1. Home
  2. Analytics
  3. Investment Rating

CryptoCurve Rating Review

Risky

Investment Rating

Expiry date 26 Oct 2018 26 Jul 2018

Based on the analysis we decided to assign CryptoCurve a “Risky” rating.

The project has the following strengths:

  • It participates in a significant and fast-growing market (the blockchain industry).
  • The project’s partnership with Wanchain and their strategic agreement to become the “Front-End of Wanchain”, will enable both intra-chain and cross-chain transactions.
  • A user-friendly interface and “all-in-one” features.

However, there are also a number of risks still associated with this ICO project:

Commercial risks

Taking the CryptoCurve idea and comparing it to other wallets that offer different abilities and functionalities, it can be concluded that the MyCryptoCurve Wallet introduces some unique features like the Nuke portal and other convenient functions. If the project could deliver all of the announced functionalities, it could become very popular amongst users. We note that one of the major issue with the wallet is its capability to have a global reach considering the differences in legislation of ICO pooling and Fiat Gateway functions in different countries.

Considering the heated-up competition in each of the market related to the CryptoCurve functionalities, that is to say, a dozens of different crypto wallets (where the market is quite congested), a plenty of ICO hosting platforms (such as KICKICO, etc., and indirect competitors such as ICON, etc.), and a large number of exchanges (as the CryptoCurve aims to to build in 0x, Kyber, or other exchanges by plugging them in as modules into the existing infrastructure), the potential investor should consider the commercial risks related to the project.

Incomprehensive technical description of the project

Technical description of services is provided in insufficient details, particularly, it is unclear what conversion rate will be used for the exchange module in order to pay the fee for different functionalities of other blockchains, how/by whom the KYC/AML will be performed, etc.

Incomprehensive whitepaper

We draw attention to the fact that in the whitepaper there is no information regarding the proceeds allocation scheme, token and project economics, direct competitor analysis, etc. Considering that the start date of the public ICO is set for Q3 2018, it can be concluded that the level of risk for potential investors is considerably higher than usual due to the lack of information on the token and project economics, and on the project development plans.

MVP

We note that the team has only a wallet to show in terms of product development so far. While this is better than nothing, an alpha/testnet of the project would be preferable. According to publicly available sources, MVP is expected after the ICO.

Incomprehensive roadmap

The project’s roadmap, does not contain any information regarding plans for marketing and business development, the expected number of users, etc., all of which can increase the level of risk for potential investors.

Team composition risks

We note that only one out of six advisors has stated his advisory role at CryptoCurve on the LinkedIn profile.

It is worth noting that the team lacks experience in blockchain development, as there is only one blockchain expert in the team, who also has multiple responsibilities at other companies. Besides, according to the team members’ official LinkedIn profiles, some of them are working at other companies, so it is unclear if they can manage to be fully dedicated to the project. Also, it should be mentioned that considering the technical complexity of the project and all the functionalities it claims to deliver, given the team members competence, it might be challengeable for them to deliver such a complicated project.

We draw attention that the CryptoCurve project does not announced any partnership with venture funds/investors, since given that the majority of tokens are allocated for private sale rounds (about 81%), and the minimum contribution amount is 100 ETH, it is questionable whether the team will be able to raise the required amount of funds.

Regulatory issues

The project might face some problems introducing functions such as ICO pooling, as the regulations for ICOs are not the same across different countries, and Fiat Gateway, which may be particularly difficult to implement due to regulations (anti-money laundering policy, etc.).

Decrease in token price

Considering that the bonus for the pre-sale was 25%, and the amount of bonuses allocated to the pre-sale is very high (given that the pre-sale Stage cap, it is 63% of the total amount of tokens available for sale), the token price may face significant pressure. Also, the midway results of the pre-sale are not available, so the amount of tokens sold with a discount is unclear.

Based on our analysis and taking into consideration all of the risks associated with the CryptoCurve project, as of June 2018, we decided to assign CryptoCurve a “Risky” rating. It is worth noting that once the major issues are resolved by the team (i.e. release of MVP, clarification of technical details, etc.), the project rating will need to be reassessed as the risks linked to it may change the project.

CryptoCurve aims to build a platform that offers an all-in-one solution for crypto-investment. It claims to become a blockchain browser with the following features: ICO investing, market analytics, trading, fund management, etc.

