Crypterium Basic Review
|Start ICO||30 Oct 2017|
|End ICO||12 Jan 2018|
Ticker symbol: CRPT
Project type: Fintech
Extended company description: Crypterium is a cryptobank offering contactless payments, transfers, a currency exchange and credit token technology.
Company: CRYPTERIUM R&D OÜ
Public ICO start date: 31.10.2017
Public ICO end date: 13.01.2018
Tokensale duration (weeks): 10.6
Token type: ERC-20
Token emission: 300,000,000
Tokens available (Pre-Sale + Public ICO): 210,000,000
1 CRPT price: 0.0001 BTC
Currency: BTC, ETH, LTC,ETC, DASH, XRP, USDT, Cash, Visa/MasterCard
Bounty: Program start date: October 26, 2017 (second phase).
Token role: Functional
Team (number of people): 14
Advisors and partners (number of people): 8
Twitter: Postings: 147, Subscribers: 1933
Telegram: Subscribers: 2300
Medium: Postings: 8, Subscribers: 263
Linkedin: Subscribers: 873
Facebook: Subscribers: 17203
Youtube: Postings: 8, Subscribers: 1210
Crypterium is a mobile cryptobank with a credit sub-token and an open platform.
Crypterium will provide the following services:
- Purchase and sale of BTC, ETH, XRP, LTC, Dash, XEM, NEO, MIOTA, XMR, etc.
- International transfers to any bank account, including bank cards.
- Conversion and exchange between assets.
- Direct payments for services such as telephone, utilities, fines, loans, taxes, internet etc.
- Automated payments using direct debit.
- Transaction history data (including sorting services such as filters and payment categories.)
- Currency operations in Fiat.
Additional services will include:
- Multicurrency operations (debiting several currencies at the same time.)
- Photographic payments – just photograph an invoice and send it to Crypterium.
By the summer of 2018, services will include:
- Traditional banking services.
- Data transfer in p2p mode for crypto and fiat.
- Interest on cryptocurrency deposits.
- Bank reporting.
- Salary accounts.
It is also planned to introduce a CRED sub-token, which will allow creating a blockchain system for instantly crediting platform users.
- Keith Teare - Executive Chairman at Accelerated Digital Ventures (1 year), Product Advisor at ContextGrid (about 1 year), founder of Archimedes Labs (11.5 years);
- Elie Galam - Chief Investment Officer at the Eastmore Group (less than a year), CIO at Panorama Partners (6 years), Portfolio manager for Two Sigma (1 year);
- Fabio Tamburrano - CFO at Coeclerici Group (about 3 years), Director of RUSSABS (2 years), Investment manager at Svyaznoi ( 2 years);
- Katrina Arden - lawyer;
- Roger Crook - CEO at Capital Springboard (1.5 years), Chairman and member of the advisory board at Innova Capital (1.5 years), Council Advisor at Convargo (1.5 years);
- Andras Kristof - Technical director at Yojee (about 2 years), Founder, CEO at Tembusu Terminals Pte Ltd (2 years), founder of Homegrw (about 2 years), Technical Director for Zeicast (1 year);
- Mike Raitsyn - Founder of ICOBox (5 months), investor of Petcube, BeLive.tv, Spinbackup, Deep.Social (less than a year.)
- IcoBox (https://icobox.io) - partner in the field of marketing.
- BitGo (https://www.bitgo.com) - partner in the field of transactions.
- Bancor (https://www.bancor.network) - partner in the field of pricing and token liquidity.
- Blockchain Law Group (http://blockchainlawgroup.com) - partner in the field of Escrow.
Investment attracted: NA
The documentation for the project is elaborate, and we believe that Crypterium may be interesting to the community. Since the project is still finalizing its strategy, we believe that the team should complete the strategy for building a cryptobank and implement measures to attract commercial customers.
RPT tokenholders will be able to receive up to 30% of the profit from Crypterium transactions via a monthly loyalty fund (MLF).
The project includes experienced specialists and advisors among its staff. Currently there is an active marketing campaing for the crowdsale. We believe that the project’s theme will be interesting to the community.
Strengths of the project:
- The team have chosen an actively developing market area.
- The project is based on experienced specialists and advisors.
- The project has sufficient developed documentation, and an MVP is presented.
Weaknesses of the project:
- There are risks associated with underinvestment in the project, which may prevent the team creating a cryptobank.
Market and industry
According to a PWC report:
- The volume of transactions in the global market for mobile interest-free payments was estimated at $4.6 billion in 2014, and it is expected that this will exceed $300 billion by 2020, with an increase of 85.9%.
- QR codes are expected to remain a niche method and will amount to only $9.3 billion of transactions by 2020 with17.9% of 5-year CAGR.
- Currently the volume of daily transactions in cryptocurrency exceeds $2 billion (Juniper Research). Consequently, the volume of transactions in cryptocurrency with the help of interest-free payments will amount to $130 billion by 2020, an annual growth rate of 16%.
