ICO Analysis : Vault 12

Everybody knows that a huge sum of cryptocurrencies are lost when owners lose access to their private keys. Vault 12 project tries to solve one of the most important problems every crypto investor faces every day: securing their assets.

Vault 12 was designed as an application that will simplify the protection of cryptographic tokens as easily as opening an application on our smartphone or computer, choosing people from our friends and relatives that we want as our audit circle, and then providing a mechanism to protect these digital assets until we decide to use them.

The purpose of Vault 12 is to provide crypto users with tools to actually store and protect their crypto assets without any unjustified risks, thereby giving users full control and ownership of their crypto assets in a private and stand-alone manner.

Shamir’s Secret Sharing Algorithm provides tools for circumventing documents, files, and images through a decentralized Vault 12 storage network. This cryptographic algorithm literally divides (or breaks down) your documents (let’s say, the image of your seminal words) into several parts as if dividing a piece of A4 paper into 4 squares and then distributing them to different authorized devices or people you have chosen.

To recover a document or key, a given number of devices must call a certain number of these fragments to access your document or private key stored in the Vault 12 decentralized storage network.

This protocol helps determine the role of each device in the grid, where certain operations are possible only on certain devices belonging to the trustees of your choice.

Having different levels in your social network, this allows you to significantly increase the number of fragments to ensure that redundancy is achieved successfully.

As an example:

The owner/master device selects its custodians (Trust Levels), as described above, whose phones are now becoming distributed storage nodes. Then, the owner opens a repository of distributed data stores on these nodes, and the application on the master device splits the private keys into encrypted fragments, which are then distributed to the custodians, in particular, the custodians for permanent storage. After the transfer of fragments, the application checks them and periodically monitors the state of the storage.

If the owner wants to unlock the vault, in this case, a social check comes into effect, the application starts to collect the threshold amount of pieces, which allows the master device to begin the process of recovering private crypto asset data, allowing the Master device to use the specified data.

It is also important to note that if the Master is lost or compromised accidentally, the owner is protected, since the device itself does not store crypto assets, so there is nothing more valuable than recovering from the Master.

 

Token

A total supply of 1 billion VGT tokens are provided. Forty percent all issued tokens will be sold. An additional 10% will be allocated to the pool of community rewards and will be awarded, at the discretion of Vault 12, for individuals and organizations for outstanding high-quality open source contributions to the Vault Cryptostorage platform and code base.

Fifty percent will remain locked in the inventory of the company within one year after the date of the end of the initial sale. After the initial annual lockout period, Vault 12 will never sell more than 10% of the remaining number of blocked tokens during the calendar year.

Vault 12 created Vault Guardian Token (VGT) to enable all services and applications deployed on the Vault Cryptostorage platform. VGT is designed to be used for the following purposes:

  1. Owners can encourage their Custodians by offering various payments or direct periodic payments, or a reasonable contract from the service of a professional custodian. For example, let’s say that Peter has 6 random guardians who will be paid 10 tokens a month for their services. Peter will transfer 600 tokens to his application for storage, and the custodians will be paid 10 tokens per month for this full year. At the end of the year, Peter would need to buy more tokens to keep his guardians in the provision of services.
  2. Operators can set higher tokens fees for a higher level of service, for example, higher overall throughput or greater reliability. To join this service, Peter would need to transfer 100 VGT tokens to his platform storage application to purchase these services

Team

Vault 12 has an all star team and advisors.

Co-founder and CEO Max Skibinsky is a serial entrepreneur, angel investor and startup mentor. Most recently, Max was an investment partner with Andreessen Horowitz, where he focused on enterprise security and bitcoin and deals with Tanium, TradeBlock and Digital Ocean. In addition to co-founding Vault 12, Max leads the R&D team.

Co-founder and COO Blake Commagere is a serial entrepreneur, angel investor and an advisor to several companies in the San Francisco Bay Area. He has started seven companies and sold five of them. He regularly gives talks on subjects including Growth Hacking, Fundraising and Psychology Management.

Chief Design Officer Brandon is a creative director and product designer with experience consulting for Fortune 500 companies and startups. He has experience with cyber security, enterprise trading and personal banking. Brandon was the co-founder of Alchemy50, a Brooklyn-based product design firm. A50 was acquired in 2017 and their clients included United Healthcare, Dataminr and Betterment. He has also designed security products for Comcast, trading platforms at Reuters, and advised on autonomous banking initiatives at Citi.

Chief Crypto Officer Wasim Ahmed is a serial entrepreneur and an advisor in the fields of AI, blockchain, cryptocurrency, e-commerce and encryption solutions. At Vault 12, he heads up marketing and business development. Previously was a founding member of the Voltage Security team, a spin-off from Stanford University, that launched Identity-Based Encryption (IBE). Format-Preserving Encryption (FPE), and pioneered the use of sophisticated data encryption to protect sensitive data and payment information.

Vault 12 has a very strong set of advisors like Jarrod Dicker from Po.et, Sathvik Krishnamurthy from Voltage Security, Vinny Lingham from Civic and Roman Storm from POA network.

Big names in the VC world like Kenetic, #Hashed, FBG and Winklevoss Capital Management also have a stake in the company.

Verdict

If we will take into account circulation at listing including lockups, we will see a potential valuation of $40 million. Token distribution is pretty centralized due to offering to accredited investors., so short-term potential may raise some concerns. But the long-term picture seems positive and encouraging.

Risks

  • Competition in the sector is rather fierce if you consider wallets like ledger nano and others. -1
  • It is hard to predict whether the pricing of higher level services will be available to the community at large, which could limit overall demand -1
  • The community can be skeptical about uploading their seed words or documents on the internet -1
  • Projects accept funds only from accredited investors due to legal concerns, which can result in a weak community from existing crypto enthusiasts. -1
  • Hard cap of 40 million is pretty high at the current market for an application. -2

Growth Potential 

  • The private key depositary is only the beginning. The project will add other types of supported files for storing in the future. +1
  • The project can be first of its kind so it will have the advantage to seize market share +2
  • It could be a potentially preferred platform for wealthy individuals and institutions if they will enter crypto asset market +1
  • Team and advisors are well built and have a wealthy experience in traditional and crypto markets +3
  • Strong VC support including Winklevoss brothers. +2
  • MVP is available, the platform will be launched in October. +2
  • Road map is pretty short, which can result in a fast adoption and commercialization +1

Disposition

Overall, the disposition looks promising. The project has a strong team, product and road map with good long-term prospects, but there are several concerns which results in a still strong rating of 6 of 10.

Investment Details

  • Type: Utility
  • Symbol: VGT
  • Platform: Ethereum
  • Crowdsale: August/September
  • Minimum Investment: TBA
  • Price: 0.1 USD/VGT (10%/30%)
  • Hard Cap: Around 40m
  • Payments Accepted: ETH, USD
  • Restrictions Barred from Participating: Only accredited investors are allowed

General details :

Website : https://vault12.com/team/

Twitter : https://twitter.com/_vault12_

Github : https://github.com/vault12/

Telegram : https://t.me/vault12

WP : http://bit.ly/vault12-whitepaper

Featured image courtesy of Shutterstock.

Author:
Vladislav Semjonov has a legal and financial background. He has been involved in crypto space since early 2017 in both ICO advising positions in several ICO consultancy firms, and as an ICO analyst for VC. He began contributing for Hacked.com in April 2017.

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