Details

Learn more/sign up for whitelist here.

Featured image courtesy of Shutterstock

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ICO

ICO Analysis: CanYa

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CanYa is offering a platform for the exchange of peer-to-peer services.

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Users can load their CanYa wallets with the ERC20 CanYaCoin token, in addition to several support fiat currencies.

Users will be able to instantly pay for services on a global and local level. The platform supports peer-to-peer services and relies on users to self-curate and verify new types of services and providers.

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Providers can earn CanYaCoins for their services, and can spend these coins within the app, or convert and send them to their Bitcoin or Ethereum wallet using CanYa’s network of zero-fee exchanges. Once users are verified, they can withdraw immediately to a fiat bank account without having to pay fees or transaction limits.

The CanYa platform also claims to help the best providers rise to the top and get more exposure and work.

**It’s important to note that the CanYa ICO cannot accept participation from US citizens unless you qualify as “accredited investors.”

The Team

CanYa was founded in 2015 with the goal of created a true peer-to-peer platform with no intermediary, based on meritocracy, and a seamless interface connecting the digital world with the real one.

The whitepaper claims the project moved from concept in 2015 to development in 2016 and then a successful soft-launch in 2017 in a small Australian market.

There are currently 3,400 provider listings with roughly 7,600 user engaging on the platform, with monthly growth in double digits.

Based in Australia, the founding team includes Rowan Willson, Christopher McLoughlin, JP Thor, Jet Yap, and a handful of other promising team members and advisors. Their work thus far is promising, although I do naturally have my hesitations about tackling a project of this scope and creating significant traction out of Australia.

Tokens and Distribution

CanYa is aiming to raise 29,333 ETH by offering 34,000,000 CanYaCoins for public sale.

These funds are being used to integrate the cryptocurrency payment layer, provide liquidity for the hedged escrow contract, expand features and “undertake an aggressive global launch with marketing, translations and infrastructure.”

There will be around 100,000,000 tokens in circulation, with a hard cap of 60,000,000 CanYaCoins for sale. A total of 26,000,000 CanYaCoins are going to be sold privately to “strategic investors who bring long-term value to the project”. These private investors incur vesting schedules from three months to 12 months. A total of 34,000,000 CanYaCoins will be sold during the public sale that started in November.

The token offering will only accept ECH.

Risks

  • Onboarding new crypto-enabled merchants poses a substantial bottleneck. Freelancers and workers-for-hire flock to where the money is, and if CanYa has any shortage of jobs available, they will stick to traditional methods. Onboarding new crypto-enabled merchants will require substantial marketing work and is hindered by the learning curve that comes with acquiring and spending cryptocurrencies. -2
  • Competitors in the digital service industry could pose a substantial threat to user acquisition. While CanYa poses a huge benefit of much lower transaction fees, platforms such as UpWork and Fiverr have already dumped a ton of resources and money to grow, and it might be difficult to catch up without an extensive marketing plan. -3

Growth Potential

  • Peer-to-peer networks at scale have always been burdened with some sort of third-party making a commission off the transaction, and this is a very applicable use of smart contracts to replace those intermediaries. The intermediary commissions (from the platforms to the payment services) add up to the tune of billions globally. +3
  • CanYa resonates with its ideal user base. This project also happens to target the same userbase that is perhaps the most crypto-savvy segment of the world: Internet entrepreneurs. This seems like an easy target to launch an active user-base. +2
  • The value add the CanYa platform offers over other services such as UpWork is pretty attractive. UpWork, for example, charges freelancers 20% of their total contract price up to $500 and then 10% up to $10,000. A freelancer seeing the option to work on a similar platform and essentially make 20% more money is an easy sell. +3
  • The platform is incredibly detailed and well-thought out in the whitepaper. This is one of the few ICO products I can actually see myself using on a daily basis, provided the CanYa team is able to attract a significant amount of users on both ends. +2
  • The CanYa team shows a willingness to stick with the project long-term, and even champions the cause with a “CanYa HODL club” by rewarding holders of more than 5000 CAN tokens at the ICO with perks of being in the HODL club. +2

Disposition

As someone that has done freelance work and hired multiple freelancers for various projects, I can appreciate a project like CanYa. I also think it’s cool how the CanYa platform also works for real-life services.

We arrive at a score of 7 out of 10 for the CanYa ICO.

Overall, the whitepaper and marketing materials for CanYa are very thorough and easy to go through, showing a much appreciated effort by the CanYa team to make their ICO easier to understand and palatable for average investors.

Investment Details

You can find more details about the CanYa ICO here.

**It’s important to note that the CanYa ICO cannot accept participation from US citizens unless you qualify as “accredited investors.”

You can find the ICO whitepaper here. The sale opened Nov. 26, 2017 and will run through Dec. 26. 

Featured image courtesy of Shutterstock. 

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