Website

 

Pitch Deck

 

Whitepaper

 

Commercial paper

 

Medium

 

Telegram

 

Twitter

 

Youtube

 

Facebook

 

LinkedIn

 

GitHub

 

MVP (My CryptoCurve Wallet)

CryptoCurve is a legal entity, which was incorporated on the 23rd of October 2017 in Exeter, England.

 

PRIVATE SALE

ICO (PUBLIC SALE)

Start date

Ongoing

Q3, 2018

End date

June 4, 2018

Q3, 2018

Stage cap

USD 26,000,000

USD 6,000,000

Ticker

CURV

Token

WRC-20

Token supply (for sale/total)

207,500,000 CURV / 415,000,000 CURV

Soft cap

-

Hard cap

USD 32,000,000

Estimated capitalization1

USD 83,000,000

Token price

USD 0.20

Bonus

25% bonus

-

Lock-up

5 months

-

Minimum investment

100 ETH

1 ETH

Maximum investment

-

-

Currencies accepted

ETH

WAN

Restricted list

USA (further details are TBA)

KYC procedures

Yes

Country of legislation

Exeter, England

         

1 Value of 100% of the tokens at ICO price.

The private pre-sale round is currently ongoing with 25% bonuses, which will be locked up and released initially at a rate of 25%, and then at a rate of 20% per month for 5 months. There is no bounty program for the CryptoCurve project.

The token distribution scheme is as shown above: 50% will be allocated to the sale of tokens (both the pre-sale and public sale), 35% for the CryptoCurve foundation, and 15% for the team and advisors. The vesting period for the tokens allocated to the team and advisors is 24 months.

In April this year, at the World Blockchain Forum in Dubai, Wanchain announced the first six projects that will be supported by WANLab (an international blockchain accelerator and incubator powered by Wanchain), the CryptoCurve project was listed amongst them. WANLab provides mentorship resources and support throughout the different stages of development. Given the success of the Wanchain project, which creates an innovative distributed financial infrastructure, its current market capitalization is equal to USD 712 million.

Also, CryptoCurve has announced its partnership with Wanchain, with whom the team has agreed to become the “Front-End of Wanchain”. While Wanchain is building an interoperable blockchain to create a new kind of financial infrastructure, CryptoCurve’s aim is to bring about the mass adaptation of blockchain technology by simplifying and streamlining the user-experience.

According to the representative from the team, they are using the Curve Wallet for the private sale, which is ongoing, and there is a demonstration video available.

We draw attention to the fact that in the whitepaper there is no information regarding the proceeds allocation scheme, token and project economics, etc. Considering that the start date of the public ICO is set for Q3 2018, it can be concluded that the level of risk for potential investors is considerably higher than usual due to the lack of information on the token and project economics, and on the project development plans.

CryptoCurve introduces an all-in-one wallet solution, focusing on ease of use and allowing for crypto investing, portfolio management and tracking, ICO pooling, Fiat Gateway, etc.

According to the project website it has the following features:

  • Decentralized exchange – The CryptoCurve token provide access to the trade and exchange of tokens in the interoperable CryptoCurve DEX portal.
  • ICO investing - Investors can access and fund upcoming ICO launches or startups on the Wanchain blockchain.
  • ICO Staking – Users can get a stake of the latest ICO to invest in the CryptoCurve ICO staking portal.
  • Portfolio Tracking – The CryptoCurve wallet allows users to track their portfolio for easier fund management and updating.
  • ICO Pooling – Investors can search for the best ICOs to invest in collectively or as individuals.
  • Nuke – Allows users to effortlessly convert their tokens to BTC, ETH or other stable crypto alternatives. There is also a reverse conversion function available to convert back to the original currency.
  • Fiat Gateway - Is a means of providing liquidity, CryptoCurve provides the Fiat Gateway to allow for conversion, trading, and exchanges using fiat currencies.

Considering decentralized exchange function, its first integration partner will be 0x protocol, which started as an OTC platform for P2P order matching, it further expanded upon this by creating the 0x protocol. 0x implements the concept of off-chain relayers, where distributed hosts keep and broadcast the order books, similar to how a blockchain is distributed and decentralized. Market makers release signed orders (backed by on-chain confirmation) and market takers buy these.

