GIFTO Review | What Is GIFTO?

GIFTO Crypto Review Uplive

GIFTO ICO Overview – The digital gifting platform aiming to help smaller content creators

Disclaimer: This is a sponsored post. However, we have reversed the right to offer a 100% honest review of this project. This is not financial advice; please always do your own research.

 


YOU WILL LEARN:


What Is GIFTO?

How Does GIFTO Work?

Who’s Behind The GIFTO Project?

What Are GIFTO Tokens Used For?

 

CONTENTS

  1. What Is GIFTO?
  2. How Does GIFTO Work?
  3. Are GIFTO Solving Real Market Problems?
  4. What Is The GIFTO Token Used For?
  5. Team & Roadmap
  6. Selling Points
  7. Negatives
  8. GIFTO Token Sale
  9. Conclusion
  10. Follow Future Posts

 

1. WHAT IS GIFTO?

In Their Words

GIFTO Protocol allows for the creation and exchange of virtual gifts, built on smart contracts and blockchain technology, that in turn will create a decentralized consumer-driven virtual economic system.

In Our Words

GIFTO will allow people to give virtual gifts to their favourite social media content creators. These gifts will have a monetary value attached to them.

 

2. HOW DOES GIFTO WORK?

Below is a diagram illustrating the entire GIFTO ecosystem, we will highlight each individual process involved and the people required for these to work.

GIFTO Ecosystem

Gift Creation

GIFTO say that their Gift Creators are usually visual artists but in reality, anyone could be a Gift Creator; the process just involves the design of an image or animation.

Gift Curation

Gift Curation involves the review of all created gifts to ensure they are of a high enough quality and inoffensive, while also highlighting any potential legal violations or Intellectual Property violations. They then place the gift into the correct category before determining an appropriate pricing point.

Curators can choose to skip a gift if they are unsure about its ability to pass the above criteria; GIFTO aim to ensure curators only judge gifts they have domain knowledge in.

Gift Giving

GIFTO Gift Giving Process

A user will first purchase GIFTO tokens, these will be held in their GIFTO Wallet and they can use these tokens to purchase virtual gifts from the gift store. These can then be given to content creators on platforms such as Uplive, YouTube etc. The content creator receives the gift and can either hold it in their inventory or convert it into GIFTO and then fiat or other cryptocurrency.

Content Creators are also able to design a ‘wishlist’ to highlight the gifts they would prefer to receive from their fans.

Revenue Share

GIFTO of course do not expect people to perform these tasks for free so when a fan purchases a gift with GIFTO tokens, the revenue is shared between all parties involved. The percentage share is as follows:

    • 80% – Content Creator
    • 5% – Gift Creator
    • 2% – Gift Curator
    • 10% – GIFTO Protocol – Essentially a transaction fee for operational support and maintenance of the ecosystem
    • 3% – Reward Pool – This is accumulated into a rewards pool to be paid out periodically to all viewers/fans as bonuses or as lucky draw prizes to reinforce the element of fun and gamification.

 

3. ARE GIFTO SOLVING REAL MARKET PROBLEMS?

This strikes us an incredibly pertinent point based on both our position and recent responses to some of our content but one the GIFTO project really aims to solve.

The main problem content creators face is that the majority of their income comes from advertising revenue; in the current systems, the incentive models which drive them are largely centralized and often dominated by either the platform or the paying advertisers. This is often at the expense of content producers and consumers.

Since advertisers place greater value on reaching as broad an audience as possible, this current system often ends up disproportionately favouring the most popular 1% of content creators with the largest fan base, hits, subscribers etc.

This can mean that a number of smaller channels are unable to command a reliable income stream under the present incentive scheme, even if they produce high-quality content and as a result they cease to operate. This of course bad for content creators but also for the platforms they operate on as the diversity and quality of their content they can offer suffers.

If you would like to learn more about this problem, we suggest searching ‘YouTube Adpocalypse’ as there are plenty of detailed articles around this topic.

GIFTO’s Solution

The GIFTO protocol will allow fans to contribute to their favourite channels while receiving something in return; the hope is that with another potential form of income, smaller content creators will be able to maintain content production helping both themselves and the platforms they produce on.

 

4. WHAT IS THE GIFTO TOKEN USED FOR?

The Gifto token will be used as the in-app currency for the Uplive platform, replacing their existing currency.

As such, the token will be at the heart of the project and thus demand for the token should rise if the platform is successful.

 

5. THE GIFTO TEAM & ROADMAP

The GIFTO Team

As our regular readers will know, we often preach that you should “invest in people, not ideas”; the thought being that you could have the greatest idea in the world but without proper execution, it is unlikely to succeed.

The company behind the GIFTO project are Asia Innovations Group Ltd (AIG), they are a mobile interactive entertainment company based in Asia with over 300 employees across 8 offices.

The GIFTO team are led by Group CEO Andy Tian, before co-founding AIG he was the General Manager of Zynga China where he spearheaded Zynga’s expansion in China and personally oversaw the inception and creation of many global top 10 games. He also previously co-founded one of the world’s earliest social app companies (XPD Media) in 2008, which was sold to Zynga in 2010 to become Zynga China. The GIFTO project is clearly in good hands.

The project also possesses a number of interesting advisors including: Loi Luu, CEO and Co-Founder of Kyber Network; Chris Miess, Ex CFO of TenX and Hitters Xu, Founder of NEO.

There are a number of other interesting people involved in the GIFTO project, both on the team and involved as advisors but as this is just a brief project overview, we encourage you to read their whitepaper if you wish to learn more.

The GIFTO Roadmap

Phase One – January 2018

  • Alpha version of the protocol will be available in external content platforms (YouTube, Facebook, Instagram etc)

Phase Two – Q1 2018

  • Beta version of the protocol will be deployed on the blockchain, available for external uses outside of Uplive
  • First set of Smart Virtual Gifts will be deployed

Phase Three – Q3 2018

  • Commercial version 1 of the protocol will be launched
  • Full push to attract global content creators to GIFTO


Q3 2018 & Ongoing

Ongoing iterations and expansions

 

6. SELLING POINTS

Existing Platform

The GIFTO protocol is already being tested on the Uplive platform, this is a social media app prominent in Eastern Asia with a reach to over 70 million users, the instant reach GIFTO will possess is beyond substantial.

The only drawback here is that Uplive currently uses Diamonds as there in app currency, so migration to GIFTO would be required, however the incentives offered by GIFTO should more than encourage this successfully. This is an issue covered in the GIFTO whitepaper so we encourage you to check their response out.

Potential Adoption

There is the potential for the GIFTO protocol to be adopted on a number of other platforms too; Facebook, Instagram, Twitter and YouTube to name a few. The potential reach if just one of these brands were to adopt the protocol would be huge.

This idea would also work when it comes to gift creation; if the platform takes off then big companies may want to create or endorse the use of sponsored gifts. An example could be a BMW car as a gift, or gifting a creator a bottle of Coca Cola.

Support

The project has already received support from a number of institutional investors including KPCB and Wicklow Capital. This can only be seen a positive for GIFTO as it proves that the idea has passed a fair deal of scrutiny from a number of people in the know.

7. NEGATIVES

Inflation Rate

In our reviews, we often discuss inflation and the negative effects that a high inflation rate can have on token prices. In the case of GIFTO, we are a big fan of the project – particularly due to their incorporation with Uplive – however, the relatively low percentage of circulating tokens is a concern for us.

With only 15.7% of tokens in circulating supply, we could see more tokens dropped on the market which could devalue tokens.

 

8. TOKEN SALE

The GIFTO project had a hard cap of $30 million, their private sale reached its own hard cap and the remaining tokens reportedly sold out within 60 seconds during the public sale

 

9. THE CRYPTOGURUS CONCLUSION

Overall, we believe that this will be a successful project and could present a good investment opportunity at the current market cap of $80 Million.

However, the potential inflation rate is a concern for us and could represent an issue for investors if more tokens begin to enter the market.

 

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Tron Review | What Is Tron?

Tron Crypto Review 2018

Tron is an exciting and incredibly ambitious cryptocurrency project attempting to provide a decentralised platform to serve us users properly.

In this 100% honest review, we’ve highlighted the positives and negatives of the project and described our opinions. Keep reading to learn more.

 

YOU WILL LEARN:


What Is The TRON Project?

Will The TRON Token Increase In Price?

TRON’s Extensive Ten Year Plan

How To Buy And Store Your TRON Tokens

CONTENTS

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

 

1. WHAT IS TRON?

In Their Words:

“TRON is a blockchain-based decentralized protocol that aims to construct a worldwide free content entertainment system with the blockchain and distributed storage technology.”

In Our Words:

TRON are aiming to create an entertainment platform that allows content creators full control over their content.

Think of a decentralised combination of Netflix, YouTube and the App Store.

 

2. HOW DOES TRON WORK?

The TRON project is an incredibly complex one, we will aim to highlight its key features but encourage you to read their whitepaper and complete further research if you want to learn the more technical details of the project.

We will first discuss the TRON token.

