🕵️‍ ICO Watch Eric Eissler

Past-ICO Review: Down She Goes! Stably Sinking

👁 ICO Watch
While stable coins are to be stable and fixed to a fiat, the only stable thing about this coin is its steady decline
Past-ICO Review: Down She Goes! Stably Sinking

Stable coins are a sign of the crypto sphere competing with fiat currency. We all very well know that crypto prices swing wildly and what might be profit one day, is a loss the next day or even a few hours later! With stable coins, crypto users can move their fiat currency to the digital and be able to sleep at night knowing that they will not wake up to a gut-wrenching red. Having funds in stable coins means it is easier to buy other cryptos when the time is right, without having to wait for the cash to clear the physical to digital divide.

How the stable coin works

Havven, like well-known stable coin Tether offers a haven for users to store value without it fluctuating wildly. There are two tokens Havvens and Nomins. When a user transacts and buys Havvens, 20 percent of it is issued in Nomins, which are a hedge against price fluctuations. According to the website, “Havven solves the scaling problem with the same approach used by closed-loop payment networks, which involves charging fees on transactions as well as hedging fees for idle balances. These fees are paid to users who collateralize the network and provide stability.” The rate for Nomin tokens is regulated by the system through the stimulation of either the release of new tokens or reverse buy-back and the burning of tokens to reduce the volume of available tokens and to push the growth rate to the value of one Nomin equals $1.

💼 Related Article
While a Republic, Hidden Order of the Atomic Swap Goes Unnoticed: Past-ICO Review
🔥 Hot
3 months
256
While a Republic, Hidden Order of the Atomic Swap Goes Unnoticed: Past-ICO Review

Meet the team

Kain Warwick– Founder/CEO

In 2014, Warwick founded the Blueshyft network, one of Australia's main platforms for making crypto transactions. In addition, the platform provides a number of other services, including "over the counter" Bitcoin purchases, deposit management on digital wallets and even logistics solutions. This organization is also a member of the Australian Digital Commerce Association, whose members are companies that are helping develop the national digital economy via Blockchain technology.

Justin Moses- CTO

Moses has more than 25 years of experience in the field of IT  and has worked as CTO on various projects since 2009 with Warwick.

Tim Bass- Project Lead

Bass is the co-founder and CEO of the BLOCK8 project, as well as co-founder and director of the myStake platform. Both companies are engaged in the development of Blockchain technology in the financial sector. Bass has more than 10 years of experience in the field of Solutions Architecture for large companies in Australia.

💼 Related Article
Past-ICO Review: We Be Jammin’ But We Don’t Know the Value Of Our Token
🔥 Hot
3 months
256
Past-ICO Review: We Be Jammin’ But We Don’t Know the Value Of Our Token

Finance

The ICO raised some $30 mln in funding proceeds. While this is a stable coin the rate is relatively fixed however upon further inspection there are some interesting price details. When it debuted on March 14, 2018 the token piece was $0.45. On May 20 the price reached an all-time high of $0.75. Now, the current token price is at $0.08… a far cry from being stable.

💼 Related Article
Past-ICO Review: 0-Cost Enterprise Blockchain Solution
🔥 Hot
3 months 1 week
256
Past-ICO Review: 0-Cost Enterprise Blockchain Solution

🕵️‍ ICO Watch
views
👓 Recommended articles
🕵️‍ ICO Watch Darryn Pollock

Top 10 Spectacular ICO Failures

👁 ICO Watch
ICOs have a failure rate of more than 50 percent, and there have been some big ones already
Top 10 Spectacular ICO Failures

ICOs, which have really only been around in full flight for a few years, have had an interesting growth pattern. The hype that was 2017 when it came to ICOs saw a lot of bright ideas, with very little execution.

There have been many failures along the way, in fact, nearly half of all ICOs from 2017 have already failed, some within only months.

The ICO environment

As ICOmania grows and continues to grow, more money was thrown at the market, and more companies were tasked with pulling off their promises. Some of these companies failed speculatory while others have slowly died and taken their investors money with them.

2017 was the best year yet in terms of money raised through ICOs as it was calculated that over $3 bln was raised in that year alone.

But that money raised hasn't all been appropriated well, below is a list of 10 of the biggest ICO failures on record.

