Jibrel Network Rating Review
|Start ICO||25 Nov 2017|
|End ICO||26 Dec 2017|
We assign the Jibrel Network project a "Stable" rating.
In our view, the Jibrel project as a whole has a positive development potential.
Considering that capitalization of cryptocurrency is growing rapidly, as is the number of cryptocurrency users, we believe that this market needs innovative developments that provide secure storage, use, and conversion services for cryptocurrency funds. Thus, the idea that the creators of this project are pursuing looks very attractive and interesting.
The developed project may be of interest to traditional investors and non-investment users, as well as to decentralized organizations/funds that seek to diversify their holdings with stable, low-income assets.
However, there are risks in implementing this ecosystem. The key risk, in our opinion, is the contradiction of the main idea of the project with some fundamental postulates of the crypto community, which appreciate, first of all, the independence of digital assets from centralized institutions, including states and regulatory bodies. On the other hand, the project will certainly be of interest to financial institutions able to use Jibrel’s functionality to reduce transaction and operation costs.
For mass product distribution, the project will need to solve the problem of on-chain identification of individuals and legal entities in accordance with the applicable legislation in each country (development of which, regarding cryptocurrency, is still difficult to predict) which also represents a serious risk for full implementation of the assumed functionality.
General information about the Project and ICO
The Jibrel network provides a possibility to digitize traditional assets, such as currencies, bonds and other financial instruments, through blockchain technology. The platform will allow users to deposit fiat funds in exchange for Crypto Depository Receipts (CryDRs).
The startup is registered in the so-called Crypto Valley, the city of Zug in Switzerland, and has already raised over $7 million from large investors, including TaaS Fund, Tech Squared, Aurora Partners, Arabian Chain, etc.
Currently the project already has one running project, jWallet, which according to the team can store financial assets such as currencies, commodities, bonds and shares in the Ethereum blockchain. An alpha version of the wallet, which provides an easy way to store, transfer, and convert ERC20 compatible tokens, has already been released. In addition, the jWallet incorporates a high level of security, and does not store any sensitive user data; none of the keys ever leave the device.
ICO Start: November 27th, 2017 12:00:00 UTC
ICO End: January 26th, 2018 12:00:00 UTC
Target cap on crowdsale: 120,000,000 Jibrel Network Token or US$30,000,000
ICO Price: 1 JNT = US$0.25
Minimum Buying Transaction: US$100
Minimum Buying Transaction: US$850,000
Bonuses: not available
Accepted currencies: ETH and BTC
Total emission: 200 million JNT
Allocation of funds:
- Development team – 42%
- Software & Technical Infrastructure – 17%
- Legal fees – 10%
- Marketing & PR – 8%
- Office rent – 8%
- Ongoing bounty campaigns – 5%
- Audits – 4%
- Other – 6%
Token Issue Date: immediate
Vesting: Tokens are available for resale on 1/02/2018
Escrow: No data available
Description of the services and scope of the project
The project’s mission is the effective use of blockchain and cryptography technology to fully automate and decentralize consumer/retail banking services (and related investment banking transactions).
While non-fiat portals will charge for off-line payments in real currencies, Jibrel payments and commissions will be charged in Jibrel Network Tokens (JNT).
CryDR are linked tokens that represent ownership of a traditional asset stored in the system (such a token will appear as jUSD, jEUR, jGBP). Almost immediately after the launch, Jibrel will start supporting six fiat currencies and two money market instruments, with plans to add additional financial instruments in the future. These tokens are used for transactions within the Jibrel network.
Thus, the network is denominating the currency CryDR in JNT tokens, for example, a USD CryDR has a JNT value of $1.
Fiat CryDRs can be used for money transfers, international payments, and hedging. According to the team, CryDRs can also be used to create automated and decentralized financial instruments such as bonds, debt instruments and securities.
With the extended CryDR architecture, the team is launching the first two products of the Jibrel Network:
jWallet: the best ERC20 token wallet in the market, according to the project team.
jCash: 6 fiat currencies available as Smart ERC20 tokens (CryDR).
jWallet is an important part of the entire project's infrastructure. According to the authors of the project, the creation of the wallet was prompted by the fact that there was no reliable service on the Ethereum platform. Most wallets have to decide whether to make a secure or easy-to-use service.