The TRON Token

There are in fact three different tokens involved in the TRON project: TRONIX, TRON Power and the TRON 20 Token; we’re going to quickly outline all three and their uses below.

  • TRONIX (TRX) – This is the token available for purchase/trade on the exchanges; it is required to access the TRON platform and is also used to buy and sell content upon it.
  • TRON Power (TP) – This is essentially locked up TRONIX; users volunteer to lock up their TRX and receive TP in return, as well as voting rights and other privileges in the TRON ecosystem. TRON Power is not tradable and would of course be a long-term commitment. TRON Power is similar to Steem Power used on the Steemit platform.
  • TRON 20 Token – TRON 20 Token allows content creators to create and issue their own tokens, similar to Waves and NEM.

The Platform

At its simplest, content creators will be able to list their content on the TRON platform and make it available for purchase; this could be music, films, images etc. These transactions will be completed using the TRX token and without the involvement of any fees.

The TRON system will also offer incentives to content creators to encourage them to place their content on the platform and help stimulate the TRON ecosystem.

Other crypto platforms will also be able to host on the TRON platform while offering their own tokens.

Users would be able to transfer these tokens into any other on the platform using TRX as a bridge currency.

 

3. ARE TRON SOLVING REAL MARKET PROBLEMS?

#1 Problem – Censorship & Centralization

In many countriesm internet censorship and restriction is rife; government intervention means users are regularly unable to access certain websites.

In China, for example, people are unable to access Facebook or Snapchat, while the Iranian government have prevented access to both Instagram and Telegram.

TRON’s Solution

The decentralized nature of the project means it should be free from censorship or interference.

#2 Problem – High Channel Fees

One problem experienced by content creators when trying to distribute their content is the high fees or commission rates charged by media platforms like the App Store and Google Play.

TRON’s Solution

Content creators will have sole control of their product as well as direct access to their consumers and, without the involvement of the middlemen, these costs are vastly reduced.

 

4. WILL THE TRON TOKEN INCREASE IN PRICE?

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?

Users will be required to hold TRON tokens in order to access the platform and, on top of this, all transactions will also be completed using TRX.

As more content is listed on the TRON platform and users convert to the platform, the demand for the token will increase and the price should also.

The Result?

The price of the TRON token is sufficiently linked to the demand for the platform.

TRON has passed this test.

What Is The Likely Inflation Rate?

TRON created a fixed supply of tokens (100 billion TRX) meaning a zero inflation rate but that doesn’t mean that new tokens won’t enter the market though.

A total of 40% of the tokens were sold during the ICO, meaning 60% of the tokens will enter the market at some point so how will they be distributed?

  • 35% – TRON Foundation/Ecosystem – It was recently announced that all of these tokens will be locked until January 1st 2020.
  • 15% – Private Offering – No further details provided
  • 10% – Peiwo Huanle Technology Ltd – No further details provided but CEO Justin Sun is also the founder of Peiwo. A question could potentially be raised here about where these tokens have in fact gone.

Coin Market Cap currently lists TRON as having a circulating supply of 65 billion; this would mean that all of the tokens that could enter the market have already done so.

As a result, we can assume that no more tokens will be entering the market until at least January 1st 2020 when the Foundation’s lock-in period expires.

Sun also announced on Twitter that TRON have a coin burn planned during Q1 of 2018, this would of course decrease the circulating supply and an increase in token price should be felt as a result.

TRON has passed this test.

 

5. THE TRON TEAM & ROADMAP

The TRON Team

TRON possess what looks to be a very strong and well-rounded team. As a project overview, we will providing our opinions on a few key players and we recommend that readers check out the TRON website for further details on the team.

First up is Founder and CEO Justin Sun; formerly involved with Ripple as chief representative for their Greater China Region, Sun was also the founder of Peiwo (A Chinese social media platform with over 10m users).

He has also twice been listed as one of Forbes 30 under 30 (2015 & 2017), showing the strong reputation he has within the business world.

Chief Technology Officer Lucien Chen possesses a large amount of experience with a number of first-tier internet companies while Product Supervisor Deuce Yu has extensive experience in the gaming industry, something that could be very beneficial to the TRON project when they reach the latter stages of their roadmap.

A final member we would like to highlight is Operation Supervisor Charles Zhang; he is the former co-founder and COO of Elegance Space and also served as Secretary-General of their Chicago branch.

Charles offers a vault of business knowledge outside of crypto and has been invited to give lectures more than one hundred times by Peking University, highlighting how well respected he is within the business world.

The TRON Roadmap

Another standout aspect of the TRON project is their extensive roadmap; a detailed six-stage, ten year plan. We will highlight each stage and their focus below.

Exodus – August 2017 to December 2018 – Content distribution platform

Odyssey – January 2019 to June 2020 – Focus on economic incentives and content empowerment to encourage growth.

Great Voyage – July 2020 to July 2021 – ‘Personal ICO’ implementation – content creators will be able to create their own tokens and host their an ICO in order to allow them to produce more content

Apollo – August 2021 to March 2023 – Building the full decentralised trading platform for tokens

Star Trek – April 2023 to September 2025 – Creating a decentralised gaming platform for users to create their own games

Eternity – September 2025 to September 2027 – Users will be able to build their own gaming platforms

 

6. SELLING POINTS

Partnerships

Operating in an industry that was worth $1.8 trillion in 2016, TRON are also able to boast a number of impressive partnerships already.

Through these partnerships with companies such as Baofeng, Peiwo and Obie, TRON are able to provide themselves with over 200 million potential users already.

When this is combined with the recently announced project with game.com (TRON Dogs- Similar to Crypto Kitties), then the potential user numbers are already impressive for the platform.

A side note surrounding the TRON Dogs project is that 2018 is the Chinese year of the dog; this is rather trivial but may help to drive uptake and is an extra point to consider.

Chinese Endorsement

Recently, the parent company of Peiwo APP (The first app to host on the TRON platform) was identified as one of Beijing’s high-tech enterprises of 2017.

The National High-tech Enterprise is a policy set by the Chinese government to promote the rapid development of high-tech enterprises. There are strict standards for inclusion.

‘After being included, companies will enjoy a series of concessions in technology research and development, tax relief and personnel policies so as to help enterprises devote more energy and ability to independent research and development and to enhance their core competitiveness.’ – Tron Foundation’s Medium Page.

Considering China’s negative stance towards cryptocurrency, this news is somewhat surprising and is a good sign for the long-term potential of the project.

 

7. BARRIERS TO SUCCESS

Overambitious?

There is no denying that this is an incredibly ambitious project; TRON themselves highlight nine different types of risks involved in the project and while a ten year roadmap will be applauded by many, you also have to question likelihood of them reaching that goal without a few hiccups.

8. RECENT CONTROVERSIES

Copied Whitepaper?

TRON recently came under fire after analysis of their whitepaper found a large percentage of it to be copied, almost word for word, from the IPFS and Filecoin whitepaper. The diagram below shows just how much was alleged to have been copied and details the lack of references.

TRON Controversy

Sun responded to this by saying that the original Chinese version of their whitepaper featured a number of references but since the alternative versions (English, Korean etc) were translated by volunteers, they had missed a number of important details as well as the references.

The TRON Foundation also released a statement saying: “The design of TRON is based on it’s own system and the realization of codes, some codes of Ethreum were used as reference, we didn’t note related license, from now on we will note the copyright ownership and promise this won’t happen again.”

While we are of course not in a position to say anything with outright confidence, this is something that would worry us.

TRON have since removed all versions of the whitepaper from their website and have promised the release of a new whitepaper some time soon. This is something we certainly look forward to reading.

Justin Sun Sells 6 Billion TRX?

TRON also came under scrutiny recently when a post on Reddit alleged that CEO Sun had sold 6 billion TRX, this was proven not to be the case but did create some fear.

The post highlighted a wallet that they believed to belong to Sun due to the high volume of TRX, as well as the wallet also being linked to a CryptoKitties account called ‘justinpets’.

The wallet in question had sold over 6 billion TRX for ETH over a three week period. Even Litecoin founder Charlie Lee got involved, calling out Sun over this on Twitter.

Sun would respond to the allegations on his personal Twitter account by stating that the wallet in question actually belongs to a private investor and market maker who buys and sells TRX tokens in order to provide liquidity.

He also said that when it comes to any form of registration, he uses his Chinese name of Yuchen, as opposed to Justin. Upon learning the facts, Charlie Lee would apologise and delete the tweets accusing Sun.

While the project has certainly had some flaws, this episode proved to be a poorly researched accusation as opposed to anything untowards on TRON’s behalf. An example of what many in crypto refer to as FUD.

 

9. WHERE TO BUY & STORE TRON TOKENS

Where To Buy TRON Tokens

In our opinion, the best exchange to purchase TRON tokens from is Binance; it is also available on a number of smaller exchanges but in our opinion Binance will offer the best prices and liquidity.

Where To Store TRON Tokens

TRON is an Ethereum-based token which means it can be safely stored on any ERC-20 compatible wallets.

Our favourite option is the Ledger Offline Wallet.

Our favourite option is MyEtherWallet which you can download via the link below:

Download 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

While there is no doubting the potential size of the TRON project, there are a number of red flags that have arisen during our research.