DAO

One of the biggest and most well known ICO failures was that of Ethereum’s DAO. DAO, the Decentralized Autonomous Organization, was an announcement that sent ripples of excitement through the crypto community.

DAO was to provide a new decentralized business model for organizing both commercial and non-profit enterprises. It was a premise that excited many and saw a flurry of buying when the ICO was announced, bringing in a record-breaking $168 mln.

However, an attack exploited a vulnerability in the DAO smart contract, resulting in a loss exceeding $50 mln. Once news of the attack circulated, traders dumped the DAO token, sending its price spiraling downwards.

OneCoin

OneCoin was an infamous ICO failure because it was a scam and labeled by many as a Ponzi scheme, in fact, it had all the obvious makings of a Ponzi scheme, yet still managed to trap investors.

This multi-level marketing Ponzi scheme was all hot air as there was even little evidence to suggest a coin had been created. The team had little concrete to show investors, and certainly no working prototype. Some of the team’s biggest members had previously been linked to other scams.

Police stepped in and at a OneCoin meet raided and arrested 18 people, but not before OneCoin scammed investors out of $350 mln.

Tezos

Tezos had a monumental rise to prominence in their record-breaking $232 mln ICO, but it all came crumbling down as the team behind it all began infighting and arguing.

Despite the fact that Tezos was able to one of the most successful token sale campaigns in ICO history, the conflict between management brought to panic among the investors and fall for 75 percent in a few hours.

They technically have not failed yet, and are continuing on, but the company is fraught with lawsuits and continued fighting and does not look to be doing well.

Enigma

Enigma is a security and cryptography coin, that boasted about its new encryption methods. However, ironically, the Enigma team were hacked just before their ICO was to go live which saw hackers get away with $500,000 worth of Ethereum.

Enigma’s mailing list, website and Slack accounts were all hacked and the hackers used Slack to reach out to investors about a fake early ICO. Some called the email a scam, but many bought into the message and sent the funds.

SpaceBit

SpaceBit as the definition of all sizzle and no steak as this ambitious project garnered a lot of attention but ultimately ended up fading away to nothing as the team jumped ship after years of producing no results.

Branding themselves as “the first decentralized space company,” SpaceBit announced its idea to the world in late 2014.

The company wanted to launch several “nano-satellites” into orbit to provide a globally-accessible Blockchain.

However, by early 2015, all the hype and interest dies down as the team behind SpaceBit started a new Blockchain company, BlockVerify.

SwissCoin

SwissCoin was brought to the ground when the Ukrainian Prosecutor's office, along with the national police exposed the fraudulent Swiscoin project, whose creators are suspected of embezzling investments worth more than $500,000.

SwissCoin promised to develop a system of instant, virtually interest-free payments anywhere in the world, but no white paper was published, and there was also no information about the developers.

PayCoin

PayCoin began in 2014 by the notorious Josh Garza and GAW miners but showed a lot of promise with an interesting white paper that talked about building a new breed of cryptocurrency.

However, when it came to launching the ICO, the developers rushed it out as another generic altcoin clone in the hopes of hitting the market and pumping the coin.

After a huge launch, and a big boom in market capitalization, things started to deflate as the team failed to keep their promises. One of the major ones was the $20 pay floor, which also failed and saw a mass exodus of interest.

Droplex

Some scams in the ICO world work because they look so good from the start, but others are really poor and lazy to begin with.

Droplex was a lazy scam attempt that was quickly called out. Droplex’s white paper was a carbon copy of QRL’s white paper. Literally word for word.

People soon got stuck into Droplex for their shoddy attempts and they capitulated quickly, only making off with about $25,000.

CoinDash

CoinDash, having only raised $6.4 mln, had to admit defeat when they were hacked out of $7 mln leaving them flat broke. The method of the hack is uncertain, but some sources speculate the hacker created an identical website to the team’s. Others think he or she simply changed the payment address, to divert funds.

Gems

Gems, or GetGems, is more of a failure because it performed so underwhelmingly after promising so much. In 2014, the company said it would disrupt social media as we knew it.

However, At the end of 2014, the company reported a disappointing crowdsale, raising only $111,000, which pales in comparison with a number of ICOs at the time which were crossing the million dollar mark.

Gems is still running, but the app itself is very unpopular on Google Play store and other apps marketplaces. It is only relatively successful in Uzbekistan.