According to the white paper:
- The volume of global transactions increased by 11.2% during 2014-2015, up to $433 billion.
- It has been enhanced over the past 24 months by the introduction of mobile contactless payment solutions such as Apple Pay, Alipay, Google Pay, etc.
- The volume of mobile contactless payments (NFC and QR codes) is expected to increase between 2015-2020, and the annual growth rate (CAGR) will grow by 80%, which will lead to an increase in payments to $4 trillion by 2020.
- It is estimated that the cryptoeconomy will exceed $3 trillion by 2020, and it could achieve 10% of world GDP by 2022.
- Processing of transactions for cryptocurrency in respect of goods based on fiat hardly exists. This is the unmet demand for cryptocurrency capitalization, which has already exceeded $150 billion.
- There are already 3 million people who make daily payments in cryptocurrency; this number is expected to exceed 200 million by 2025
Comments: The white paper presents a market analysis. According to data, the market is developing quickly enough so it is possible to occupy intended market share.
The following competitors are represented in the white paper:
- TenX (http://www.tenx.tech/) - a platform that converts cryptocurrencies into fiat and issues debit cards.
- Tokencard (http://tokencard.io/) - platform that enables payments, transfers and conversion of currencies.
BitcoinTalk identified the following competitors:
- Polybius (https://polybius.io/ru/) - cryptocurrency blockchain bank.
- Everex (https://www.everex.io/) - a platform that enables payments in cryptocurrency and exchange microfinance services.
- Utrust (https://utrust.io/how-it-works) - platform that enables payments in cryptocurrency, transfers and instant conversion. Other competitors: Rpay, Meridian, Pundi X, Bankex.
Unlike TenX and Tokencard, Crypterium uses not plastic but virtual cards. In addition, the services of traditional banks (lending) are added, and exchange of currencies within the platform is available.
As for the other competitors, unlike payment systems, Crypterium has added the functions of a regular bank (lending), and unlike banks (Polybius) Crypterium introduced payment for purchases using a virtual card via a mobile application.
Engineering features of the platform
The platform is built on blockchain using smart contracts.Crypterium uses NFC HCE protocols to pay tokens from a virtual payment card via a POS terminal.The Crypterium API can display a QR code that can be read by a Crypterium client.
Technical descriptionCrypterium is building Cryptobank 2.0, where people can store, spend, exchange and use almost any crypto or fiat currency. It will be available for download on iOS and Android. There will be an opportunity to make contactless payments via NFC. To assess creditworthiness, a digital identity card will be used from partnerships with leading third parties that provide regulation of KYC and AML and reputation for uPort (a self-service system based on Ethereum, Amazon, etc.).
CrypteriumSX (Smart eXchange):
Comments: The main feature is the ability to convert directly on the platform (smart exchange) and pay for purchases with a virtual card (NFC).
In the future, with the development of technology and data capacity, it is planned to implement:
- December 2017 - March 2018 - development of the Crypterium mobile bank.
- December 2017 - April 2018 - development of an OpenAPI platform.
- January 2018 - September 2018 - development of Credit protocol, installation of self-regulatory algorithms for token exchange, integration with scoring platforms.
- March 2018 - June 2018 - launch of cryptocurrency acquisitions, development of Crypterium smart exchange.
- May 2018 - June 2018 – an Appstore for software based on the OpenAPI.June 2018 - September 2018 - grants for the development of OpenAPI products.
- June 2018 - September 2018 - grants for the development of OpenAPI products.
Step-by-step development of the product is presented in the roadmap. The description of all functions to be added is present in the white paper. An MVP is ready (https://www.youtube.com/watch?v=-Q3ILm8of6Y). The application will be public accessible by the summer of 2018.
It is not clear why a grant is being attracted (in June 2018) for the development of OpenAPI, if the development phase is over in April 2018. According to the roadmap, the team will work on creating a cryptobank from 2018 till 2020 (for more details, see the corresponding section).
Crypterium Products Financial Goals and Corresponding Results:
Comments: According to the plan above, there are risks regarding underinvestment of the project. The underinvestment will prevent Crypterium conducting a strategy for creating a cryptobank. Currently the project does not have an open repository; however, a representative of the project team noted that they will create an account in the near future.
Summary:The project provides a detailed description of the platform and MVP. This speaks of the extensive preparatory work carried out by the project. However, we believe that the team strategy should focus on creating a cryptobank and appropriate technological stages to attract business, rather than attract grants for development. Also, the project strategy has a risk of underinvestment, which can prevent the team creating a cryptobank.
We have analyzed the Crypterium site and documentation for sufficiency and consistency in order to make an investment decision.
The website also presents information on the project, the public ICO, the team, the partners, distribution of tokens and funds, and the answers to the most frequently asked questions. The site is available in English, Russian, Chinese, Spanish, Japanese and German.
Summary: The documentation gives a full insight into the project.
