ICO Review: Change Bank (CAG)

Transcription

1 ICO Review: Change Bank (CAG) Crypto Bank For Borderless Finance September 11, 2017

2 PROJECT OVERVIEW What is Change Bank? Aims to be a full-service crypto bank, offering payments with cryptocurrencies as well as a fully integrated marketplace of FinTechs. Plans to develop several products: Crypto wallet Crypto debit card Marketplace Change is also involved in the e-residency initiative by the government of Estonia. 2

3 PROJECT OVERVIEW Key product offering Universal crypto wallet Change debit card payment Marketplace 3

4 PROJECT OVERVIEW Development roadmap 2016 Q Q Q Q Change is founded in Singapore. Receives $200K as concept validation. Leading Fintech companies join Change. Change beta testing with >2,000 people on the waitlist. Launch of Change Coin through an ICO. Delivery of first Change crypto cards. Launch beta for marketplace. 4

5 PROJECT OVERVIEW CAG token sale summary ICO SUMMARY Project name: Change Bank Token ticker: CAG Website: Hard cap: 200,000 ETH Total token supply: 250M CAG if hard cap is reached Conversion rate: 1 ETH = 500 CAG Max market cap at ICO: US$150M if hard cap is reached assuming ETH price of $300 Bonus structure: Up to 25% Pre-sale available: Yes ERC20 token: Yes Timeline: Sep 16, 2017 Token distribution: Distributed immediately after contribution and tradable after the end of ICO 10% 40% 15% 20% TOKEN ALLOCATION 15% Coins sold to the community 25% 30% 5% 20% 20% Change sustainability reserve Founders, employees, etc. Early investors, partnerships & advisors Community, R&D & bounties USE OF PROCEEDS Development Non-technical manpower Marketing (digital and traditional) Market making & network liquidity Licensing, integrations & partnerships 5

6 PROJECT OVERVIEW Use of CAG tokens Using the marketplace: Third-Party Service Providers (TPSPs) share 20% of their revenues generated from Change users with Change. This 20% is distributed between Marketplace investors and holders of Change coin in a 1:5 ratio. With 16.67% going to marketplace investors and 83.33% being distributed to CAG holders. Change card 0.5% of all payments volume will be distributed to CAG holders. Currency for TPSP CAG will be the facilitator of any transactions other than spending (excluding the temporary period in the beginning where other cryptocurrencies are enabled). 6

7 THE TEAM Who are the people behind Change Bank? Kristjan Kangro CEO Artur Luhaäär Partner at Change CEO at Smartly Gustav Liblik Partner at Change CEO at First Meta Edgars Simanovskis CTO at Change Blockchain Developer Nakul Pant CTO at Smartly Henry Kehlmann Blockchain Developer Dragos Giugula Blockchain Expert Karl Vään Partner at Change CEO of BitofProperty Kenneth Loh Administrative Francisco Bernardo Marketing 7

8 OUR THOUGHTS The opportunities Change has a strong team with experience working in Fintech companies. It also has a number of legitimate advisors, including the former CEO of DHL Global Forwarding. Although it doesn t benefit Change s business directly, Change has an official partnership with a sovereign government, Estonia. This is going to provide validation for Change s concept and put it many steps ahead of other blockchain projects. Change has an ambitious goal of providing most of the services that a traditional bank currently provides. If successful, it would allow many financial services to be paid using cryptocurrency. The upside to the business and the token price could be substantial. 8

9 OUR THOUGHTS Our concerns Regulatory risks, particularly for the insurance and investment space. It is unclear how members of the Change team will allocate their time between their different ventures. CAG tokens are not necessary for purchases in the Change Marketplace, at least in the beginning as users can use all major cryptocurrencies. The roadmap is vague which may indicate a lack of detailed planning for the team which raises some concerns on their development strategy and execution. Competition there are a number of blockchain projects competing with Change in different areas: Debit cards: TenX, Monaco, Tokencard, Xapo, Mobi. Crypto wallets: OmiseGo, Metal, Status, Everex, Pillar. 9

10 OUR THOUGHTS Change vs. other crypto debit cards Change TenX Monaco Tokencard Xapo Mobi Blockchain support BTC, ETH, LTC, etc. BTC, ETH, DASH, etc. BTC, ETH ETH BTC BTC Issuers MasterCard, Visa MasterCard, Visa Visa Visa Visa Visa Status WIP Live WIP WIP Live Live Rewards for token holders 0.5% of all transactions 0.5% of all transactions None None None None Rewards for card holders Amount unspecified 0.1% of spending 0.75% of spending None None None Annual fees None None None Unspecified First year free, $12/year after $2 per month FX fees None None None 3% 3% 3% ATM fee Unspecified EUR % if above limit Unspecified $2.50-$3.50 $2.50-$3.50 Transaction fees None None 1% 1.5% (0.5% with TKN tokens) None for domestic None for domestic 10

11 OUR THOUGHTS What do we recommend? For flipping: Neutral. The project has generated awareness with their partnership with the Estonia government and their strong team of advisors. However, the presale is stalled at around 30,000 ETH. With a minimum contribution amount of just 10 ETH, there is not much to prevent small contributors from participating, so the presale is essentially a public crowdsale. The project may not have enough demand to fill the hard cap, especially in this market environment. The crypto market can change very quickly and given the one month crowdsale period, Change Bank has plenty of time to raise funding so we maintain a neutral view at this point. 11

12 OUR THOUGHTS What do we recommend? For long-term holding: Neutral. The team may be underestimating the potential legal and regulatory issues. They may need to expand slowly, country by country after getting all the relevant licenses in each jurisdiction. Therefore, it may take a long time to realize the team's vision. Change also has a very ambitious goal of providing many different kinds of services under one umbrella. Generally, the more ambitious goal a project has, the more likely it will fail. Therefore, we believe Change is more of a high-risk, high-return play. 12

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