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.


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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.

What Is Utrust? Full Review

What is UTRUST? In this UTRUST review, we will explaining how they are positioning themselves to become the Paypal of Cryptocurrencies.

Through the introduction of buyer protection, UTRUST are merging the safety of fiat currencies payment systems with the many advantages of Cryptos. This could be a huge step towards mainstream Cryptocurrency adoption so keep reading if you want to learn more…

 


YOU WILL LEARN:


What Is The UTRUST Project About?

Are They Solving Real Market Problems?

Is UTRUST A Good Investment?

What Is The CryptoGurus Opinion On UTRUST?

 


CONTENTS

  1. What Is UTRUST?
  2. How Does UTRUST Work?
  3. What Problems Are UTRUST Solving?
  4. Will UTRUST Token Prices Increase?
  5. The Team
  6. Roadmap
  7. ICO/Token Sale Details
  8. Extra Points 
  9. Conclusion
  10. Follow Future Posts


1. WHAT IS UTRUST?

In our own words:

  • UTRUST will be a payment gateway that aims to become the Bitcoin/Cryptocurrency contender to Paypal.
  • It will unique to other Crypto payment gateways in that it offers buyer protection – just like Paypal – hence eliminating some of the most significant risks involved with Bitcoin/Crypto payments.

Utrust Buyer Benefits
What Are Payment Gateways?

A payment gateway is an API that websites can use as a means of accepting payments. Still confused, right?
The easiest thing to say here is that Paypal is an example of a payment gateway. As is Stripe.

Essentially, they are a method to allow websites and shops to accept alternative payments types to using your debit/credit card.

The Next Big Step For Mainstream Adoption?

In our opinion, payment gateways are one of the biggest steps in introducing Cryptocurrencies to the masses. Imagine if, when buying things online, you had the option to pay with Cryptocurrencies and the process was as simple as checking out with Paypal.

Suddenly, we could see a huge rush of Cryptocurrency users actually spending their coins for real purchases, rather than just HODLing them.

“Tom, isn’t this already possible through payment systems like Bitpay and Monetha?”

I’ll move on to Bitpay shortly under the section labelled ‘Current Market Problems’ but, for now, I would like to discuss Monetha because there isn’t much of a difference functionally between them and UTRUST and yet the difference that does exist changes everything.

Monetha was a recent ICO that I was quite excited about; it is a payment gateway that is also intending to be the Crypto-contender to Paypal.

However, Monetha have missed out something huge; Buyer Protection

Let’s say you order a product and it arrives faulty or it never even turns up. Using Paypal’s buyer protection, you can request your funds back and have them validly returned to your bank account.

With Monetha, this isn’t possible; once you’ve paid for the item, the funds are gone and you cannot get them back. From a buyer’s perspective, this simply isn’t acceptable.

In today’s world, buyer protection is an absolute must. Without it, Cryptocurrency payments will appear scary and off-putting.

The key to on-boarding the general public is to provide a Cryptocurrency payment system that is very similar to what they are already comfortable with (e.g. similar to Paypal) and buyer protection is fundamentally important for this.

UTRUST will offer customers buyer protection.

Their plan is to use the benefits of Cryptocurrencies (unhackable, cheap and trustless) and merge them with the safety of fiat currency payment systems (buyer protection and a number to call if things go wrong) such as Paypal.

With UTRUST, users will be able to spend their Cryptocurrencies in a safe and reliable manner.

UTRUST will be the ‘first cryptocurrency payment platform to deploy consumer protections’.

We’ve briefly covered what UTRUST is and why buyer protection is essential to encourage mainstream Bitcoin/Cryptocurrency adoption.

Now let’s run through the buying process so you can understand the next biggest selling point in this UTRUST ICO  which relates to how it works.


2. HOW DOES UTRUST WORK?

Utrust How Does It Work? CryptoGurus.comThe process goes like this:

  1. Merchants will list products on their website as normal and integrate the UTRUST system just like Paypal
  2. The buyer selects an item to buy and checks out via UTRUST (choosing this over Paypal if he wishes to use Cryptocurrencies)
  3. The buyer selects on of their existing Cryptocurrency wallets as a source of funds (e.g. their Bitcoin, Ethereum, Litecoin wallet)
  4. The buyer will be shown the total amount to be paid including a a 1% commission and exchanges conversion fee (from Crypto money to fiat money)
  5. The buyer hits the ‘Buy Now’ button and their chosen Cryptocurrency is converted into fiat currency immediately (for an additional fee)
  6. This fiat currency (USD, EUR etc.) is held in escrow hence the buyer protection
  7. Once the holding period is over, the merchant will receive their fiat currency.

Huge Selling Point:

Merchants receive FIAT currency (USD, EUR etc.) NOT Bitcoin/Cryptocurrencies

Until recently, most people thought that shops would have to begin accepting Bitcoin and other Cryptocurrencies for us to spend them.

That’s not the case; once platforms such as UTRUST and TenX are running, we will be able spend Cryptocurrencies while shops can still receive their regular currency. It’s a huge win-win

What If There Is A Dispute?