We do hold a small amount of TRON in our portfolio but this was acquired in an attempt to access the TRON platform. We hoped this would allow us to offer an ever more detailed review but we were unable to access the platform in the end; potentially another red flag.

We are looking forward to reading the new whitepaper when it is released in the hope that it can alleviate some of the worries people have around the project.

If the project hits all of its targets then it could become one of the largest on the market but, as it stands, there are currently just too many questions around the project for us to consider a serious investment.

On top of this, the project is already priced very highly in the market – number 13 – so the upside potential is relatively small when compared to the considerable associated risk.

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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Bee Token Overview | What Is The Bee Token?

The Bee Token Overview – Short-term home rentals with 0% commission; a real challenger to Airbnb?

Disclaimer: This is a sponsored post and therefore our opinions have been kept out of the following article. As such, this article will take a different form to our regular articles.

This article is not financial advice. Please always do your own research, especially with sponsored content.


YOU WILL LEARN:


What Is The Bee Token?

How Does The Bee Token Work?

Who’s Behind The Bee Token Project?

What’s The Purpose Of The Bee Token Tokens?

CONTENTS

  1. What Is Bee Token?
  2. How Does Bee Token Work?
  3. Are Bee Token Solving Real Market Problems?
  4. What Is The Bee Token Used For?
  5. Team & Roadmap
  6. Selling Points
  7. Token Sale Details
  8. Follow Future Postsx

1. WHAT IS THE BEE TOKEN?

In Their Words

Beenest is the first decentralized home-sharing network built on top of a set of Bee Protocols that connects hosts with guests without taking any commissions

In Our Words

The Bee Token project focuses on short-term housing rentals; picture a decentralized version of Airbnb.

 

2. HOW DOES BEE TOKEN WORK?

At its simplest, users are able to list their house for rental on the platform for tenants to view. Prices are listed in Fiat, Bitcoin, Ethereum and Bee Token with differing fees for each currency.

The Beenest platform is served by three protocols: Payment, Arbitration and Reputation. It is these protocols that eliminate the need for middlemen as they help to resolve differences and also manage user reputation scores on the system.

The diagram below shows how the Beenest platform and its three protocols work together.

The Bee Token Protocols

We will now cover the protocols in a bit more detail:

Payment

Hosts and guests both send their tokens to a payment smart contract, the contract will release the relevant payments on the check-out date as long as no conflicts have arisen.

Both parties are required to send tokens as well as a cancellation fee; if the host cancels after the determined cut-off point, then the guest would receive those tokens and vice versa. This is unique to the Bee Token as usually only guests are punished for cancellations.

Arbitration

If a dispute arises, all tokens are sent to a third party address and held during the arbitration process. Arbiters can sign up on Beenest to join the arbiter pool by staking tokens to the protocol. When a dispute is initiated, a panel of at least five arbiters will be selected from the pool.

Arbiters vote on a scale from 1-5 specifying the percentage (corresponding to 0%, 25%, 50%, 75%, 100%, respectively) of the disputed amount the plaintiff should be paid.

Once a decision is made, the contract gives an aggregate of the majority voters’ reward offering to the winning party, and the rest goes to the losing party. Either party will have a chance to appeal, halting payments and restarting the process, but will have to stake a larger amount (at least 2x) to compensate arbiters and prevent frivolous appeal by the losing party.

Reputation

The reputation protocol computes and maintains a reputation score for each person within the Beenest platform. This is calculated as an average of a person’s score as a: Guest, Host, Arbiter, Buyer and Seller.

Beenest updates the reputation score based on how hosts and guests act on the platform. Good hosts with high reviews and no cancellations would obviously possess a higher reputation score than those with lower reviews and many cancellations.

 

3. ARE BEE TOKEN SOLVING REAL MARKET PROBLEMS?


Problem – High Transaction Fees

Current systems rely on a number of intermediaries to conduct their transactions and as a result, the fees often charged can be substantial; they currently range from between 10-22%. The fees can include: Platform Fees, Financial Institutions Fees, Foreign Transaction Fees and Currency Conversion Fees.

The Bee Token Solution

Beenest will charge 0% commission to hosts and guests that make payments using BEE tokens. They will only take a tiny cost for “gas” (a few cents per transaction), in addition to a nominal fee to help cover host liabilities.

In order to encourage adoption, Beenest will also accept payment in BTC, ETH or any other utility ERC20 tokens, while only charging a flat rate 1% commission. They will also accept payments in fiat currency, this time charging a flat 3.99% commission.

This commission is charged for guests when they chose a pay-in method other than BEE, and for hosts who prefer to get paid-out in other than BEE.

 

4. WHAT IS THE BEE TOKEN USED FOR?

The BEE token will have multiple uses within the platform:

  • As mentioned above, the BEE token can be used for payments on the platform with 0% commission.
  • The token will also need to be staked by arbiters to be included in the arbitration pool.
  • Users with a poor or no reputation score can build trust with users by staking tokens on their transactions
  • Hosts with high reputation scores will also be allowed to promote their listings for a fee in BEE tokens.

5. THE BEE TOKEN TEAM & ROADMAP

The Bee Token Team

As our regular readers will know, we here at Crypto Gurus believe in the mantra that you should “invest in people, not ideas” you could have the greatest idea in the world but without the right execution, it is unlikely to succeed.

The Bee Token team are led by co-founders Jonathan Chou and Tony Tran. Chou is a former Lead Engineer for both Uber and Grindr, while Tran worked as a Software Engineer for Uber and as a Data Engineer for Bizo (a company later acquired by Linkedin).

The project also possess a number of interesting advisors including Richard Ma, Founder of Quantstamp (A personal favourite of ours) and Can Kisagun, co-founder of Enigma.

The Bee Token Roadmap

Q1-Q2 2018

  • MVP launch in San Francisco focusing on crypto community and hacker houses
  • Beenest integrates with a third party identity verification and KYC platform
  • Beenest supports payment and payout options in BEE tokens only
  • Bee Protocols launch on testnet and audited by 3rd parties

Q3-Q4 2018

  • Further expansion of hosts and guests in San Francisco with more A/B testing
  • Expand the arbiter pool with arbiters from all over the world
  • Bee Protocols go live on Ethereum mainnet, and starts integration with 2-5 dApps
  • Launch iOS and Android Apps
  • Beenest integrates with a third party decentralized KYC protocol
  • Beenest integrates with a third party currency conversion protocols to allow payment and payout in ETH and all ERC20 Tokens, as well as BTC and fiat
  • Beenest integrates with a third party marketplace protocol to allow decentralized listings

2019

  • Beenest further expands to 2-5 more US cities
  • Facilitate integration of 5-10 sharing economy dApps with Bee Protocols
  • Implement governance model for future protocol improvements
  • Beta test more automation features (e.g. smart contract-driven Lockbox)

2020+

  • Beenest further expands in key cities worldwide
  • Bee Protocols supports a wide range of sharing economy dApps on the Ethereum blockchain

6. SELLING POINTS

Established Market

The existence and popularity of platforms such as Airbnb show that there is a clear demand for these services. If the Bee Token are able to produce and successfully implement a platform that improves on the current system, then there is no reason to think they won’t see high levels of quick adoption.

Fees

The big selling point of the system will centre on their 0% commission charged for transactions using BEE tokens. Even their 3.99% commission for transactions in fiat is significantly lower than the current systems available.

This alone should prove to be a huge reason for substantial adoption to occur.

 

7. THE BEE TOKEN SALE DETAILS

The first thing to highlight is that there are 3 sections of the Token Sale:

  1. Private Sale
  2. Public Presale
  3. Public Sale

Both the Private Sale and Public Presale have passed, each reaching their individual hard caps of $5 million USD. The Public Sale details are as follows:

  • Token Sale Link – https://www.beetoken.com/
  • Referral/Affiliate Code – N/A
  • Start Date – 31st January 2018
  • End Date – 28th February 2018
  • Token Price – 150 million BEE (30%) with a Hard Cap of $15 million USD would mean 1 BEE = $0.10 USD but this is just a guess.
  • Bonuses Available – None during the Public Sale but varying bonuses were offered during the first two sales.
  • Token Supply – 500 million BEE (150 Million available during Public Sale)
  • Soft Cap – N/A
  • Hard Cap – $15 million ($5 million remaining  in the Public Sale)
  • Accepted Currencies – ETH
  • How to Participate – Head to the Bee Token website and sign up for their Whitelist

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Enigma & Catalyst Review | Undervalued Or Overpriced?

The most undervalued coin in the market?

In this article, we will be analysing Enigma to explain why we believe it could potentially be one of the best long-term holds in the market right now.

Disclaimer: None of the above is financial advice. Always do your own research and invest only what you can afford to lose. This article is NOT sponsored in any form.

YOU WILL LEARN:


What Is The Enigma Catalyst Project ?

Is Enigma Catalyst A Good Investment?