Adopting the multi-layer abstraction of the infrastructure layer, CryptoCurve allows developers to plug and play with different blockchain solutions. So that they can hand use Wanchain for OTA transfer, Ethereum as a store of value, Bluzelle as a data store, or PepperDB as a key value store all in one solution. Instead of holding tokens for each underlying system, WAN for OTA transfer and BLZ for data storage, a Curve wallet owner just needs to hold enough CURV tokens to pay for the fee of the underlying tokens.

At the time of our analysis the following information in the whitepaper is missing:

  • Absence of direct competitor analysis.
  • Unclear token and project economics. It is unclear how the project will be monetized once released.
  • Regulatory issues. The project might face some problems introducing services such as ICO pooling, as the regulations for ICOs are not the same across different countries, and the Fiat Gateway, which may be particularly difficult to implement due to regulations (anti-money laundering policy, etc.).
  • Technical description of services is provided in insufficient details, particularly, it is unclear what conversion rate will be used for the exchange module in order to pay the fee for different functionalities of other blockchains, how/by whom the KYC/AML will be performed, etc.

The project team has provided the following roadmap:

According to the roadmap, the basic MyCryptoCurve Wallet should be released in Q2, 2018, and as of June 2018 it is released and according to a representative of the team it is being used for the pre-sale, which is currently ongoing.

The vesting period for the team, which is 24 months, covers all of the milestones on the roadmap.

However, the roadmap does not contain any information about the expected number of users, marketing and business development activities, etc., which may increase the level of risk for potential investors.

Market analysis

The chart below presents the total number of Blockchain wallet users worldwide, going from the first quarter of 2015 to the first quarter of 2018. The number of Blockchain wallets has been growing since the creation of the Bitcoin virtual currency in 2009, reaching almost 24 million Blockchain wallet users at the end of March 2018.

Furthermore, the trading volume can be estimated by taking all of the exchanges where the user counts and the trading volume. Through this number, it is possible to estimate the total number of cryptocurrency users is around 20.2 million users.

For the purposes of analysis of the macro-level factors affecting the CryptoCurve project a modified PESTEL framework will be used. The PESTEL framework analyzes the Political, Economic, Social, Technological, Environmental and Legal factors of a project. As far as blockchain projects are concerned, the Environmental and Social factors are usually not applicable or at least have a relatively small impact.

  • Political – Infrastructure blockchain projects like CryptoCurve usually do not bear any political risks.
  • Economic – The market niche of blockchain infrastructure platforms is significant, and the projects concerned usually demonstrate good performance in terms of economics.
  • Technological factors – Given the youthfulness of the blockchain market as a whole, the development of blockchain infrastructure platforms is a good idea as the market needs such solutions at its development stage.
  • Legal – Blockchain infrastructure projects usually do not bear any legal risks, however, considering the CryptoCurve Wallet offers functions such as ICO pooling and Fiat Gateway, it could be legally challenging to introduce these functionalities across different countries.

Competitive landscape

We will use Porter’s Five Forces framework to perform an initial competition assessment for CryptoCurve.

Threat of new entrants - High

The overall threat of new entrants is high, as new blockchain infrastructure projects come out very often and the market is not yet full. The level of competition is gradually rising and whoever captures the platform possesses a greater chance of becoming a future blockchain giant.

Threat of substitutes - Medium

The threat of substitutes is medium, as there are plenty of cryptocurrency wallets with different functions.

Bargaining power of customers - Low

The bargaining power of customers can be assessed as being low, since the CryptoCurve wallet platform will dedicate its services to easy and user-friendly crypto fund management, market analytics, ICO investing, trading and security.

Bargaining power of suppliers - Low

Since there is only labor (developers) and industry partners (and maybe node holders) on the supply side of the CryptoCurve project, the bargaining power of suppliers can be assessed as being relatively low.

Industry rivalry - High

As of June 2018, CryptoCurve had some direct competitors in the blockchain market and some indirect competitors too, please refer to the summary table below:

Industry rivalry

 

CryptoCurve

Trezor

Mycelium

Ark

MyEtherWallet

Project type

Infrastructure

Hardware

Infrastructure

Infrastructure

Infrastructure

Ticker

CURV

-

MT

ARK

-

Key functions / features

Decentralized exchange, ICO investing, pooling and stacking, Nuke function, Fiat Gateway

Cross-compatible, recovery seed, beginner friendly

Hierarchical Deterministic wallets, single address accounts, “Watch only” accounts

