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December 2017

Stellar Lumens Review | What Is XLM?

Stellar Lumens (XLM) Review – As a Cryptocurrency ‘Not-for-profit’ project, we have great respect for the project but are Stellar a good investment opportunity?

In this extensive review, we’ll be discussing all the important aspects of the project so you can decide if this is a good Crypto investment for you or not.

 

YOU WILL LEARN:


What Is The Stellar Lumens Project?

Will The Stellar Lumens Token Increase In Price?

How To Buy And Store Your Stellar Lumens Tokens

Is Stellar Better Than Ripple?

 

CONTENTS

  1. What Is Stellar Lumens?
  2. How Does Stellar Lumens Work?
  3. Are Stellar Lumens Solving Real Problems?
  4. Will The Stellar Token Price Increase?
  5. Team
  6. Selling Points
  7. Barriers To Success
  8. Extra Points
  9. Where To Buy & Store Stellar Tokens
  10. Stellar vs Ripple
  11. Conclusion
  12. Follow Future Points

 

1. WHAT IS STELLAR LUMENS?

In Their Words

“Stellar is a decentralized, hybrid blockchain that is fully open-source. It is infrastructure that exists to facilitate cross-asset transfers of value, including payments.”

In Our Words

Stellar is a not-for-profit project that aims to offer everyone equal access to easy banking methods

Stellar was, in fact, a 2014 hard fork of Ripple. It is for this reason that the two are often compared, something we will touch on later.

 

2. HOW DOES STELLAR LUMENS WORK?

Money Transfers

We feel that this is easiest to explain with an example;

  • Let’s say I want to send £100 to Joe in Nigeria
  • He wishes to receive payment in the local currency; Naira
  • Having purchased 20 XLM to allow myself access to the network, I could then deposit my desired funds onto the network.
  • This would be recorded by the Stellar ledger as credit.
  • This credit would now be in my online account – like a virtual wallet – and I would be able to send it to Joe.
  • The Stellar distributed exchange will automatically convert my £100 into Naira, at the lowest possible rate, before sending it to Joe and he is free to withdraw it.

Each transaction costs 0.00001 XLM which would need to be purchased on top of the 20 XLM to access the network. 1 XLM currently costs around $0.22 and would cover 100000 transactions.

This feature was introduced as a DDoS deterrent.

Forex Platform

As well as money transfers, the Stellar exchange can be used just as any other Forex trading would.

For instance, the platform connects two individuals trying to trade currencies with corresponding orders e.g. someone wanting to exchange GBP for USD and another wanting to exchange USD for GBP.

If this is not possible, then the system would introduce XLM as a bridge currency. For example, it would trade GBP for XLM and then XLM for USD to complete the transaction.

If there were no corresponding orders to connect buyers or use Lumens as intermediary, the platform could connect multiple transactions.

For example, a person wanting to exchange GBP for USD with someone wanting to exchange USD for EURO and also someone wanting to exchange EURO for GBP in order to complete all transactions.

In other words, the Stellar platform can be used to trade regular currencies and has a sophisticated system in place to overcome liquidity issues.

 

3. ARE STELLAR LUMENS SOLVING REAL MARKET PROBLEMS?

#1 PROBLEM – High Transaction Costs

Cross-border payments, especially when processed through banks are currently very costly.

STELLAR LUMENS’ SOLUTION

A single transaction on the Stellar network costs 0.00001 XLM, you could process 100,000 transactions for 1 XLM (Currently $0.22), significantly less than current methods.

# 2 PROBLEM – Settlement Times

Cross-border payments can currently take anywhere between 3 and 5 days to be settled due to the number of intermediaries often involved in the process.

STELLAR LUMENS’ SOLUTION

On the Stellar network transactions are completed in 2-5 seconds, this is even faster than Ripple whose transactions take 5-10 seconds.

#3 PROBLEM – Liquidity

People using lesser-known currencies often struggle with liquidity issues – a lack of buyers and sellers in the market makes it very difficult to easily trade currencies.

STELLAR LUMENS’ SOLUTION

As Stellar can be used as a bridging currency, it increases liquidity and allows for easier trading with lesser used currencies

 

4. WILL THE STELLAR LUMENS TOKEN PRICE INCREASE?

This is another incredibly important point that people often overlook when investing in Cryptocurrencies – is the token price truly linked to the platform usage?

Investing in Cryptos is not the same as traditional investing – when you buy shares in a company, you’re buying ownership.

As the company makes increased profits, the share price will increase and your investment value will rise also.

With the majority of Cryptocurrencies, the tokens don’t represent shares.

Therefore, it’s possible for the company to be successful (i.e the CEO and employees get rich) and yet the token prices may actually fall if they aren’t correctly linked to platform usage.

The ONLY factor determining token price is supply and demand on exchanges.

Obviously, supply and demand are affected by many factors but the price all comes down to the combination of these two. Because of this, it is essential to ask yourself the following two questions:

  1. Demand – Will there be token demand on the exchanges?
  2. Supply – Will there be excessive inflation hindering prices?

Let’s first look at demand:

What Are The Sources of Demand?

In short, we see very little demand for XLM and Stellar themselves even suggest this may be the case in their FAQ section.

In order to use the system a person only needs to hold a reserve of 20XLM. There are, of course, the transactions fees also but a fee of 0.00001 XLM per transaction means you could complete 100,000 transactions for just 1 XLM.

Even if Stellar are successful in converting large corporations to the network, their yearly transactions would probably require them to hold only a very small number of XLM tokens.

When this is combined with XLM’s use as an intermediary/bridge currency, there becomes no real reason to hold XLM. With all trades completed on the Stellar ledger, there is no real need to ever buy tokens from the exchange apart from to access the platform and cover your fees.

Stellar themselves offer a few reasons to hold XLM but they do little to convince us to change our minds; their two suggestions (Besides to cover fees) are as follows:

  1. To support the work of Stellar.org and invest in any future success.
  2. In the future, after they have given away all the lumens—which will happen over the next 10 years—everyone will need to procure lumens from exchanges.

Their second point may well be true, in that they will have given away all of the lumens but if the conclusions we made above are true then a demand for XLM would still not exist, so this would be irrelevant.

FAILED

What Is The Likely Inflation Rate?

According to Stellar’s website, new lumens are added to the network at the rate of 1% each year. However, this isn’t the realistic supply for Stellar.

With a total circulating supply of 18 Billion tokens and a total supply of 103 Billion, there are still a further 85 Billion tokens which could reach the market and devalue current tokens.

As a result, the supply is also a concern for us.

FAILED

Conclusion

The first thing we’d like to highlight is the importance of this section; if a project fails either of these sections, we wouldn’t invest in it, regardless of how good the rest of the project could be.

In this example, Stellar has failed our tests of supply and demand.

Simply put, we don’t believe that Stellar token prices should rise over time based on supply and demand.

Having said that, we do expect speculation might drive up prices further in the short-term but we don’t believe in Stellar as a long-term investment

Not For Profit

The real question is; should we be surprised that Stellar is potentially not a great investment?

When you consider that XLM is a not-for-profit project, it should come as no real surprise that Stellar potentially produce enough profits for investors.

We shouldn’t overlook the tremendous work that Stellar are doing in order to provide some of the many benefits that Cryptocurrencies can bring to people worldwide.

In fact, we have great respect for the project and the selfless nature of their goals. We believe that they are taking steps forwards to bring the technology into everyday life and they’re not even lining their own pockets at the same time.

In other words, we’re a big fan of the project but we don’t view it as a great investment.

Regardless, we are going to continue our research into the platform and we’ll next discuss the team.

 

5. THE STELLAR LUMENS TEAM

As our regular readers will know, one of our mantras here at Crypto Gurus is to “invest in people, not ideas”. It’s based off the principle that an idea is only as good as the people who execute it. As investors, we strongly believe in this principle.

Stellar are an established and operating currency so for this reason we will just highlight a few important names and connections involved with the project.

Please pardon the pun but this project really does possess a stellar team throughout; cofounder Joyce Kim has significant legal experience as well as experience as a venture capitalist.

The real attention grabber on the team is Jed McCaleb; some of you may recognise his name as the founder of Ripple. He left there after disagreements with their board of directors but he was also the founder of Mt. Gox.

Now we all know how that ended but McCaleb had sold his shares and was out of that project long before the controversy, so this would not be a worry.

They also feature some impressive board members besides Kim, former Paypal senior executive Keith Rabois and Greg Brockman, former CTO at Stripe are just a couple.

When this is combined with their advisors the team just gets better. Current Stripe CEO Patrick Collison, WordPress.com founder Matt Mullenweg and Greg Stein, who was instrumental in launching Google’s open-source hosting platform, to name a few.

 


ENJOYING THE ARTICLE?

Tom
Hi, I’m Tom, the CEO, and I’d like to take this opportunity to personally thank you for reading our article. I hope you’re enjoying it and have learnt a thing or two.

If you have, don’t forget to bookmark the website for more great content just like this. Already done that?

Come and chat to me personally in our Facebook Group! We work hard to create a welcoming community and, when you join, you’ll be able to vote in our regular polls to see which projects YOU want us to review.

Anyway, let’s get back to the content!

 

6. SELLING POINTS

Partnerships

Stellar already have a number of high profile partnerships secured, a number of anchors from various countries should help to ensure the necessary liquidity.

On top of that, having companies such as IBM, Deloitte and Stripe already on board should help boost their case to encourage further adoption.

Commitment to Developers

As a not-for-profit organisation and with the aim of encouraging adoption as quickly as possible, Stellar have made their code open-source.

As well as this, they have provided a number of guides on how to implement the network into their businesses and general guidance.

 

7. BARRIERS TO SUCCESS

Adoption

As mentioned above any success is going to come down to widescale adoption, it feels like we mention this a lot during our reviews but it is true.

Imagine launching a product and nobody buying it, it wouldn’t be a success. Cryptocurrencies are still in the early adopter stage and receive some unwarranted negative press, this is just something to bear in mind.

 

8. EXTRA POINTS

NOT-FOR-PROFIT!

This is something that we have mentioned throughout but something we wanted to give a little extra attention to; the team deserve respect just for this aspect of the project.

There aren’t many other, if any, cryptocurrency projects running not-for-profit. Even when Stellar auction off a small amount of their supply, team members are forbidden from bidding to avoid any potential conflict of interests.

When we’ve seen projects such as Ripple holding 55 billion XRP, Stellar have to be commended.

 

9. WHERE TO BUY & STORE STELLAR LUMENS

Where To Buy Stellar Lumens Tokens

Stellar Lumens tokens are available for purchase on the following exchanges:

  1. Binance
  2. Bittrex
  3. Poloniex

Where To Store Stellar Lumens Tokens

When it comes to storing Ripple tokens you have a number of options, the option we recommend would be to use a hardware wallet such as the Ledger Nano S, recently compatible with XLM.

This obviously means that your tokens are stored offline and are generally considered to be the safest option as a result.

Stellar Lumens themselves offer a list of 11 different wallets including Lobstr, a purpose-built wallet for XLM.

These are of course just suggestions; you may prefer to use one of these options or another method entirely, each option has its own benefits and it’s important you find the one that best suits you.

 

10. STELLAR v RIPPLE

This is a question that pops up quite often; which is better Ripple or Stellar Lumens?

Having now reviewed both projects we have found some similarities and differences between both which we will briefly cover below.

Both of course have a focus on cross-border payments and transactions and as Stellar was a hard fork of Ripple they share similar technology. They can both operate as a bridge currency

Ripple is a centralized currency while Stellar are decentralized; they focus on opposite ends of the pyramid. Ripple are working with banks, for banks, while Stellar are working with banks but for the benefit of the people.

Conclusion

We would first like to say that we see great potential in both projects but concluded that we would invest in neither of them. Neither project did enough to convince us that there would be significant demand for their tokens.

We believe this is a position where both currencies could exist side by side; they both seem to possess different focuses and target audiences. The comparisons obviously come from the fact that Stellar is a hard fork of Ripple and Jed McCaleb’s involvement in both projects.

Don’t forget to also check out our review of Ripple and form your own conclusions too.

 

11. THE CRYPTOGURUS CONCLUSION

We are huge fans of what the platform is trying to achieve; bringing banking to the underbanked etc and believe the platform could have huge benefits to the world in the future, so we applaud the team for that.

We love that Stellar is not-for-profit and have huge respect for the team for their efforts.

We also believe that there are many good aspects of this project but, the issue surrounding the potential lack of token demand, is simply too large a concern for us.

As a result, we truly wish the Stellar team the best with their project but we would have to pass on this project as far as investing goes.

We’d like to end our review by wishing the Stellar team the best of luck in the future as we truly believe their platform could have a great effect on the world.

 

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Top 7 Cryptos Of 2018 | Why No Ethereum?!

The Top Cryptocurrencies for 2018. If you’re looking to invest in Cryptocurrencies in 2018, this is the article for you.

After significant research, we’ve produced our list of the top 7 Cryptocurrencies to invest in plus a bonus one at the end. We’ll be explaining why we love each of these projects and we’ll also be covering why we wouldn’t invest in Ethereum.

YOU WILL LEARN:


The Top Cryptocurrencies for 2018

Why We Aren’t Investing In Ethereum

Why IOTA Could Have An Incredible 2018

 

 

1. IOTA (MIOTA)

What Is IOTA?

IOTA is a cryptocurrency which is unique to all others in the market in many ways. While the majority of Cryptocurrencies use the blockchain technology, IOTA uses tangle technology.

Theoretically, this provides IOTA with the following advantages:

  1. Infinitely Scalable
  2. Zero Fees
  3. Unhackable by quantum computers

To say that this is a big advantage would be a massive understatement – these benefits solves many of the biggest problems that the biggest Cryptocurrencies – Bitcoin, Ethereum – are facing.

Internet Of Things

IOTA state that their goal is not to replace Bitcoin but to work alongside them; focusing on the millions of micro-transactions necessary for the Internet of Things.

In all honesty, we don’t buy it – if IOTA are able to carry out millions of transactions with zero fees, why would they only be used for the Internet of Things when they can be used for any regular transaction?

We believe that they might only be pitching themselves as a supplement to Bitcoin, rather than a replacement, in order to not put off die-hard Bitcoin investors.

What we’re saying here is that IOTA may carry even more potential than they even claim at this point in time.

Too Good To Be True?

It’s time for a reality check – if IOTA really is as incredible as it first appears, why would they be outside the top 5 (at time of writing)?

There have been some concerns surrounding IOTA – very recently, they used some very confusing wording in an announcement which led investors to believe they had formed a partnership with  Microsoft. This turned out to be untrue.

Therefore, while we are very keen on IOTA overall, we do still have a few concerns about them in the long-term.

Why Will IOTA Have A Great 2018?

We’ve just been discussing some long-term concerns we have with IOTA so it must seem pretty counterintuitive for them to be on our top 10 Cryptocurrencies for 2018 list, right?

The simple answer is that hype alone will carry IOTA to incredible heights in 2018.

IOTA promises more potential than virtually any Crypto out there and this market is driven pretty much entirely by speculation.

With IOTA possibly becoming the currency used for the Internet of Things – a radical technological development coming over the next decade – we believe that investors will pile money into IOTA over 2018.

What Is IOTA’s Coin Used For?

IOTA is a currency. Therefore, the price of the coins is entirely linked to the success of IOTA.

Current Price 

$3.23

 

2. QUANTSTAMP (QSP)

What Is Quantstamp?

Quantstamp is a project designed to audit smart contracts.

Remember the huge problems caused by errors in smart contracts in the past which led to the DAO failure in 2016 and recent parity wallet hacks, causing investors to lose millions?

Quantstamp will be providing an automated, scalable solution that can check through smart contracts to find errors.

What Is The Quantstamp Token Used For?

The Quantstamp token, QSP, is an access token.

Therefore, if a project wishes to use Quantstamp’s solution, they will first have to buy tokens from the exchanges.

If Quantstamp are successful, demand for their token should rise and thus token prices should also increase.

Why Will Quantstamp Have A Great 2018?

We believe that smart contracts will be one of the most revolutionary things to come from the Cryptocurrency revolution over the next few years.

The number of smart contracts should increase rapidly over the course of 2018 due to the many benefits that they provide – greater efficiency, reduced costs, trustless systems and more.

However, if we continue to see such fatal errors in the code causing these smart contracts to damage the wallets of investors, how can anyone trust them? They can’t.

Therefore, Quantstamp will be providing an incredibly important service which virtually every smart contract platform will want to use.

Video Review

Check out our article review here our video review below for more details on the Quantstamp project:

Best On The List?

Combine this with the fact that Quantstamp have already audited their first smart contract (Request Network), they’re priced stupidly low – outside the top 100 – and have the first mover advantage, we think Quantstamp could be the biggest gainer on the list over the next year in percentage terms.

Current Price 

$0.154

 

3. NEO (NEO)

What Is NEO?

NEO is a smart contract platform, similar to Ethereum. It does have many differences though e.g. the much higher transaction speed – 1,000 per second for NEO compared to 15 for Ethereum.

NEO also carries another benefit over Ethereum – their smart contracts can be coded in many languages whereas Ethereum can only be coded in Solidity.

To simplify, this means that when people wish to use NEO’s platform, they can begin right away. With Ethereum, on the other hand, they will have to learn the Solidity programming language first.

Is NEO Better Than Ethereum?

Reading this, you’re probably thinking that we are bullish on NEO for 2018 because we believe it’s better than Ethereum. In truth, Ethereum has many advantages over NEO and these shouldn’t be discounted.

We’ll explain below the real reason that we’re bullish on NEO.

China’s Answer To Ethereum?

When NEO launched, it was touted as being ‘China’s answer to Ethereum’. Soon afterwards, China announced severe restrictions; banning ICOs and Cryptocurrency exchanges.

With NEO being a platform designed to host ICOs, this was a devastating blow and NEO’s price crashed accordingly.

Subsequently, NEO rebranded in an attempt to distance themselves from the harsh regulations of China. In spite of this, the majority of investors still view them as inextricably tied to China.

Therefore, if China lifts their ban, we would undoubtedly witness a huge surge in NEO’s price – most likely doubling in value, at least.

Why Will NEO Have A Great 2018?

Many people – including us – believe that the Chinese bans are temporary; they are only in-place until China formulates their permanent regulations.