Why We Believe Enigma Could Be A Big Project

How To Buy And Store Your Enigma Tokens

 

CONTENTS

  1. What Are Enigma & Catalyst?
  2. How Will Enigma Work?
  3. Are Enigma Solving Real Market Problems?
  4. Are Engima Tokens Linked To Platform Success?
  5. Team & Roadmap
  6. Selling Points
  7. Barriers To Success
  8. Extra Points
  9. Where To Buy & Store Enigma Tokens
  10. Conclusion
  11. Follow Future Posts

 

1. WHAT ARE ENIGMA & CATALYST?

The first thing to state here is that there are two current elements to the Enigma project:

  1. Enigma
  2. Catalyst

Therefore, we will begin by giving a brief explanation below:

What Is Enigma?

Enigma is a protocol designed to allow for the secure collection and distribution of data; a data marketplace.

Sounds confusing, right? Don’t worry, we’ll give a simpler explanation below:

Every day, your data is collected by companies (data brokers) who then sell it on to other companies. For example, let’s say a clothing company decides they want to release a new marketing campaign.

In order to make sure that their marketing is tailored to their customers, they will pay a data broker to gain information on the customers.

This information ranges from as simple as favourite colour up to more intrusive information.

With this extensive information on you and other customers, the clothing company can put together a highly accurate marketing campaign and sell more items. In return, the data brokers receive payment for the information.

Enigma attempts to disrupt the industry by posing the following question:

Why don’t we own our data? And why aren’t we getting paid for our data that we wish to share; why do data brokers get paid instead of us? 

And that is where they introduce the data marketplace.

Data Marketplace

Essentially, Enigma will be a data marketplace i.e. a location where regular people like you and me can choose to sell our data.

We would choose the exact pieces of data about ourselves that we wish to sell – and the data you don’t wish to – and we would set the price.

In other words, Enigma aims to put us back in control of our data and allow us to make profits from it.

Enigma Is The Foundation

In order to understand the two elements of this project – Enigma and Catalyst – it’s important to understand that Enigma, i.e. the data marketplace, is essentially the foundation.

The following question can then be asked:

‘What Can Be Built On This Foundation?’

In the long-term, the data can be used for many different purposes and there could be hundreds of applications.

Currently, the Enigma team are building the first application which is known as Catalyst.

What Is Catalyst?

So, we’ve established that Enigma is a data marketplace where users can sell their data. Now, we’re going to move on to discuss Catalyst.

After all, without an application built on Enigma’s foundation, who would buy the data in the first place?

Catalyst will be providing a platform where people can build their own quantitative funds.

This statement above probably raises more questions than it answers so we’ll break it down further:

What Is A Fund?

A fund can be thought of as simply a collection of investments e.g. let’s say you buy shares in Apple, Google, Facebook, Snapchat plus several other companies and bundle them all together. Collectively, they form a fund.

This is beneficial to users as it allows people to buy shares in a massive range of companies without having to buy individual shares in each.

Hopefully, this explains briefly what a fund is and now we can move on to what a quantitative fund specifically is.

What Is A Quantitative Fund? 

To keep it simple, we’ll describe a quantitative fund as a fund which buys and sells shares based on computer models.

For example, you could build a fund which buy Bitcoin every time it decreases by over 5% in a day and sells it later when Bitcoin increases over 5% in a week.

In other words, the fund manager dictates rules for the fund to buy and sell certain shares and the fund automatically carries this out.

Quantitative Funds Are Growing

Enigma Catalyst Crypto Review

Looking at the image above, it’s clear to see that quantitative funds were virtually non-existent just 25 years ago. In the past decade, however, they have been growing rapidly and now take up a considerable portion of funds overall.

It’s for this reason that Catalyst could be an incredibly useful and profitable application of the Enigma Protocol.

In fact, we would argue that funds built on Catalyst have the potential to be the best in the world due to a very simple but powerful reason; users will provide their own data which, in theory, makes it 100% accurate and reliable.

Currently, many funds are built on historical data plus data provided by third party companies who are liable to inaccuracies and mistakes.

Who Will Be Able To Use Catalyst?

This is a very important point and is one which elevates the Enigma project above many others in the Cryptocurrency space;

The funds built on top of the data from Enigma don’t have to be specifically used for Cryptocurrencies. Instead, regular fund managers will be able to use this data to improve on their own regular funds.

Considering the gargantuan size of the financial markets, this project has an incredible potential for growth… assuming that they are able to correctly carry out their project plans!

We’d also like to highlight that regular users can create their own funds on Catalyst also. The alpha version of the project has already been released and you could even try it yourself if you wished.

Warning: Please bear in mind that this is an Alpha version so there could potentially be unresolved bugs in the code. Therefore, we can’t recommend anyone download any associated software.

How Large Is The Industry?

We don’t wish to discuss too many more positives about the project in this section or it will soon begin sounding as if this article is sponsored which it 100% is not – we are receiving zero financial reward and haven’t even invested into the project ourselves although we soon will be after discovering the potential behind the project.

However, we do wish to draw a brief comparison with a similar and existing company – Bloomberg.

In 2014, Bloomberg amassed a yearly revenue of $9.4 Billion as a company collating and presenting financial data. This demonstrates the potential size of the Catalyst marketplace.

On top of this, Bloomberg is focused specifically on financial data. While Catalyst will also be operating in a similar field, this could just be the first of many applications built on top of Enigma.

As a result, the potential market is virtually limitless with data fast becoming one of the most valuable resources in the world.

 

2. HOW WILL ENIGMA & CATALYST WORK?

As we’ve already described, the Enigma protocol will be a data marketplace and Catalyst will be the first application built on top of it. Therefore, we will describe the two in separate sections:

How Will Enigma Work?

The process will be relatively simple; users will simply list their selected data onto the Enigma marketplace and choose the price at which they wish to sell it.

Sellers will have full control over which portions of their data they wish to sell and which they don’t. As such, more sensitive data can be retained by users.

From the buyers perspective, the process is pretty straightforward also; they will sift through data on the marketplace and decide who’s data they wish to buy.

All data will be stored off-chain utilising ‘secret contracts’ in order to provide sufficient privacy and scalability.

How Will Catalyst Work?

Catalyst will be a platform for people to build quantitative funds using the data from the Enigma marketplace.

Therefore, these fund managers will obviously first need to buy data. In order to do so, they will use the process as we’ve described in the Enigma section.

In order to begin building their quantitative funds on the Catalyst platform, we believe that the process will be the same as building any quantitative fund i.e. users will input their computer models in order to direct the fund in how to buy and sell.

Users will be able to backtest their strategies also i.e. they can test their model on historical data to assess how successful their fund would have been if it has been running previously.

 

3. ARE ENIGMA SOLVING REAL MARKET PROBLEMS?

Yes. Hopefully, if you’ve read the sections above, it will be pretty clear that Enigma are solving real market problems. However, we’ll expand on this further below:

#1 Problem – Data Inaccuracy

When companies buy data from data brokers, they must rely on the data being accurate and reliable. However, because this data has often being collated from many different sources to create a profile of an individual, it can often be inaccurate as the different sources can provide contrasting information.

In fact, because data often doesn’t have a name attached, data brokers use computer models to predict how likely it is that two profiles gathered from different sources are from the same person. This can lead to profiles of different people being added together which results in an entirely fake profile.

# 1 – Enigma’s Solution

With the Enigma protocol, users will be selling their data directly. Therefore, data purchasers can be confident that this information is 100% accurate and reliable.

#2 Problem – Data Ownership

Currently, we don’t own our data. Data brokers gather our data from questionable sources and sell it on for profit.

# 2 – Enigma’s Solution

Enigma aims to put us back in control of our own data so we can choose which data we wish to sell and which we wish to keep private. From the data that we wish to sell, we make profits instead of data brokers.

# 3 Problem – Data Privacy

Data brokers collect our data and sell it to companies. As a result, the data brokers and companies they sell to are able to see personal information about us.

# 3 – Enigma’s Solution

Through Enigma’s use of ‘secret contracts’ – smart contracts with extra privacy – the people who buy our data won’t even be able to view it, meaning that you can sell your data and know that your privacy remains intact.

You’re probably thinking:

‘How will data purchasers be able to use data without viewing it’?

The answer is that the secret contracts will allow for data purchasers to run calculations without actually viewing the data.

For example, Catalyst fund managers will be able to create a fund and test it based on their data without seeing data for individuals.

 

4. ARE ENIGMA TOKENS LINKED TO PLATFORM SUCCESS?

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 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?

There are some trivial uses of the token such as Enigma’s use of tokens to reward users who can create the best fund strategies. While effective at driving short-term success, this won’t drive long-term price increases so we will be choosing to focus only on the factor which we believe will:

Users will list their data for sale in a price which must be paid in Enigma tokens. As such, any data purchasers will first have to buy tokens.

If the Enigma protocol is successful, there will be an increased demand for Enigma tokens and thus token prices should increase.

The Result?

The price of the Enigma token is sufficiently linked to the demand for the platform.

Enigma has passed this test.

What Is The Likely Inflation Rate?

Enigma 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.