ARK Ecosystem, tooling, extensions

Centralized validation, compatibility with hardware wallets, supports offline transactions

Consensus

PoS

-

PoS

DPoS

PoW

Key users

Developers, enterprises, users

Developers, users, enterprises

Developers, users, enterprises

Developers, users, enterprises

Developers, users, enterprises

Development stage

MyCryptoCurve Wallet released

Released

Released

Mobile wallet released

Released

ICO status

Pre-sale currently ongoing

-

ICO ended

ICO ended

-

Funds raised during the ICO/Hard cap

No data/ USD 32 million

N/A

USD 2.35 million / N/A

USD 22 million / USD 22 million

N/A

ICO valuation1

USD 83 million

-

USD 47 million

USD 12.8 million

-

Market capitalization

N/A (Not listed yet)

N/A (Not listed)

N/A (Not listed)

USD 158 million

N/A (Not listed)

Product launch

Q2 2019

Launched

Launched

Q4 2018

Launched

1 100% of tokens at ICO price

Trezor is a Bitcoin wallet that functions as a USB dongle, allowing users to safely access their cryptocurrency even on insecure computers. It operates on a Zero Trust approach, which advocates for multiple layers of security to minimize the ways in which it can be compromised by a third party. But, as it’s a hardware wallet, Trezor must be plugged into a computer to make any transactions, unlike mobile or paper wallets that can be used on the go.

Mycelium is a highly integrated Bitcoin company specializing in hardware, software and security. The Mycelium Wallet is a mobile wallet that allows users to store, send and trade Bitcoin. It offers five account types and has been recognized as one of the best mobile wallets in the Bitcoin industry. It was awarded the 2014 “Best Mobile App” by Blockchain.info. However, it does not allow users to sign messages, there is no desktop interface and may be difficult for beginners to use.

Ark is an “all-in-one” blockchain solution, that aims to create an entire ecosystem of linked chains and a virtual spiderweb of endless use-cases that make ARK highly flexible, adaptable, and scalable. Its mobile wallet is a hybrid application, which can send and receive ARK and allow voting for a delegate, all without the need to sync with the blockchain. But, there is no support for native libraries, for example, reading QR codes won't work.

MyEtherWallet is a wallet with a client-side interface that interacts with the Ethereum blockchain. MEW combines the ease of setup provided by online wallets while eliminating many of the vulnerabilities that come with storing your funds online. In terms of security, MEW can be used in tandem with other wallets, such as TREZOR, Ledger, or the official Ethereum Wallet, which are all known for being extremely secure. On its own, MEW’s level of security depends largely on the users, and how they manage the tool. Therefore, its users have been targeted by phishing attacks and hackers.

Taking into account CryptoCurve’s idea and comparing it with the other wallets that portray different abilities and functionalities, it can be concluded that the MyCryptoCurve Wallet introduces some unique features like the Nuke portal and other convenient functions. If the project could deliver all of the announced functionalities, it could become very popular amongst users. We note that one of the major issue with the wallet is its capability to have a global reach considering the differences in legislation for ICO pooling and Fiat Gateway functions.

Considering the heated-up competition in each of the market related to the CryptoCurve functionalities, that is to say, a dozens of different wallets (where the market is quite congested), a plenty of ICO hosting platforms (such as KICKICO, etc., and indirect competitors such as ICON, etc.), and a large number of exchanges (as the CryptoCurve aims to to build in 0x, Kyber, or other exchanges by plugging them in as modules into the existing infrastructure), the level of commercial risk of the project is very high.

The CryptoCurve project is represented by the following team members:

Joshua Halferty

Position

CEO

Total experience

7+ years

Relevant experience

Yes

Relevant education

Yes

Professional achievements

Project Manager at Harmonia Holdings Group, LLC

LinkedIn

Yes

Connections

500+

Endorsements / Recommendations

Yes

 

Xander Yi

Position

CFO

Total experience

4+ years

Relevant experience

Yes

Relevant education

Yes

Professional achievements

2 publications

Partner at Law Offices of Gutierrez Yi

LinkedIn

Yes

Connections

303

Endorsements / Recommendations

Yes

 

 

 

 

 

 

 

 

Andrew Kerrison

Position

Systems Architect

Total experience

13+ years

Relevant experience

Yes

Relevant education

Yes

Professional achievements

Web Developer at Double First Ltd

LinkedIn

Yes

Connections

99

Endorsements / Recommendations

Yes

 