As a result, we fully expect to see China’s bans lifted at some point during 2018. In turn, this will cause a huge spike in NEO’s price.

This turns NEO from a great buy into an incredible one.

What Is The NEO Token Used For?

By holding NEO tokens, users will receive GAS tokens as a form of passive income, with GAS tokens being the native token of the platform.

Should I Buy GAS Instead?

You might be thinking: ‘If GAS tokens are the currency used on the NEO platform, why wouldn’t I just buy GAS instead of NEO?

We believe that this is a perfectly valid question and, in fact, either choice would be an equally solid addition to any portfolio – if you prefer GAS to NEO, this could be the buy for you instead.

Current Price 

$60.20

 

4. OMISEGO (OMG)

What Is OmiseGo (OMG)?

To quote OMG’s website “the OmiseGO Blockchain comprises a decentralized exchange, liquidity provider mechanism, clearinghouse messaging network, and asset-backed blockchain gateway”

In other words, OmiseGo is a project with many purposes. While OMG is focusing heavily on the remittances market, there are also many other projects with a similar goal.

Therefore, when describing why OMG will have a great 2018, we will be discussing what we believe is their stand-out feature – their decentralised exchange.

Why Will OmiseGo Have A Great 2018?

In this list of the best Cryptocurrencies of 2018, we’ve included 2 different decentralised exchange platforms because we believe that 2018 will be the year of the decentralised exchange.

Why Do We Think This?

With the ban brought in by China last year and the incoming regulations from few other countries, we expect that 2018 will be the year that governments all around the world will begin introducing their Crypto regulations.

Many of these countries may entirely ban Cryptocurrencies – like China – until they’ve drawn up their regulations. In these scenarios, investors and traders won’t be able to use centralised exchanges.

Instead, they’ll be forced to use decentralised exchanges in order to circumvent regulations.

We also believe that many investors and traders will choose to avoid centralised exchanges in order to pay less tax.

While we do not condone this behaviour, we feel confident that many Crypto investors/traders will do this anyway.

Because of these two reasons and many more, there will be a huge demand for decentralised exchanges throughout 2018.

In fact, we believe 2018 will be such a good year for decentralised exchanges that investors could pick many different options for investing.

However, there are many specific benefits to the OmiseGo platform which make it a particularly good investment.

We’ll talk about these and why OmiseGo is a good investment next.

Why OmiseGo?

There are several reasons we could discuss as reasons why OmiseGo should be a great investment, including:

  1. Strong Advisory Board – Vitalik, the founder of Ethereum, is an advisor!
  2. Existing Company – The company have had real success in the past

However, we want to focus specifically about the exchange and how OmiseGo are solving the problems seen by current decentralised exchanges.

OmiseGo’s Solutions

Decentralised exchanges are great as a concept but they aren’t a viable option in their current state due to the following issues:

  1. Low Liquidity – A lack of buyers and sellers makes it very difficult to buy or sell
  2. Unfriendly Interfaces – With less intuitive interfaces than centralised exchanges, users are often put off
  3. Transaction Speeds – As an exchange grows, it must have fast transaction speeds in order to keep up with demand

Liquidity – OmiseGo will hold large stores of Ether at all times and allow everything to be traded against Ether. As a result, OmiseGo should be able to offer high liquidity on all trading pairs.

Unfriendly Interface – OmiseGo will be building their exchange from scratch with the user experience in mind

Transaction Speeds – OMG will be the first Cryptocurrency to make use the much anticipated upgrade called Plasma. This should allow incredible scalability for OmiseGo, allowing “support for all the world’s currencies plus crypto for >1 Billion users simultaneously”

With such an incredibly promising future – especially as the decentralised exchange is just one element of OmiseGo’s plans – we believe that investor hype will drive OMG’s price up to new heights in 2018.

What Is The OmiseGo Token Used For?

The OMG token is used to validate the network in a Proof-of-Stake manner.

Current Price

$14.24


5. SALT (SALT)

What Is SALT?

Salt is a lending platform where you can use your Bitcoin/Ethereum or other top Cryptocurrency as collateral.

In other words, SALT will allow you to take out a loan by offering up your Cryptocurrency in case you can’t make your payments – similar to taking out a mortgage on a house and putting the house up as collateral.

You’ll be able to take out a loan of up to 80% of your Crypto value. For example, let’s say you have $100,000 of Bitcoin and require cash for your everyday life but don’t want to sell your Bitcoin.

With SALT, you’ll be able to take out a loan of $80,000. As long as you keep making your payments, your Bitcoin will be released back to your wallet at the end of the contract.

What Is The SALT Token Used For?

The SALT Token is an access token. In other words, in order to use SALT’s platform, you first have to buy tokens from the exchanges. The higher the loan you require, the more tokens you must buy.

Therefore, if the SALT platform is successful, the token price should rise.

Why Will SALT Have A Great 2018?

We believe that the following situation will occur:

  • People will use SALT to take out a cash loan using their Bitcoin/Crypto as collateral
  • With their cash, people will buy more Bitcoin/Crypto

As SALT won’t require people to have good credit or go through any check others than KYC, regular people from all around the world who wouldn’t be able to get loans from banks will be able to use SALT and effectively leverage their Crypto position

Is This A Good Idea?

Absolutely not.

We would say that this is a bad idea for virtually everyone. However, if this market is one thing, it’s irrational and it’s for this reason that we believe this situation will undoubtedly occur.

Why Not Use Regular Leverage?

You may be thinking at this point that people can simply leverage their Bitcoin position on certain exchanges so why would they use SALT lending?

The reason is that it’s currently pretty much only possible to leverage Bitcoin – you can’t leverage an entire portfolio.

With SALT, you receive cash which means you can buy more of any Cryptocurrency that you wish.

Platform Release

Another positive to back up our previously mentioned points about SALT is that the platform will be released very shortly

Current Price

$13.12

 

 6. KYBER NETWORK (KNC)

What Is Kyber Network?

Kyber Network is a decentralised exchange which makes use of smart contracts to carry out trades. If you’d like to see more information, check out their explainer video below – it very effectively summarises their project.

What Is The Kyber Network (KNC) Token Used For?

The Kyber Network (KNC) token will be used to pay for fees on the exchange. These fees – paid in KNC tokens – will be burnt after their use which should reduce the total supply over time and lead to higher token prices.

On top of this, Kyber discuss that users first purchase tokens in order to use the platform.

With these two aspects in mind, the price of tokens should increase as long as the platform is successful.

Why Will Kyber Network Have A Great 2018?

During our explanation about why OmiseGo will have a great 2018, we covered why we believe all decentralised exchanges could have an incredible year.

With Kyber Network being another decentralised exchange, the same principle applies here so there is little point us wasting your time by repeating the reasons already given for OMG.

Instead, we’ll cover how Kyber Network will tackle the issues currently faced by decentralised exchanges:

  1. Liquidity – Kyber will hold a reserve of all currencies in order to ensure sufficient liquidity at all times
  2. Unfriendly Interface – Kyber will be designed with the user experience as a very important factor

Above, we haven’t mentioned the issue of transaction speed as we have found little reference made to that through our research online.

If Kyber were a more expensive project, we would view this as a potentially off-putting issue.

However, as Kyber Network is currently placed at 70th in the market, it’s a very cheap price and we believe that the massive potential upside certainly justifies a small risk in this sense.

Current Price

$2.12

 

ENJOYING THE ARTICLE?

Tom
Hi, I’m Tom, the CEO, and I’d like to take this opportunity to personally thank you for reading our article. I hope you’re enjoying it and have learnt a thing or two.

If you have, don’t forget to bookmark the website for more great content just like this. Already done that?

Come and chat to me personally in our Facebook Group! We work hard to create a welcoming community and, when you join, you’ll be able to vote in our regular polls to see which projects YOU want us to review.

Anyway, let’s get back to the content!

 

 

7. BITCOIN (BTC)

We couldn’t really have a top Cryptos of 2018 list without including Bitcoin now could we?

What Is Bitcoin?

Bitcoin is the first digital currency; the pioneer and leader of the Cryptocurrency revolution.

What Is Bitcoin’s Coin Used For?

Bitcoin is a currency. Therefore, the price of the coins is entirely linked to the success of Bitcoin.

Why Will Bitcoin Have A Great 2018?

With the recent release of Bitcoin futures and the news that Coinbase briefly became the  #1 downloaded app (on the app store) in the US, it’s fair to say that the end of 2017 was a big step forwards for legitimising Bitcoin.

Many people may say that Bitcoin is overpriced. They might even be right. However, even if they are right in the long-term, Bitcoin’s price will still go considerably higher in the meantime.

Why do we think this?

One word; Funds.

Funds Could Be Huge For Bitcoin

Currently, fund managers have no easy way to include Bitcoin in their funds and the purchasing power of global funds should not be underestimated.

Once fund managers are able to add Bitcoin to their funds in an easy and cheap method, it could cause the price to soar – assuming that these funds have to buy the underlying asset i.e. directly buying Bitcoin.

Uncorrelated Asset

We don’t want to go too technical here but we think it’s necessary to at least mention why fund managers will be so keen to add Bitcoin to their fund portfolios.

The most obvious reason is simply that Bitcoin has been producing incredible profits for investors. The second reason is that Bitcoin is not correlated to the price of regular assets e.g. if the price of real estate goes up, it has no impact on Bitcoin.

To keep it simple, this is incredibly rare and provides a fund manager with an incredible opportunity to increase their potential reward while minimising risk.

This kind of opportunity is very rare and we would be incredibly shocked of fund managers choose to miss it.

The Least Impressive Upside?

We want to be clear here – Bitcoin may have great upside potential but it arguably has the least of all the currencies on this list. On the flip side though, it’s also the safest pick as it is usually the least affected by market swings compared to other Cryptocurrencies.

Personally, we believe that there is greater potential for profits by spotting the undervalued altcoins in the market so we aren’t heavily invested in Bitcoin. However, we still recognise that any strong portfolio should include Bitcoin also.

Current Price

$15,200


BONUS PICK #1 – LITECOIN (LTC)

What Is Litecoin? 

Litecoin is a currency, often described as the ‘Little Brother of Bitcoin’. Originally a hard fork of Bitcoin, Litecoin regularly implements upgrades before Bitcoin does.

What Is Litecoin’s Coin Used For?

Litecoin is a currency. Therefore, the price of the coins is entirely linked to the success of Litecoin.

Why Will Litecoin Have A Great 2018?

Due to Litecoin choosing to work with Bitcoin instead of aiming to replace them, the future of these two currencies is linked to each other… except Litecoin is much cheaper and therefore has a far greater potential upside than Bitcoin.

In other words, if Bitcoin is successful over the next year, we expect Litecoin to share in this success and potentially increase a greater amount in percentage terms than Bitcoin.

What About The Lightning Network?

The lightning network is a future upgrade that Bitcoin could implement in order to improve on their scalability issues.

Some people in the community argue that Bitcoin adding the Lightning Network would be the end of Litecoin – after all, why would Bitcoin need Litecoin to assist with scalability issues when they have Lightning?

While some people argue this, Charlie Lee – Litecoin’s founder – has spoken of a future where both Bitcoin and Litecoin have Lightning and Atomic Swaps (a method of converting one currency for another without using an exchange).

In this likely future, there would actually be more of a need for Litecoin than ever before.

Without getting too technical, the Lightning Network doesn’t fully solve Bitcoin’s scaling issues but the addition of a second blockchain – i.e. Litecoin – to assist along with Lightning could be a big step forwards.

 

BONUS PICK #2 – COSS (COSS)

What Is COSS?

COSS is a profit-sharing exchange whereby token holders receive 50% of fees charged on the exchange.

What Is The COSS Token Used For?

The COSS token is a profit-sharing token. In other words, holders of the token receive fees collected on the exchange

Why Will COSS Have A  Great 2018?

The idea of a profit-sharing exchange is somewhat unique  – with only a few competitors such as KuCoin. COSS are also working towards building a decentralised exchange while some of their competitors are not.

While it should be noted that KuCoin is arguably better than COSS, KuCoin is also vastly more expensive and thus has lesser upside potential.

COSS spent several months during their development focused on attempting to create solutions for virtually every issue in Cryptocurrencies.

Recently, however, COSS announced that they would begin spending 100% of their time focused on their exchange – a move that we celebrated – and have demonstrated the future potential of the project as we have seen solid progress since

KuCoin vs COSS

Check out our video below for our comparison between the two projects.

High Reward = High Risk

Viewers should be aware that COSS is the cheapest of all our picks which means it has the greatest upside potential but it also has the highest associated risk.

Therefore, while we are personally invested in COSS, we are also well diversified.

 

WHY NO ETHEREUM (ETH)?

Many of you were probably expecting to see Ethereum on this list and may have been surprised at our decision to leave it off.

The reason that we’ve chosen to do so all comes down to risk vs reward.

Risk vs Reward

The potential reward for Ethereum is remarkably high in comparison to regular investments but it is considerably less than other smart contract platforms.

For example, Ether has a market cap 15x higher than NEO. Therefore, if we were to invest in Ether instead of NEO, we would expect to be taking on considerably less risk – 1/15th of the risk to be precise.

In reality though, we foresee considerable risk for Ethereum for the following reason:

High Risk?

Seemingly, there is a new Ethereum based project launched every day, yet the network is still a long way from being able to handle the transaction speed required – look at the recent problems with CryptoKitties for a great example.

In other words, Ethereum is nowhere is near as fast as it needs to be.

At the moment, the majority of projects hosted on Ethereum are in the development stage i.e. their platforms haven’t been built and they aren’t attempting to use Ethereum’s currently slow platform.

For us, this is where the concern enters:

What happens when many of these Ethereum-based projects launch? If Ethereum haven’t upgraded in time, they won’t be able to handle anywhere near the speed required.

As a result, ALL of these projects could suffer from incredibly slow speeds and their products may not even work as a result.

The Result?

A PR nightmare causing investors to lose major confidence in Ethereum – in the short-term, at least.

Will Ethereum Upgrade?

Let’s be very clear on this; it’s entirely possible that Ethereum will upgrade their platform in time and not encounter similar issue to the recent Crypto-kitties problems.

If Ethereum was a cheap project with a low market cap, the potential gains would outweigh the potential losses. The problem is that Ethereum is an expensive project  which should mean lower potential rewards but lower risk also.

As an investor, the risk/reward ratio for Ethereum is simply too high.

 

HONOURABLE MENTIONS

As we mentioned before, this might include the top Cryptos that we would invest in but that doesn’t mean there aren’t many other great investments out there.

Therefore, we’ve decided to include a few extra which could also potentially be great opportunities:

  1. EOS – Smart Contract Platform
  2. Komodo – Decentralised Exchange Using Atomic Swaps – We recommend looking further into this project
  3. Cardano – Smart Contract Platform
  4. Lisk – Smart Contract Platform
  5. Bitshares – Decentralised Exchange
  6. Populous – Invoice Trading Platform
  7. Golem – Decentralised Supercomputer

Over the coming weeks and months, we will be carrying out extensive reviews of all of the projects mentioned throughout this article so make sure to follow the website for future articles.

How Can I Follow Future Posts?

While you can bookmark the page, we all know it’s hard to keep track sometimes.

That’s why we strongly recommend your join our Facebook Group – it’s the best Crypto-community you’ll find and we post every article on there so you’ll never miss one again!


12. FOLLOW FUTURE POSTS

Come join us to follow future articles and personally chat with us:

  • Facebook – Vote every 2 weeks for reviews YOU want to see
  • Telegram – Join the #1 group Crypto chat
  • Youtube – For the lazy viewers who don’t like reading

 

What Is Ripple? Full Investment Review | Latest News

What Is Ripple? Cryptocurrency Review

Ripple Review – Ripple is a cryptocurrency aiming to work with the banks, allowing them to send money across borders with ease.

In this extensive review, we’ll be discussing whether Ripple is the great investment that many people consider it to be and how you can buy & store your XRP coins.

YOU WILL LEARN:


What Is The Ripple Project?

Will The Ripple Token Increase In Price?

How To Buy And Store Your Ripple Tokens

 

 

CONTENTS

  1. What Is Ripple
  2. How Does Ripple Work?
  3. Are Ripple Solving Real Problems?
  4. Will The Ripple Token Price Increase?
  5. Team & Roadmap
  6. Selling Points
  7. Barriers To Success
  8. Extra Points
  9. Where To Buy & Store Ripple Tokens
  10. Ripple Price Spike
  11. Conclusion
  12. Follow Future Posts

 

1. WHAT IS RIPPLE?

In Their Words

Ripple is a global real-time settlement network; its system aims to connect banks around the world to allow for cross-border payment systems.

In Our Words

Ripple is a Cryptocurrency which is aiming to work with the banks. As the core premise of Bitcoin and other Cryptocurrencies is to replace banks, Ripple has faced some serious backlash in the Crypto-world for its plans to assist banks Cryptos are aiming to replace banks, Ripple are going against

 

2. HOW DOES RIPPLE WORK?

Central Currency – XRP

There are 3 elements to the Ripple platform that they regularly discuss (xCurrent, xRapid, xVia). However, for the purpose of this article, we’re only going to be discussing the main area which our readers will be familiar with – allowing banks to send money abroad.

Ripple works by providing a bridge between currencies:

Let’s say a bank wished to trade their GBP for an American banks USD. With the current system, this takes several days and can be costly.

Ripple works by introducing a central currency, XRP.

In other words, instead of directly trading GBP for USD, the UK bank would trade GBP for XRP and then trade XRP for USD.

The reverse process would occur from the perspective of the US bank.

Extra Step?

While this may actually add an extra step to the process, each trade takes around 5 seconds and incurs a tiny fraction of cost.

As a result, the banks have now traded GBP for USD in 10 seconds (compared to the old system of several days) and for less than a 0.1% fee.

Above, we’ve described how the process occurs to use Ripple’s currency, XRP, as a means of speeding up cross-border trade while reducing fees.

Below, we’re going to describe another advantage that Ripple offers – providing liquidity for smaller currencies.

Liquidity Pool

Let’s say:

  • Bank A has South African Rand (ZAR)
  • Bank B has Thai Baht (THB)
  • These two banks would like to trade their currencies.
  • In other words, Bank A would like to send ZAR from South Africa to Thailand and Bank B wants to send THB to South Africa

Within the current system, this is very difficult to achieve because there is very low liquidity when trading ZAR/THB

What Does Liquidity Mean?