At this point, jWallet is still in the alpha stage, and the creators warn against transacting large values before it is production ready:
In the medium and long term, Jibrel will focus on the tokenization of debt instruments and their derivatives, thus optimizing much retail investment and investment banking. The team intends to create the first protocol that will allow anyone to use traditional assets, such as currencies, bonds and other financial instruments based on blockchain in the form of Crypto Depository Receipts (CryDRs). CryDRs have a built-in "smart" regulation; the rules and regulations of real world regulators will be built into the codes to ensure that decentralized, tokenized financial assets always follow existing rules and regulations in the world community.
Thanks to this algorithm, Jibrel Network is trying to solve problems such as high commissions and slow transaction processing. Moreover, the creators of Jibrel intend that users will be able to store funds on their platform, as well as to send and receive payments in their local currencies with minimum commissions that tend to zero. In this context, the team positions the product not only in terms of trading digital assets, but also as a convenient way to transfer fiat funds similar to, for example, Paypal with minimal losses and the most secure data possible.
Engineering features of the project
The Jibrel platform is an on-chain/off-chain system that allows users to tokenize traditional assets. Investors will be able to use the platform to configure their existing assets in accordance with AML (Anti Money Laundering)/KYC (Know Your Customer) and compliance restrictions, as well as to sell them online for profit.
The following are the main features of the Jibrel Network ecosystem:
Public Blockchain: The Jibrel Network will use the Ethereum system until the implementation of the complete cross-coupling. Many startups use this blockchain system in the early stages of implementation.
Cryptocurrency Exchange: The Jibrel Network allows users to exchange cryptocurrency and fiat assets.
Tethered Tokens: All tokens on the Jibrel Network will be secured by real assets. For each traditional asset there is a token tethered to it. If the fiat asset is sold, the tethered token is destroyed.
Guarantor: The Jibrel DAO always holds sufficient JNT to match any assets represented as CryDRs - acting as a transparent guarantor for the tethered tokens.
Application Layer, libraries and templates: After creating a tethered token, developers can create different applications that use these tethered tokens. Applications will include payment processors, wallets, and trading platforms.
Tariffs and Charges: The transfer of ownership rights for both digital and traditional assets is related to payments and charges that will have to be taken into account when working on the platform.
A holistic solution is used for developing Jibrel. The team breaks the system into several complex smart contracts that interact with each other and can provide smooth upgrades and system updates. Despite the more complex realization, this algorithm provides a powerful backend for Jibrel DApps.
The first iteration of the Jibrel network aims to support USD, EUR, GBP, USD, CNY, AED, and additional currency support will be gradually added as strategic partners are integrated.
Critical data, such as user balances and their transactions, will be stored in blockchain and all other data are located on the servers. The team has also developed tools and structures to facilitate the rapid development of decentralized applications based on Jibrel.
During the development of Jibrel, the team will provide the developers with the components, tools, and structures needed to ensure the wide implementation and distribution of CryDR. Additional infrastructure will also be required for two main extensions: onchain APIs and offchain APIs / Utils.
After implementing the Jibrel DAO, the project architecture will look as follows:
Using this architecture, the team assures that even in the case of the total collapse of the crypto economy in general, Jibrel AG Fund (off-chain) will have the resources to execute all on-chain and off-chain obligations to its users.
The main parties interested in the ecosystem being developed are:
- Non-investment users who seek to profit from transactions using cryptocurrency in the form of lower commissions for instantaneous translations.
- Traditional investors who aspire to get a high ROI from successful projects in the rapidly developing crypto economy.
- Decentralized organizations/funds and crypto investors that seek to diversify their holdings with stable low-income assets in order to remain transparent to the users making their investments.
On 02.12.2017, the volume of the crypto economy amounted to over 325 billion dollars, and the main cryptocurrencies were the following ones:
At the same time, the market capitalization of Bitcoin amounted to 183 billion dollars, and Ethereum capitalization was 45 billion dollars.