Tokens to be issued for sale - 70%
Public ICO start: October 31, 2017
Token type: ERC-20
Accepted payments: BTC, ETH, LTC,ETC, DASH, XRP, USDT, Cash, Visa/MasterCard
1 CRPT price: 0.0001 BTC
Crowdsale period: 10 weeks, through January 13, 2018
The CRPT token is a utility token which serves as “fuel” for carrying out transactions, which stimulates the transaction activity and increases the demand for the token; with each client payment carried out through the Crypterium cryptobank, a small charge of 0.5% will be added to the fee, which, in turn, will be automatically used for buying CRPT from the open market and will later be burned. As a result high demand for tokens is expected.
Token Issue Limit: 300,000,000
Advantages for tokenholders: The number of tokens is limited, 30% of income for Crypterium transactions (trading commission) will be used to reward CRPT tokenholders and the most active platform users by means of a distribution of CRPT from the monthly loyalty fund (MLF). The CRPT tokens are divided between existing tokenholders depending on whether they use the Crypterium bank. Filling the MLF also creates constant demand for CRPT tokens. Cash back will also be implemented
Max goal: $47,000,000
Minimum goal: $3,000,000
The token sale is carried out in several stages:
Comments: All unsold and undistributed tokens will be burned, and no additional tokens will be issued.
The project has reserved 9,000,000 CRPT for the bounty program. The program is active using the following methods:
- Bitcointalk signatures — 50%
- Transfer & Moderation — 25%
- Media, Videos & Blog posts — 15%
- Twitter — 10%
Summary: The project has already implemented the first wave of the bounty program. All the terms are specified under the link above.
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 reward system is set up so that it is more beneficial to buy tokens earlier.
The project team has compiled a sufficiently detailed roadmap where past achievements and future plans are analyzed.
We believe, however, that apart from the technical aspect, it is necessary to demonstrate a marketing strategy for market entry. This feature of the project is unfortunately not presented.
The team consists of 14 people and 8 advisors. Information about the main team members based on LinkedIn is given below:
- Steven Polyak - Managing Director, Co-founder. Managing Director and/or Board Member for the following companies: International Board for the Advancement of Medicine (IBAM), Blackmont LLP, ALOR INVEST, Sinteza Agro LLC. Experienced top manager in the field of investment.
- Austin Kimm - Director of Investor Relations, Co-founder. Experienced CEO in the insurance industry, worked in such regions as UK, Australia, Russia, Czech Republic. Founder of a successfully sold 24-hour fitness club in the UK - Kimm Health & Leisure Ltd;
- Gleb Markov - Chief Operating Officer, Co-founder. Chief Executive Officer at PayQR International Ltd. Experienced serial entrepreneur in the field of FinTech (Bonus Club, OOO Technologii, PayQR International Ltd.), Mass Media (EKinoT - Watch Movies Online, GamePlayTV (Perviy Igrovoy TV Channel), Game-Man IT magazine);
- Vladimir Gorbunov - Financial director, Co-founder. CEO & Founder of Workle (since 2009);
- Pavel Rasputin - Director of Marketing. Head of Marketing at SEA (contextual advertising) in Aviasales / Jetradar, head of Mail.ru publishing house, Southeast Asia. Experienced marketing director in B2B (more than 8 years of experience in SKB Kontur), and in B2C.
The main team indicates its ownership of the project, except for the Technical director.
According to LinkedIn, there are 14 people involved in the project. The technical team is mainly from Russia. The team has specialists in blockchain technologies, but LinkedIn does not provide its previous experience in this area. Also, there are an art director and video producer, as well as specialists in legal regulation, support and communications.
Information about the project is available on Twitter, Facebook, Telegram, Medium and BitcoinTalk. The team communicates on social media. There is a bounty program.
The project is active on social media. The team answers users’ questions via Telegram. News on Twitter and Facebook are regularly updated. The format of articles about the project indicates that they were ordered by the project itself, as well as written by users on specialized resources such as Reddit.
Comments: Interest in the project is gradually growing. The main marketing campaign is deployed on Twitter, Facebook.
The traffic analysis of the site based on the data from Similarweb.com showed the following:
- 35.57% - traffic comes via direct links,
- 3.02% - click-through,
- 43.16% search traffic,
- 15, 66% - through social media;
Visitors: Top 5 countries:
- Russia – 21.54%,
- Brazil – 16.55%,
- Ukraine – 8.53%,
- USA – 7.76%,
- France – 7.27%.
Search traffic: 43.16%.
- 32% - “organic” traffic,
68% - ad clicks. Referral links: 3,02%
Top 4 sites: bitcointalk.org - 30,63%, coingecko.com - 30,63%, related.forbes.com - 25,23%, newcreationsintl.com - 13,52%)
Comments: The popularity of the site is growing rapidly enough (76 670 people in the last month), as well as the number of subscribers on social media, which indicates users’ interest in the project.
Summary: Based on available information we conclude that interest in Crypterium is growing. The team is leading an advertising campaign on social media (Facebook, Twitter), and communicates with users via Telegram. There is some support from the media, as well as active contextual targeted advertising and ads on YouTube.
You can contact the developers via the following links:
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.