Alexander Lenart

Position

Creator of Experience

Total experience

5+ years

Relevant experience

Yes

Relevant education

Yes

Professional achievements

-

LinkedIn

Yes

Connections

424

Endorsements / Recommendations

Yes

 

Andre Cronje

Position

Blockchain Infrastructure Engineer

Total experience

12+ years

Relevant experience

Yes

Relevant education

Yes

Professional achievements

1 patent

Head of Technology at Freedom

LinkedIn

Yes

Connections

500+

Endorsements / Recommendations

Yes

 

Anton Nell

Position

Web/Mobile Engineer

Total experience

8+ years

Relevant experience

Yes

Relevant education

Yes

Professional achievements

Software Engineer at The Shoprite Group of Companies

LinkedIn

Yes

Connections

241

Endorsements / Recommendations

Yes

 

Seán McGurk

Position

Security

Total experience

28+ years

Relevant experience

Yes

Relevant education

Yes

Professional achievements

Chief Security Officer at Amazon Web Services

LinkedIn

Yes

Connections

500+

Endorsements / Recommendations

Yes

 

Benn Godenzi

Position

Marketing & Partnerships

Total experience

6+ years

Relevant experience

Yes

Relevant education

Yes

Professional achievements

Director at Outlast Nutrition

LinkedIn

Yes

Connections

500+

Endorsements / Recommendations

Yes

 

 

Anna Santayana

Position

Marketing & Operations

Total experience

14+ years

Relevant experience

Yes

Relevant education

Yes

Professional achievements

Senior Marketing Coordinator at Truth Initiative

LinkedIn

Yes

Connections

500+

Endorsements / Recommendations

Yes

 

Paul Landingin

Position

Enterprise Development

Total experience

6+ years

Relevant experience

Yes

Relevant education

Yes

Professional achievements

Business Development Manager/Recruiting Manager at BlueSpin Solutions

LinkedIn

Yes

Connections

500+

Endorsements / Recommendations

Yes

 

 

 

 

 

The CryptoCurve project has the following key advisors:

Dustin Byington

Position

Advisor

Total experience

10+ years

Relevant experience

Yes

Relevant education

Yes

Professional achievements

CEO of the Stealth-Mode Project at Wanchain,

Co-Founder of Tendermint

LinkedIn

Yes

Connections

500+

Endorsements / Recommendations

Yes

 

Mark Ashelford

Position

Advisor

Total experience

22+ years

Relevant experience

Yes

Relevant education

Yes

Professional achievements

Head of Digital and Social Media at Russells Solicitors

LinkedIn

Yes

Connections

500+

Endorsements / Recommendations

Yes

 

Rajesh Gopi

Position

Advisor

Total experience

20+ years

Relevant experience

Yes

Relevant education

Yes

Professional achievements

Co-Founder & President at Stealth Blockchain Project

LinkedIn

Yes

Connections

500+

Endorsements / Recommendations

Yes

 

Addison Huegel

Position

Advisor (Public relations)

Total experience

12+ years

Relevant experience

Yes

Relevant education

Yes

Professional achievements

Managing Partner at Elevator Communications, LLC

LinkedIn

Yes

Connections

500+

Endorsements / Recommendations

Yes

 

Tim Bukher

Position

Advisor

Total experience

10+ years

Relevant experience

Yes

Relevant education

Yes

Professional achievements

Partner at Thompson Bukher LLP

3 publications

LinkedIn

Yes

Connections

500+

Endorsements / Recommendations

Yes

 

Dr. Moe Levin

Position

Advisor

Total experience

5+ years

Relevant experience

Yes

Relevant education

Yes

Professional achievements

Founder of the North American Bitcoin Conference

LinkedIn

Yes

Connections

500+

Endorsements / Recommendations

Yes

 

Joshua Halferty does not seem to have the relevant entrepreneur experience, as he has previously worked as a Project Manager at Harmonia Holdings Group, LLC for almost 7 years and as a Technical Project Manager at Hewlett Packard Enterprise for nearly 2 years.

It is also doubtful that Xander Yi has the relevant experience, as his only long-lasting experience was at the Law Offices of Gutierrez Yi, where he worked as a Law Partner.

According to the LinkedIn profile of Alexander Lenart, before joining the CryptoCurve project he was a Freelance Web Designer for 5 years and has been working as a Cryptocurrency Investor for the past 2 years.