In hindsight, the capitalization of Bitcoin, according to the Statista portal, is rising inexorably:
The statistics represent the market capitalization of Bitcoin from the first quarter of 2012 to the second quarter of 2017. Market capitalization is calculated by multiplying the total number of currencies in circulation by price. The market capitalization of Bitcoin increased from about 0.04 billion dollars in the first quarter of 2012 to about 71.95 billion dollars in the third quarter of 2017.
While its market capitalization is growing at an incredible rate, the public is only just now starting to learn about the existence of cryptocurrency. Up to 76% of Americans are still unfamiliar with Bitcoin. Although there are currently more than 16 million Bitcoin in circulation, there are only 1587 Bitcoin ATM machines worldwide. Thus, the physical presence of the currency is minimal and, in addition, most ATMs are located in the United States.
The more that cryptocurrency is integrated in the daily life of society, the more users it will attract, and only in this way will the market be able to evolve.
Competitors and competitive advantages of the project
The general competitive map for the beginning of 2016 was as follows:
However, in almost two years many new projects that have also captured part of the financial market were added to the map.
According to the team’s statements, direct competitors for the Jibrel network are currently Tether, LA Token, Polymath, etc.
The Tether platform is based on Bitcoin, using the Omni Layer protocol. It allows users to trade and use digital tokens, which in turn are tethered to the United States dollar. Thus, each USDT token in the system has a reserve of fiat funds. However, a scandal has recently arisen because of the actions of fraudsters who robbed the company of 31 million dollars, which is why this service is currently distrusted by many users.
LAToken is a platform for creating and trading tokens quoted on exchanges, as well as offering wallet services, assistance in the staging of an ICO, etc.
The BitShares project has a similar algorithm to Jibrel’s — in its ecosystem, BitAssets tokens are "smart currencies", which are bound by market forces to the underlying fiat currencies (USD, EUR, CNY) or commodities such as gold or silver, while BitShares (BTS) tokens are described as a utility within the entire platform. However, the project mainly focuses on trading services and aims to transfer the trading platforms of existing blockchain exchanges into their system for safer operation.
Comparison of the rivals is presented in the following table provided by the team:
From our point of view, the above competitors were chosen rather one-sidedly, thus Jibrel is described in the most favorable perspective for the founders. In reality, Jibrel will have to compete with such projects as Ripple and Stellar which are not presented in the documentation as competitors.
Ripple is a real-time gross settlement system (RTGS), currency exchange and remittance network. Also called the Ripple Transaction Protocol (RTXP) or Ripple protocol, it is built upon a distributed open source internet protocol, consensus ledger and native cryptocurrency called XRP (ripples). Released in 2012, Ripple purports to enable "secure, instant and nearly free global financial transactions of any size with no chargebacks." It supports tokens representing fiat currency, cryptocurrency, commodity or any other unit of value such as frequent flier miles or mobile minutes.
Used by companies such as UniCredit, UBS and Santander, Ripple has been increasingly adopted by banks and payment networks as a settlement infrastructure technology, with American Banker explaining that "from the banks' perspective, distributed ledgers like the Ripple system have a number of advantages over cryptocurrencies like Bitcoin," including price and security.
XRP, Ripple’s digital currency, enables real-time global payments anywhere in the world. It is the third most prominent cryptocurrency in terms of market capitalization and has performed extremely well during 2017.
Stellar is an open-source protocol for value exchange founded in early 2014.
Servers run a software implementation of the protocol, and use the internet to connect to and communicate with other Stellar servers, forming a global value exchange network.
At launch, Stellar was based on the Ripple protocol. After making several changes to critical consensus code, the Stellar network forked.
Several nonprofits and businesses are implementing Stellar as a financial infrastructure, particularly in the developing world - Africa, India and the Philippines.
In October 2017 the team announced that Stellar is partnering with IBM and KlickEx to develop a blockchain-based cross-border payments solution, proven to significantly reduce transaction costs and increase transaction speeds.