Instead, we must analyse where these tokens currently reside:

  • 50% – Sold in Token Sale and in current circulation
  • 25% – Retained for community incentives
  • 25% – Retained by the team

From this, we can attempt to estimate an approximate inflation rate. Please bear in mind that the following calculation is based on speculation, not fact.

With the potential of this project, we expect that the team members will not wish to sell their tokens any time soon. As a result, we will be assuming that the 25% incentive tokens will be the only new tokens to enter the market.

Assuming that these incentives are spread over a long period of time, such as 10 years, an extra 2.5% of tokens would enter the market per year.

In the first year, this would cause an inflation rate of 5% and would then decrease year-on-year. This is a relatively low value.

The Result?

Enigma has passed this test.

 

5. THE ENIGMA TEAM & ROADMAP

In this section, we will be giving a brief overview of the team and roadmap. Please check out the Enigma website if you’d like to see a more detailed view.

Team

Pictured above, you can see that the Enigma team consists of 5 individuals, the majority of which are MIT graduates. This alone, carries a certain prestige and this is further strengthened when you listen to interviews of the team members.

The CEO, for example, studied the blockchain extensively during his time at university.

On top of this, the team have accrued a very impressive advisory board with the likes of Professor Alex Pentland – Director at MIT Media Lab -, Justin Lent – former director of hedge fund development at Quantopian – and other top names also.

Overall, it’s pretty clear to see that this is a highly capable team and we have more confidence in them than the majority of projects we review.

Roadmap

While we were unable to find a clear roadmap for the project, we have watched interviews available on YouTube and questioned the team ourselves in order to gather a clear understanding of where the project is headed.

In the past few months, the team have been focused heavily on Catalyst – the first application built on top of Enigma – and have recently released the Alpha version of the platform.

In the beginning of 2018, they plan to continue progression of this application and then shift their focus to continue with the development of Enigma – the underlying protocol – so that future applications can also built, not just Catalyst.

You’re probably thinking:

‘What future projects?’

We will provide a few further potential uses of the Enigma protocol below in a list format to avoid this article becoming too extensive:

  1. Genomics
  2. AI On Healthcare Data
  3. Decentralised Lending
  4. Storing User Identity
  5. IOT Data


If you’d like to read more details on these project, check out Enigma’s article here.


6. SELLING POINTS

Throughout the majority of this article, we’ve been giving many reasons why we’re very keen on this project. Now, we’ll collate a few of those reasons into one section:

1. Virtually Unlimited Potential

As Enigma is a protocol for which applications can be built on top of, there is virtually no limit to the number of uses that the Enigma project can offer. After all, data is one of the most valued resources in the world.

2. Very Cheap

At the time of writing, Enigma has a market cap of just $277 Million and a token price of $3.71 which gives it a ranking in the market of number 85 overall.


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7. BARRIERS TO SUCCESS

Small Team

While the team is highly qualified, they are a relatively small team at just 5 individuals.

Currently Centralised

Enigma discuss a future where they can offer a decentralised data marketplace. However, in the current stage of development, users will be listing their information on to the Enigma marketplace in a centralised system.

As a result, this leaves users’ data more susceptible to attacks as there is a single, central point of failure.

Competition

Our regular readers may have recognised at this point that much of what we have covered sounds similar to our Datawallet review and thus we should include them to ensure this article is comprehensive.

However, while Datawallet is a good idea for a project, we believe that these tow projects are on vastly different scales; Datawallet is producing a cool app, Enigma are attempting to create a foundation for a data marketplace on top of which thousands of different applications could be built.

High Risk

While we are very positive about the Enigma project as we believe it has incredible potential, readers should be aware that the project is currently in very early stages of development.

Therefore, while the potential rewards could be huge, the likelihood of failure is also increased at this point.

 

8. EXTRA POINTS

Token Sale Hacking

During their token sale, the Enigma homepage was hacked, resulting in around $500,000 of Ether being stolen from investors. Around the same time, one of our Facebook Group members asked us to look into the Enigma project due to the potential he saw.

Regrettably, we didn’t look into the project because we concluded that a project susceptible to a hacking would not be a worthy investment; particularly with many other options in the market.

Why Is Enigma So Cheap?

We discuss the point above as it ties into why believe Enigma is undervalued; many investors have overlooked this project due to the hacking.

However, we suspect that, once investors begin looking past this, the price could increase dramatically.

 

9. WHERE TO BUY & STORE ENGIMA TOKENS

Where To Buy Enigma

  1. Binance
  2. Bittrex

Where To Store Enigma

Enigma 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 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

We wrote an article recently about Quantstamp during which we described it as potentially the most undervalued Cryptocurrency in the market.

While we think that Enigma may not be quite as undervalued – as it is considerably more expensive than Quantstamp was at the time – we believe that this project is very close in terms of long-term potential.

In fact, the long-term potential for the Enigma project may be higher than any project we’ve reviewed so far due to the overwhelming size of the data industry.

In order to remain grounded and not be overly confident, readers should be aware of two important pieces of information:

  1. 10x Since December – Enigma has increased 10x in valuation since the start of December. While we still think that the price is cheap, the project is close to all-time highs which is historically a poor time to enter into an investment
  2. Short-Term Issues – As we mentioned prior, we suspect that many investors have avoided Enigma due to the problems surrounding the token sale. While we believe that they will overcome these problems in the long-term, they could suffer in the short-term as a result.

Overall, we are confident on the future of this project and would consider adding it to our own personal portfolios for a long-term hold.

 

Disclaimer: None of the above is financial advice. Our decision to add Enigma to our portfolios should not be construed as advice; it is simply our opinions on our own investments. 

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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ShipChain ICO Review | What Is ShipChain?

ShipChain ICO Token Sale Review

ShipChain ICO Review – The blockchain ready to disrupt the $8.1 trillion USD logistics industry

Disclaimer: This is a sponsored post and therefore our opinions have been kept out of the following article and video. As such, this article will take a different form to our regular articles.

This article is not financial advice. Please always do your own research, especially with sponsored content.

 


YOU WILL LEARN:


What Is ShipChain?

How Does ShipChain Work?

Who’s Behind The ShipChain Project?

What’s The Purpose Of ShipChain Tokens?

 

CONTENTS 

  1. What Is ShipChain?
  2. How Does ShipChain Work?
  3. Are ShipChain Solving Real Market Problems?
  4. What Is The ShipChain Token Used For?
  5. Team & Roadmap
  6. Selling Points
  7. ShipChain Token Sale Details
  8. Conclusion
  9. Follow Future Posts

 

1.  WHAT IS SHIPCHAIN?

In Their Words

“ShipChain was founded with the mission to create a unified, end-to-end technology platform that will revolutionize the logistics and transportation industry using blockchain technology.”

In Our Words

Shipchain are building a platform which will increase visibility, increase efficiency and reduce common errors seen in the supply chains of companies.

They will do this by utilising the Ethereum blockchain to track shipments from start to finish.

 

2. HOW DOES SHIPCHAIN WORK?

Regarding how Shipchain works, we would that recommend viewers read Shipchain’s whitepaper to further understand the details of the project.

However, we will briefly be describing the two aspects of the project which stand out most to us:

  1. Shipment Tracking
  2. Decentralised Brokerage System

Shipment Tracking

When a shipment order is placed, a smart contract is created on the Ethereum network. This contract will include extensive details about the shipment.

Due to the immutability (cannot be edited) nature of the blockchain, it provides an ideal location to store such information as details about the shipment cannot be altered for fraudulent purposes.

Waypoints – i.e. stopping locations – will be recorded and checked by the smart contract. If all of these are recorded correctly, the smart contract will be completed and the process will be finished.

According to their whitepaper, Shipchain stipulate that if there is a dispute, the smart contract will automatically be able to resolve it as it will be able to ‘specify its own terms for how disputes are resolved’.

All users involved in the supply chain will be able to pull data from the ShipChain tracking system and post it to their own systems and websites.

As such, Shipchain can be used to create a single, unified tracking system.

Decentralised Brokerage System

Shipchain will also provide an open marketplace connecting potential companies with freight carriers.

On top of this, they will also the ‘Shipchain Web Platform’ which will be a centralised system for booking and managing freight shipments and other modes of transportation.

Shipchain give their example of a company attempting to transport containers full of shoes from China to the United States:

In this scenario, the Shipchain system will recognise a sea carrier, rail carrier and truck carrier are needed for the journey and the ideal options will be selected based on cost, speed and size of shipment.

As the company will be able to see exactly where and when portions of the delivery are occurring along with who is carrying the cargo, they should have greatly increased visibility across their entire supply chain.

Why Centralised?

Regulatory compliance may require ShipChain to be licensed in freight brokerage, freight forwarding and have an internal customs brokerage – a point highlighted by Shipchain themselves.

Therefore, while companies will book their own routes, ShipChain may need to be the official booking agent for compliance purposes.

 

3. ARE SHIPCHAIN SOLVING REAL MARKET PROBLEMS?

#1 Problem – Poor Tracking & Lack of Transparency

Regularity and reliability of shipping status updates is perceived by users to be the primary factor when deciding quality of a shipping service yet tracking across multiple carriers can be fragmented and hard to connect.

