Coinet Basic Review
|Start ICO||22 Jun 2018|
|End ICO||28 Jul 2018|
Ticker symbol: COT
Project type: Blockchain service
Extended company description: The Coinet Financing Platform (CFP) allows technologically innovative projects to find investors or conduct their own ICO campaign in order to raise funds for development.
Company: Coinet Group
Public ICO start date: 22.06.2018
Public ICO end date: 28.07.2018
Token Sale duration (weeks): 4.1
Token type: based on the Stellar platform.
Size of token emission: 10,000,000
Tokens available for sale (Pre-Sale + Public ICO): 4,000,000
1 COT price: 0.5 USD
Accepted currencies: BTC, ETH
Bounty: the program is over.
Token role: functional
Team (number of people): 13
Advisors and partners (number of people): N/A
The Coinet Financing Platform (CFP) allows technologically innovative projects to find investors or conduct their own ICO campaign in order to raise funds for development.
The platform provides the following services:
1) Fundraising for the development of innovative projects.
2) Development control by project investors.
3) Organization of its own DAICO campaign.
4) Project advising.
Investment attracted: N/A
The project’s aim is to help technical start-ups attract investments.
Strengths of the project:
- The market the project enters is dynamically developing.
Weaknesses of the project:
- MVP is unavailable.
- Information on advisors and strategic partners is not available.
- The team has no specialists in the field of investment.
Market and industry
According to the Global Crowdfunding Market report, it is expected that the crowdfunding market will grow by 26.87% CAGR between 2016-2020.
According to figures provided by Ernst & Young (EY), the total amount of funds raised in ICOs is approaching $4 billion, which is twice the amount of venture capital invested in blockchain start-ups. This includes $0.5 billion, which Beijing demanded to return to investors, introducing a ban on ICO.
According to ICO Box, about 80% of investments in start-ups were made by large investors in the third quarter of 2017 (Chinese private investment companies, hedge funds and venture companies specializing in cryptocurrencies). The rest were retail investors.
At the same time, the crypto market still shows high growth rates. Infoholic Research LLP predicts that the market of cryptocurrency and Blockchain technologies will grow by 35.2% in the next 5 years. [http://crowdfundbeat.com/mobile/2016/02/03/report-global-crowdfunding-market-2016-2020/ ], [http://www.ey.com/Publication/vwLUAssets/EY-ico-research/$FILE/EY-ico-research.pdf], [https://www.infoholicresearch.com/report/cryptocurrency-and-block-chain-market-trends-2016-2022/]
According to the team’s analysis, more than $34 billion was raised with the help of crowdfunding for innovative projects in 2015.
Comments: The market is developing dynamically, which indicates that there is an opportunity for the project to occupy its niche. However, it is worth noting that the data on the potential market submitted by the team in the Whitepaper is not relevant.
1. Traditional VCs:
The advantage of the project in this case is to prevent confusion for novice developers, more strategic freedom for investors, and a relatively liquid market for trading their stocks or their tokens at an early stage.
Disadvantages: Crypto investment is not so widespread and it does not have a long history of development.
2. Crypto capitalists:
- cofound.it - A platform that connects you to teams that have trained to become serious blockchain businesses.
- ICObox - A blockchain growth promoter and business facilitator for companies seeking to sell their products via ICO crowdsales.
- Crypto Bazar – A subsidiary of InvestBazar, a platform that has established itself as a strong player who can select quality business projects and find private investments for them.
- Superbloom Capital – Funding and accelerating groundbreaking Blockchain start-ups towards an ICO.
- Catena Capital - A blockchain accelerator and ICO fund.
- CoinCrowd – A decentralized platform, driven by the community, where you can launch new projects and raise funds with technological guarantees;
- Iconiq Lab – An investment fund and accelerator that allows start-ups to issue their own tokens, launch marketing campaigns and receive ICO funding.
Summary: The key difference between Coinet and its competitors is DAICO for companies and the project monitoring system.
Engineering features of the platform
The platform is built on the basis of Stellar blockchain and smart contracts. Stellar provides tokens that support all platform technologies such as decentralized exchange markets (DEX) and smart contracts for verifying and securing transactions. The Stellar Consensus Protocol is also used to verify transactions.
Smart contracts establish the procedure for obtaining investment and receiving returns from those investments.
Coinet works as follows:
1) The borrower presents his project.
2) The Coinet inter-disciplinary committee evaluates the project, its potential and competitive advantages.
3) If the project passes the test, a smart contract is created on the platform and investments are made.
4) As the project develops, investors monitor its progress and continue to invest in case of positive results or withdraw funds in the case of negative results..
In case of a loss of investors, the project will have two more chances to regain investment.
Comments: The project uses well-established technologies in the market.
In the future, with the development of technology and the amount of data, the project team plan to implement the following:
- February 2018 - Platform development.