Liquidity essentially means the number of buyers and sellers in a market. The more people buying and selling, the higher the liquidity.

Higher liquidity makes it much easier to buy or sell:

Imagine you’re in a room with 2 people wanting to buy your currency and 2 people selling it. Now, imagine you’re in a room full of hundreds of people wanting to buy and sell.

Which room do you think it would easier to make a trade in? The more buyers and sellers, the easier it is to trade.

Ripple’s Liquidity Solution

This is one of the reasons that it can be very difficult to trade smaller currencies such as the South African Rand and Thai Baht; because there isn’t enough liquidity to facilitate easy trading.

Therefore, Ripple will be using their token as liquidity pool. In other words, every currency will first be traded with XRP. This process is identical to the process outlined above so we won’t go further into detail here.

Instead, we’ll discuss how having a central currency increases liquidity in a market:

Let’s say the following trades occurred in one day by 3 banks – a UK bank, a US bank and a European bank (ignore the inaccurate conversion rates used for simplicity):

  • £1 Million GBP traded for $1 Million USD
  • £1 Million GBP traded for €1 Million EUR
  • $1 Million USD traded for €1 Million EUR

If you look at each of these pairs alone, they have a trading volume (liquidity) of 1 Million per day in their respective trading pairs – GBP/USD, GBP/EUR , USD/EUR.

Introducing XRP

Now, we’ll look what happens if we introduce a central currency (XRP) and carry out the exact same trades:

Note: The example above involves 2 Million of each currency being traded per day hence we’ve used those same values below

  • £2 Million GBP traded for XRP
  • $2 Million USD traded for XRP
  • €2 Million EUR traded for XRP


Hopefully, you can now see from this example that the liquidity of each trading pair (GBP/XRP etc.) has now risen from 1 Million per day up to 2 Million.

Higher liquidity results in easier trading. For lesser traded currencies such as the Rand and Baht, this provides a huge benefit.

 

3. ARE RIPPLE SOLVING REAL MARKET PROBLEMS?

#1. PROBLEM – Slow Settlement Speeds

In their current state, cross-border payments require a number of intermediaries to be involved in the process. This means that payments can take anywhere between three and five days to reach completion.

RIPPLE’S SOLUTION

The Ripple payment protocol will allow transactions to be completed within 5-10 seconds as opposed to 3-5 days

#2. PROBLEM – High Operational Costs

The number of intermediaries involved in the process not only affect settlement speeds but also cause transaction fees to be higher. The current average transaction fee for a $500 payment stands at $5.56.

RIPPLE’S SOLUTION

The average transaction fee for a $500 payment is reduced by over 60% to $2.21

#3. PROBLEM – Payment Failure

Currently an average of 4% of all cross-border payments fail, a failed payment is of course of no benefit to any party involved.

RIPPLE’S SOLUTION

All payments made using Ripple will be trackable on the blockchain

#4. PROBLEM – Smaller Currencies

Let’s imagine a bank wanted to send a payment of South African Rand to a another bank and receive Thai Baht in return. As an uncommon trading pair, it may take a significant amount of time for someone to match the trade.

RIPPLE’S SOLUTION

Ripple will provide a liquidity pool in order to improve on liquidity issues

#5. PROBLEM – High Liquidity Costs

Payments into emerging markets often require pre-funded local currency accounts around the world, as a result liquidity costs are often high.

RIPPLE’S SOLUTION

Ripple payments are a fraction of the cost of this

 

4. WILL THE RIPPLE TOKEN PRICE INCREASE?

This is another incredibly important point that people often overlook when investing in Cryptocurrencies – is the token price truly linked to the platform usage?

Investing in Cryptos is not the same as traditional investing – when you buy shares in a company, you’re buying ownership. As the company makes increased profits, the share price will increase and your investment value will rise also.

With the majority of Cryptocurrencies, the tokens don’t represent shares.

Therefore, it’s possible for the company to be successful (i.e the CEO and employees get rich) and yet the token prices may actually fall if they aren’t correctly linked to platform usage.

The ONLY factor determining token price is supply and demand on exchanges.

Obviously, supply and demand are affected by many factors but the price all comes down to the combination of these two. Because of this, it is essential to ask yourself the following two questions:

  1. Demand – Will there be token demand on the exchanges?
  2. Supply – Will there be excessive inflation hindering prices?

Let’s first look at demand:

What Are The Sources of Demand?

This section is actually very difficult for us to write as we’ve struggled to find sufficient information.

It appears online that there is significant confusion surrounding this topic so we’re going to outline the two potential options which could be true:

  1. Banks Must Hold XRP Tokens
  2. Banks Don’t Need To Hold XRP Tokens

From our research, it’s very unclear whether banks must first buy XRP tokens – to hold for liquidity purposes – or if they are able to use Ripple’s own liquidity pool.

IMPORTANT: This difference above may not sound too significant but it is absolutely fundamental to determine if XRP is a good investment or not. We would NEVER invest without knowing which of these two options is correct.

Below, we will explain why this difference is so important by highlighting the demand for tokens with both scenarios:

Scenario #1. Banks Must Hold XRP Tokens

This scenario assumes that banks must hold Ripple in their own liquidity pool in order to use the Ripple services.

Banks are going to be very keen to use Ripple as it provides an incredible improvement on the current Remittances options.

Therefore, there will be significant demand for XRP tokens.

It should be noted that banks will be able to XRP directly from Ripple but they have committed to selling a maximum of only 1% of XRP per month (more on that in a second).

Therefore, if banks wish to buy more XRP tokens than this, they will be forced to buy them on exchanges. As a result, this increased demand on exchanges should drive up token prices.

If this scenario is correct, we are bullish on Ripple and we would consider adding some to our portfolio – they are providing a solution to a big problem for banks and investors shouldn’t undervalue this. 

However, we cannot commit to an investment as we cannot be sure that this scenario is correct. If scenario 2 is correct instead, we would remain well away from Ripple as an investment.

Scenario #2. Banks Don’t Need To Hold XRP Tokens

In this scenario, we’re assuming that banks don’t need to hold XRP tokens. We’ll explain how this is possible through an example.

Let’s say a bank wants to send GBP abroad and receive USD.

The UK bank would trade GBP for XRP and then trade XRP for USD.

It’s clear from this process that XRP needs to bought and sold to facilitate this trade BUT what if a bank is able to use Ripple’s pool of XRP tokens?

If they were buying XRP tokens from Ripple’s pool, there would be no requirement to ever buy tokens on exchanges.

With zero demand on exchanges – other than speculation from investors which isn’t sustainable in the long-term – there would be reason for XRP tokens to increase in value.

Simply put, there would be no demand and tokens would be worth virtually nothing.

If this scenario is correct, we would never invest in Ripple.

Throughout the rest of this article, we will continue to analyse other elements of the project as per our usual format. However, we want to be very clear on one aspect:

If scenario 2 is correct and banks are able to use Ripple’s liquidity pool without purchasing tokens themselves, everything else in this article is irrelevant; it’s a bad investment in our eyes.

What Is The Likely Inflation Rate?

Ripple created a limited supply of tokens, (100 billion XRP) meaning a zero inflation rate but this does not mean new tokens won’t enter the market.

Ripple, themselves, still hold 55 Billion XRP. These were not previously subject to any lockup period which led to the concern that Ripple could flood the market at any point drastically reducing the XRP token price as a result.

We will cover the news in more detail later but the announcement that these tokens have now been placed in escrow ensures no more than 1 billion XRP will be sold each month. With approximately 38 Billion tokens in circulation, this would represent an inflation rate of around 32% per year and is thus relatively high.

Obviously, just because 1 Billion XRP tokens can be sold each month, it doesn’t mean that they will and the inflation rate may be far lower.

Regardless, it’s a concern for us.

As a comparison, Ripple say that the average amount sold and entering the market during the last 18 months is 300 million XRP per month.

Conclusion

The token supply is a concern for us. Furthermore, the token demand is also a concern due to the reasons given above. If we were able to find more information and found scenario 1 to be the truth, we would continue forward with our analysis.

If we found scenario 2 to be true, we would end our analysis as they would simply not be a worthy investment in our eyes.

 

5. THE RIPPLE TEAM & ROADMAP

The Ripple Team

As our regular readers will know, one of our mantras here at Crypto Gurus is to “invest in people, not ideas”. It’s based off the principle that an idea is only as good as the people who execute it. As investors, we strongly believe in this principle. However, with Ripple already being an already established and operating currency we will just highlight a few key players.

The Ripple Team

Above is a just small section of the Ripple team; in total the team consists of upwards of 150 employees and is generally considered to be the largest of any cryptocurrency and one that is still looking to expand.

CEO Brad Garlinghouse has worked for companies such as AOL and Yahoo, as well as holding board positions with a number of companies showing himself to be well respected by his peers.

Marcus Treacher is another name for us to highlight; Ripple’s Global Head of Strategic Accounts has significant experience in the banking industry having spent 12 years with HSBC as Global Head of Payments Innovation as well as serving as chair of the Global Advisory Board for SWIFT between 2010 and 2016.

Their board of directors also have significant experience in policy, regulation and finance.

The Ripple Roadmap

Ripple was originally launched in 2012 and has of course seen significant progress since then. It is for this reason that the company offers no real roadmap at this time but has the overall aim of increasing the size of the RippleNet. As a well-established currency, this is not a concern for us.

 


ENJOYING THE ARTICLE?

Tom
Hi, I’m Tom, the CEO, and I’d like to take this opportunity to personally thank you for reading our article. I hope you’re enjoying it and have learnt a thing or two.

If you have, don’t forget to bookmark the website for more great content just like this. Already done that?

Come and chat to me personally in our Facebook Group! We work hard to create a welcoming community and, when you join, you’ll be able to vote in our regular polls to see which projects YOU want us to review.

Anyway, let’s get back to the content!

 

6. SELLING POINTS

Practical Use Cases

One argument presented by many revolves around Ripple being a potential ‘safe’ currency. There is a belief that even if the crypto bubble were to burst, Ripple would still be able to continue.

This is put down to the number of practical uses cases the currency serves but also their connection to the banks. Price is obviously determined by demand though so even if the system continues, there is no guarantee that the XRP token would retain its value.

 

7. BARRIERS TO SUCCESS

Adoption

This is one that seems to constantly appear during our reviews and stems from the negative connotations that still surround cryptocurrency, even though it is now seeing more mainstream appeal. The project is only going to see success if it is adopted by both banks and consumers.

Ethical Argument

This is one that seems to constantly arise when speaking about Ripple and it stems from their connection to the banks. Many believe that this goes against the principles of cryptocurrency; which was originally supported because of its decentralized nature, by connecting with the banks is losing its identity for some.

 

8. EXTRA POINTS

One idea we found when researching Ripple surrounds people travelling across borders to find work and provide for their families.

This is one that we hadn’t previously thought about but there are a number of people leaving areas such as South America and travelling to America for example in order to provide.

When it then comes to them sending money back to their families, they of course face the issues previously discussed.

The Ripple protocol would be of great benefit to these individuals. While this is of course the case with many cryptocurrencies, Ripple will provide this in a system which is connected with the banks, rather than dissociated with them.

Some may argue that this is a negative point while others would say that it provides legitimacy to such transfers – the decision is up to you.

 

9. WHERE TO BUY AND STORE RIPPLE 

Where To Buy Ripple Tokens

Ripple tokens are available for purchase on the following exchanges:

  1. Binance
  2. Bithumb
  3. Bittrex
  4. Bitfinex

Where To Store Ripple Tokens

When it comes to storing Ripple tokens you have  a number of options, the option we recommend would be to use a hardware wallet such as the Ledger Nano S. This obviously means that your tokens are stored offline and are generally considered to be the safest option as a result.

This is of course just a suggestion; you may prefer to store your tokens on an online exchange or another method entirely, each option has its own benefits and it’s important you find the one that best suits you.

Buy Ledger Nano S Here

 

10. RECENT PRICE SPIKE

We have discussed the currency in depth but what caught our attention and inspired this review was the recent price spike witnessed by XRP, with the token reaching an all-time high of over $1. We obviously cannot say for certain why this has occurred but we are going to highlight a couple of potential reasons.

American Express Partnership

This partnership was originally announced on November 16th but has found its way back into the news these past few weeks.

Ripple have previously held relationships with 5 banks testing their system since June 2016, including the Canadian Imperial Bank of Commerce and Italy’s Unicredit but the announcement that a partnership had been reached with both American Express and Santander is one that turned heads.

American Express customers in the USA will be able to send instant cross-border payments to Santander customers in the UK. Could the announcement of a viable link between two significant parties like the USA and UK have been what caused the recent price spike?

Lockup Confirmed

We personally believe that this announcement could be the biggest reason that XRP price has surged recently.

As previously mentioned the Ripple team hold a large amount of XRP, these were previously not subject to a lock in period and there was a worry that these tokens could enter the market at any time and flood the market.

This would have of course led to a sharp decrease in the price of XRP.

On December 13th, it was confirmed that Ripple had placed 55 billion XRP into escrow within this 1 billion XRP will be released on the first day of every month for the next for the next 55 months.

Any unspent XRP from month 1 will be placed back into escrow to be released on day 1 of month 56 and so on.

This ensures investors are always able to calculate the maximum supply that can enter the market and will eliminate any worries people would have previously had about Ripple flooding the market.

This allows investors to have a stronger level of confidence in the XRP project knowing the chance of their investment significantly decreasing overnight has been reduced.

 

11. THE CRYPTOGURUS CONCLUSION

Ripple will most likely provide an unbelievable solution for many banks around the world, allowing them to send cross-border payments with ease. We expect that Ripple will have a very successful future.

However, we’ve found some serious concerns for investors looking to buy XRP tokens. Therefore, we most likely wouldn’t invest into Ripple.

This is one of those situations where the general idea of the project is amazing but the devil truly is in the details – it’s because of incidents such as this which are why we like to delve into the details of a project and provide a more comprehensive review.

 

12. FOLLOW FUTURE POSTS

Come join us to follow future articles and personally chat with us:

  • Facebook – Vote every 2 weeks for reviews YOU want to see
  • Telegram – Join the #1 group Crypto chat
  • Youtube – Follow daily educational videos

What Is Populous? Full Investment Review

What Is Populous? Full Investment Review

Populous Review – The first project of its kind to bring Invoice Trading (also known as Invoice Factoring) to Cryptocurrency.

Populous have the first mover advantage in an existing and gigantic industry worth $3 Trillion per year. With their truly disruptive business model, Populous have been gaining incredible traction recently as investors have woken up to the true potential of the project.

In this article, we’ll be giving our 100% honest review, to help you decide if this project is the right investment for you or not.

 

 YOU WILL LEARN:


What Is The Populous Project?

Will The Populous Token Increase In Price?

How To Buy And Store Your Populous Tokens

Our Opinion On The Populous Project

 

CONTENTS

  1. What Is Populous?
  2. How Does Populous Work?
  3. Are Populous Solving Real Market Problems?
  4. Will Populous Tokens Increase In Value?
  5.  Team & Roadmap
  6. Selling Points
  7. Barriers To Success
  8. Extra Points
  9. Where To Buy & Store Populous Tokens
  10. Is Now A Good Time To Buy Populous?
  11. Conclusion
  12. Follow Future Posts

1. WHAT IS POPULOUS?

In Their Words

“Populous is a global P2P (peer-to-peer) invoice discounting platform built on Blockchain technology. We combine the trust, transparency, security, and speed of Blockchain with our proprietary smart contracts to directly pair invoice sellers and lenders to transact directly and without third parties.”

In Our Words

Populous is a project that allows peer-to-peer invoice trading, hosted on the Ethereum blockchain. You’re probably wondering what invoice trading is and how it can be such a huge market at $3 Trillion per year; don’t worry, we’ve explained it below for you.

What is Invoice Trading/Factoring?

Imagine you’re running a small-medium sized business. Your company carries out a job for a bigger company and they give you an invoice – a document guaranteeing that they will pay you in the future.

The problem is that payments aren’t usually due immediately – you could be waiting months for it to arrive. In the meantime, you need cash to run your business – how else will you buy new stock or pay for operating costs?

In this situation, some businesses may go to the bank and ask for a loan. However, banks often don’t give loans to small-medium sized businesses and, even if they do, they will usually charge high interest rates.

Introducing Invoice Trading

Out of this problem, invoice trading was invented – what if you could sell your invoice to someone else for 90% of its value?

This way, you might lose 10% of your invoice value, but you can continue to buy stock, pay daily operating costs etc and keep your business running. Also, the bank would have charged much higher rates for a loan, so you’ve just saved by avoiding that route too.

Why Would Anyone Buy An Invoice?

Hopefully, it’s obvious to see why small-medium sized businesses would choose to sell their invoices for a discount – it’s often the only way for them to keep their business running, we’ll now describe why you would want to buy an invoice.

Let’s say your a business which has lots of reserve funds. You could either leave that money in a bank or you could buy invoices and make profits. For example, you buy an invoice for $9,000 which has a value of $10,000.

When the invoice date arrives, you will receive $10,000; you might have had to wait but you’ve now just gained $1,000.

Hopefully, you understand what invoice trading is and why it’s such a massive industry – $3 Trillion per year. If you’re confused by our explanation, check out the very brief video below:

(They use the term ‘Invoice Factoring’ where we say ‘Invoice Trading’ – don’t worry, they’re the same thing)



Populous’ Current Progress

Populous have just announced the planned release of their beta following a successful alpha release.

 

2. HOW DOES POPULOUS WORK?

The platform relies on two key categories of people: Invoice Buyers and Invoice Sellers. In its most simple way, invoice sellers list their invoices on the Populous platform for invoice buyers to bid on. The bidding process last for 24 hours and then the invoice seller makes their choice.

Think: ‘Ebay for Invoices’.

With Populous, there are 2 associated tokens which we’ll describe below and then we’ll talk about how they combine to form the overall process:

PPT Tokens

The PPT Tokens are the tokens available on the exchanges i.e. the one that you can buy if you choose.

PPT Tokens are ‘access tokens’. In other words, users must first buy them in order to be able to access the Populous platform.

Pokens

These are the ‘in platform currency’ and are used to transfer value between buyers and seller. They are pegged to a fiat currency and 1 Poken is equivalent to 1GBP. Pokens can be exchanged with fiat currencies as well as established cryptocurrencies such as Bitcoin.