Failures of transparency are often down to bad data handling practices and sometimes parties are even incentivized to provide inaccurate data. This means brokers either can’t or won’t tell a shipper exactly what carrier and driver are carrying their freight.

ShipChain’s Solution

The ShipChain sidechains will track individually encrypted geographic waypoints across each smart contract, this will mean all parties involved in the deal will have instant access to accurate data surrounding the shipment.

#2 Problem – Middleman Markups

Brokers act as the middlemen to the industry; typically charging a premium of between 30-50% for their services.

ShipChain’s Solution

The ShipChain blockchain will eliminate the need for brokers; carriers will be able to use the platform to find and book their own shipments.

This will remove the broker’s fee making shipments cheaper for the sender, while also increasing the carrier’s returns.

#3 Problem – No Accountability

It is estimated that cargo theft causes an annual loss of around $30 billion USD because uncertainty often surrounds where the cargo is at any given time and as a result, who is responsible for it.

ShipChain’s Solution

ShipChain claim that the geographical data mentioned above should increase visibility and decrease theft as a result.

ShipChain will also use barcodes and hardware RFID integration to ensure assets can be automatically verified each time an electronic log is reported.

This will give a clear idea of who received what and when they received it, meaning any discrepancies in the cargo are identifiable as well as the person who is at fault.

 

4. WHAT IS THE SHIPCHAIN TOKEN USED FOR?

In order to gain access to the platform, users must first purchase 1 SHIP Token. With a total supply of 500 Million, this may not drive demand of tokens sufficiently.

Therefore, the ShipChain team have described to us how their token will have future utility through potential rewards for token holders.

However, due to compliance laws, they cannot describe what this utility or these rewards will be.

 

5. THE SHIPCHAIN TEAM & ROADMAP

The ShipChain Team

As our regular readers will know, one of our mantras here at Crypto Gurus is to “invest in people, not ideas”; you could have the greatest idea in the world but without proper execution, it will not matter.

A team of 12 with 16 listed advisors, there are some impressive figures in charge of this ‘SHIP’; CEO John Monarch has significant experience in the logistics industry as the founder of Direct Outbound, one of the fastest growing fulfilment companies in the USA.

Chief Marketing Officer Brian D. Evans was ranked as the 4th most influential business journalist in the world and Chief Strategy Officer Roger Crook is the former CEO of DHL Global Forwarding.

The ShipChain Roadmap

Below, we have copied in the ShipChain roadmap for readers to view for themselves:

  • Q1 2018 – Token Generation Event main-sale January The SHIP Token is omnipresent across popular, high-volume exchanges. Our freight-tracking pilot program with Perdue Farms rolls out.
  • Q2 2018 – The initial Track & Trace platform is integrated with government-mandated ELD devices.
  • Q3 2018 – Testing of ShipChain’s Web Platform begins. App development on ShipChain’s open ecosystem is promoted to partners.
  • Q4 2018 – Track & Trace platform allows carriers to develop their own sidechains. The first version of the ShipChain Web platform is released. Our pilot program is extended into integrated supply-chain testing.
  • Q1/2 2019 – Development of custom sidechains for large carriers on the Track & Trace platform begins. The ShipChain Web platform is integrated with external data sources and additional carriers.
  • Q3 2019 – A small carrier is acquired for internal testing to accelerate the adoption and development of our Track & Trace platform. International partnerships are developed to focus on expansion into global sea freight.
  • Q4 2019 – Relationships are established with government regulators to cement ShipChain as the favored tracking technology vendor, and enhance ELD compliance. Air and sea freight pilot programs are initiated.
  • Q1 2020 – Community open source projects are sponsored to accelerate app development on the ShipChain blockchain. Extensive custom sidechain research is concluded for 3PLs and large shippers with internal fleets.

6. SELLING POINTS

Established Market

ShipChain are presenting a disruptive business proposal to the well established logistics market; worth $8.1 trillion in 2015 and forecast to almost double by 2023.

There is a clear demand for shipping services and if ShipChain are able to produce and successfully implement a platform that improves on the current system, then there is no reason to think they won’t see high levels of quick adoption.

Established Partners

ShipChain are able to present a number of well established partners alongside their proposal; Perdue Farms, a major poultry processing company have already committed to a pilot project with ShipChain to implement blockchain technology throughout their supply chain.

With annual sales of over $6 billion USD, it can only be a good sign that such a large company are already on board even at such an early stage.

Blockchain As An Advantage

The inherent nature of the blockchain – high visibility and immutable nature – makes it the perfect tool for supply chains.

In fact, we suspect that the blockchain will have a greater effect on the current supply chains of existing companies than it will on any other sector of their businesses.

 

7. SHIPCHAIN TOKEN SALE DETAILS

The first thing to highlight is that there are 3 sections of the Token Sale:

  1. Pre-Sale
  2. Sale 1
  3. Sale 2

Pre-Sale has already occurred

Sale 1 is the current upcoming sale and therefore these details will be given below

Sale 2 is a future sale which is expected to occur a couple of years further down the road

Token Sale Details

  • Token Sale Link – https://ShipChain.io/
  • Referral/Affiliate Code – N/A
  • Start Date – Mid-January
  • End Date – Not Provided
  • Token Price – We were unable to locate this online. However, ShipChain’s whitepaper states that they will be selling 29.17 Million Ship Tokens and raising $10 Million USD in Ether. At current Ether prices ($1,156), this would equate to 3,372 SHIP per ETH. Please bear in mind that this is our own calculation based on prices and not an official figure.
  • Bonuses Available – Mentioned but not specified
  • Token Supply – 500 million SHIP (29.17 Million available during this sale period)
  • Soft Cap – N/A
  • Hard Cap – 29.17 million SHIP (This Stage) – Approximately $10 Million
  • Accepted Currencies – ETH
  • How to Participate – Currently, there is little information about how to participate. However, if you follow this link to ShipChain’s homepage and bookmark it, you will soon see updates and instructions

 

8. THE CRYPTOGURUS CONCLUSION

That’s the end of the article! As we mentioned in the beginning, this is a sponsored post and therefore we strongly recommend – as always – that investors carry out their own research.


9. FOLLOW FUTURE POSTS

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

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

SALT Lending | What Is It? Full Review

Salt Cryptocurrency Lending Review

SALT Review – SALT is the world’s first Cryptocurrency Lending Platform which will allow you to use your Bitcoin/Cryptocurrency as collateral.

In our review, we’re going to be analysing several aspects of the project to decide whether we we would invest in it or not.

Disclaimer: This article is our opinions regarding our own investments. It is not financial advice.

 

YOU WILL LEARN:


What Is The SALT Project?

Will The SALT Token Increase In Price?

The Potential Of Lending To Buy Crypto

How To Buy And Store Your SALT Tokens

 

CONTENTS

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

 

WHAT IS SALT?

In Their Own Words

“The SALT Lending Platform allows holders of blockchain assets to leverage their holdings as collateral for cash loans. SALT is the first asset-backed lending platform to give blockchain asset holders access to liquidity without them having to sell their tokens”

In Our Words

SALT is a lending platform that allows users to borrow fiat currency by using their cryptocurrencies (Bitcoin, Ethereum etc) as collateral.

This is no different to a person’s house being used as collateral against their mortgage for example.

Current Progress

SALT loans are now live! The initial platform was released on December 27th 2017.  This was only open to a small number of members but rollout will continue in stages to ensure quality and security as demand increases.

The platform is currently only able to offer Bitcoin collateralized loans but aim to accept Ethereum during Q1 2018 and other Cryptocurrencies by Q3 2018.

At the time of writing, SALT have already signed up over 45,000 members

 

2. HOW DOES SALT WORK?

The following steps occur for users who wish to take out a loan:

  1. Send Bitcoin/Altcoin – Users will send their Bitcoin/Altcoin to the SALT collateral wallet
  2. Receive Loan – Users will receive their fiat currency in return. This fiat loan will be a maximum of 80% of the value of their Cryptocurrency
  3. Loan Repayments – Users will make regular repayments on their loan
  4. Loan Completion – Upon completion of the loan, the borrower will receive their Bitcoin/Altcoin back to their wallet

As our regular readers will know here at CryptoGurus, we aim to give as in-depth a review as possible so we will discuss the process in a bit more detail.

This will be from the viewpoint of a person wanting to borrow funds using a SALT loan.

The first step is to purchase some SALT tokens; this is required in order to gain access to the platform. The platform offers three membership tiers: Membership, Premier and Enterprise. The details of these can be seen below.

Salt Membership Options

Only a single token is required for access to the basic membership package whereas 30 SALT tokens are required for access to the Premier membership. This is an annual membership fee.

There are additional benefits with each package too, these include: customizable loan terms, portfolio management and even SALT merchandise. A full list of the benefits for each package can be found on the SALT website.

From here, users are then able to find the lending terms that best suit their needs and deposit their cryptos into SALT’s oracle wallet in order to receive the fiat funds.

The value of a user’s deposited cryptocurrencies must be equal to at least 80% of the requested fiat loan.