🕵️‍ ICO Watch
views
👓 Recommended articles
🕵️‍ ICO Watch Tzao Se

Greed is Haram: How Islamic ICOs Can Conquer the World

👁 ICO Watch
Islam prohibits interest and favors investments into real economic activities. Can Islamic norms protect project founders from the insatiable greed of financial markets?
Greed is Haram: How Islamic ICOs Can Conquer the World

Abrahamic religions have always had a problem with money lending. Judaism expressly prohibits to levy interest on loans granted to a fellow Jew, and some Judaic scholars even extended this norm to non-Jews who show consideration for Jews. Nevertheless, the actual stance of Jewish theologists allows charging interest on loans provided to non-Israelite. Christianity shuns lending with interest, too, so, for example,  Roman Catholic church has never officially permitted charging interests - it just stopped enforcing this ban with the rise of capitalism. Islam, the youngest of Abrahamic religions, is the most strict on interest-bearing money lending. Riba (interest) is strictly prohibited in Islam, as well as money trading.

From the other hand, Dr. Aznan Hasan, of International Islamic University of Malaysia, states that “Private Equity and Venture capital are a “natural fit” for Islamic Finance,” because Islamic finance “praises the employment of financing in real economic activities” [as opposed to money trading, and creation of money from money].

The number of Islamic banking institutions is growing. They offer Sharia-compliant loans, mortgages, and other financial instruments.

Islamic financing may give an opportunity worthy of consideration for bonafide Blockchain projects that aim to raise funds from wealthy Islamic nations.

The only major consideration is that  businesses seeking financing must be Sharia-compliant: it must not be involved in haram (prohibited) activities, such as alcohol or other intoxicants, money trading,  lending with interest, gambling, lotteries and others.  A competent Islamic institution can accredit Sharia compliance. Also, projects should not imply an excessive risk, to be considered a Sharia-compliant. Companies that go for Islamic financing should have a Sharia-compliance advisor or Sharia board.

Sharia-compliant financing operations are often structured in such a way that the lender and creditor become partners in a joint enterprise and jointly participate in its profits and losses. The interest isn’t fixed, but rather pegged to projects’ future profits.

Islamic instruments are still considered securities under US Securities Act, so they cannot be offered to any ‘US Person’ except for a limited private offerings, or other exempt cases, unless registered with the SEC.

Mudhabarah- Islamic venture financing

One mode is called “mudharabah,’ and is very similar to venture financing. Under terms of ‘mudharabah’ or profit sharing contract, the creditor (‘abb-ul-mal,’ or silent partner), provides 100 percent of the capital to ‘mudarib’ (entrepreneur). An entrepreneur invests his knowledge and skills to promote a project for a certain time.  Abb-ul-mal is usually an Islamic bank or Sharia-compliant investment fund that accumulates monies from the depositors and passes earnings and losses to them. An angel investor can also act as one.

Mudharabah financing can then be split between many investors in the form of Mudharabah certificates. These certificates are considered securities, so they may require filings, similar to SEC, under Islamic financial market regulations of the country where issued. However, a smart contract token that recreates a mudharabah certificate is technically feasible.

Abb-ul-mal, the sleeping partner, has no rights to interfere in day-to-day management of the enterprise (yet it has the right to oversee their operations). A mudharabah contract can be terminated by the parties anytime, unless ‘mudarib’ (the entrepreneur) have already commenced to carry out the work or parties have agreed not to terminate the agreement before a certain date.

In case if the financed project carries a loss, ‘abb-ul-mal’ loses the capital, and ‘mudarib’ loses the time and effort invested (unless there’s mismanagement, entrepreneur is not responsible for losses). If there’s a profit at the end of the project, it is split between the two in the pre-agreed proportion.

Musharakah- Islamic crowdfunding

A variation of joint venture scheme in Islamic world is called Musharakah or profit and loss-sharing arrangement. In that mode, multiple partners offer financing for a project, yet also have a right to work for the enterprise, and have a say in how its managed. This is not obligatory though, and financing partners can remain sleeping if musharakah agreement stipulates this. They receive a share of profits, in accordance with their agreement, not exceeding their share in the capital. Partners who also work for the enterprise may be entitled to a higher portion.