Andre Cronje stated on his LinkedIn profile that he also works as the Chief Crypto Code Reviewer at CryptoBriefing, as a Technical Advisor at Lemniscap, as a Blockchain Protocol Advisor at BitDiem and as the Head of Technology at Freedom. Given the multiple responsibilities listed, it is questionable if he can manage to be dedicated to the project.

Seán McGurk mentioned on his LinkedIn profile that he also works as a Senior Policy Advisor at ICS-ISAC and as the Vice President of Dark Matter LLC.

Benn Godenzi stated on his LinkedIn profile that he has worked as the Director of Marketing at AION and is a Co-Founder of Interoperability Alliance. He also outlined his strategic partnership with XTRADE.IO and ICON, and his advisory roles at projects such as STACK, Wanchain Foundation Limited and GoChain.

Paul Landingin’s previous work experience is mainly as a recruiter. He also stated on his LinkedIn profile that he is currently working as a Technical Recruiting Manager at Alpha Professionals and as a Cryptocurrency Trader/Investor at Stealth Mode.

We note that only one out of six advisors has stated his advisory role at CryptoCurve on the LinkedIn profile.

It is worth noting that the team lacks experience in blockchain development, as there is only one blockchain expert in the team, who also has multiple responsibilities at other companies. Besides, according to the team members’ official LinkedIn profiles, some of them are working at other companies, so it is unclear if they can manage to be fully dedicated to the project. Also, it should be mentioned that considering the technical complexity of the project and all the functionalities it claims to deliver, given the team members competence, it might be challengeable for them to deliver such a complicated project.

We draw attention that the CryptoCurve project does not announced any partnership with venture funds/investors, since given that the majority of tokens are allocated for private sale rounds (about 81%), and the minimum contribution amount is 100 ETH, it is questionable whether the team will be able to raise the required amount of funds.

The total token supply is 415,000,000 million CURV, 50% of which will be allocated to sales (both private and public). It is also stated that 35% of tokens will be reserved for the CryptoCurve Foundation and 15% of tokens will be allocated to the team and advisors with a 24 month vesting period.

The CURV token is the fuel for the CryptoCurve ecosystem allowing:

  • Real time transfers with low fees.
  • Low fee cryptocurrency payments to payment integrators.
  • Allowing developers to abstract the underlying infrastructure from the tools they are building.

 

Given the information on the website, CURV tokens will be used for:

  • Voting – CURV holders will get to vote on which ICOs CryptoCurve chooses to list on their platform.
  • Fee Discounts - Token holders get to earn discounts on ICOs featured on CURV, from payments made using CURV tokens. Half-priced trading fees when fees are paid for with CURV.
  • Pooling - CURV allows for token holders to create and run smart contract pools if they have enough CURV tokens. Admins are required to hold 10,000 CURV tokens during the creation and execution of custom pools.
  • Burning – Every quarter the system will buy back CryptoCurve tokens and burn them to ensure scarcity and ultimately a high price.
  • Staking - CURV token users will receive free airdrops from ICOs if they lock up their coins in a staking plan.

Only by staking CURV tokens within the Curve Wallet will users be eligible to receive airdrops for ICOs launching on the Curve Wallet platform. Staking rewards will be tier-based:

  • Tier 1 - top 20% of CURV holders will receive 40% of total airdrops.
  • Tier 2 - mid 40% of CURV holders will receive 40% of total airdrops.
  • Tier 3 - bottom 40% of CURV holders will receive 20% of total airdrops.

Within these tiers, the rewards are distributed 100% proportionally within that tier. It will be required to stake CURV tokens for 1 quarter (3 months’ period) to be eligible for the airdrops from that quarter.

Considering potential use cases, it can be concluded that CURV tokens are utility tokens.

FACTOR

DESCRIPTION

PRICE EFFECT

Development and release of new products according to the roadmap

We note that the team plans to release an all-in-one wallet with a variety of functions, each of the which can be considered as a separate project and the successful release of each of them may lead the price up, whereas failure to deliver will push the token price down.

⬆⬇

Demand for the platform

Given that CryptoCurve is an infrastructural project, the long-term demand for the platform may cause the token price to rise or fall.

