MoxyOne Rating Review
|Start ICO||15 Mar 2018|
|End ICO||15 Apr 2018|
We assign the MoxyOne project a "Stable" rating.
The idea of the bundle of real world and crypto assets is not a new one, but it has not been transparently implemented by anyone so far. Of course it would be convenient to pay anywhere in the world with a debit card linked to a wallet for a specific coin. The MoxyOne concept is not complicated, but it could be useful to many other projects staging their ICOs.
MoxyOne’s marketing campaign is well-developed. Public coverage of the project is at a good level and the number of subscribers on social media meets expectations. There is also a lively discussion of project features with the community in the Bitcointalk thread and Telegram group. There are a large number of profile publications about the project online, an indisputably strong point.
The project team leaves a positive impression; there were no discrediting facts about members discovered during the audit. In our opinion, the team has the necessary competence to implement the intended functionality in the event of a successful crowdsale.
Despite these strengths, MoxyOne still raises many questions. There are some vague aspects of product development; the product, the launch process and justification of the hardcap are insufficiently described. Currently, there are only two confirmed partners for white labeling, which isn’t enough. Accordingly, the level of demand for the service by other ICO projects is unclear.
Given that there are many solutions offering proprietary wallets for ICO startups in the form of a white label, or in terms of their own development based on open inventions, the MoxyOne project lacks a key advantage – a reason for customers to choose this particular product. There are also other projects that enable card payments using almost any ERC20 tokens.
Regarding the architecture presented in the documentation, the need for large financial resources, as opposed to the development of an external environment is still a question. We cannot see the justification for such a large amount of funding for development that the hardcap entails, nor the volume itself.
General information about the project and ICO
MoxyOne is a project for the creation of a multifunctional payment system that would enable using cryptocurrencies (including crypto tokens) and using them for everyday needs by analogy with fiat currency. The development of the platform will take place using the latest technological innovations from the crypto industry – the Raiden and COMIT networks - and the main focus will be on providing white label applications for ICO projects.
Despite the huge variety of functioning and developed crypto payment services, MoxyOne is still distinguished by a B2B-oriented business model. The team asserts that the white label service for the wallet will be in demand among ICO projects, as it will significantly reduce the cost of developing their own solutions. In addition, MoxyOne assumes expanding the geographical scope of activities and upgrading architecture.
The MoxyOne ecosystem is based primarily on the use of the SPEND ICO token as a means of payment for commissions and for purchasing white label services. Thus, SPEND is the standard utility token in the ecosystem being developed.
From a legal point of view, MoxyOne is presented by MoxyOne Pty Ltd, registered in Australia. A large amount of factual information about this company is available in the public domain [Australian Business Register].
The ICO project is divided into three stages: A limited private token pre-sale, public pre-sale and crowdsale. The first round has already been completed, which was open to contributions of 20 ETH and above.
Start: Feb 08, 2018
End: Mar 10, 2018
Hard cap: 20,000 ETH
Soft Cap: 500 ETH
Price: 1000 SPEND = 1 ETH
Min investment: 1 ETH
Start: Mar 14, 2018
End: Apr 14, 2018
Hard cap: $20'800'000
Price: 1000 SPEND = 1 ETH
Min investment: 0.01 ETH
Token: SPEND, standard ERC20
Accepted payment: ETH
Total emission: 50,000,000 SPEND
Alocation of funds:
Bonuses are provided depending on the time and amount of investment:
When investing more than 1 ETH a 40% bonus applies, increasing to 65% at the 2500 ETH level
When investing during the first 24 hours, the bonus will be 40%; this will decrease week on week: 12.5% in the first week, 11.5% in the second week and 10% in the third.
There is also a referral program: The user receives 5% of funds invested by the referral.
The emission of tokens will occur upon the payment of ETH, thus there be no issued tokens that are unplaced. If the soft cap is not achieved, all tokens will be returned to contributors.
Description of the services and scope of the project
The MoxyOne platform is a multifunctional wallet with the ability to perform payment transactions, issue debit cards and currency withdrawals. The key difference in MoxyOne’s services lies in the fact that they encompass a wide range of cryptocurrencies, including ERC20 tokens. Thus, the team aims to occupy a niche for exchange operations and wallets as a white label for ICO projects issuing their own tokens.
The characteristics of the product are well described in the documentation. We briefly describe MoxyOne’s services below; they are focused on providing a financial infrastructure for working with crypto tokens and fiat.
First of all, MoxyOne offers the opportunity to pay with a wallet via EFTPOS terminals. The process is the same as with bank cards with the exception that payment will occur using supported tokens. From the point of view of processing, tokens will be exchanged for currency relevant in the country where the purchase is made through the Just in Time Funding mechanism. As a result, the merchant will receive fiat currency; he does not need to receive cryptocurrency for payment.
MoxyOne will issue both plastic and virtual debit cards. The white label service offers partner cards with individual designs. The wallet owner will be able to pay off by using a debit card with a EFTPOS terminal. Cards also permit cash withdrawal from ATMs in supported countries; withdrawals will occur through exchange of tokens to fiat within the MoxyOne ecosystem, in automatic mode.