  • The buyer will open a dispute. The merchant and buyer will enter a resolution chat between the two of them in order to try to settle the dispute
  • If both parties are still not happy after 7 days, the buyer can escalate the claim to a UTRUST mediator
  • The UTRUST mediator will collect evidence from both sides and have the final say on which party is correct
  • If the buyer is correct, a refund will occur with an additional 2% fee charged to the merchant
  • If the merchant is correct, the funds will be released and they will be paid
  • If one party is found to be lying, their trust score will decrease found to be lying, their trust score will decrease 

What Does The Trust Score Mean?

  • The trust score dictates how long funds are held in escrow
  • If a merchant has a very low trust score, the buyers’ funds will be held for a long time for a long time
  • As the merchant uses the platform and is found to be reliable and honest, their trust score will grow over time and funds will be released to them much more quickly with each purchase
  • There is clear incentive for merchants to maintain a high trust score and, therefore, there is an incentive to act in a trustworthy manner within the UTRUST platform


3. WHAT PROBLEMS ARE UTRUST SOLVING?

Utrust or Paypal CryptoGurus.com

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

Businesses are created for one purpose; to solve problems

  • Netflix was created to solve the problem of having to rent individual movies from a store for expensive prices (remember Blockbuster?!)
  • Uber was created to solve the problem of expensive taxis

If a business does not solve a real problem, it is incredibly unlikely that it will succeed.

So what market problems are UTRUST specifically solving?

There are 2 main competitor sectors so we will discuss how they’re solving the problems of both of these sectors:

  1. Regular (Fiat) Currency PaymentsPaypal, Stripe etc.
  2. Cryptocurrency PaymentsBitpay etc.

Paypal Market Problems

  • Seller FeesPaypal charge a minimum of 2.9% but can go as high as 5% after hidden fees are accounted for.
  • Physical GoodsPaypal only apply buyer protection to the purchase of physical goods
  • Exchange fees According to the UTRUST Whitepaper, Paypal and Bitpay ‘provide exorbitant internal exchange rates’ when converting between foreign currencies
  • FraudPaypal is a centralised system that holds your money and is therefore subject to hackings and fraud
  • Fake Chargebacks Paypal merchants suffer from fake chargebacks – when a user asks for their money to be returned with no legitimate reason – because the system is set up heavily in favour of the users and they are believed without producing much evidence

UTRUST’s Solutions

  • Seller FeesUTRUST will charge 1% for seller fees
  • Physical Goods UTRUST will cover all physical good plus the majority of virtual goods and services also
  • Exchange FeesThe UTRUST whitepaper dictates that they will ‘connect to multiple cryptocurrency exchange providers to offer very low exchange rates’
  • Fraud With the UTRUST system, you will hold your own funds (and your private keys) so the risk of fraud is eliminated
  • Fake Chargebacks UTRUST will implement a fairer system where both merchants and buyers will provide evidence equally. A UTRUST mediator will then fairly decide which side is correct.

Our Critique

  • Seller FeesUTRUST regularly quote 1% as their fee. However, this doesn’t include the conversion from Cryptocurrencies to fiat currency. With this included, what will the real fee be?
  • Physical GoodsPaypal doesn’t cover services or virtual goods. There must be a reason for this decision so what is it? Perhaps, it is too difficult to mediate if there is a dispute with services or virtual goods?
  • Exchange FeesUTRUST claim that Paypal and Bitpay ‘provide exorbitant internal exchange rates’ when converting between foreign currencies. Without real numbers provided, it is difficult to know if this point is valid

Bitpay Market Problems

  • No Buyer ProtectionIf the merchant doesn’t deliver the item or it is faulty, buyers have no means of getting their money back
  • Bitpay only accepts BitcoinBitpay doesn’t accept other commonly used Cryptocurrencies
  • Exchange feesBitpay and Paypal ‘provide exorbitant internal exchange rates’ when converting between foreign currencies

UTRUST’S Solutions

  • Buyer Protection Buyers will be able to appeal and potentially be refunded if the merchant has not been truthful or the product is not as expected
  • UTRUST will accept many CryptocurrenciesIn their whitepaper, UTRUST describe how they will accept Bitcoin, Ethereum Litecoin, Dash and Monero to begin with. They also plan to add to this list regularly
  • Exchange FeesThe UTRUST whitepaper dictates that they will ‘connect to multiple cryptocurrency exchange providers to offer very low exchange rates’


4. WILL TOKEN PRICES INCREASE?

This is another incredibly important point that many people overlook when investing in Cryptocurrencies.

When you invest in a company, you are buying shares. As the company makes profits, the shares increase in value. In other words, you are investing in the value of the company rising.

With the majority of Cryptocurrencies, the coins/tokens don’t represent shares. Therefore, the company can increase in value (i.e the CEO and employees get rich) and yet the coin/token may actually fall in value. 

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 question: 

Will there be token demand on the exchanges?

If the answer is no, token price will fall. If the answer is yes, the token price COULD rise. This idea is the most important element of any investment and yet so misunderstood with Cryptos.