⬆⬇

Sale of tokens by the team, advisors and contributors

5% of tokens are reserved for the team and 10% for advisors. We note that a healthy 24 month vesting period is set, so the potential sale of tokens by the team should not have a significant impact on the token price.

Significant bonuses during private sale round

At the time of analysis, the private pre-sale was ongoing, with 25% bonuses and a 5-month lock-up period. According to the team the pre-sale Stage cap is USD 26 million, which is 81% of the total Hard cap (USD 32 million). Assuming that the pre-sale Stage cap is reached, then around 63% of the tokens for sale will have been sold with 25% bonuses, which may have a considerable impact on the token price.

⬇⬇  

Token inflation mechanism

Given the burning system of the project tokens, which implies that the system will buy back the tokens quarterly and burn them, should prevent price inflation in the long run.

Volatility and immaturity of the cryptomarket

Although the token lacks speculative purposes, it is used as an internal payment mechanism within the system, therefore high volatility in the cryptomarkets may cause traders and speculative investors to trade CURV tokens, which may result in price fluctuations or even speculative activities (pump and dump, etc.).

⬆⬇

 

RISK

DESCRIPTION

LEVEL

Commercial risks

Taking the CryptoCurve idea and comparing it to other wallets that offer different abilities and functionalities, it can be concluded that the MyCryptoCurve Wallet introduces some unique features like the Nuke portal and other convenient functions. If the project could deliver all of the announced functionalities, it could become very popular amongst users. We note that one of the major issue with the wallet is its capability to have a global reach considering the differences in legislation of ICO pooling and Fiat Gateway functions in different countries.

Considering the heated-up competition in each of the market related to the CryptoCurve functionalities, that is to say, a dozens of different crypto wallets (where the market is quite congested), a plenty of ICO hosting platforms (such as KICKICO, etc., and indirect competitors such as ICON, etc.), and a large number of exchanges (as the CryptoCurve aims to to build in 0x, Kyber, or other exchanges by plugging them in as modules into the existing infrastructure), the potential investor should consider the commercial risks related to the project.

High

 

Incomprehensive technical description

Technical description of services is provided in insufficient details, particularly, it is unclear what conversion rate will be used for the exchange module in order to pay the fee for different functionalities of other blockchains, how/by whom the KYC/AML will be performed, etc.

Medium

Incomprehensive whitepaper

We draw attention to the fact that in the whitepaper there is no information regarding the proceeds allocation scheme, token and project economics, direct competitor analysis, etc. Considering that the start date of the public ICO is set for Q3 2018, it can be concluded that the level of risk for potential investors is considerably higher than usual due to the lack of information on the token and project economics, and on the project development plans.                                                                  

Medium

MVP

We note that the team as only a wallet to show in terms of product development so far. While this is better than nothing, an alpha/testnet of the project would be preferable. According to publicly available sources, MVP is expected after the ICO.

Medium

Incomprehensive roadmap

The project roadmap, does not contain any information regarding marketing and business development activities, expected number of users, etc., which may increase the level of risk for potential investors.

Medium

Team composition and expertise

We note that only one out of six advisors has stated his advisory role at CryptoCurve on the LinkedIn profile.

It is worth noting that the team lacks experience in blockchain development, as there is only one blockchain expert in the team, who also has multiple responsibilities at other companies. Besides, according to the team members’ official LinkedIn profiles, some of them are working at other companies, so it is unclear if they can manage to be fully dedicated to the project. Also, it should be mentioned that considering the technical complexity of the project and all the functionalities it claims to deliver, given the team members competence, it might be challengeable for them to deliver such a complicated project.

We draw attention that the CryptoCurve project does not announced any partnership with venture funds/investors, since given that the majority of tokens are allocated for private sale rounds (about 81%), and the minimum contribution amount is 100 ETH, it is questionable whether the team will be able to raise the required amount of funds.

Medium

Regulatory issues

The project might face some problems introducing functions such as ICO pooling, as the regulations for ICOs are not the same across different countries, and Fiat Gateway, which may be particularly difficult to implement due to regulations (anti-money laundering policy, etc.).

Medium

Decrease in token price

Considering that bonuses for the pre-sale are 25%, and the amount of bonuses allocated to the pre-sale are very high (given that the pre-sale Stage cap is 63% of the tokens for sale), the token price might face significant pressure. Also, the midway results of the pre-sale are not available, so the amount of tokens sold with a discount is unclear.

Medium

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.