The Jibrel team, in addition to its announced future developments already has an alpha version of its digital wallet.
Crypto wallets are used for savings, and carrying out transactions that are estimated at hundreds of millions of dollars, creating a very competitive space for their creators along with Bitcoin exchanges. So far, a large number of online wallets similar to JWallet are realized in the crypto world, as well as a number of similar platforms.
At present, about 300 million dollars are stored on the major platforms:
Each has more than 4 million accounts.
In addition, there are a large number of relatively recently launched web wallets, such as Jaxx which is rapidly gaining popularity.
Jaxx is a cryptocurrency wallet available for download on 8 platforms. The Jaxx wallet is considered a popular choice for Bitcoin users and cryptocurrency traders around the world, among other things for its security, privacy, and a simple but powerful set of features.
Given the team's desire to take a slightly different niche after the implementation of all the declared developments, it can be said that the project has a chance of becoming a successful platform, with a user-friendly and intuitive interface, protocols guaranteeing secure storage of funds and smooth transactions.
Despite the attractive idea of developing a platform for the instantaneous conversion of cryptocurrency to fiat as well as for other retail services, we believe that the project has a number of significant risks. They include:
The risk of not maintaining liquidity of JNT tokens
Based on the documentation, the platform involves a fund that can secure the tokens used in the ecosystem with traditional assets. Nevertheless in our view this is difficult to predict — the volatility of the crypto markets is characterized as very high.
At this point, the site and documentation warn that the United States, China, and Singapore residents are not able to participate in the ICO. Many countries now have mixed views on the regulation of the cryptocurrency market and do not yet have the tools for it. Nevertheless, the high interest of different countries in the crypto economy could lead to some new restrictions.
Risks associated with fraud
We know that the closest competitor of the project, Tether, has been robbed of $31 million by fraudsters. In fact, this risk applies to all platforms that are closely connected to their users' wallets.
Risks of non-competitiveness
There are many potential competitors, platforms that have technical means to diversify their services with a set of services similar to the services considered by the project.
Risk of mistrust
According to the creators, there is also a serious risk of not raising the necessary funds during the ICO since many investors, investing in ultimately unimplemented projects, are ceasing to trust the idea of crowdfunding.
The Jibrel Network is implemented by the Jibrel AG and Qubist Labs Inc. joint initiative.
Jibrel AG is a registered company in Switzerland (Zug), and Qubist Labs Inc., based in New York, is a blockchain technology development company.
The team's key members are the Project Lead and co-founder Yazan Barghuthi, Technical Lead and co-founder Victor Mezrin, BizDev Lead and co-founder Talal Tabbaa, as well as Operations Lead Hamzeh Kolaghassi.
Yazan and Talal both studied at the Amman Baccalaureate School in Amman, Jordan. Their paths then diverged and Yazan received his higher education in Chemical engineering at University College London, England, and Talal received a degree in industrial engineering at Purdue University (Indiana, USA). Both have experience in the Big4 in finance, as well as in other industrial companies in different parts of the world.
The team’s operations are based out of New York City, USA.
The rest of the team is presented below:
Anna Bordunova – Public Relations.
Nick Marinin – Developer (UX/UI).
Aleksey Selikhov – Developer (Back-end).
Yuriy Homyakov – Developer (Back-end).
Ivan Violentov – Developer (Front-end).
Evgeniy Erokhin – Developer (Front-end).
Rust Khusyainov – Illustrator.
The project currently has 6 advisers, including
Don Tapscott - Strategy Advisor (CEO of Tapscott Group), creator of Blockchain Research Institute.
Abbas Zuaiter - Capital Markets Advisor (former COO Soros Fund).
Ruslan Gavrilyuk - CryptoFinance Advisor (CEO & Founder of TaaS Fund).
Saul Hudson - Communications Advisor (former GM at Thomson Reuters).
Mohammad Al Sehli - MENA Advisor (CEO & Founder of Arabian Chain).
Dr. Moe Levin - Public Sector Advisor (CEO of Keynote).