Musharakah is an unlimited partnership (meaning that, all partners, both sleeping and active, share both profits and losses). However, a musharakah agreement may stipulate that the active partner must not incur debts during the course of business, and if he does, it will be his responsibility. The same applies to fines or consequences of mismanagement. So, when carefully structured, musharakah can become a limited partnership.

All in all, Musharakah is essentially a centuries-old Islamic version of crowdfunding. It is not a common form of financing nowadays though, due to the complexity of managing it when many partners are involved.

But Blockchain is a perfect tool to resolve this problem and bring Musharakah back to life. A smart contract token following Musharakah principle is easy to implement and may present a valid legal alternative to structure an ICO of a Sharia-compatible project, especially for the projects from Islamic countries or targeted to serve users from Islamic countries. Given the legal possibility of “having a say” in management of the enterprise, Distributed Autonomous Organizations can be built on the base of Musharakah principle.

So, Sharia-compliant ICO should probably be based on Musharakah: smart contract-based tokens may represent a mean to distribute agreed shares of profits between partners, granting a possibility to vote on crucial issues.

Qard-al-Hasan- Islamic charitable interest-free loans

Islam has a centuries-long tradition of charity and giving to the community. Projects that are not aimed at enriching their owners, but offer them reasonable compensation for their efforts to further the well-being of Muslim community (especially, its poor and underprivileged members) can look for interest-free loans (Qard al-hasan) from Islamic benefactors. The receiver of the loan must return the loan, and it is optional to add something to the body of loan as a token of gratitude.

Greed is haram

Islamic models of finance limit the possibility of speculative trading, because of its similarity to gambling. It is prohibited, for example, to sell a debt with discount or premium, only at face value. So, chances are high that it won’t be allowed to transfer a token that is used to manage musharakah partnership, with a mark-up. On the other hand, the musharakah model offers better security of the investment: it can be arranged that any partner’s share can be purchased back by any of the partners.  

But, after all, it is exactly the speculative trading the very thing that sometimes plagues productive enterprises of the West. Islamic finance favors more meaningful investment model that is based on actual performance of companies.

Islamic fintech is an emerging branch of the technology, and it may arguably give a way for more sustainable growth of the technology and the society. While the West has long given up any ethical principles for the profit, and growth for the sake of growth, halal financing gives hope for more sustainable world: both in terms of technology and social justice.

🕵️‍ ICO Watch
views
👓 Recommended articles
🕵️‍ ICO Watch Eric Eissler

Zeepin’s not Creepin’ It’s Ready to Go Live: Past-ICO Review

👁 ICO Watch
Tools for the creative industry to license, protect and share creative is about to go live at the end of August
Zeepin’s not Creepin’ It’s Ready to Go Live: Past-ICO Review

 

 

Zeepin is a decentralized Blockchain developed for the global creative industry and the decentralized sharing economy community. The Blockchain is designed to help global creative content creators with asset digitization and rights confirmation, ensure these digital assets, enable efficient transactions and crowd-funding of creative assets, help organizations and individuals improve innovation efficiency, and incubate a large number of self-governing for-profit creative organizations.

Financials

Zeepin had a one-day token sale on Jan. 18, where it was able to raise some $62 mln in one day. The cost of a token during the sale was $0.13 and half of all one bln tokens were made for sale on that day. The token entered the general trading market on Jan. 30 at $0.18 and has experienced several ups and downs since. The token price is currently on a downward trend and is at its all-time low price of $0.03. Its market cap has dissipated to $19 mln and daily trading volume is at $250,000. It could be said that the current bear, really big bear, market is weighing heavily on all token prices and there has been little relief from the ongoing price correction.

💼 Related Article
Past-ICO Review: Olympus Labs
🔥 Hot
4 months
256
Past-ICO Review: Olympus Labs

Team

Zhu Fei- CEO & Founder

Fei is the former CEO of Arting365, with 15 years of experience in the creative industry. He has much experience in art and creative industry to drive Zeepin. He was the Director of Shanghai Top Young Creative Talents Association, Director of Shanghai-Jiangnan Intelligent Manufacturing Park Creative Industry Promotion Center, Director of Shanghai Industrial Design Association. Fei has founded Internet companies involving creative ecommerce, creative media, and design education, and has successfully created and operated a creative community with over 1.2 mln designer users.

Karl Xu-Co-founder & CSO

Xu has had much experience in strategy and operations. With an engineering degree in polymers, Xu has had the opportunity to work at GE in several management roles and SABIC. An engineering degree and more than 10 years of experience in business give Xu a strong foundation to be CSO.