The Process Explained: For Buyers

Let’s say you want to buy an invoice on the Populous platform. What’s the process?

  1. Buy PPT Tokens from the exchanges
  2. Convert your PPT Tokens for Pokens which you can use within the platform
  3. Bid on an invoice; the higher you bid, the more likely you’ll win the auction
  4. If you win, you’ll pay your Pokens to the invoice seller
  5. When the invoice is due for payment, you’ll receive the invoice pay


The process for sellers is pretty much identical; except that you’re the one listing the invoice and you choose the bid that you wish to accept.


3. ARE POPULOUS SOLVING REAL MARKET PROBLEMS?

Hopefully, by this point, you understand what Invoice Trading is so now we can explain the current system and how Populous aims to improve on it.

Problem #1 – The Pay

We discussed earlier how a regular invoice trading market will involve sellers offering their invoices to buyer for 90% of the value.

Populous’ Solution

In the current system, 90% seems to be the maximum amount companies could expect to receive on large invoices. With the Populous system, invoice sellers should benefit from the advantage of having a greater number of buyers that are competing through the auction bidding system.

If the number of buyers is high, then it is more likely favourable terms will be offered to the invoice seller, such as 95% of the invoice value or lower interest rates.

Problem #2 – Globalisation

Currently, the global invoice trading market is mostly limited to the boundaries of your own country, or at least your continent. What we mean by this is that the majority of invoice trading involves buyers and sellers from the same country.

Note: We stress the word mostly because some international invoice trading does currently occur

Populous’ Solution 

While Populous will begin in the UK, over the long-term, they will be creating a global marketplace to allow buyers and sellers from around the world to buy and sell their invoices. Therefore, if you live in a country with less economic certainty where companies regularly default and are unable to pay their invoice, you will instead be able to buy much safer invoices from more economically established countries.

Essentially, the globalisation of this market should allow for residents of less economically established countries to buy much safer assets. This is similar to stock markets where you can buy stocks with various ratings.

Problem #3 – Traceable Data

With large companies, it is not uncommon for clerical errors to occur, leading to the failure to forward an invoice or duplication. In other words, human error can cause big problems within the industry

Populous’ Solution – Traceable Data

Due to the visibility of the blockchain and the fact that smart contracts will automate the majority of the process, it is highly unlikely these errors will occur within the Populous platform.

Problem #4 – Accredited Investors Only

The majority of current peer-to-peer invoice trading platforms require invoice buyers to be accredited investors

Populous’ Solution – Everyone Is Allowed

Populous do not plan to implement restrictions such as this on investors. Whether government regulations in the future will force them to, however, is yet to be seen

 

4. WILL THE POPULOUS TOKEN PRICE INCREASE?

This is another incredibly important point that people often overlook when investing in Cryptocurrencies – is the token price truly linked to the platform usage?

Investing in Cryptos is not the same as traditional investing – when you buy shares in a company, you’re buying ownership. As the company makes increased profits, the share price will increase and your investment value will rise also.

With the majority of Cryptocurrencies, the tokens don’t represent shares.

Therefore, it’s possible for the company to be successful (i.e the CEO and employees get rich) and yet the token prices may actually fall if they aren’t correctly linked to platform usage.

The ONLY factor determining token price is supply and demand on exchanges.

Obviously, supply and demand are affected by many factors but the price all comes down to the combination of these two. Because of this, it is essential to ask yourself the following two questions

  1. Demand – Will there be token demand on the exchanges?
  2. Supply – Will there be excessive inflation hindering prices?

Let’s first look at demand:

What Are The Sources Of Demand?

The demand for the Populous token stems from the desire of companies or persons to sell their invoices. It should be noted that there are of course a number of established alternatives in the non-Crypto so there will not be a guaranteed demand.

When it comes to the Populous platform, the Populous token is the only way to gain access; since the token is used to bid on and purchase invoices. Therefore, as more people begin to use the Populous platform, the demand for the token should rise and so would the token price.

The Result?

The price of the Populous token has been sufficiently linked to the demand for the platform, meaning Populous have passed this test.

What Is The Likely Inflation Rate?

Populous created a fixed supply of tokens meaning a zero inflation rate but this does not mean that new tokens will not enter the market though. There were a total of 53,200,000 PPT created, 36,000,000 (67.67%) of which were distributed to investors. This means that there are still 17,200,000 PPT to potentially enter the market but how were they distributed?

  • 12,000,000 PPT (22.56%) Team – Populous state that these tokens are locked in for a period of one year, meaning that no inflationary pressure should be felt in the short term.
  • 4,600,000 PPT (8.64%) Business Development – This portion of tokens will be sold over time in order to fund operational costs etc. However, this is less than 1/10th of the total supply meaning any inflation would be beyond minimal.
  • 600,000 PPT (1.13%) Promotion – These were distributed to people involved in aspects such as bounty campaigns. The percentage is so small and these participants would have already received their tokens, so no inflationary pressure should be felt.


Overall, the inflation rate should be relatively low and token demand should be based entirely on the success of the Populous project. As such, we can simply analyse whether we believe this project will be a success – while factoring in price – in order to determine if this is a worthy investment.

 

5. THE POPULOUS TEAM & ROADMAP

As our regular readers will know, one of our mantras here at Crypto Gurus is to “invest in people, not ideas”. It’s based off the principle that an idea is only as good as the people who execute it. As investors, we strongly believe in this principle.

Populous Investor Review

A small section of the Populous team is shown above; their founder and CEO Stephen Williams can be seen in the centre. According to their website, the team consists of 11 members but little is written about them.

The first member to look at is the Populous founder and CEO Stephen Williams; his experience seems varied having spent 14 years at Tramp Magazine as a publisher, as well as founding commercial data analyst company Olympus Research.

Their only listed advisor is Shadi Paterson, he operates on behalf of a Pre and Post-ICO marketing company and has also worked as an advisor for Crypto20, a tokenized index fund.

The fact that we haven’t been able to garner too much information about the team could be seen as a red flag. To counter this, they already at the beta stage with their product so we don’t find it as concerning as we might in other situations

Populous Roadmap

The Populous website and whitepaper do not provide a roadmap for the project but Populous are a lot further along their journey than many of the projects we review. Founded in November 2016, they have just announced the planned release of their beta platform, following a successful alpha release. As such we have no worries about this aspect of the project.

 

6. SELLING POINTS

First Mover Advantage

Invoice trading is clearly an established market but Populous are the first to venture into it from the Cryptosphere.

They should benefit from the first mover advantage as a result. When this is combined with the cost benefits mentioned above, we believe the platform should witness a reasonable level of demand from the offset, even if only out of consumer intrigue.

$1 billion deal

A further huge positive was announced by Populous in September 2017, a $1 billion partnership with global rewards platform, Luxure Global Citizens. This should ensure that PPT investors have regular access to a supply of blue-chip invoices from which they are able to earn regular returns.

Currently $1 billion worth of deals are completed yearly through Luxure and this is forecasted to rise following their own partnership with a Chinese company called Alipay.

$3 TRILLION Existing Industry

Many Cryptocurrencies are considered ‘pioneers’ in the sense that they are aiming to create entirely new industries; similar to the early days of the internet.

While this could be extremely profitable for many, it is also a much greater risk. Populous, on the other hand, are entering into an existing and extremely profitable business. If they’re able to take a decent cut of the business sector, they could have a very successful future


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7. BARRIERS TO SUCCESS

Overall, we are big fans of the Populous project but, as investors, we always aim to be as critical as possible when review a Crypto. It is for this reason that we have searched for some potential barriers to Populous’ success and highlighted them below.

Trust/Adoption

The main problem we potentially see with the Populous project is one that arises with many we review and that concerns slow adoption rates; cryptocurrencies are still in the early adopter stages and face unfair negative connotations from some.

When this is combined with the number of valid alternatives in invoice factoring then Populous may find adoption of their project slower than they would like.

Readers should also be aware that there is a similar Crypto project to Populous known as Hive Project. While we believe that Populous are more likely to succeed in their plans, smart investors should consider the threat from Hive before investing.


8. EXTRA POINTS TO CONSIDER

Beta Release

As mentioned throughout, last month Populous announced plans for the beta release of their project. This is a huge step and signifies that the Populous project is at a great stage of development and if the beta is also a success, the sky is potentially the limit for Populous.

User Interface

Early screenshots and the alpha release show the Populous platform to look incredibly sleek and simple.


9. WHERE TO BUY & STORE POPULOUS

Where To Buy Populous Tokens

Populous tokens are available for purchase on the following exchanges:

  1. Binance
  2. HitBTC
  3. Kucoin

Where To Store Populous Tokens

Populous is an Ethereum-based token which means it can be safely stored on any ERC-20 compatible wallets. Our favourite option is MyEtherWallet which you can download via the link below:

Download Populous Wallet HERE (MyEtherWallet)

For instructions on how to download and install MyEtherWallet, check out the video below (not produced by us).


10. IS NOW A GOOD TIME TO BUY POPULOUS?

There has been some internal confliction for us on whether to include this section or not; this is a static webpage so this section is really only applicable at the time of writing (hence we don’t usually include it) but, with Populous having increased so much in value recently, we thought it would be unwise not to include a warning for investors.

To quote some old yet wise investor advice “buy when there is blood on the streets”. In other words, smart investors usually move against the market and buy when everyone else is selling.

With the Crypto market as a whole, this attitude can sometimes lead to investors missing unbelievable profits. However, we like to apply this principle to Cryptocurrencies which have outstripped their competitors in recent times.

In other words, if a Crypto beats the market average so significantly over a period of time, there is a good chance that they will pull back slightly and move roughly with the market average.

In the case of Populous, it has increased nearly 3x over the past 2 weeks (December 6th – December 20th) compared to the market increasing around 2x.

We might not be expert traders (until we introduce qualified traders to the team!) but we would probably avoid buying Populous at this particular time. Instead, we are waiting for a cheap buying opportunity to present itself in the future e.g. if Populous falls outside the top 25-27 again.

The important point to note here though is that Populous is an interesting project and is on our radar.

 

11. THE CRYPTOGURUS CONCLUSION

We will finish with a brief conclusion to round out this article. Overall, we believe the Populous project to be a solid one; they are operating in an already established market worth more than $3 billion per year and are doing so while offering some clear improvements on the current system.

Success will of course depend on the level of adoption the platform witnesses but early signs have shown a solid level of support for the project. The fact that all tokens sold out in the pre-ICO shows investor support and the $1 billion deal signed with Luxure Global Citizens shows clear supply should be readily available for invoice buyers.

The upcoming beta release means that the Populous project is a lot further on than most of the projects we have reviewed here at CryptoGurus. However, investors should be wary of the recent surge in prices that the project has experienced.

To finish, we would say that we are big fans of the project but we would potentially wait a little bit of time for perhaps a small retracement in prices before buying

That’s the end of the article! Thanks for stopping by and don’t forget to check out our other articles for regular Crypto/ICO reviews and market updates.

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Disclaimer: None of the above is financial advice. Always do your own research.

 

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What Is Quantstamp? Full Investment Review

What Is Quantstamp? Full QSP Review

Quantstamp Review – The smart contract auditing platform designed to fix many of the flaws seen with Ethereum smart contracts. 

Smart contracts are a potentially revolutionary advancement in technology. However, one simple flaw can cause the contract to fail, leading to disastrous consequences for users.

As a result, the demand for smart contracts is growing exponentially. With Quantstamp’s ability to audit smart contracts in a scalable manner, the potential of this project could be huge.

In this extensive review, we’ll be analysing the project to see whether it is a worthy investment, we’ll discuss which Quantstamp wallet is best to safely store your coins and we’ll touch on a company concept known as proof-of-caring.

YOU WILL LEARN:


What Is The Quantstamp Project?

Will The Quantstamp Token Increase In Price?

How To Buy And Store Your Quantstamp Tokens

Why Do We Believe Quantstamp Is An Excellent Investment?

 

CONTENTS

    1. What Is Quantstamp?
    2. How Does Quantstamp Work?
    3. Are Quantstamp Solving Real Problems?
    4. Will Quantstamp Token Prices Increase?
    5. Team & Roadmap
    6. Selling Points
    7. Barriers To Success
    8. Extra Points
    9. Where To Buy & Store Quantstamp Tokens
    10. Conclusion
    11. Follow Future Posts

 

1. WHAT IS QUANTSTAMP?

In Their Own Words:

“A security verification protocol for smart contracts that improves the security of Ethereum. The advantages of the security protocol include automation, trust, governance and ability to compute hard problems over a distributed network.”

In Our Words:

The Quantstamp project is aiming to improve the security of Ethereum smart contracts by fixing fatal flaws in their code such as those which led the the DAO failure in 2016 or recent parity wallet hacks.

Current Progress

Quantstamp have already demonstrated the demand for their platform with their recent smart contract audit of the Request Network ICO.

 

2. HOW DOES QUANTSTAMP WORK?

The Quantstamp protocol will consist of two parts;

  1. Automated Software – The automated software checks the smart contract contract code for flaw
  2. Manual Checks –  In the long-term, Quantstamp aims to allow for fully automated smart contract checks via their software. However, until this becomes a reality, Quantstamp will be semi-automated i.e. they will use a combination of automated software combined with human participants that manually check the contracts and receive tokens as a reward.

In this section we will focus on the auditing process; as it is the main focus of the Quantstamp project. We will cover a few other processes later as we discuss the uses of the Quantstamp token (QSP).

The Auditing Process

If a developer wants to deploy a smart contract, they can submit their code to the Quantstamp project.

Depending on the security needs of the programme, the developer can choose how much bounty to send i.e. how much financial reward they will pay for the auditing. The more that they offer, the more likely it is that many developers will manually study the code.

A report is then produced which classifies the smart contract issues based on their severity,  ranging from 1 for a minor warning, up to 10 for major vulnerability.

Private Or Public

When requesting an audit, the developer can choose to have a private report which is encrypted and only accessible by the developer, or the developer could choose to have a public report meaning anyone would be able to view it.

Foolproof?

While Quantstamp cannot 100% guarantee flawless source code, it does provide a much higher degree of assurance that the code is secure by using both automated and crowdsourced methods.

In order to understand exactly how the automated and manual checks of smart contracts will occur, let’s look at the different categories of individuals that will help the network to improve over time:

Software Contributors (Automated) – In order to move towards a fully automated system, Quantstamp will need to upgrade their software. Not only will Quantstamp hire developers with the use of their ICO funds, they will also encourage the community to contribute by offering financial rewards in the form of QSP tokens to software developers who provide software. This software will be open-source, meaning that other members of the community will also be able to verify its validity

Validators (Automated) – These individuals simply run a node on the network. In other words, they contribute computer processing power but no technical expertise. In return, they receive QSP Tokens.

Bug Finders (Manual) – As mentioned before, the initial stages of Quantstamp will involve manual smart contract checks which will be carried out by bug finders. As a result, they are paid in QSP Tokens

 

3. ARE QUANTSTAMP SOLVING REAL MARKET PROBLEMS?

Problem – Smart Contracts Can Have Flaws

To quote Quantstamp’s whitepaper: “Blockchain networks are secure but smart contracts are not”; there have been a number of events over the last few years that have proved this to be the case; For example, a hacker famously stole $55 million in Ether from the DAO in June 2016, leading to its collapse.

Technically though, he didn’t steal anything because he actually followed the rules outlined by the smart contract. In other words, due to an avoidable mistake in the smart contract, a huge amount was taken from investors. This contentious time in Ethereum’s history  is what ultimately split the community and led to the creation of Ethereum Classic.

Issues like this raise serious trust issues around Ethereum smart contracts and will most likely result in distrust from the public, leading to slower adoption.


QUANTSTAMP’S SOLUTION

We’ve pretty much covered this in the previous section but we’ll recap also – Quantstamp will provide a scalable method to audit smart contracts. To begin with, this will be carried out manually but, in the long term, the process will be completed automatically with the use of software developed by Quantstamp themselves and the community.

The result of this should be to avoid smart contract bugs, allowing them to function correctly. In turn, this should increase public adoption by avoiding PR disasters such as those seen in the past with the famous collapse of the DAO.

With the rapid increase in the number of platforms being hosted on the Ethereum network, it would be an understatement to say that there could be a huge demand for this project.


4. WILL THE QUANTSTAMP TOKEN PRICE INCREASE?

This is another incredibly important point that people often overlook when investing in Cryptocurrencies – is the token price truly linked to the platform usage?

Investing in Cryptos is not the same as traditional investing – when you buy shares in a company, you’re buying ownership. As the company makes increased profits, the share price will increase and your investment value will rise also.

With the majority of Cryptocurrencies, the tokens don’t represent shares.

Therefore, it’s possible for the company to be successful (i.e the CEO and employees get rich) and yet the token prices may actually fall if they aren’t correctly linked to platform usage.

The ONLY factor determining token price is supply and demand on exchanges.

Obviously, supply and demand are affected by many factors but the price all comes down to the combination of these two. Because of this, it is essential to ask yourself the following two questions:

  1. Demand – Will there be token demand on the exchanges?
  2. Supply – Will there be excessive inflation hindering prices?

Let’s first look at demand:

What Are The Sources of Demand?

The demand for the Quantstamp platform stems from projects requiring their smart contracts to not contain fatal flaws. The demand for this is growing at a rapid rate as more and more projects are being hosted on Ethereum. However, this doesn’t automatically create demand for the token.

In the case of Quantstamp, projects can only make use of Quantstamp’s services through the purchase of tokens via the exchange. As more projects wish to use Quantstamp’s services, the demand for the token will rise and the price should also.

The Result?

The price of the Quantstamp token is sufficiently linked to the demand for the platform. Quantstamp has passed this test.

What Is The Likely Inflation Rate?

Quantstamp created a fixed supply of tokens meaning a zero inflation rate but this doesn’t mean that new tokens won’t enter the market though. A total of 65% of the tokens were sold during the ICO, meaning 35% of the tokens will enter the market at some point so how will they be distributed?

  • 20% Team and Advisors – Quantstamp state that these tokens are locked in for a minimum holding period but no time-scale is given, this should still mean that no inflationary pressure is felt.
  • 10% Core Activities Reserve – This pool will be sold over time in order to assist with operating costs. This is less than 1/6 of the quantity sold in the token sale, meaning inflation won’t be excessive.
  • 5% Community Development – These will also most likely be released over a long period of time but, even if they were all listed at once, the small percentage means little effect would be had.