In general, the main advantage of the team is a set of first-rate advisors, who can truly be called professionals in their field. Nevertheless, the key members of the team in our opinion have the experience needed to implement such a project.
Project development strategy and Roadmap
According to the project’s creators, the global strategy involves 3 phases of development for the Jibrel network:
Become a crypto-leader (2017-2018);
Survive the crypto-correction (2019-2020);
Become a tech giant (after 2020).
The roadmap for phase 1 of the project is presented below:
The second and third phases of development involve a wide diversification of the platform's services, active expansion of the user base, and the generation of an annual income of about $100 million by 2020.
An angel round of sales took place between July 25 and August 25, when the price of tokens was $0.15 USD.
An open pre-sale was held between 25 September and 25 October 2017, when the token price ranged from $0.20 to $0.225. During this stage, the project raised more than $3 million and about $20 million JNT was distributed.
Most of the funds have been raised in MENA markets where the project is popular and is constantly in negotiations with institutional investors:
The Jibrel Network issued 200 million JNT:
- 10% sold in the Angel Round and Pre-sale
- 60% is reserved for the launch of the network
- 15% is reserved for the team
- 10% is reserved for consultants and partners and
- 5% for the bounty campaign.
In addition to the bounty campaign, the team is engaged in many negotiations with potential project partners. Among the agreements that have already been signed, TaaS is the first tokenized closed fund for blockchain assets.
Jibrel also works with New Alchemy for security audits and with PwC to conduct financial audits. In addition, the creators have already signed a strategic agreement with Arabian Chain to provide smart regulation in the MENA markets, as well as Hacken to provide a cross-check for overall security.
Economy of the Project
Given the nature of the service offered by Jibrel, it is clear that the economy of the project, once it has been put into operation, will be based on commissions for the transactions carried out on the platform.
Unfortunately, we did not find a detailed business plan and monetization model of the project in the documentation, as well as the level of planned tariffs for the transactions.
It should be understood that in the short term after sales, the team will use the raised funds to implement the platform. Based on the white paper data, distribution of the raised funds will be as follows:
Development team – 42%
Software & Technical Infrastructure – 17%
Legal fees – 10%
Marketing & PR – 8%
Office rent – 8%
Ongoing bounty campaigns – 5%
Audits – 4%
The remaining 6% of funds will be redeployed to the network as CryDRs
However, the team does not propose to examine the development scenarios of the project at different levels of investments attracted during the ICO. Thus, it is not possible to analyse the adequacy of this distribution.
Token investment attractiveness
JNT will be a utility token on the network, providing universal access to all the features of the Jibrel network and related Jibrel DApps that will be implemented later. JNT guarantees that all CryDR will always be bound to their respective underlying assets, according to the added layer of compliance.
As claimed by the creators online, the Jibrel token (JNT) will be publicly sold on at least five exchanges starting from 1 February 2018.
Due to legal restrictions, citizens and residents of the United States are prohibited from participating in the sale of JNT. At the same time, the main target markets of the project are currently APAC and MENA (taking into account the team's data on investor activity by region within the pre-sale).
We should note that according to the project site a little over 95 million tokens has already been distributed from 200 million; thus more than $16 million were raised during the week, which indicates that there is strong community involvement as the project ICO does not involve any bonuses.
After analyzing the available information about the project, we assess it as moderately attractive. The plans to develop the network seem logical and technically feasible, although the global development strategy of the system is, in our view, too optimistic (to become a fintech giant by 2020 with a revenue of $100 million).
In our view, the main advantages of the project are:
the working alpha version of the jWallet
a brilliant team of project advisors
an extremely favourable current situation in the cryptocurrency market, as well as an increase in the amount of people interested in using cryptocurrency
However, in our view, the elaboration of some aspects of the project (or more precisely of what is being made available to users in the public domain) does not give a full understanding of the project. The lack of critical information about the financial component, as well as the project's marketing campaign, raises some doubts about the time frame for its implementation.
In addition, there are a number of risks discussed earlier in the review that are potentially capable of adjusting the team's plans for future development, implementation and operation.