Jason Xu- Senior Developer

Xu has worked for several enterprises and has more than 10 years of technology development and operation experience. He is familiar with the deployment and optimization of distributed applications and carried out certain research on data structure, asymmetric encryption, security protocol, and encryption algorithms.

💼 Related Article
Envion the Enron of the Cryptosphere: Past-ICO Review
🔥 Hot
4 months
256
Envion the Enron of the Cryptosphere: Past-ICO Review

Mainnet launch, DApps Ready

Zeepin’s mainnet is scheduled to go live at the end of the month on Aug. 31. The company already has several DApps ready for launch including, but limited to  ZeeRights, ZeeCreate, ZeeSure, ZeeProof, ZeeWallet and CryptoGalaxy. These DApps will work within the Zeepin ecosystem to provide the tools creative producers need to secure their creative works.

While we were not able to get any response from the company on how they are dealing with perceived competition nor market acceptance, it could be said that they have a rather solid footing a massive amount of followers supporters on social media. The litmus test comes at the end of the month when the mainnet goes live. We must sit tight and wait until then.

💼 Related Article
Swiss Cheese is Full of Holes: Past-ICO Review
🔥 Hot
4 months
256
Swiss Cheese is Full of Holes: Past-ICO Review

🕵️‍ ICO Watch
views
👓 Recommended articles
🕵️‍ ICO Watch Eric Eissler

Top 10 Major Platforms Supporting ICOs 2018

👁 ICO Watch
ICOs have doubled in six months of 2018 of what was done in 12 months in 2017. Here is a look at the companies that emerged and are succeeding
Top 10 Major Platforms Supporting ICOs 2018

 

It’s already July and it’s time to take a look back at all of the action over the first half of 2018. It has been an exciting and tumultuous time for the crypto world over the past two quarters. The market has been subject to bear domination and the market cap for the cryptosphere is down to $275 bln at the time of writing.

We have seen bans, scams, busts and successes over the past six months. A major point of growth has been the ICO market, with almost $14 bln raised in the first half of the year.

That figure is double the entire amount of all ICOs from 2017.

Last year, in 2017, 552 projects carried out an ICO and raised $8 bln. In 2018, except Telegram and EOS, 535 coin offerings took place and they collected almost $8 bln.

Quite a few of Cash-for-Crypto Lenders are dominating the chart. Let’s look at the top 10 Platforms coming out of the first half of the year, in no particular order.

💼 Related Article
Crypto-For-Cash Lender Faces Low Liquidity: Past-ICO Review
🔥 Hot
5 months 2 weeks
256
Crypto-For-Cash Lender Faces Low Liquidity: Past-ICO Review

1.WePower

WePower’s main goal is to make green energy projects easily financed by allowing it to come from the community and individuals as opposed to the traditional top-down method of financing.

The financing model created by the WePower ICO incentivizes both producers and energy buyers to use the platform.

ERC20 WPR token raised $40 mln in the initial ICO on Feb. 1, 2018. There was a presale that lasted from Sept. 22, 2017 to Feb. 1, 2018. So the company had a lot of time to raise the funding.

2.Solve.Care

Is taking on the healthcare/benefits industry by decentralizing the system and giving the power back to the user. Authority is delegated to the patient with the hopes of enabling better access to care, streamlined physician tasks, and timely and accurate payments by the healthcare administrator. The platform consists of four different components that make Solve.Care function: Care.Wallet, Care.Card, Care.Coin, and Care.Protocol. All of these components are designed to offer an innovative approach to administer benefits and keep patients, doctors and hospitals in sync and out of the hands of centralized record keeper. Solve.care raised $20 mln on May 1, 2018, and the platform is open for registrations.

3.Play2Live

Closing its alpha tests as this is written, Play2Live will unveil its beta platform in Aug. The Play2Live ecosystem has been designed to give everyone who is involved in eSports and gaming a better experience than that which they have right now. Users get a range of streaming options with the option of having no advertising on them. Users will be able to interact and can also choose to earn tokens in a number of different ways. These are just some of the benefits the platform will bring. Its hard cap for the ICO was $30 mln but the amount of funds raised has not been verified.