Overall, the inflation rate should be relatively low and token demand will be based entirely on the success of the Quantstamp project. As such, we can simply analyse whether we believe this project will be a success – while factoring in price – in order to determine if this is a worthy investment.


5. THE QUANTSTAMP TEAM & ROADMAP

Quantstamp Team

As our regular readers will know, one of our mantras here at Crypto Gurus is to “invest in people, not ideas”. It’s based off the principle that an idea is only as good as the people who execute it. As investors, we strongly believe in this principle.

Above is a small subsection of the Quantstamp team; a team consisting of eleven members (soon to be thirteen with the arrival of two new Senior Engineers) and eight additional advisors. The first names to look at are the Co-founders: Richard Ma and Steven Stewart.

Ma has experience as an algorithmic trading fund manager but it is Stewart that really stands out. Hired by the Canadian Department of National Defence as a computer systems analyst, before he had even completed his undergraduate degree, he is clearly a stand out individual. Another member with stand out credentials is Vajih Montaghami; a man with experience as a software engineer at both Amazon and Google.

Moving on to their advisors, the first name on their list, Evan Cheng, has spent seven years as a senior manager at Apple before moving on to his current position as a director of engineering at Facebook. He is also becoming somewhat well know in the Cryptoverse; having served as an advisor for both Cindicator and Chainlink recently.

Other impressive advisors include Chris Miess; the former CFO of TenX, Min Kim; who has worked with Tim Draper, a man we have previously profiled in our Datawallet review and Dr Vijay Ganesh; a professor at the University of Waterloo who is very highly regarded by his peers.

Quantstamp Roadmap

Quantstamp were founded in June 2017 and have achieved significant progress in a short amount of time; just four months later they completed their first successful, semi-automated audit of Request Network.

Notable milestones for the company’s future include:

  • February 2018 – Complete an audit using version 1 of the analysis software
  • April 2018 – Deployment of the test network
  • August 2018 – Release mainnet version 1


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Anyway, let’s get back to the content!

 

 6. SELLING POINTS

First Mover Advantage

Despite the vast need for smart contract auditing, Quantstamp are the only project we are aware of that are offering it at this time

Coinbase Networking

Recently, Quantstamp pitched to Coinbase, one of the largest projects in the Crypto-space. While the report about the pitch was rather vague, it’s certainly a positive sign that the team are networking with such a huge name.

Growing Demand

It seems like there is a new ICO launched on the Ethereum network virtually ever day. With the rapid growth of the prevalence of smart contracts, and particularly those hosted on Ethereum, we would expect huge demand for Quantstamp’s services over the next few years.


7. BARRIERS TO SUCCESS

Overall, we are huge fans of Quantstamp and believe they are potentially one of the most undervalued projects in the market (currently positioned at 120th).

However, as investors, we always aim to be as critical as possible and search for barriers to success which is why we’ve highlighted a few potential hurdles below:

Trust/Adoption

Quantstamp say that current smart contract security efforts rely on users trusting that no bad actors exist within in a company. However, their project involves trusting a system that has gone through limited testing. However, they have completed a successful audit of the Request ICO so they soon should witness an increased demand for the project.

Competition

While Quantstamp should not face any direct competition, a number of companies are focusing on smart contract creation and the lowering of costs involve, including Etherparty and Blockcat. If as mentioned before, people are slow to trust the Quantstamp system then these competitors will begin to come into play.

8. EXTRA POINTS TO CONSIDER

Full automation

Many people argue that smart contract audits could never be fully automated; human judgement is required to understand the logic and intent of a smart contract. For example, software can spot bugs which may cause the contract to malfunction but they may not be able to detect errors that cause coins to be sent to the wrong person, or detect that the wrong formula is being used to calculate the payoff of a smart contract.

Tier 1 Investors

A final positive point that jumped out to us here at CryptoGurus was that a number of their tier 1 investors agreed to a lock in period for their investments. While the time period was unspecified, the investment totalled more than $1 million and we view that kind of long term commitment to a project as a huge positive.

Proof-of-Caring

Quantstamp also announced plans for version 2 of their proof-of-caring concept. This is a way of rewarding loyal members of their community and was originally established before the presale offering incentives such as early access. It has not yet been announced what will be involved with version 2 but will run along the same lines.

For us, this is little more than a nice marketing scheme but it does show a commitment from Quantstamp and that they recognize the importance of their community.

 

9. WHERE TO BUY & STORE QUANTSTAMP

Where To Buy Quantstamp Tokens

Quantstamp tokens are available for purchase on the following exchanges:

  1. Binance
  2. Kucoin
  3. Huobi

Where To Store Quantstamp Tokens

Quantstamp is an Ethereum-based token which means it can be safely stored on any ERC-20 compatible wallets. Our favourite option is MyEtherWallet which you can download via the link below:

Download Quantstamp Wallet HERE (MyEtherWallet)

For instructions on how to download and install MyEtherWallet, check out the video below (not produced by us).

 

10. THE CRYPTOGURUS CONCLUSION

To close out this review, we will finish with our conclusion; it is clear there is a need for securing smart contracts and Quantstamp are providing a very reasonable solution. The success of this project will depend on the level of adoption witnessed and the fact that Quantstamp have already successfully completed a semi-automated audit offers a lot of hope.

Not only do the team seem in this for the long haul but the fact that a number of big investors agreed to a lock in period for their investments, shows how many important players see the long term potential of this project.

Considering that Quantstamp is currently placed at 120th (not even in the top 100!) in the market at the time of writing, we believe that this project could be undervalued and we are personally considering an investment.

That’s the end of the article! Thanks for stopping by and don’t forget to check out our other articles for regular Crypto/ICO reviews and market updates.

Would you like your ICO reviewed? Contact Us Now

Disclaimer: None of the above is financial advice. Always do your own research.

 

11. FOLLOW FUTURE POSTS

Come join us to follow future articles and personally chat with us:

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  • Telegram – Join the #1 group Crypto chat
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This article has been provided by the CEO; Tom Heavey and Business Analyst; Aaron Laver.

Top 50 Cryptos Made Simple

Top 50 Cryptos Summary

Welcome to our Top 50 Cryptocurrency Market Summary List

This article & video includes a brief explanation of the Top 50 Cryptos, links to buys to their to their websites and links to the exchanges where you can buy. Therefore, you can use this as your go-to place for your Crypto research journey

Every month, we’ll be updating so make sure to bookmark the page to see January’s edition next month! We also recommend to bookmark this page so that you regularly return to it when searching for a brief summary of a coin/token.


YOU WILL LEARN:


A Brief Summary Of The Top 50 Cryptos

What Do Each Of Them Do?

Who Are Their Main Competitors?

A Unique Selling Point For Each

 

Prices are correct as of 9am GMT, December 1st, 2017

Before We Begin, We Want To Highlight 3 Points:

  1. This is a brief summary of each coin – not an in-depth analysis. Over time, we aim to carry out in-depth reviews of all of these coins and we will be including links to them in these regular, monthly articles
  2. Some Cryptos have more extensive information included than others – this is zero indication of whether we are fans of the project or not
  3. Much of the information has come from the project teams directly. As such, we cannot 100% guarantee the accuracy of the information


Total Market Cap

$298 Billion  (9am GMT November 30th, 2017)


1 – Bitcoin
(BTC)

  • Market Cap – $166.6 Billion
  • Token Price – $9,700
  • Brief ExplanationDigital Currency
  • What is Bitcoin? – A digital currency, run on a decentralized peer-to-peer network, that allows the purchase or sale of goods and services
  • Who Are Bitcoin’s Competitors? – Bitcoin Cash, Dash, Litecoin, NEM etc
  • Unique Selling Point – Bitcoin is the original Cryptocurrency; people often know what Bitcoin is without even knowing what a Cryptocurrency is – it has major brand appeal
  • Website – https://bitcoin.org/en/

Buy BTC HERE


2 – Ethereum
(ETH)

  • Market Cap – $41.8 Billion
  • Token Price – $434.82
  • Brief ExplanationDecentralised App Platform
  • What Is Ethereum? – A decentralised app platform, allowing companies to build decentralized applications (Dapps) on top of their blockchain that can make use of Ethereum’s smart contracts
  • Who Are Ethereum’s Competitors? – NEO, Cardano, Lisk, Waves, EOS, Ethereum Classic and more
  • Unique Selling Point – Ethereum have the first mover advantage in the smart contract sector and they have a huge community spearheaded by Vitalik with the most developers of any Crypto, other than Bitcoin
  • Website – https://www.ethereum.org/

Buy ETH HERE


3 – Bitcoin Cash
(BCH)

  • Market Cap – $22.3 Billion
  • Token Price – $1,322.19
  • Brief ExplanationDigital Currency
  • What Is Bitcoin Cash? – A hard fork of the original Bitcoin, that operates with an increased block size but without the Segwit upgrade that Bitcoin has
  • Who Are Bitcoin Cash’s Competitors? – Bitcoin, Dash, NEM, Litecoin etc.
  • Unique Selling PointPossesses a block size limit of 8MB, compared to the original Bitcoin’s 1MB, allowing an 8x higher on-chain transaction speed (without accounting for Segwit). It should be noted that the lack of Segwit implementation means Bitcoin Cash will be unable to implement some 2nd layer upgrades such as The Lightning Network
  • Website – https://www.bitcoincash.org/

Buy BCH HERE


4 – Ripple
(XRP)

  • Market Cap – $9.4 Billion
  • Token Price – $0.2438
  • Brief ExplanationDigital Currency For Banks
  • What Is Ripple? – A global real-time settlement network, its system aims to connect banks around the world to allow for cross-border payment systems
  • Who Are Ripple’s Competitors? – Stellar Lumens
  • Unique Selling Point – Rapid transaction speeds; between 5-10 seconds. For banks, this currently takes between 2-4 days. Note: Ripple receives bad press in the current Cryptocurrency space due to its plans to work with the banks. Many people believe that this goes against the core premise of Cryptos; to unbank the banked
  • Website – https://ripple.com/

Buy XRP HERE 


5 – Dash (DASH)

  • Market Cap – $6.0 Billion
  • Token Price – $778.24
  • Brief Explanation – Digital Currency
  • What Is Dash? – A digital currency like Bitcoin, run on a decentralised peer-to-peer network
  • Who Are Dash’s Competitors? – Bitcoin, Bitcoin Cash, NEM, Litecoin and more
  • Unique Selling Point – Unique features such as InstantSend, PrivateSend, the Dash Budget System and the plans to release a Crypto payment gateway similar to Paypal
  • Website – https://www.dash.org/

Buy DASH HERE

6 – Bitcoin Gold (BTG)

  • Market Cap – $4.9 Billion
  • Token Price – $292.42
  • Brief Explanation – Digital Currency
  • What Is Bitcoin Gold? – A hard fork of Bitcoin, Bitcoin Gold is a currency designed to reduce the centralised mining power as seen in the Bitcoin network over the network through the introduction of a new mining algorithm known as Equihash
  • Who Are Bitcoin Gold’s Competitors? – Bitcoin, Bitcoin Cash, Zcash, Monero, Dash
  • Unique Selling Point – The mining algorithm known as Equihash which aims to reduce the centralisation of mining seen with Bitcoin. It should be noted though that Bitcoin Gold has encountered many problems already including a controversial pre-mine, forking without a working blockchain and a wallet hackConsidering this currency is so new, the number of issues is very worrying to us and we believe that it’s high position in the market could be more related to its association with Bitcoin than through the project’s own achievement
  • Website – https://bitcoingold.org/

Buy BTG HERE


7 – Litecoin (LTC)

  • Market Cap – $4.6 Billion
  • Token Price – $85.79
  • Brief Explanation – Digital Currency
  • What Is Litecoin? Litecoin was made to offer what bitcoin lacked. Litecoin regularly implements future Bitcoin upgrades before Bitcoin e.g. they implemented Segwit before Bitcoin and will most likely do the same with the Lightning Network before Bitcoin
  • Who Are Litecoin’s Competitors? – Bitcoin, Bitcoin Cash, Zcash, Monero, Dash
  • Unique Selling Point – Charlie Lee (creator) maintains a close partnership with Bitcoin. He has often described a future where it’s more beneficial to have both currencies than just one, particularly when the Lightning Network is implemented. Therefore, the success of Bitcoin could also result in the success of Litecoin. Some disagree with this and say that there will be no need for Litecoin if the Lightning Network is added to Bitcoin – only time will tell
  • Website – https://litecoin.com/

Buy LTC HERE

8 – IOTA (MIOTA)

  • Market Cap – $3.6 Billion
  • Token Price – $1.29
  • Brief ExplanationDigital Currency for the ‘Internet of Things’
  • What Is IOTA? – A cryptocurrency designed for the Internet of Things, IOTA operates using ‘Tangle’ technology as opposed to the blockchain which is used for virtually every single other Crypto
  • Who Are IOTA’s Competitors? – N/A. Future projects targeting the ‘Internet of Things’ will be competitors e.g. the current Hdac ICO
  • Unique Selling Point – IOTA’s use of Tangle technology has three significant advantages over blockchain cryptocurrencies; theoretically, it’s infinitely scalable, has zero fees and cannot be hacked by quantum computers – a concern for blockchains over the next few years. Some describe the Tangle Technology as the future ‘Blockchain Killer’ but viewers should be aware that the Tangle tech is incredibly new and it’s very hard to predict the validity of these claims at this current time
  • Website – https://iota.org/

Buy IOTA HERE


9 – Cardano (ADA)

  • Market Cap – $3.1 Billion
  • Token Price – $0.118
  • Brief Explanation – Decentralised App Platform
  • What Is Cardano? – A platform to build decentralized applications (Dapps) and cryptocurrencies on with the use of smart contracts
  • Who Are Cardano’s Competitors? – Ethereum, Ethereum Classic, EOS, NEO etc.
  • Unique Selling Point – Cardano use a programming language called Haskell (they have made their own improvements to the language also) – which will supposedly allows for code to “be written in a more secure and reliable manner as it has a mathematical approach.”
  • Website – https://www.cardanohub.org/en/home/

Buy ADA HERE

10 – Monero (XMR)

  • Market Cap – $2.7 Billion
  • Token Price – $176.67
  • Brief ExplanationPrivacy Coin
  • What Is Monero? – Like Bitcoin, it is a peer-to-peer, decentralized digital cash system but with improved privacy that Bitcoin lacks
  • Who Are Monero’s Competitors? – Zcash, Dash and more
  • Unique Selling Point – The implementation of Ring Signatures, Stealth Addresses and RingCT allows all transactions to be kept anonymous but also allows selective sharing
  • Website – https://getmonero.org/

Buy XMR HERE

11 – Ethereum Classic (ETC)

  • Market Cap – $2.7 Billion
  • Token Price – $27.04
  • Brief Explanation – Decentralised App Platform
  • What Is Ethereum Classic? – Ethereum Classic formed as a fork of Ethereum after a controversial decision carried out by the core Ethereum developers in 2015. ETH Classic followers believe ‘the code is law’ i.e. a smart contract should never be overriden. Recently, there has been discussion of ETH classic pivoting to focus on the Internet of Things
  • Who Are Ethereum Classic’s Competitors? – Ethereum, NEO, Lisk, IOTA, EOS
  • Unique Selling Point – Appeals to “crypto idealists” who felt the hard fork went against the whole point of the blockchain. ETH classic followers believe that, once a smart contract has been deployed, the terms of it must be carried out exactly as stipulated
  • Website – https://ethereumclassic.github.io/

Buy ETC HERE


12 – NEO (NEO)

  • Market Cap – $2.2 Billion
  • Token Price – $34.24
  • Brief ExplanationDecentralised App Platform
  • What Is NEO? – NEO is a decentralised app platform often referred to as ‘China’s answer to Ethereum’.  NEO token holders receive GAS by holding NEO with GAS being the actual fuel of the platform
  • Who Are NEO’s Competitors? – Ethereum, Qtum, Lisk, and more
  • Unique Selling Point – The transaction speed of NEO is superior than many of its competitors – 1,000 per second compared to Ethereum’s 15 per second. It should be noted that NEO has pivoted away from the idea of being ‘China’s answer to Ethereum’ in light of China’s recent announcements to ban ICOs and Cryptocurrency exchanges. However, any lift in these Chinese regulations would surely be hugely positive for the price of NEO – smart investors should pay close attention to this
  • Website – https://neo.org/

Buy NEO HERE 


13 – NEM (XEM)

  • Market Cap – $2.00 Billion
  • Token Price – $0.220
  • Brief Explanation – Digital Currency
  • What Is NEM? –A digital currency, run on a decentralized peer-to-peer network, that allows the purchase or sale of goods and services
  • Who Are NEM’s Competitors? – Bitcoin, Bitcoin Cash, Dash, Litecoin and many more
  • Unique Selling Point – Operates using a Proof of Importance algorithm (PoI) as opposed to Proof of Work (PoW) or Proof of Stake (PoS). NEM is regularly praised by investors for its technology but it lacks the strong marketing seen by other teams. As such, supporters of NEM regularly argue that it’s undervalued based on its technology. Some people in the Crypto-space argue that marketing is a key element for success and therefore their lower price tag is justified. We’ll let you decide which side of the argument you think is correct 
  • Website – https://nem.io/

Buy XEM HERE

 

 14 – EOS (EOS)

  • Market Cap – $1.4 Billion
  • Token Price – $2.83
  • Brief Explanation – Decentralised App Platform
  • What Is EOS? – A platform which will enables vertical and horizontal scaling of decentralized applications on WebAssembly. Supporters joke that the acronym stands for “Ethereum on Steroids”
  • Who Are EOS’ Competitors? – Ethereum, NEO, EOS, Lisk, Cardano and more 
  • Unique Selling Point –The capability to process millions of transactions per second through horizontal scaling, far more than the likes of Ethereum (15 per second) and even NEO (1,000 per second)
  • Website – https://eos.io/

Buy EOS HERE

15 – Stellar Lumens (XLM)

  • Market Cap – $1.3 Billion
  • Token Price – $0.0741
  • Brief Explanation – Digital Currency For Financial Technology
  • What Is Stellar Lumes? Stellar is a platform that connects banks, payments systems, and people.
  • Who Are Stellar Lumens’ Competitors? – Ripple
  • Unique Selling Point – In October 2017, Stellar announced impressive partnerships with IBM and KlickEx create a solution for the financial technology industry
  • Website – https://www.stellar.org/

Buy XLM HERE


16 – Qtum
 (QTUM)

  • Market Cap – $912 Million
  • Token Price – $12.38
  • Brief Explanation – A Bitcoin & Ethereum Hybrid
  • What Is QTUM? – QTUM will be a proof-of-stake Ethereum that runs on Bitcoin’s blockchain. Due to its hybrid nature, QTUM has the abilities of both Bitcoin & Ethereum and will be able to take advantage of future upgrades for both e.g. QTUM has already implemented Segwit (Bitcoin) and can add both Lightning Network (Bitcoin) and Raiden (Ethereum) upgrades in the future
  • Who Are QTUM’s Competitors? – Ethereum, NEO, Lisk and more
  • Unique Selling Point – Qtum can take advantage of both Bitcoin and Ethereum upgrades, meaning it theoretically has the largest development team of all Cryptocurrencies
  • Website – https://qtum.org/en/

Buy QTUM HERE 

17 – BitConnect (BCC)

  • Market Cap – $907 Million
  • Token Price – $284.76
  • Brief Explanation – Claims To Be A ‘Trading Bot’ – Probably A Pyramid/Ponzi scheme
  • What Is BitConnect? – Supposedly based on a trading bot which produces returns of around 1% per day for investors. Most likely though, BitConnect is ponzi/pyramid scheme – supported by the 11 Red Flags we found in our recent article
  • Who Are BitConnect’s Competitors? – Ethconnect and the majority of ‘lending coins’ – not to be confused with ‘lending platforms’ such as the SALT platform which appears legitimate
  • Unique Selling Point – N/A
  • Website – https://bitconnect.co/

No Referral Links Here – Many people, particularly on YouTube, have gotten very rich of BitConnect’s referral scheme. We don’t judge anyone but we also don’t wish to promote a scheme which we believe is a pyramid scheme and is bringing a bad name to Cryptos.