The borrower then makes monthly repayments and will receive their cryptocurrency back the debt has been cleared. If repayments aren’t made, then the users collateral (cryptocurrency) will be taken like a normal loan. This will be done by selling a necessary portion of the users cryptocurrency to cover the missed payment.

Now you may have noticed we highlighted a portion of the text above; this is because we believe it to be a very important point for users. A user’s cryptocurrency assets must be worth at least 80% of the requested loan.

We all know that the cryptocurrency market can be incredibly volatile so you may be wondering what happens if your collateral either appreciates, or depreciates in value. Let’s take a look at both potential circumstances:

What happens if your Bitcoin/Ether goes up in value?

We’ll start with the positive outcome first; this will mean that your loan/asset value ratio will be above the 80% required. If this is the case, users have three options:

  1. Do Nothing – You could just continue with your original agreement and receive your assets back at the higher value upon completion.
  2. Get a higher fiat loan – You could request more fiat to be deposited to your bank account, this would of course change your repayment terms also.
  3. Withdraw some crypto – You could withdraw a percentage of your cryptocurrency as long as you stay above the 80% mark.

What happens if your Bitcoin/Ether goes down in value?

This will mean that your loan/asset value ratio will be below the required 80%. If this is the case, users have two options:

  1. Deposit more crypto – Users could deposit further cryptocurrency to the SALT collateral wallet to bring the ratio back to 80%
  2. Make additional fiat payments – You could make additional fiat payments, on top of your agreed upon repayments, reducing your overall loan


If users do neither, the oracle wallet will sell a portion of your portfolio itself in order to correct the ratio.

 

3. ARE SALT SOLVING REAL MARKET PROBLEMS?

Problem – Who Wants To Sell Their Crypto?

This is of course a very new problem but one that we feel will resonate with almost every reader on this site; who wants to sell their cryptocurrency?

The main reason people invest in cryptocurrencies is because they believe their value will increase in the future. Liquidating a portfolio now would of course relinquish any potential future gains.

SALT’s Solution

As you have probably gathered by now, SALT’s platform means that users are able to keep your portfolio while receiving a fiat loan. Therefore, users still benefit from any gains their investments may make in the future.

Problem – Poor Credit Scores

A problem with some traditional lending platforms is that user eligibility is often based on a person’s credit score; a poor credit score can either mean a person is simply refused their requested loan or they face large interest rates or fees to cover any risk.

SALT’s Solution

Since SALT’s loans are all entirely collateral based, a user’s credit score is entirely inconsequential; any user’s collateral has the same value to lenders as anyone else on the platform. Therefore anyone is able to gain a loan, providing they have purchased the necessary tokens and hold the necessary assets.

 

4. WILL THE SALT 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?

As previously stated, possession of the SALT token is required for access to the platform, the number of tokens required is dependent on the desired membership level.

As more people want to use the SALT lending platform, the demand for the token will rise and so should the price as a result.

SALT tokens can also be used to pay down the interest on loans, receive better loan terms and purchase SALT merchandise.

The Result?

The price of the SALT token is sufficiently linked to the demand for the platform.

SALT has passed this test.

What Is The Likely Inflation Rate?

SALT 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.

With over 50% of tokens yet to reach the market, inflation is a concern for us. We would be far happier to see this number as a much lower figure. However, we wouldn’t fail SALT on this aspect either as this isn’t too high a figure.

Overall, we would categorise this as a concern and neither a pass or failure.

 

5. THE SALT TEAM & ROADMAP

SALT 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.

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

A team of originally five, it has since grown to upwards of 25 and is looking to hire further staff with current listings highlighting another eleven positions.

The first name to note is CEO Shawn Owen; described as a serial entrepreneur, with experience in the restaurant industry, this seems to be his first full venture into a cryptocurrency project so it will be important to analyse those around him also.

The standout name involved with the project is Erik Voorhees; Founder and CEO of ShapeShift, a cryptocurrency exchange. Not only he is experienced, he is also well known in the industry thanks to his involvement in the ‘Banking on Bitcoin’ documentary, something that can only be of benefit to the project.

Another extra point to note is that, while listed as an advisor, Vorhees features in the Leadership section of the SALT team alongside Shawn Owen suggesting he may have a heavier involvement in the project than the other advisors.

A final positive note is their eight strong Technology & Product team; it’s nice to see a specialized team involved in such a project and the team is only set to grow.

The SALT Roadmap

SALT Roadmap

6. SELLING POINTS

Intentionally Unpurposed

A problem often witnessed when applying for traditional lending is that the lender will want to know how you intend to spend the funds and your answer will often influence their decision.

With the SALT platform, users can apply for any financial product that is offered by traditional fiat banks without fear of rejection; as long as they have the necessary collateral

Low Fees

Traditional lending platforms will often come with a number of high fees, hidden or otherwise. SALT are aiming to make things easier and cheaper for their users by negating any origination fees, closing costs, or prepayment penalties on their fixed rate term loans.

Borrowers can elect, at any time, to pay off their loans early at no additional cost to themselves.

ENJOYING THE ARTICLE?

TomHi, 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.

If you’re really enjoying the content, don’t forget to check out the Support Us section at the bottom of this page to find out how you can help to support us for absolutely free.

Anyway, let’s get back to the content!

7. BARRIERS TO SUCCESS

Highly Regulated Industry

Lending platforms are among the most highly regulated industries around, a point that SALT themselves have highlighted in their whitepaper. We are not going to pretend that we are experts on this situation but would worry of any potential implications that could arise here.

The team are looking to hire a number of staff members to prevent any potential issues with listings for roles such as Compliance Officer featuring on their site. We believe it’s most likely that SALT will encounter issues regarding regulations in certain countries.

However, due to the truly global nature of Cryptocurrencies, we suspect there will still be lots of countries who will be onboard with SALT’s plans and thus there will still be sufficient demand worldwide.

Lending Network

One concern that we have seen mentioned during our research is that there is no proof SALT possess the lending network they claim.

We are not going to pretend to have any sort of inside knowledge and are not in a position to dispute what either SALT or their detractors say. However, we believe it highly unlikely SALT would launch their platform without a sufficient lending network.

This may have been a worry before the launch but with the platform now live, we believe this will not be an issue.

What Happens When The Bubble Pops?

Before we explain this point any further, we should make our position on this point very clear; we believe that Cryptocurrencies are potentially in a bubble BUT we also believe that the bubble has a long way to go before it pops.

We believe that the Cryptocurrency bubble could well surpass the Dot Com bubble and others in the past on its way to becoming the largest bubble of all time.

SALT is a fantastic idea during the speculative phase of the bubble. After all, who would want to sell their Cryptos while prices are shooting up?

However, if the bubble pops and prices begin crashing spectacularly, who would want to keep hold of their Cryptos? Nobody.

Virtually everyone would wish to sell their Cryptos at this point and nobody would wish to use the SALT platform at this point.

It’s for this reason that we believe SALT could have an incredible run during the bubble phase but will also struggle severely when the bubble does pop.

 

8. EXTRA POINT

Using SALT To Buy More Cryptocurrencies?

One situation we would like to mention is one that we covered in our ‘Top 7 Cryptos of 2018’ article and it surrounds people taking out SALT loans in order to purchase more cryptos.

In other words, users will effectively leverage their portfolio. While we strongly believe that this is a bad idea, we also recognise that this market is highly irrational and this situation will most likely occur.

While this could be a very bad thing for many investors if they default on their loans and lose their Cryptocurrencies, it is a big positive for the price of SALT tokens as we’re essentially saying that we believe people will overuse the SALT platform.

For a more in-depth discussion of this point, we recommending watching the video below from a popular Crypto YouTuber called ‘Crypto Investor’.

9. WHERE TO BUY & STORE SALT TOKENS

Where To Buy SALT Tokens

SALT tokens are available for purchase on the following exchanges:

  1. Binance
  2. Bittrex
  3. Huobi

Where To Store SALT Tokens

SALT 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 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

In conclusion, we believe that the SALT platform is a truly innovative business plan and could benefit hugely from the first mover advantage and the irrational nature of the Cryptocurreny market.

We do have a few concerns still though; the first relates to the inflation rate as we discussed earlier and the second pertains to the long-term viability of SALT – we believe that they could have an incredible run before the bubble bursts some day but we also believe they may struggle to continue once the bubble does burst.

Overall, we are bullish on the price of SALT in the medium term and their token prices will most likely beat the market average. However, we would not be buying SALT tokens and locking them up for 10 years as we suspect that they may be one of the many casualties once the bubble pops.

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

 

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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.

Top 20 Cryptos Briefly Explained | Jan 2018

Top 20 Cryptos Explained Briefly Market Summary

Welcome to our Top 20 Cryptocurrencies Briefly Explained List – January 2018 Edition

This article includes a brief explanation of the Top 20 Cryptos in the market so you can use this as your go-to-place for ultra fast learning

Every month, we’ll be updating this list so make sure to bookmark the page to see February’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 20 Cryptos

What Do Each Of Them Do?

Who Are Their Main Competitors?