💼 Related Article
Blackmoon Ready to Upset Wall Street: Past ICO Review
🔥 Hot
5 months 3 weeks
256
Blackmoon Ready to Upset Wall Street: Past ICO Review

4.AppCoins

AppCoins is an open and distributed protocol for app stores. It proposes to move to the Blockchain three of the most critical flows of app stores: advertising, in-app purchases and developer’s approval. By redesigning the transactions inside an app store, the company creates efficiencies by disintermediation and redistributes the value released in a way that creates incentives for the AppCoins supported stores.

5.Ambrosus

Ambrosus is building a decentralized, Blockchain-powered IoT-based logistical supply chain network that will enable secure and frictionless dialogue between sensors, distributed ledgers and databases to optimize supply chain visibility and quality assurance. The network will serve industries such as agricultural, medical, commodities, and high-value products. It has a market cap of $44.6 mln. The token entered the market on Oct. 23, 2017 at $0.19 and at the time of writing is trading for $0.31. The token hit an all-time high of $1.72 in mid-January 2018.

6.Money Token

Is a cash-for-crypto company that will allow users to take out loans against their crypto collateral. This allows users to maintain their long positions without having to pay fees and taxes on crypto sales to access their cash. If they don’t want want to pay back the loan, Money Token keeps the crypto and clears the debt. If the value of the crypto collateral grows and the borrower pays it back, then they only pay want was in the contact before and they get to keep the crypto gains without any penalty. MoneyToken just ended its ICO on Jun 7 and raised $36 mln. The platform is active and ready to make loans.

💼 Related Article
Plain Payment System Slightly Dressed Up: Past ICO Review
🔥 Hot
5 months 3 weeks
256
Plain Payment System Slightly Dressed Up: Past ICO Review

7.Cardstack

Cardstack is an open-source framework and consensus protocol that makes Blockchains usable and scalable for the mass market, creating a decentralized software ecosystem that can challenge today’s digital superpowers. The ICO raised $35 mln in a 24 hr ICO that ended June 1.

8.DCC

Decentralized Credit is another lender, but it gives power over personal credit information back to the owner. In this way, it enables the user to find the best deals on loans and it makes it faster because the user and directly grant access to potential lenders and avoid the long credit and financial background checks that traditional banks make patrons suffer though. DCC raised $49 mln in a 24-hour ICO that ended on May 29, 2018. This past half year has seen much headway for the company: First personal loan product DApp launch on DCC, DCC Explorer launch; Distributed Credit Chain open platform launch, second DApp launch; Interfaced with more than five financial institutions with services ranging from loans, data and risk control.

💼 Related Article
Past ICO Review: TenX Puts Crypto on Debit Card, Hodlers Beware
🔥 Hot
6 months 3 weeks
256
Past ICO Review: TenX Puts Crypto on Debit Card, Hodlers Beware

9.Orbs

Raising some $118 mln, Orbs offers a platform that is built around the concept of supporting large-scale applications for consumers on the Blockchain. They partnered with major messaging app Kik, which is part of Kin coin. Orbs is about offering infrastructure as a service to its clients. The platform built its Blockchain from the ground up for the consumer applications market and tailored to its very specific set of requirements which is their basic difference between other Blockchains. Also ORBS platform will have their own infrastructure marketplace where independent software providers will be able to offer decentralized flavors(like decentralized analytics) of their software with an API compatible on the smart contract SDK layer which will allow providers to rely on the ORBS consensus layer.

10.Nexo

Another Crypto-backed loan provider, Nexo has been able to raise some $52 mln in funding in a three-week-long ICO that ended April 1. It has already loaned out more than $120 mln and has collected some $155 mln in repayments. Like many of the other crypto-for-cash lenders out there, they will require a crypto collateral. It operates under the same premise as the other lenders, to allow you to make gains on your holdings while using cash to fulfill your needs. Nexo operates under the authority of the EU Banking Supervision.  