You can find our review of BitConnect HERE

 

18 – OmiseGO (OMG)

  • Market Cap – $875 Million
  • Token Price – $8.57
  • Brief Explanation – Decentralised Exchange
  • What Is OmiseGO? – OmiseGo are building a super-fast, decentralised exchange with high liquidity. All currencies can be traded with Ether as large stores of Ether will be held by OMG at all times, thus ensuring the high liquidity
  • Who Are OmiseGO’s Competitors? – Bitshares, Waves and more 
  • Unique Selling Point – OmiseGo will be the first platform to make use of the Plasma network which will allow for extremely high scalability
  • Website – https://omisego.network/

Buy OMG HERE

19 – Lisk (LSK)

  • Market Cap – $862 Million
  • Token Price – $7.47
  • Brief Explanation – Decentralised App Platform
  • What Is Lisk? – A decentralised app platform that enables developers to build decentralized blockchain-based applications in JavaScript
  • Who Are Lisk’s Competitors? – Ethereum, NEO, EOS, Cardano and more
  • Unique Selling Point – Lisk will allow developers to write smart contracts in Javascript,  the most common programming language in the world. Ethereum, for example, uses a new language called Solidity, meaning that programmers will have to first learn this language before they can begin creating smart contracts on the platform. Lisk’s use of Javascript could allow for easier adoption with developers worldwide
  • Website – https://lisk.io/

Buy LSK HERE

20 – Zcash (ZEC)

  • Market Cap – $823 Million
  • Token Price – $300.37
  • Brief Explanation – Privacy Coin
  • What Is Zcash? – Another peer-to-peer, decentralized digital cash system with an increased focus on privacy; the first that can fully protect transaction privacy using zero-knowledge cryptograpy
  • Who Are Zcash’s Competitors? – Bytecoin, Monero, Dash and more
  • Unique Selling Point – Believed by many to offer the greatest level of privacy when compared with its competitors. Their advanced technology caused so much hype that prices reached as high as $4,000 in 2016 when such prices were virtually unheard of
  • Website – https://z.cash/

Buy ZEC HERE

 

21 – Tether (USDT)

  • Market Cap – $762 Million
  • Token Price – $1.00
  • Brief Explanation – Tokens Always Remain $1
  • What Is Tether? Tokens Always Cost $1 – Token prices are designed to always remain at $1 which is useful for traders who wish to temporarily cash out of the market without having to cash out via expensive fees. It’s worth noting the $30 million November hack has caused serious concern about the validity of Tether
  • Who Are Tether’s Competitors? – N/A
  • Unique Selling Point – 1 USDT is always equal to 1 USD so it can be used as a safe haven for traders during bear markets. It’s worth noting the $30 Million hack in November has caused serious concern about the validity of Tether and this has sparked calls from respected leaders in the Crypto-Space e.g Charlie to call for an extensive 3rd party audit to be carried out in order to prove Tether’s legitimacy
  • Website – https://tether.to/

Buy USDT HERE


22 – Hshare (HSR)

  • Market Cap – $664 Million
  • Token Price – $15.69
  • Brief Explanation – Cross-blockchain bridging
  • What Is Hshare? – Will enable a value or information exchange between blockchains, designed to be a side chain for block-based (Like Ethereum) and blockless-based blockchains (Like IOTA).
  • Who Are Hshare’s Competitors? – Ark
  • Unique Selling Point – Hshare will be built with quantum resistance in mind – theoretically making their systems unhackable when quantum computers become a reality 
  • Website – https://h.cash/

Buy HSR HERE

23 – Stratis (STRAT)

  • Market Cap – $520 Million
  • Token Price – $5.27
  • Brief Explanation – Blockchain As A Service
  • What Is Stratis? – Stratis allows existing business to incorporate the Stratis blockchain into their operations thus benefitting from the advantages the blockchain brings with it – reduced costs, increased visibility where required etc.
  • Who Are Stratis’ Competitors? – Ardor
  • Unique Selling Point Stratis is targeting the business area of incorporating blockchains into existing businesses. Considering the numerous benefits that the blockchain can provide compared to outdated ERP legacy systems, the target market is massive
  • Website – https://stratisplatform.com/

Buy STRAT HERE


24 – Waves
(WAVES)

  • Market Cap – $474 Million
  • Token Price – $4.74
  • Brief Explanation – Decentralised Exchange + Decentralised App Platform
  • What Is Waves? – A decentralized multi-purpose exchange platform, allows the creation, issuance, transfer and Exchange of assets and custom tokens. On top of this, Waves is a decentralised app platform which allows the hosting of ICOs similar to Ethereum
  • Who Are Waves’ Competitors? – BitShares, Lykke, OmiseGO, Ethereum, NEO etc.
  • Unique Selling Point – Waves has a feature called token flexibility, meaning that projects built on top of waves can choose to pay transaction fees in any token they choose and not necessarily in the natives WAVES token. As such, businesses can create a closed ecosystem in which they only have to use their own tokens.
  • Website – https://wavesplatform.com/

Buy WAVES HERE


25 – Populous (PPT)

  • Market Cap – $447 Million
  • Token Price – $10.85
  • Brief Explanation – Invoice Trading Platform
  • What Is Populous? – Populous will be an invoice trading platform hosted on the Ethereum network. Through the use of smart contracts, Populous aim to reduce middleman costs and provide a truly global marketplace
  • Who Are Populous’ Competitors? – Hive Project (Outside Top 50)
  • Unique Selling Point – First mover advantage & Populous are entering a real and profitable business sector with a truly disruptive business model through the introduction of a worldwide platform, whereas the current system is mostly limited to geographically local places
  • Website – https://populous.co/

Buy PPT HERE

 

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26 – BitShares (BTS)

  • Market Cap – $362 Million
  • Token Price – $0.139
  • Brief Explanation – Decentralized Exchange
  • What Is Bitshares? – A decentralized exchange offering the ability to create custom tokens
  • Who Are Bitshares’ Competitors? – Waves, OMG
  • Unique Selling Point – Bitshares is based on Graphene systems, offering very high scalability of up to 100,000 Transactions per second
  • Website – https://bitshares.org/

Buy BTS HERE

 
27 – MonaCoin (MONA)

  • Market Cap – $343 Million
  • Token Price – $6.16
  • Brief Explanation – Digital Currency
  • What Is MonaCoin? – A digital currency based on a Japanese cat meme
  • Who Are MonaCoin’s Competitors? – Bitcoin, Litecoin, Dogecoin etc
  • Unique Selling Point – MonaCoin is Japan’s first cryptocurrency, with 90% of its user base located in the country. With the Japanese investing so heavily in Cryptos, it’s no surprise that their own first currency has done so well
  • Website – https://monacoin.org/

Buy MONA HERE

28 – Decred (DCR)

  • Market Cap – $336 Million
  • Token Price – $53.64
  • Brief Explanation -Digital Currency
  • What Is Decred?Another digital currency aiming to improve on Bitcoin
  • Who Are Decred’s Competitors? – Bitcoin, Litecoin etc.
  • Unique Selling PointMost likely to be the first currency to implement The Lightning Network which allows for extremely high scalability through the introduction of off-chain transaction
  • Website – https://www.decred.org/

Buy DCR HERE

29 – Ardor (ARDR)

  • Market Cap – $307 Million
  • Token Price – $0.307
  • Brief Explanation – Blockchain As A Service
  • What Is Ardor? – A blockchain-as-a-service platform that will allow businesses to incorporate Ardor’s blockchain technology into their operations
  • Who Are Ardor’s Competitors? – Stratis, Nxt 
  • Unique Selling Point – Ardor’s sidechains will be effective at reducing bloat. This essentially means that the network will be able to handle the required number of transactions per second
  • Website – https://www.ardorplatform.org/

Buy ARDR HERE

30 – Ark (ARK)

  • Market Cap – $306 Million
  • Token Price – $3.13
  • Brief Explanation – Blockchain Linking Platform
  • What Is Ark? – Ark are attempting to create an ecosystem of linked blockchains with the use of their ‘SmartBridge Technology’ 
  • Who Are Ark’s Competitors? – Hshare
  • Unique Selling Point – Ark uses a Delegated-Proof-Of-Stake consensus mechanism unlike other currencies which tend to use Proof-Of-Work (Bitcoin) or Proof-Of-Stake which Ethereum will in the future
  • Website – https://ark.io/

Buy ARK HERE

31 – Bytecoin (BCN)

  • Market Cap – $286 Million
  • Token Price – $0.0016
  • Brief Explanation – Privacy Coin
  • What Is Bytecoin? – The original anonymous cryptocurrency; allows safe and secure transactions around the gobe and offers instant fee-free transactions
  • Who Are Bytecoin’s Competitors? – Monero, Zcash
  • Unique Selling Point – Bytecoin uses CryptoNote Technology which provides unlinkable transactions 
  • Website – https://bytecoin.org/

Buy BCN HERE

 
32 – Augur (REP)

  • Market Cap – $280 Million
  • Token Price – $25.42
  • Brief Explanation – Prediction Market
  • What Is Augur? – Augur is an Ethereum-based, decentralized prediction market that will leverage the wisdom of the crowds to generate highly accurate predictions in the future
  • Who Are Augur’s Competitors? – Gnosis, Stox etc. (All are outside Top 50)
  • Unique Selling Point – The wisdom of the crowd can produce highly accurate predictions. This can be used in virtually any industry – particularly financial markets where the demand could be huge
  • Website – https://augur.net/

Buy REP HERE

 

33 – Komodo (KMD)

  • Market Cap – $264 million
  • Token Price – $2.54
  • Brief Explanation – ICO Hosting, Decentralised Exchange & Privacy Coin Capabilities
  • What Is Komodo? – A fork of Zcash, Komodo is providing ‘End-to-end blockchain solutions’ so that you can launch your own blockchain. They will also provide a decentralised exchange and be competing with privacy coins due to their privacy features inherited from Zcash
  • Who Are Komodo’s Competitors? – Ethereum, NEO, Waves, Zcash and more
  • Unique Selling Point – Komodo’s decentralised exchange will make use of Atomic Swaps, an advanced, highly anticipated layer 2 Cryptocurrency solution
  • Website – https://komodoplatform.com/en

Buy KMD HERE 

34 – Steem (STEEM)

  • Market Cap – $251 Million
  • Token Price – $1.02
  • Brief Explanation – Social Media With Finacial Rewards
  • What Is Steemit? – Steem is the currency which fuels the website – Steemit.com. Steemit is essentially Reddit but website users receive financial payouts for good posts instead of Karma
  • Who Are Steemit’s Competitors? – No major direct competitors – Synereo and LBRY are the closest as they are both in the Crypto social media space
  • Unique Selling Point – Content creators are rewarded when their posts get upvoted which promotes good content on the platform
  • Website – https://steem.io/

Buy STEEM HERE

35 – Power Ledger (POWR)

  • Market Cap – $248 Million
  • Token Price – $0.707
  • Brief Explanation – Peer-to-Peer Energy Trading
  • What Is Power Ledger? – Power Ledger is an Australian based peer-to-peer energy trading platform which will allow regular people to sell their excess energy on the platform for much higher prices than the current non-crypto systems offer
  • Who Are Power Ledger’s Competitors? – SunContract (Outside Top 50)
  • Unique Selling Point – Will allow users to receive 15c per kwh for excess energy as opposed to the 7c offered by the current system once the Power Ledger platform has been built
  • Website https://powerledger.io/

Buy PWR HERE

You can find our review of Power Ledger here

36 – Golem (GNT)

  • Market Cap – $241 Million
  • Token Price – $0.290
  • Brief Explanation – Decentralised Supercomputer
  • What Is Golem? – Golem will provide a decentralised supercomputer which anyone can use globally. The computer will consist of the combined processing power of regular people’s machines i.e. you can rent out the unused processing power from your phone, laptop etc. to help the network and get paid in Golem tokens as a result
  • Who Are Golem’s Competitors? – SONM, iExec (All outside Top 50)
  • Unique Selling Point – Golem users can earn passive income by renting out their excess computer processing power
  • Website – https://golem.network/

Buy GNT HERE

37 – Vertcoin (VTC)

  • Market Cap – $234 Million
  • Token Price – $5.61
  • Brief Explanation – Digital Currency
  • What Is Vertcoin? – A digital currency focused on reducing the centralised power of miners seen in currencies such as Bitcoin. Vertcoin are tackling the issue through creating a mining protocol with resistance to ultra-powerful mining computers (ASICs) thus making it possible for regular people to compete for mining rewards with non-expensive equipment
  • Who Are Vertcoin’s Competitors? – Bitcoin, Bitcoin Gold, Bitcoin Cash, Litecoin etc
  • Unique Selling Point – Greater decentralisation than Bitcoin and other PoW coins
  • Websitehttps://vertcoin.org/

Buy VTC HERE


38 – Dogecoin (DOGE)

  • Market Cap – $228 Million
  • Token Price – $0.00203
  • Brief Explanation – Digital Currency
  • What Is Dogecoin? – Doge is a digital currency which has used the doge internet meme as its logo. Originally designed as a joke, Dogecoin has done surprisingly well!
  • Who Are Dogecoin’s Competitors? – Bitcoin, Litecoin etc
  • Unique Selling Point – Dogecoin’s marketing is based around a meme of a dog
  • Website – http://dogecoin.com/

Buy DOGE HERE

39 – TenX (PAY)

  • Market Cap – $216 Million
  • Token Price – $2.06
  • Brief Explanation – Crypto Debit Card
  • What Is TenX? – A cryptocurrency debit card which allows the spending of many Cryptos through an app or debit card
  • Who Are TenX’s Competitors? – Monaco, Xapo, Cryptopay, Token Card
  • Unique Selling Point – When used abroad,  there is a 0% conversion fee, making it cheaper than regular debit cards
  • Website – https://www.tenx.tech/

Buy PAY HERE

40 – PIVX (PIVX)

  • Market Cap – $214 Million
  • Token Price – $3.89
  • Brief Explanation – Privacy Coin
  • What Is PIVX? – PIVX (Private Instant Verified X) is a digital currency that focuses on privacy, security, anonymity, and instant transactions.
  • Who Are PIVX’s Competitors? – Zcash, Monero
  • Unique Selling Point – PIVX implements a unique see-saw masternode algorithm – if the network is getting too Masternode heavy then the rewards each Masternode earns is reduced. This incentivises the Masternode owners to give up their votes and stake coins instead
  • Websitehttps://pivx.org/

Buy PIVX HERE

 

41 – MaidSafe (MAID)

  • Market Cap – $212 million
  • Token Price – $0.468
  • Brief Explanation – Decentralised Internet
  • What Is MaidSafe? – One of the most ambitious projects in the Crypto-space; attempting to create a decentralised internet that will provide net neutrality and freedom of internet for all, regardless of blocks such as China’s ‘great firewall’
  • Who Are MaidSafe’s Competitors?Substratum – Find our review of Substratum here
  • Unique Selling Point – Users will be able to rent out spare internet bandwidth to the server and are paid in MaidSafeCoin in return. This passive income element is appealing for many users
  • Website – https://maidsafe.net/

Buy MAID HERE

 

42 – SALT (SALT)

  • Market Cap – $211 Million
  • Token Price – $4.24
  • Brief Explanation – Lending Platform
  • What Is Salt?SALT platform will allow users to borrow cash through a loan by offering their Cryptocurrencies as collateral. As such, if you need money but don’t wish to cash in your Cryptos, you can borrow money and only have to sell them if you’re unable to make your repayments
  • Who Are Salt’s Competitors? – N/A
  • Unique Selling Point –  The ability to use blockchain assets as collateral is unique in itself
  • Websitehttps://www.saltlending.com/

Buy SALT HERE

 

43 – Raiden Network Token (RDN)

  • Market Cap – $207 Million
  • Token Price – $4.14
  • Brief Explanation – Scaling Project for Ethereum and ERC-20 Tokens
  • What Is Raiden Network Token? – Dubbed ‘The Lightning Network’ for Ethereum, the Raiden Network aims to allow incredible scalability (1 Million transactions per second) for Ethereum and ERC-20 Tokens through the use of off-chain transactions
  • Who Are Raiden Network Token’s Competitors? – N/A
  • Unique Selling Point – Brings massive scalability and off-chain transactions to Ethereum and Ethereum-based tokens
  • Websitehttps://raiden.network/