So, let’s look at the demand.

What Are The Sources of Demand?

  1. The Token Buyback Program
  2. Using The UTRUST Token = Zero Conversion Fee

1. The Token Buyback Program

  • Token Supply will begin at 1 billion
  • UTRUST will a ‘percentage of transaction fees’ to buy tokens on the exchanges and burn them
  • This will reduce the overall supply of tokens, driving up price
  • A maximum of 50 million tokens will be burnt every year
  • The goal is to reduce the tokens to a total supply of 100 million

1. Our Critique

  • What percentage of the transaction will it be? 75% of the fee is very different to 10%
  • Burning 50 million tokens is perhaps possible in the beginning but this gets more difficult as supply reduces and it costs more to buy 50 million tokens. Will they be able to manage it?
  • Once the total supply reaches 100 million, the buyback program will stop. What will cause token prices to rise now? Admittedly, this point is moot for many years until they reach this time

2. Using the UTRUST Token = Zero Conversion Fee

  • If you choose to use the UTRUST token, the 1% fee will be waived

2. Our Critique

  • Unless people plan to use UTRUST very regularly, will people really convert their tokens from other Cryptocurrencies and hold them as UTRUST tokens?
  • For me, the answer is no BUT UTRUST seem to think that they buyback program is the most significant means of raising token price so this point isn’t too much of an problem.


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5. THE TEAM

Utrust Team CryptoGurus.com


When looking through an ICO team, the famous phrase ‘Invest in people, not ideas’ come to mind. It’s based off the principle that an idea is only as good as the people who execute it. As an investor, I believe strongly in this principle.

Sadly, however, it is very difficult to analyse the team of any ICO. ICOs have team profiles on their website. The problem is: guess who writes their profiles? They do. Anyone can write a good profile on themselves.

Regardless, the UTRUST team appear to be strong. Their CTO has been the ‘former CTO in a leading digital payment platform company and is the current head of Development of a Swiss-based Cybersecurity company’ and other team members have similarly qualified background.

Finally, I like the size of the team – they have 17 members in their core team with a further 16 advisors. This is a much higher number than you see for many other Cryptocurrencies with similar valuations.


6. THE ROADMAP

Utrust Roadmap CryptoGurus.com

  • Q1 2018 – They will have the first API ready to test
  • Q2 2018 – Development will continue and theback-end interface for mediators will be added
  • Q3 2018 – ‘The initial pilot launch will feature a curated selection of merchants’

Our Critique

  • With the initial pilot launch occurring in Q3 2018, the platform won’t actually be fully functional for another year
  • This is such a long time away – especially in Crypto-world – that is raises the question of whether it is best to invest in the ICO or wait until afterwards once the hype has dropped down and token prices might potentially be cheaper?
  • After all, the only factor driving demand over the next year before the platform launches is speculation
  • You have to ask yourself if you think that speculation will drive prices up after the ICO or whether a new, shiny ICO will come along in the meantime and people will sell their UTRUST tokens to fund their next purchase?

The decision is entirely up to you – we are not attempting to encourage or discourage anyone with their choice.

We simply aim to open the eyes of investors by exploring all possible options in our analysis.

With that in mind, let’s move onto the ICO/token sale details next.


7. ICO/TOKEN SALE DETAILS

  • ICO/Token Sale Link – https://utrust.io/ico
  • Referral/Affiliate Code – N/A
  • Pre-ICO Start Date – 28th August 2017 (Finished)
  • ICO Start Date – 2nd November 2017, 2pm UTC
  • ICO End Date – 9th November 2017, 2pm UTC
  • Token Price – $0.065 (6.5 cents)
  • Bonuses Available – N/A
  • Token Supply – 1 billion
  • Soft Cap – N/A
  • Hard Cap – $49 Million
  • Accepted Currencies – BTC & ETH
  • How To Participate – Click this link and follow the instruction

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?

  • If UTRUST’s hard cap isn’t reached, the unsold tokens will be burnt
  • For example, if only 500 million tokens are sold in the ICO, the remaining tokens will be    destroyed
  • This protects your investment from being diluted


8. EXTRA POINTS TO CONSIDER

  • UTRUST’s Pre-ICO sold out in just 90 minutes, raising $1.5 Million
  • Since then they have ‘boosted their infrastructure’ and are looking to sell out their main token sale as quickly as possible
  • It is impossible to say whether they will hit their hard cap or not. However, it is fair to say that there could be high demand during the ICO
  • Therefore, IF you plan to participate, I would recommend signing up beforehand and being ready with your contribution immediately after the ICO opens


9. CONCLUSION

  • We believe that the project is very strong
  • The price is relatively cheap; with a hard cap of $49 million, this would put the UTRUST platform as the 91st most expensive project on coinmarketcap.com (at time of writing)
  • However, the platform will not be released for general use for another year – in ‘crypto-land’, this is a very long time
  • People may sell their tokens after the ICO in order to fund other purchases. This could make you think that an investment post-ICO might better than during the ICO

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 the CEO; Tom Heavey.