Unique Selling Point For Each Top 20 Crypto

 

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 the top Cryptocurrencies – 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

$642 Billion  (9am GMT January 2nd, 20118)


1 – Bitcoin
(BTC)

  • Market Cap – $235.4 Billion
  • Token Price – $14,030
  • Brief ExplanationDigital Currency
  • What is Bitcoin? – The original digital currency, run on a decentralized peer-to-peer network. 
  • 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

Buy BTC HERE

 

2 – Ripple (XRP)

  • Market Cap – $90.7 Billion
  • Token Price – $2.34
  • 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
  • Extra Points – We believe that Ripple provides banks with an unbelievably improved system and could one day be used globally BUT banks are able to use Ripple’s systems without buying Ripple tokens. With no consistent demand for the tokens, we don’t believe Ripple tokens should be priced anywhere as high as they currently are. Once the majority of the market realises this incredibly important point, we expect to see Ripple’s price crash. Read our review  to learn more.
  • Read Our Review Here

Buy XRP HERE 

 


3 – Ethereum
(ETH)

  • Market Cap – $84.4Billion
  • Token Price – $872.65
  • 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
  • Extra Points – We have concerns about whether Ethereum will be able to scale quickly enough. There are many Ethereum-based projects which are currently in ICO/development stage. Over the next few months, many of these projects will launch and require the use of the Ethereum network. Unless Ethereum is able to increase their transaction speed in time, all of those projects might not be able to function correctly. This would be a PR nightmare for Ethereum and could seriously damage investor confidence.

Buy ETH HERE

 


4 – Bitcoin Cash
(BCH)

  • Market Cap – $42.2 Billion
  • Token Price – $2,496
  • 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).
  • Extra Point #1 – Bitcoin cash may have an increased block size compared to Bitcoin but they have refused to implement Segwit on the network. As a result, Bitcoin Cash will be unable to implement some 2nd layer upgrades such as The Lightning Network. Without such an important upgrade, we don’t believe that Bitcoin Cash will ever be fast enough to function as a global, decentralised currency.
  • Extra Point #2 – Bitcoin Cash is positioned very highly in the market. However, many people believe that much of the reasoning behind this is simply because of their name – and not their technology – as they carry the Bitcoin name, investors are more keen to invest in the project.

Buy BCH HERE

 

 5 – Cardano (ADA)

  • Market Cap – $20.1 Billion
  • Token Price – $0.775
  • 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 uses 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.”
  • Extra Point – Cardano has gone under the radar for many investors until a recent price surge up to 5th in the market as the project is extremely tech-heavy and is difficult to understand for non-technical investors. As a result, many investors are now beginning to believe that Cardano has been highly undervalued and could have an incredible 2018. It’s for this reason that we included Cardano in the ‘Honourable Mentions’ section of our recent article – The Top 7 Cryptos For 2018.

Buy ADA HERE

 

6 – Litecoin (LTC)

  • Market Cap – $13.6 Billion
  • Token Price – $249.5
  • 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

Buy LTC HERE

 

7 – IOTA (MIOTA)

  • Market Cap – $11.4 Billion
  • Token Price – $4.10
  • 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
  • Extra Point – IOTA’s team previously made a relatively beginner mistake in their code which could have been highly damaging for the project if it had not been highlighted to them. With these 2 extra points in mind, we believe that the biggest stumbling block for IOTA could potentially be the team. In spite of that though, we are big fans of the project and believe that they will have a great 2018 hence their inclusion in our Top 7 Cryptos To Invest In 2018 list.

Buy IOTA HERE

 

8 – NEM (XEM)

  • Market Cap – $9.81 Billion
  • Token Price – $1.09
  • 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 

Buy XEM HERE

 

 9 – Stellar Lumens (XLM)

  • Market Cap – $9.34 Billion
  • Token Price – $0.522
  • Brief Explanation – Digital Currency For Financial Technology
  • What Is Stellar Lumens? Stellar is a bridging currency similar to Ripple except that it is a not-for-profit project.
  • Who Are Stellar Lumens’ Competitors? – Ripple
  • Unique Selling Point – Stellar have announced impressive partnerships with IBM and KlickEx to create a payment solution for the financial technology industry
  • Extra Point – In our review of Stellar, we highly praised Stellar’s impressive technology, the not-for-profit nature of the project and many other aspects. However, we also discussed why we wouldn’t invest in the project as there won’t be sufficient long-term demand for tokens to support prices. This is something that we believe most of the market has overlook – similar to Ripple – and could cause a crash in prices once the market does notice.
  • Read Our Review HERE

Buy XLM HERE

 

10 – Dash (DASH)

  • Market Cap – $8.90 Billion
  • Token Price – $1,143
  • 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
  • Extra Point – Dash is a very popular choice in the South Korean market

Buy DASH HERE

 

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!

 

11 – Monero (XMR)

  • Market Cap – $5.79 Billion
  • Token Price – $372
  • 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
  • Extra Point – With the global black market estimated to be worth $1.8 Trillion per year combined with the increasing prevalence of online purchases through the dark web, the demand for privacy coins could be huge over the coming year.

Buy XMR HERE

 

12 – NEO (NEO)

  • Market Cap – $5.53 Billion
  • Token Price – $85.1
  • 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.
  • Extra Point – 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. It’s for this reason that we included NEO into our Top 7 Cryptos For 2018 article

Buy NEO HERE 

 

13 – EOS (EOS)

  • Market Cap – $5.40 Billion
  • Token Price – $9.36
  • 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)
  • Extra Point – EOS is considered to potentially become one of the top contenders to Ethereum over the next couple of years. With 2018 being the year of their platform release, EOS could be one to watch in the near future

Buy EOS HERE

 

 14 – Bitcoin Gold (BTG)

  • Market Cap – $4.61 Billion
  • Token Price – $275.4
  • 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, Litecoin, Dash etc.
  • Unique Selling Point – The mining algorithm known as Equihash which aims to reduce the centralisation of mining seen with Bitcoin. 
  • Extra Point – 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 hack. Considering 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.
  • Extra Point #2 – This isn’t really an extra point but we wanted to clearly highlight our opinion on this occasion – we are staying well clear of this project

Buy BTG HERE

 

15 – Qtum (QTUM)

  • Market Cap – $4.51 Billion
  • Token Price – $61.1
  • 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

Buy QTUM HERE 

 

16 – RaiBlocks (XRB)

  • Market Cap – $4.24 Billion
  • Token Price – $31.8
  • Brief Explanation – Feeless digital curreny
  • What Is RaiBlocks? – Raiblocks is a digital currency which uses DAG technology – similar to IOTA – instead of the traditional blockchain. Unlike other Cryptocurrencies, Raiblock’s block lattice structure means that each account has its own blockchain. As a result, Raiblocks carries several advantages as we will discuss in the ‘Unique Selling Points’ section
  • Who Are RaiBlock’s Competitors? – Bitcoin, IOTA, Bitcoin Cash, Litecoin etc.
  • Unique Selling Point –  Feeless and incredibly fast. Similar to IOTA, Raiblocks solves many of the problems seen with current Cryptocurrencies by providing the technology to carry out very fast and cheap transactions.

Buy XRB HERE

 

17 – TRON (TRX)

  • Market Cap – $3.82 Billion
  • Token Price – $0.058
  • Brief Explanation – Decentralized entertainment content sharing platform
  • What Is TRON? – TRON is aiming to “heal the internet” by putting users back in control of their own data, enabling them to own the rights to their content and to decide when, how and what cost to share it. This will include a large range of things, including videos, online gambling, social networks etc.
  • Who Are TRON’S Competitors? – From our research, we have found no competitors on the same kind of level as TRON
  • Unique Selling Point – First Mover Advantage

Buy TRX HERE

 

18 – Ethereum Classic (ETC)

  • Market Cap – $3.47 Billion
  • Token Price – $35.11
  • 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

Buy ETC HERE

 

 19 – Lisk (LSK)

  • Market Cap – $2.54 Billion
  • Token Price – $21.82
  • 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

Buy LSK HERE

 

20 – ICON (ICX)

  • Market Cap – $2.44 Billion
  • Token Price – $6.49
  • Brief Explanation – Decentralising Everything
  • What Is ICON? – ICON is an ambitious project which is aiming to connect various activities within a country through its own blockchain. ICON will allow organizations such as government departments, universities, hospitals, and financial institutions to interact without third-party networks that charge transaction fees or delay the process 
  • Who Are ICON’s Competitors? – From our research, we’ve found no realistic competitors to ICON at this current time
  • Unique Selling Point – The parent company for ICON is known as Dayli Financial Group; an existing and highly successful company in South Korea

Buy ICON HERE 

 

WANT TO SEE THE FULL TOP 50 LIST?

On December 1st 2017, we compiled a list of the Top 50 Cryptos with explanations for each. After feedback from our community, we took on board the suggestion to cut the list down to a more manageable size – the top 20 – for the following months.

However, we have left the top 50 article up as we know that many investors may find it useful to read the extra information.

You can check out the Top 50 Article HERE

Remember that this  list hasn’t been updated since posting so the market cap and token price values will no longer be correct

 

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

 

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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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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.

 


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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.

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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
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  • 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.

 

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

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