Buy RDN HERE

44 – Exchange Union (XUC)

  • Market Cap – $205 Million
  • Token Price – $8.26
  • Brief Explanation – Bridging Crypto Exchanges
  • What Is Exchange Union?Exchange Union aims to create a universal cross-exchange token. The token will be used to connect hundreds of exchanges worldwide so that a user can make a trade on any exchange while only accessing a single one. For example, if one user on Bitfinex exchange wishes to sell Ether while a user on Poloniex exchange wishes to buy Ether, Exchange Union aims to provide a system to connect these two people despite them using different exchanges
  • Who Are Exchange Union’s Competitors? – N/A
  • Unique Selling Point – With the addition of a new Crypto exchange virtually every day, the ability to link all of them together via one universal token is a huge selling point in itself. However, it should be noted that only 25 Million (0.8%) of the total 3 Billion Exchange Union tokens are in circulation. Therefore, it’s not unrealistic that the token price could suffer from a massive inflation rate
  • Website – https://www.exchangeunion.com/

Buy XUC HERE

 45 – DigixDAO (DGD)

  • Market Cap – $203 Million
  • Token Price – $101.65
  • Brief Explanation – Digital Gold & Currency
  • What Is DigixDAO?DigixDAO is a project hosted on the Ethereum blockchain which aims to be a store of value and a unit of exchanges that doesn’t rapidly fluctuate. DigixDAO has 2 tokens – DGX tokens are tied to the price of Gold hence they are stable and can theoretically be used to pay for things in the future. DGD tokens – the token type that you can buy on exchanges – allow holders to claim quarterly rewards based on transaction fees and allow voting rights on the platform
  • Who Are DigixDAO’s Competitors? – DGX Tokens are to be used as a digital currency hence the competition is Bitcoin, Bitcoin Cash, Litecoin etc.
  • Unique Selling Point – DGD tokens being pegged to a store of value such as Gold allows them to be spent without risk of high fluctuation
  • Website https://digix.global/

Buy DGD HERE

 46 – Binance Coin (BNB)

  • Market Cap – $198 Million
  • Token Price – $2.00
  • Brief Explanation – Crypto Exchange With Associated Coin
  • What Is Binance? – Binance is a Crypto exchange with an associated coin. The coin provides the benefits of reduced fees on the platform when fees are paid in this native coin. Due to the slick look of the platform and cheap fees, Binance has quickly become a favourite with traders
  • Who Are Binance’s Competitors? – Waves, Bitshares, OMG, KuCoin, COSS
  • Unique Selling Point – Reduced fees when using the native coin to pay for the remaining fees
  • Website – www.binance.com

Buy BNB HERE

47 – NXT (NXT)

  • Market Cap – $197 Million
  • Token Price – $0.197
  • Brief Explanation – Decentralised Exchange
  • What Is NXT? – NXT is a decentralised exchange built on their own blockchain 
  • Who Are NXT’s Competitors? – OMG, Waves, Bitshares 
  • Unique Selling Point – Users are able to upload small files, such as small images and plain text files, into the blockchain itself, which can be accessed by anyone else 
  • Website – https://nxt.org/

Buy NXT

 
48 – Factom (FCT)

  • Market Cap – $191 Million
  • Token Price – $21.80
  • Brief Explanation – Data Recording
  • What Is Factom? – Working on data integrity; a distributed record-keeping system used to store huge amounts of records on the blockchain. Factom uses the decentralised nature of the blockchain to record immutable information. There is also a strong focus on maintaining user anonymity
  • Who Are Factom’s Competitors? – Walton, Modum 
  • Unique Selling Point – Factom has a huge number of real world uses across many different industries, including: Medical Records, Voting Systems, Immutable Audits and Legal Applications
  • Website – https://www.factom.com/

Buy FCT HERE

49 – Veritaseum (VERI)

  • Market Cap – $188 Million
  • Token Price – $92.83
  • Brief Explanation – Maybe A Scam
  • What Is Veritaseum? – After searching for as much information about Veritaseum as possible, we were unable to determine exactly what they offer, other than a significant number of buzz words. We found many posts online claiming they were a scam. This combined with an extremely low trading volume which is virtually limited to one small exchange (Etherdelta), results in some very negative signs for the validity of the project. If you have more knowledge than us on this project, please let us know.
  • Who Are Veritaseum’s Competitors? – N/A
  • Unique Selling Point – N/A
  • Websitehttp://veritas.veritaseum.com/

Buy VERI HERE

 

50 – Status (SNT)

  • Market Cap – $178 Million
  • Token Price – $0.051
  • Brief Explanation – Ethereum Ecosystem Providers
  • What Is Status? – With so many projects launched on Ethereum recently and many more to come in the future, there is an ecosystem of dApps forming. Status aims to bring these dApps together by providing a dApp browser and decentralised messaging platform 
  • Who Are Status’ Competitors? – N/A
  • Unique Selling Point – Providing an connected ecosystem for the ever-growing list of projects built on top of the Ethereum network
  • Websitehttps://status.im/

Buy SNT HERE

 

Some affiliate links have been included. We cannot guarantee anything in this article with 100% accuracy – always do your own research!


Interested In Seeing January’s Top 50 List?

Remember to bookmark the page and join our Facebook Group where we’ll post the January article for you all of you to check out!

That’s the end article! Thanks for stopping by and don’t forget to check out our other articles for regular Crypto/ICO reviews and market updates.

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Disclaimer: None of the above is financial advice. Investments can go up and down with cryptocurrencies being an especially volatile market. Always do your own research and invest only what you can afford to lose.


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3 Reasons Why Hdac Is The Worst ICO of 2017

What Is Hdac Coin? ICO Review

 

Hdac, also known as Hyundai DAC, is an Internet of Things (IoT) platform supported by the huge name of car manufacturer Hyundai.

The Hdac ICO is creating a real buzz in Korea; while little has been mentioned of the project outside of Eastern Asia, could that all be about to change?

Originally, Hdac actually approached us to create a sponsored article for them. However, after reading more about them, we had to turn them down as we simply couldn’t endorse the project. Read more to find out why in this 100% honest Hdac review.


YOU WILL LEARN:


What Is Hdac?

Why Hyundai Are Creating A Coin For The Internet Of Things

Is Hdac Better Than IOTA?

Why The Hdac ICO Is A Terrible Investment

 

CONTENTS

 

In this article, we’ll begin by outlining the idea behind Hdac and how they will attempt to build their project. After that, we will move onto our opinions of the ICO.


1. WHAT IS HDAC?

Standing for Hyundai Digital Asset Currency, the Hdac team describe their project as “an Internet of Things (IoT) contract platform based on the blockchain”.

In Our Words

A blockchain based platform that allows IoT (Internet of Things) devices to communicate with one another, while handling payments, data storage and identity authentication.

A Little Bit of Background

The Hdac project, with its native Hdac coin, is a collaboration between Hyundai BS&C, DEXKO (A Korean Exchange that will launch in February 2017, this is also where Hdac will initially be listed), Double Chain and Hyundai Pay. As such, the Hdac project doesn’t fall under the same bracket as Hyundai Motors.

What Is The Internet of Things?

In the simplest of terms; the Internet of Things is the connecting of any device over the internet. This can include: Mobile Phones, Fridge/Freezers, Cars and even Kettles. It is predicted to become one of the most important technological upgrades to occur over the next few decades. You can find a brief explainer video below:

 

What Is An IoT Contract?

An IoT contract is a ‘Machine to Machine’ (M2M) service that controls all the devices. An expansion of a regular smart contract, where the programmer shares the address of the device which will be controlled on the blockchain through Hdac.


2. HOW WILL HDAC WORK?

We never like to mislead our readers by pretending to understand things that we don’t fully grasp which is why we have to be 100% honest here and say that the highly technical nature of the whitepaper presented us some challenges.

Therefore, we strongly recommend that you check out the Hdac whitepaper for yourself to clarify any of the points mentioned below.

Having said that, we’ll still do our best to explain how the Hdac project will work.

The Platform

The Hdac platform will allow digital assets to be built upon it with the ability for custom tokens to be created (similar to Ethereum). Built on Multichain technology, it will feature a number of both private and public blockchains which will attempt to allow for any necessary scalability in the future.

The big plan for platform implementation surrounds SMART homes; Hyundai BS&C are planning a series of luxury apartments that will showcase the Hdac blockchain and its uses. Other potential uses include SMART Cars which will use facial recognition to create a secure car sharing app.

The Token

Users will either be able to purchase the Hdac token on the exchanges or mine them, 12 billion Hdac tokens will be created for this purpose over 170 years with the block reward halving every 6 years (Starting at 5000 Hdac).

Hdac will be opening a number of ‘Cafés de Block’, the first of which will open in Seoul in December, where payment in Bitcoin and Hdac will be accepted. Other potential uses Hdac list include: Car Rentals, Toll Roads, Car Parking Fees etc.


3. THE HDAC TEAM

Later on, we will cover the 3 reasons why we believe this project is potentially the worst high-profile ICO from an investor’s perspective. First though, we’re going to discuss the team as this is perhaps the single redeeming quality for the project. 

 

What is Hdac? Full ICO Review

 

Pictured are just a small number of Hdac’s overall team; with 18 members and 7 advisors the Hdac team looks pretty stacked. Starting from the top; Dae-Sun Chung (Founder) is the CEO of Hyundai BS&C, while his aunt and uncle are the CEOs of Hyundai Group and Hyundai Motors respectively. Chung’s accolades stand on their own and his close connections can potentially benefit the project also.

Taking a look at the project’s advisors, a number of names stand out; Eddy Travia, CEO of Coinsilium, Caitlin Connors, CEO of TheFoxTheory, Larry Kim, CEO of HyundaiPay, Patrick Storchenegger, Manager at PST Legal and consulting. We have to admit that, despite our opinion of Hdac, the team does appear to be a strong one.


4. THE HDAC ROADMAP

2017: Hdac Token Sale

  • Hdac consensus algorithm (Launched), Hdac operating environment field test (Completed), Hardware Wallet (To launch), Advanced Security Module (To launch), Hdac apps API To launch).

2018:

  • Hdac operating environment (To launch), Hdac IoT Contract PoC, IoT authentication and device control, Private Blockchain PoC, Smart IoT diffusion PoC

2019:

  • Practical application of Hdac IoT Contract & Smart Home (To launch), Practical application of Hdac IoT Contract & Smart Factory  (To launch), Hdac Hybrid Blockchain (Development).

2020:

  • IoT High Speed ​​Transaction Distributed Processing Blockchain (Development), Private Blockchain Security Enhancements, Advanced Security Module Ver 2.0 (To launch), Hdac Hybrid Blockchain Network Live Operation


5. WILL THE HDAC COIN PRICE INCREASE? 

This is another incredibly important point that people often overlook when investing in Cryptocurrencies – is the token price truly linked to the platform usage?

Investing in Cryptos is not the same as traditional investing – when you buy shares in a company, you’re buying ownership. As the company makes increased profits, the share price will increase and your investment value will rise also.

With The Majority Of Cryptocurrencies, The Tokens Don’t Represent Shares.

Therefore, it’s possible for the company to be successful (i.e the CEO and employees get rich) and yet the token prices may actually fall if they aren’t correctly linked to platform usage.

The ONLY Factor Determining Token Price Is Supply And Demand On Exchanges.

Obviously, supply and demand are affected by many factors but the price all comes down to the combination of these two. Because of this, it is essential to ask yourself the following two questions:

Demand – Will there be token demand on the exchanges?

Supply – Will there be excessive inflation hindering prices?

Let’s first look at demand:

What Are The Sources of Demand?

The Hdac coin is used to make payments throughout the system. As a fundamentally important element of the platform, the Hdac coin will increase in price IF the platform usage increases over time.

What Is The Likely Inflation rate?

The total supply will be 12 Billion.

  • 7% will be sold in the ICO
  • 7% will be retained by the company
  • The remaining 86% will be gradually mined over time – only 7% of which which will be sold in the ICO.

Due to the very low number of coins being sold – just 7% – the inflation rate of Hdac could be very high thus devaluing an investment year-on-year

 

6. HDAC vs COMPETITION

Hdac describe their plans to be a currency related to the Internet of Things. Therefore, you would think that Hdac would make reference to the ways in which they are better than their main competitor; IOTA, right?

Wrong.

Instead, in Hdac’s whitepaper, they draw entirely irrelevant comparisons between themselves and Bitcoin & Ethereum.

Why Are These Irrelevant?

Bitcoin – Bitcoin is attempting to become the digital gold or digital currency of the future, not related to the Internet of Things.

Ethereum – Ethereum are working to become a platform to allow for the creation of smart contracts. While this could relate to the Internet of Things, it certainly isn’t direct competition.

Why Compare Hdac To Bitcoin & Ethereum?

 

We can’t be certain but we believe the reason is simply to convince investors to participate in the ICO.

Think about it like this:

Bitcoin and Ethereum are the two biggest Cryptocurrencies around by some distance, so many average investors may be convinced that Hdac is a great investment simply because it has some advantages over the two biggest Cryptos

Are Hdac Scared Of IOTA?

With Hdac, we believe that they are scared of the real competition; IOTA. Most likely, this is because they didn’t like how they matched up on paper.

Hdac quote a transaction time of 160 transaction per second on public chains, 500 tx/sec on private chains and the future target of 1000 tx/sec.

While this might be scalable enough for some platforms, we’re talking about the Internet of Things, which will require a huge number of micro-transactions to be processed every seconds – 1000 is unlikely to be anywhere near enough to allow for true scalability. 

IOTA, on the other hand, is based on a technology called the ‘Tangle Technology’ instead of the blockchain. As a result, it is infinitely scalable so that transaction speeds won’t be an issue.

The tangle technology also allows IOTA to boast other advantages including; higher security and zero fees.

That’s why we’ve concluded that Hdac holds very little competition to IOTA

It should be noted that IOTA is not flawless and has suffered its own issues in the past. However, in comparison to Hdac, it’s light years ahead.

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3 REASONS WHY HDAC IS THE WORST ICO OF 2017

Let’s begin this with one very clear point – we think that the Hdac ICO is awful for any investors out there. However, we are specifically talking about investing in the ICO – not investing into the Hdac after the ICO, once tokens have hit the exchanges. In all honesty, we’re not a fan of the project anyway so we wouldn’t invest then either.

 

Reason #1 – Presale Token Price

Over the past few months, we’ve seen a trend whereby token prices have fallen after the ICO, once tokens hit exchanges. 

Why does this happen?

There are many possible reasons but the most common one is due to the difference between pre-sale token prices and main token sale prices.

We’ll Explain With An Example

For our example, we’ll use the coin; CryptoGurus coin; CG coin for short.

  • Let’s say that pre-sale investors are able to buy CG coins for $1 while main token sale investors must pay $5
  • After the ICO, the coin hits exchanges for a price of $5 i.e. the same as the main token sale price
  • Pre-sale investors will look at the price and see a 5x return on investment (ROI)
  • Satisfied with this very high return, many pre-sale investors will quickly sell their CG coins
  • The CG coin price then crashes to far below the main token sale price

In other words; when the pre-sale token price is much cheaper than the main token sale, token prices usually fall after the ICO.

The bigger the difference in prices, the greater the fall.

How Does This Apply To Hdac?

Let’s compare the figures at each stage of the presale and ICO:

April 1st 2017: 1BTC
1BTC = $1000 = 35000 DAC = Approx $0.03/DAC

May 1st 2017
1BTC = $1400 = 32000 DAC = Approx $0.04/DAC

July 1st 2017
1BTC = $2500 = 28000 DAC = Approx $0.09/DAC

November 27th 2017
1BTC = $10000 = 22000 DAC = Approx $0.45/DAC

December 1st 2017
1 BTC = $11000 = 22000 DAC = Approx $0.50/DAC

This means that if you were to participate in the ICO, you would be paying around 15x the USD price paid by initial investors.

As a result, we are convinced that this will play out in one of two ways:

1. Token Prices Begin At $0.50/DAC On Exchanges

  • Pre-sale investors will see the ridiculously good returns they’ve achieved and immediately cash out.
  • Token prices will then crash to well below the main ICO price
  • Result: An investment into the ICO will be a very poor one

2. Token Prices Begin Well Below $0.50/DAC On Exchanges

  • Result: Token sale investors have already lost out. No need to go through extra steps here

On top of this, the team has confirmed (via Telegram) that there is no lockup period for any of the early investors so there will be nothing in place to stop this from occurring either.


Reason #2 – IOTA competition

We’ve already highlighted this point above but we know that many readers have probably skimmed through this article to this section so we’re including it again for those readers. Feel free to skip ahead if you’ve already read this.

Hdac give meaningless comparisons with Bitcoin and Ethereum in their whitepaper.

Why Are These Comparisons Meaningless?

These comparisons are meaningless because neither Bitcoin nor Ethereum are even competitors to Hdac, who are specifically focusing on the Internet of Things. You could argue that Ethereum’s smart contracts could be used for this sector in the future but they certainly aren’t direct competition.

This would be similar to Snapchat convincing you to invest in their stock instead of investing in Uber because people upload more photos to their app. It’s a fundamentally ludicrous comparison to make.

Why Have Hdac Made These Comparisons?

We believe that Hdac are making these comparisons to Bitcoin and Ethereum for 2 reasons:

  1. To Convince Investors – They believe that investors will hear how Hdac is better than Bitcoin and Ethereum in some aspects – the two biggest Cryptocurrencies – and be convinced it’s a good project to invest in. Sadly, this will probably work.
  2. To Hide Their True Competition – Their real competition is IOTA, which is also designed for the Internet of Things and has tech 1000x more advanced than them. Hdac might realise that they hold no real threat to IOTA and have ignored them as competition as a result.

 

Reason #3 – Inflation Rate 

On top of presenting very little competition to IOTA, Hdac are not even selling many of their coins in the ICO. From what we could find, only 7% of coins were being sold in this process while another 7% were being retained the company and a further 86% would be mined gradually over time.

Therefore, each year, there could be a high inflation rate which would further de-value the the coin investors would be purchasing through the ICO process.