💼 Related Article
ICOs Performance in 2017 and Outlook For 2018: Review
🔥 Hot
7 months
256
ICOs Performance in 2017 and Outlook For 2018: Review

🕵️‍ ICO Watch
views
👓 Recommended articles
🕵️‍ ICO Watch Eric Eissler

Kyber Network

👁 ICO Watch
Crypto exchanges 2.0 are decentralized
Kyber Network

Kyber Network is a decentralized exchange (DEX) that launched this year and has Vitalik Buterin as an advisor on its board. The goal of this company is not only to be a decentralized exchange, but also, in a letter put out by CEO Loi Luu, to be able to, “for the first time ever on a decentralized platform, Kyber Network will facilitate ICOs for both businesses and end-users. This means that companies can streamline their fundraising processes by offering their token sales on Kyber Network’s platform, which already has a database of existing, verified users. Cumbersome KYC checks and audits will thus be eliminated. End-users will benefit from having access to all ICOs on the platform without having to repeatedly register for KYC.”

Finance

From Sept. 15 through 16, Kyber Network raised $45 mln. It has a current, at time of writing, token price of $1.20 down from initial entry of $1.85 on Sept. 24, 2017, a fall of 35 percent since its market debut. CoinMartketCap ranks Kyber Network at 77.

💼 Related Article
Top 10 Major Platforms Supporting ICOs 2018
🔥 Hot
5 months 2 weeks
256
Top 10 Major Platforms Supporting ICOs 2018

Decentralization is crypto exchange 2.0

Just as cryptocurrencies have been making payments and smart contracts decentralized, so will go the exchanges. While they are in the beginning phases of deployment, with more and more attaches on traditional centralized exchanges, DEX will entice more and more developers to work for them, and for security reasons more customers will leave the traditional exchanges behind and opt for an exchange that can’t go down or have funds stolen as we have seen so much over the past few years.

Kyber Network’s protocol has been built based on three core design philosophies:

  1. It is platform-agnostic, allowing any application or protocol to be powered by our liquidity network, without limiting innovation and ecosystem diversity.

  2. The protocol makes real-world commerce and decentralized financial products feasible by enabling instant inter-token transactions with a wide range of token options and no settlement risk, which are critical factors for many use cases.

  3. Kyber is built for ease of integration with different applications, as it runs fully on-chain and all operations are transparent. A key design focus is to be developer-friendly and highly compatible with other systems.

💼 Related Article
Blackmoon Ready to Upset Wall Street: Past ICO Review
🔥 Hot
5 months 3 weeks
256
Blackmoon Ready to Upset Wall Street: Past ICO Review

Potential pain points

Attracting customers to shift and come to a DEX might be hard at first. Remember that not all crypto investors are so tech savvy.

  • Inability to obtain user adoption because of difficult UX, inability to exchange fiat currency. If you don’t already have crypto, how do you buy it for cash?

  • Other decentralized exchanges outcompete Kyber Network and achieve mainstream adoption and/or more decentralization faster. Everyone wants to work for the biggest and best in the tech world;  developers and users will consolidate around the most successful ones.

  • Pushback from regulators. Regulators may argue that DEX facilitates Anti-money laundering/know-your-customer (AML/KYC) violations and don’t want cryptocurrency trading to be decentralized. The black market and Bitcoin went hand and hand in all the negative press over the past few years. Regulators will be searching for a way to slow or stop decentralized exchanges from growing.

The team

Loi Luu, CEO and co-founder, holds a PhD in computer science from Singapore National University, where his research focused on several problems of cryptocurrencies from improving the security to enhancing the scalability and usability of public cryptocurrencies. Before launching Kyber Network, he had been a technical advisor to several other Blockchain-based companies in Singapore.

Yaron Velner, CTO and co-founder, hold a PhD in computer science from Tel Aviv University, and he has previously a majority of his career at EZChip as a software engineer, before doing two post-doctoral fellowships in networking properties and then taking the lead as Kyber Network’s CTO.   

Victor Tran, senior backend engineer and co-founder, has experience in developing large-scale infrastructures for multiple social marketing platforms and advertising networks. Victor has been involved in Blockchain and cryptocurrency development since early 2016.

What is a decentralized exchange?

A DEX is an exchange that does not rely on a third-party service to hold the customer's funds, such as Coinbase. Instead, trades occur directly between users in a p2p network through an automated process. This system is created by making proxy tokens, which are crypto assets that represent a certain fiat or cryptocurrency. Another way to do this is to use assets, which can represent shares in a company for example, or through a decentralized multi-signature escrow system, among other solutions that are currently in development.

💼 Related Article
What is a Decentralized Exchange?
🔥 Hot
5 months 3 weeks
256
What is a Decentralized Exchange?

🕵️‍ ICO Watch
views
👓 Recommended articles