- May 2018 - Token and Smart Contract creation. Development of a plan for marketing and ICO promotion.
- October 2018 - Presentation of the CFP graphical interface.
- November 2018 - Beta release of the platform. Presentation of five projects to be funded.
- December 2018 - Development of the mobile application.
- April 2019 - Release of the mobile application.
- May 2019 - The first DAICO projects created on the CFP platform.
Comments: The project presented a step-by-step strategy for the development of the project.
The following active modules are available in the open repository:
Comments: The repository contains the following modules:
1) Coinet-Desktop-Wallet - A wallet.
The repository belongs to Coinet. There is a developer of smart project contracts among the people working in the repository. However, the other two people are not in the project team.
We have analyzed the website and the documentation of Coinet for sufficiency and consistency for making an investment decision.
Information about the project is contained in the Whitepaper. The document is available in English and Spanish. The project is described in sufficient detail in the Whitepaper. The main emphasis is on the description of the platform services.
The website also provides information about the project, the Roadmap, the ICO and the team. The website is available in English and Spanish.
Summary: The documentation provides a comprehensive view of the project. The platform functions are described in sufficient detail.
Percentage of tokens issued for sale: 40%
Public ICO start date: June 22nd, 2018
Token type: based on the Stellar platform.
Accepted currencies: BTC, ETH
1 COT price: 0.5 USD
Crowdsale duration: 5 weeks until July 28th, 2018
Tokens will be issued on the basis of the Stellar platform.
Token limitation: 10,000,000
Advantages for token holders: The COT token allows holders to get a return on investment.
Additional token emission: no
Hard cap: 4,000,000 COT
Soft cap: 400,000 COT
Token and capital distribution
Tokens and capital are distributed according to the following scheme:
Summary: Tokens do not affect the distribution of shares in the company. The incentive system is built in such a way that it is more profitable to buy tokens in advance.
- August 2018 - Development of a marketing plan and promotion of potential projects, recruitment and training of new staff.
- September 2018 - Development of a marketing plan and platform promotion.
- December 2018 - Opening of US office.
Summary: The project presented a scaling strategy but the planning of marketing activities is not disclosed. According to the team, Coinet are making an alliances with the company Edge196 and with Stox that may be part of the project marketing campaign.
The team consists of 13 people. Information about the main team members based on their LinkedIn profiles is given below:
- Iván Aránzazu (https://www.linkedin.com/in/ivan-aranzazu-a4670050/) - CEO & Founder of Coinet, Director of Servicios Aranco, C.A. Previously, Director of the Administrative Board at Viport Inversiones, Manager of Administration and Finance at MD Nexus Publicidad, Senior Auditor at EY.
- Fernando Gonzaléz (https://www.linkedin.com/in/fernando-gonzalez-carmona-3730ab160/) - COO & Founder of Coinet. Previously, Sales Manager at Viport Inversiones 0205.
- Marines Monserrat (https://www.linkedin.com/in/marines-monserrat-96a91014) - Project Manager at Coinet. Previously: Marketing Consultant at Gerente de negocios, Marketing Manager at Johnson & Johnson Venezuela.
The team has 10 more members.
Summary: Almost all of the team members indicated their affiliation with the project. The team is mostly from Venezuela. The team also includes the following specialists: business development manager, editor, financial director, community manager, UI designer, smart contract developer, blockchain engineer, developers and head of marketing department.
Information about the project is available on various popular services such as Twitter, Telegram, Facebook, GitHub and Bitcointalk. The project has carried out the bounty program.
The team conducts an advertising campaign on social media. There are regular news updates about the project posted on Facebook and Twitter.
The format of the articles about the project shows that they are written mainly by the project team with the aim of informing potential investors about the forthcoming ICO.
Comments: Interest in the project is gradually growing. The marketing campaign is developed mainly on Twitter and Facebook.
Social activity analysis of the Coinet website based on data from BE1.ru showed the following:
Traffic source: https://be1.ru/stat/coinet.network [https://be1.ru/stat/coinet.network]
Comments: direct link: 52.60, referrals: 0.00, search: 4.67, social media: 22.75, mail: 19.98
Social activity: YouTube: 41.30; Facebook: 38.50; Instagram: 20.20
Summary: Based on the data available, we can draw the conclusion that interest in the project is still at a low level. The team is conducting an advertising campaign on Twitter and Facebook and communicates with users on Telegram. Around 2,000 people visited the website in April.
The developers may be contacted using the links below:
The information contained in the document is for informational purposes only. The views expressed in this document are solely personal stance of the ICOrating Team, based on data from open access and information that developers provided to the team through Skype, email or other means of communication.
Our goal is to increase the transparency and reliability of the young ICO market and to minimize the risk of fraud.
We appreciate feedback with constructive comments, suggestions and ideas on how to make the analysis more comprehensive and informative.