 

8. HDAC ICO/TOKEN SALE DETAILS

  • ICO/Token Sale Link – https://hdac.io/
  • Referral/Affiliate Code – N/A
  • Pre-ICO Start Date – Completed, Raised 13,000 BTC in Eastern Asia
  • ICO Start Date – 27th November 2017
  • ICO End Date – 22nd December 2017 – 23:50pm (GMT/UTC+1)
  • Coin Price – 1 BTC = 18,000 DAC
  • Bonuses Available – 400 DAC bonus for every 0.1 BTC invested
  • Coin Supply – 12 billion over 170 years, 840 million (7%) available during the ICO
  • ICO Soft Cap – No soft Cap
  • ICO Hard Cap – 6000 BTC
  • Accepted Currencies – BTC
  • How To Participate – Click this link and follow the instruction

Keywords:

ICO Soft Cap – An ICO raise below the soft cap means that the project is cancelled

ICO Hard Cap – The maximum amount that the ICO can raise. Once the hard cap is reached, the ICO is closed

Very Important Point:

Token price is irrelevant when investing. Hard cap is all that matters for judging whether an ICO is cheap or expensive and market cap is all that matters once the Crypto hits the exchanges.

If you want to learn more about this fundamentally important aspect of investing, make sure to have a read of our brief explainer article.

What Happens If The Hard Cap Isn’t Reached?

This is where we would usually discuss whether unsold tokens would be burnt or sold at a later date etc. However, due to the nature of the Hdac project, Hdac tokens can only be mined if they have been purchased. This means that there would be no spare tokens to consider.


9. THE CRYPTOGURUS CONCLUSION

Overall, we would love to ask the question; with Hyundai being such a massive company, why do they even need an ICO? 

This project could potentially be a good investment after the ICO once token prices have fallen, even if we don’t personally think so. However, as far as ICOs go, this is the most confident we have ever been that token prices will fall as soon as Hdac coins hit the exchanges, making this ICO a terrible investment.

Remember though, that all of this is simply our opinion – we fully respect any disagreements people may feel towards everything we’ve said – but this website is for us to give investors our honest opinions and, it’s fair to say that we have been highly truthful with this article.

That’s the end of the article! Thanks for stopping by and don’t forget to check out our other articles for regular Crypto/ICO reviews and market updates.

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Disclaimer: None of the above is financial advice. Always do your own research.


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What Is Datawallet? Full ICO Review

What Is Datawallet? Full Review

Datawallet ICO Review – Take Back Control of Your Data While Earning Extra Income

Currently, third party companies collect our data and sell it on. It’s our data so why aren’t we the ones who decide which data to sell and how much to sell it for?

Datawallet is an ambitious project who wants to put users back in control of their own data. In this article and video, we will be carrying out our review of Datawallet.


YOU WILL LEARN:


What Is Data Wallet?

What Are Data Brokers?

How Can You Sell Your Data For Money?

Should You Invest In Datawallet?

 

CONTENTS:

  1. What Is Datawallet?
  2. How Will Datawallet Work?
  3. What Problems Will Datawallet Solve?
  4. Will Datawallet Token Prices Increase?
  5. The Team
  6. Barriers to Success
  7. Roadmap
  8. Extra Points
  9. Datawallet ICO Details
  10. Conclusion
  11. Follow Future Posts

 

1. WHAT IS DATAWALLET?

In Their Words:

  • A blockchain-powered data exchange that puts people in charge of their data and empowers developers to bring the next generation of world-class applications to life.

In Our Words:

  • Datawallet is a project that will allow us to take ownership of our personal data and, in turn, allow us to make extra income IF we choose to sell our data to advertisers.

 

2. HOW WILL DATAWALLET WORK?

There are two perspectives to consider when discussing Datawallet; Data Providers (regular people like you and me) and Data Requesters (companies who want to use our data). Let’s begin with Data Provider.

Data Providers (Regular People):

First, we will first download the Datawallet App. From here, the Datawallet app presents the user with a data inventory overview.

This will show us a list of all the data available, split into categories such as social media or commerce and this is where we decide which data we wish for the app to collect.

We are then presented with an overview of any interested firms and we will select the parties we are willing to share data with, while also excluding any data we don’t wish to share. For example, we may be willing to share our Facebook data but not our Amazon or Uber data.

Once we’ve shared the data with our chosen firms, we’ll receive DXT tokens in return.

The data is held in escrow until payment is received in order to guarantee security and that privacy is maintained. We can then spend their DXT tokens on AI driven services in the Datawallet App Store, or cash the tokens in for fiat currency.    

Data Requesters (Companies):

Firms will first purchase DXT from an exchange, they will then be able to list themselves as a data requester with Datawallet and petition for user’s data.

Each firm must present users with a small pitch that includes details such as: the data they require, what the data will be used for and the amount of DXT they are willing to pay for it.

Once selected by a user, the transaction is completed as above.

How Much Will Datawallet Pay Users?

We weren’t able to find specific values for how much users will get paid for selling their data – most likely, Datawallet probably don’t even know themselves.

However, we did find an article from 2015 when Datawallet were attempting to create a centralised platform before (more on that later) which describes users as receiving $3-$5 per data sale BUT this value can add up to hundreds as users will be able to sell the same data to many different companies.

Is this value accurate?

We’ve included the article link to give you guys as much information as possible but you should be aware that Datawallet are the ones providing this value of $3-$5 and they have obvious incentive to give an exaggerated value.

 

3. WHAT PROBLEMS WILL DATAWALLET SOLVE?

We say this time and again yet so many people we speak to seem to forget this important point:

Businesses are created for one purpose; to solve market problems

If a business does not solve a real problem, it is unlikely to succeed.

When it comes to Datawallet, the industry seems to suffer from three problem areas:

  1. Data Ownership
  2. Data Accuracy
  3. Data Quality

All three of these areas relate to Data Brokers; companies which collect consumer information, from a mixture of resources and sell it to organisations who use it for marketing purposes. 

As an industry, it is currently worth more than $200 billion and is forecast to become the world’s most valuable resource by 2022.

1. Data Ownership

Every day, users create a vast amount of data without even knowing it. Our user data is an incredibly valuable resource for companies already –  so why don’t own our own data and get paid for it?

The problem with the current system is that data brokers are collecting our information and selling it without our consent. Worst of all, they don’t even pass any of their profits onto us.

2. Data Accuracy

It is incredibly rare that data brokers are able to obtain a complete profile of you and your personal data in one go; your data is usually stored across multiple platforms and data brokers do not have a reliable way of connecting the two.

It is because of this that they will use probabilistic models to approximate how likely it is that two datasets belong to the same person, often without success.

3. Data Quality

This lack of accuracy then leads to a lack of quality data; firms are spending money on this data and spending millions on targeted ad campaigns based on the data.

When the data is low quality, these campaigns are much less likely to be successful, wasting valuable company resources in the process.


DATAWALLET’S SOLUTIONS

Data Ownership

By presenting users with a self-owning wallet, we will become the sole holders of our personal data; even Datawallet are unable to access our data because of the nature of the blockchain and the split-key system implemented.

As the holders of our own data, we will then be able to choose whether we want to sell it or not, along the price if we do wish to sell it to companies.

It’s our information, why shouldn’t we be the ones that benefit from it?

Data Accuracy

With the Datawallet system, companies are receiving 100% accurate information. Who’s better to provide information about you, than you?

Data Quality

This 100% accurate data is instantly of higher quality than any information a data broker could produce, especially with the additional ability to track offline data for users that Datawallet can offer.

As such, companies should be willing to spend even more to get user data from us than they will pay to a 3rd party company – why would they choose to pay for somewhat accurate data from them when they can pay us for data which is 100% accurate?

Our Thoughts

Datawallet are not going to be able to stop other firms from collecting customer data from other sources – after all, there will be many users who don’t wish to sell data or not sell enough data to satisfy the data needs of companies.

However, Datawallet’s idea could provide a truly disruptive to the current system – with users getting paid to give away data and companies receiving 100% accurate data, the middlemen data collectors could be in for a shock. 

On top of this, data collection is an ever-growing marketplace meaning that Datawallet are entering into an expanding market.

Reality Check

Even writing this article, we are aware of the incredible potential that the Datawallet project could hold BUT we’ve read through hundreds of whitepapers and many projects sound groundbreaking – this is to be expected due to the incredible potential that the blockchain holds. In reality, around 95% of these projects will most likely fail.

It’s for this reason that we love the phrase ‘The Devil is in the details‘. We recommend that you NEVER invest without delving into the details of a project – this is the difference between a great project in Cryptocurrencies and a dead one.

So, before you get too excited about this project, let’s have a look into more details first and we’ll move onto the topic of whether the token prices are actually linked to the success of the platform or not.

 

4. WILL THE TOKENS INCREASE IN VALUE?

This is another incredibly important point that people often overlook when investing in Cryptocurrencies – is the token price truly linked to the platform usage?

Investing in Cryptos is not the same as traditional investing – when you buy shares in a company, you’re buying ownership. As the company makes increased profits, the share price will increase and your investment value will rise also.

With the majority of Cryptocurrencies, the tokens don’t represent shares.

Therefore, it’s possible for the company to be successful (i.e the CEO and employees get rich) and yet the token prices may actually fall if they aren’t correctly linked to platform usage.

The ONLY factors determining token price are supply and demand on exchanges.

Obviously, supply and demand are affected by many factors but the price all comes down to the combination of these two. Because of this, it is essential to ask yourself the following two questions:

Demand – Will there be token demand on the exchanges?

Supply – Will there be excessive inflation hindering prices?

Let’s first look at demand:

What Are the Sources of Demand?

In order for a company to obtain consumer data, they will have to pay in DXT tokens which they must buy from the exchanges.

If more companies begin using Datawallet’s platform to obtain consumer data, more companies will have to buy tokens from exchanges. As a result of the higher demand,  token prices will increase. 

As such, the DXT token price has been tied to the success of the Datawallet project.

What Is The Likely Inflation Rate?

Datawallet will be creating a fixed supply of tokens mening there will be a zero-inflation rate. However, that does not mean new tokens won’t be entering onto exchanges; only 33.33% of the total tokens will be sold in the ICO, meaning that the other 66.67% will enter the market at some point but how will they be distributed?

  • 16.66% – Developer Growth Pool
  • 16.66% – User Growth Pool
  • 33.33% – Datawallet

Datawallet provide no details beyond this; there is no mention if any minimum holding period exists for the team, so it is impossible to tell when these tokens will hit the exchanges. 

$30 Million Team?!

In the ICO, Datawallet are attempting to collect a maximum of $30 Million. While it may be less than this as this is their max raise, it’s possible that they could collect $30 Million in return for 33.33% of tokens.

With another 33.33% of tokens going to the Datawallet team, they are potentially valuing their own contributions as being $30 Million from day one.

This is a concern for investors – what if the team decide to sell 10% of the total tokens over the course of a few weeks? Due to their incredibly high shares in the platform, the owners are essentially going to be whales and this is a concern because it can lead to market manipulation.

This is something that smart investors should consider before making their decision about investing.


SORRY TO INTERRUPT…

If you’re enjoying the article, don’t forget to bookmark the page for regular ICO reviews and market updates.

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Anyway, let’s get back to the content!

 

5. THE TEAM

The Datawallet website lists only the two founding members (Serafin Lion Engel & Daniel Hawthorne) and two investors (Tim Draper & Marc Benioff).

Engel is a graduate of Draper University, founded by one of the projects investors Tim Draper, a successful venture capitalist with investments in Skype, Tesla and SpaceX among others.

Some of you may recognise Draper as the man who purchased 30,000 bitcoins at public auction back in 2014. It was at this time that he predicted bitcoins price to surpass $10,000 by the end of 2017 and he was, as we know, absolutely correct.

While not much is known about it’s members, we do know that the team have been together working on this project for over two and a half years; and have previously built original centralized version of Datawallet (more on this later).

Is The Team Size A Concern?

You may be thinking: ‘with a team of just two, they have no chance’.

We would agree with this except they won’t be a team of two in the future; in their ICO, they are raising a maximum of $30 Million – with 65% of this dedicated towards development, we can be pretty confident that they will be bringing in future team members.

As such, it’s impossible to judge the full team at this stage. However, the two founding members are clearly committed to this project and it is not some overnight creation. Also, the association with Tim Draper is surely guaranteed to be positive for the project.

 

6. BARRIERS TO SUCCESS

Data Collation and Summation

One potential barrier we have identified could be an unwillingness by companies to invest in extra workload; with data brokers, they often pool together large amounts of data and summarize it for a company before presenting a final findings report.

With the Datawallet system, it seems companies would receive individual consumer data and have to do this themselves. This may be fine for small campaigns focusing on one postcode for example, but would a company be willing to do this for a national or worldwide campaign?

New Crypto Economy

To us, this highlights the new Cryptocurrency economy that is emerging. What do we mean by this?

Datawallet are attempting to create a revolutionary solution to an existing problem in the marketplace, but they may encounter issues such as putting data together.

As a result, we can expect to see new companies appear in the future with this exact role – to put Datawallet’s data together in a form that companies require (assuming that Datawallet aren’t able to do this themselves).

In other words, Cryptocurrencies invented today are creating the need for entirely new businesses as the next generation economy is being created.

 

7. THE ROADMAP

Another case where we face a significant lack of detail; there is no sign of a roadmap on the Datawallet website and in the whitepaper, the only mention comes in the appendix.

Making reference to a figure XYZ (which doesn’t exist) for a time-scale is not helpful but we do know that the system will be developed in line with three major milestones: v.10, v20. and v.3.0.


This could simply be an oversight for the team – having already created a centralised version of the application, we would expect that the timeframe for the production of their next app shouldn’t be too far away. Without a proper roadmap though, who really knows?

 

8. EXTRA POINTS TO CONSIDER

Is This Datawallet’s 2nd Attempt?

Through our background research, we found that Datawallet have already attempted to create a Datawallet application – they already launched it in 2016 on the App store.

We attempted to download the app but weren’t able to as it has been removed from the app store. We did, however, find this review.

Is This A Concern?

Is it a concern that Datawallet have attempted this once already and not succeeded?

Of course it is a consideration that investors will have to factor in when making their decision. You could argue in favour of Datawallet for this:

  1. Datawallet is perfectly suited to the blockchain solutions – personally, we wouldn’t want to hand over our data to a non-crypto and centralised platform – so they should be more successful this time around with this addition
  2. They should have learnt from their mistakes from the first time
  3. The founding members are clearly dedicated to making the project a success as they’re still working on it
  4. The application development shouldn’t be too far as they already have a solid base to build upon


However, this is the most positive way to look at this revelation – many would argue that this is a negative indication for the success of the project and we wouldn’t necessarily disagree with this.

 

9. ICO/TOKEN SALE DETAILS + WHERE TO BUY

  • ICO/Token Sale Link – https://tokensale.datawallet.com
  • Referral/Affiliate Code – N/A
  • Pre-ICO Start Date – November 21st 2017
  • Minimum Pre-ICO Investment – $50,000
  • ICO Start Date – December 21st 2017
  • ICO End Date – January 20th 2018
  • Token Price – 1 DXT = $0.18
  • Bonuses Available – No mention of any at this moment in time
  • Token Supply – 750,000,000 (250,000,000 available during the ICO)
  • ICO Soft Cap – Hidden
  • ICO Hard Cap – $30 Million (with only 1/3rd of tokens sold in the ICO, this would put the total valuation of Datawallet at $90 Million)
  • Accepted Currencies – BTC, BCH & ETH
  • How to Participate – Click this link and follow the instructions

The minimum pre-ICO investment of $50,000 should be noted for readers – if you have fewer funds than this to commit to the project, you will be forced to wait for the main token sale.

Keywords:

ICO Soft Cap – Any amount of money raised below the soft cap means that the project will be cancelled cancelled

ICO Hard Cap – The maximum amount that the ICO can raise. Once the hard cap is reached, the ICO is closed

Very Important Point:

Token price is irrelevant when investing. Hard cap is all that matters for judging whether an ICO is cheap or expensive and market cap is all that matters once the Crypto hits the exchanges.

If you want to learn more about this fundamentally important aspect of investing, make sure to have a read of our brief explainer article.

 

10. THE CRYPTOGURUS CONCLUSION

Great Idea

The Datawallet concept is an incredible one; data brokers have been scraping our data for too long with users seeing nothing in return, it is for that reason that we believe there will be no shortage of data providers when the system launches.

When it comes to data requesters (companies requiring data), the uptake may be a little slower; larger companies may be reluctant to collate the data themselves as previously mentioned but also there is currently no mention of costs.

Barriers To Success

Will the costs be the same as data brokers? Will it be higher because of its guaranteed accuracy? Or will it be lower to try to encourage adoption? At this point, we just don’t know.

While the lack of some details is potentially worrying – no roadmap etc – the sheer level technical detail in the whitepaper is astounding.

Add in the fact that the team have been together working on the project for nearly three years, having already released a centralized prototype and you have another positive (or a negative depending on how you view it); it does a lot to convince that this is serious project.

Market Manipulation

With the team keeping 33.33% of tokens for themselves, they will be whales in the market and could decide to create market manipulation if they chose to.

Tim Draper

With investment from Tim Draper, a very knowledgeable and successful venture capitalist, this could lead to great exposure for the project and assist with their ICO raise.

To conclude, Datawallet are attempting to build a truly revolutionary solution to the problems seen in data collection today. The project could be huge if they are successful but it is a HUGE risk as far as investments go – all ICOs are.

Overall, the idea behind Datawallet is incredible but the devil is in the details is. We aren’t going to tell you guys whether to invest or not – we like to highlight all of the necessary information you should consider so you can make your own decision.

Remember that one of the keys to building a strong portfolio is to never invest too heavily in risky projects.

As such, if were to add Datawallet to our portfolios, we would ensure to remain well diversified and only invest an amount of money that we’re willing to lose.

Useful Links

Datawallet Website – https://tokensale.datawallet.com/

Whitepaper – https://tokensale.datawallet.com/pdf/datawallet_whitepaper.pdf

CEO Interview

As a side note before we go, you can find a very useful interview with CEO Serafin Lion Engel below where he succinctly discusses the project (beginning at 5:50)

That’s the end of the article! Thanks for stopping by and don’t forget to check out our other articles for regular Crypto/ICO reviews and market updates.

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Disclaimer: None of the above is financial advice. Always do your own research.


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This article has been provided by our Business Analyst; Aaron Laver.