In the project documentation, the team details the worldwide availability of services - cash withdrawal, payments and card issue. This is not yet concluded however, since it is necessary to have liquidity providers in place for each country of presence as well as removal of any legal barriers.
The wallet itself will be available in application format; the team presents screenshots, as well as supported currencies in the white paper:
Currently, SPEND, ETH and SCL integration is planned. In the future this will include other ERC 20/23 tokens, Monero, etc.
A user interface known as the Dashboard is announced, where a user can manage transactions, view statistics, current balances, transaction history, etc. Currently, the interface is available for closed beta testing; the application code is available on GitHub. A separate Business Dashboard will also be available for business partners where partner companies will be able to select the specification of issued cards and manage personal settings.
The cornerstone for MoxyOne's international market entry will be Liquidity Providers (LP). They could be individuals or organizations providing a bank account in their country, i.e. they could exchange tokens with fiat for service functioning, for example when withdrawing cash from ATMs.
According to MoxyOne’s principles, LPs will have to undergo verification and compliance processes beforehand, and currency exchange will take place according to current rates within the country in question. LPs receive tokens as commission for their services. The introduction of such third parties for fiat/crypto transactions in each country is a strong addition to the business model, but given the variety of approaches to cryptocurrency in different jurisdictions and an uncertain status in most of them, the legal aspect of such a mechanism raises questions.
From a technical point of view, MoxyOne’s architecture will be centralized, but there are plans to implement a number of promising solutions that will combine blockchain and off-line solutions in the ecosystem: The Raiden network to maximize transaction processing speed; the COMIT Network as a cross-blockchain payment channel.
It is difficult to imagine the modern world without bank cards. Physical and virtual cards have become a common thing along with smartphones. According to the latest data published in the Nilson Report, $257 billion worth of debit, credit and prepaid cards transactions were conducted in 2016. It is predicted that this figure will grow to $767 billion by 2026. It is unlikely that these forecasts from reputable analysts included crypto card transactions. This segment is actively developing and the MoxyOne project aims to take a firm position within it.
The idea of the MoxyOne project is simple - to offer other projects a financial infrastructure for issuing their own debit cards, virtual cards and wallets. More specifically, MoxyOne offers potential customers the opportunity to use the white label concept; cards will be supplied by MoxyOne, but branding and design will remain with the client.
The idea of b2b cooperation in this manner is quite new for this industry, since more often ICO projects try to do everything on their own and to justify their hardcaps and roadmaps by development costs. In the rest of the industry, debit cards linked to crypto wallets are well known.
For owners of crypto assets, the motivation for using cards is understandable; everyone is accustomed to use bank cards to pay with fiat money, so why not the same with crypto? It is logical that the first "card" projects were aimed at providing an opportunity to pay with Bitcoin. Currently, there are many ready-made solutions that could realize the basic functionality of a debit card - the ability to pay. The most famous BTC cards are Xapo, Bitwala, Wirex, Cryptopay, Coinbase Shift Card, BitPay Card, plus a number of others [Steemit]. Some of these cards are added to accounts on exchanges (Shift Card), some are linked to Bitcoin wallets directly (Xapo).
The cards differ in exchange rates, hidden and open commissions, cashbacks and other loyalty programs. The objective problems of BTC-cards are expensive card tariffs - for exchange they take on average 3% and often around 1% for the transaction [BitcoinExchangeGuide]. International card acceptance is usually provided by the Visa or Mastercard payment systems.
Interest in currencies is not limited to BTC only however; there are many other coins to pay with. A number of projects have launched their own services related to debit cards based on ERC20 [CryptoSlate]. Here are a few known projects with their current statuses:
It should be noted that projects related to crypto payment systems for consumers have been favorably received by the investment community and did not have special problems with placement. For example, TenX was one of the notable ICOs for 2017, raising $34 million in just 7 minutes [Bitcoinist]. The Centra project also excelled, having pleased everyone with a promotion by the great Floyd Mayweather.
We will not hold a direct comparison of all the conditions that projects offer to owners of their cards here; everyone can choose a product to suit them. Let us just say that there is no clear leader in this field as yet; projects compete in commissions, available currencies, cashbacks and other tariff services, but they are close enough and meet the basic requirement - to provide a working debit card you can pay for a "cup of coffee" with.
Returning to MoxyOne, Token and Amon, which allow payment via any other tokens, are the closest projects to it. Therefore, not all projects will want to create personal cards, as suggested by MoxyOne, if their coins will be possible to pay.
It should be noted that MoxyOne is different from other services due to some technical innovations, such as the integration of the Raiden Network [a micro payments channel] and Gladius [DDoS protection]. These implementations should make the MoxyOne network more reliable and possibly cheaper.
Thinking about the great variety of blockchain cards, we should remember that fintech start-ups do not usually issue bank cards by themselves, nor are they direct partners of Visa or MasterCard. Almost all of them work with partner banks, which are the entities issuing cards. This is usually about prepaid debit cards; the difference is not perceptible for an everyday client with the usual bank cards but in fact there is a difference. These internal features allow issuing cards in a simplified manner. If someone wants to understand this topic, reading the article "Why You Want A Cryptocurrency Debit Card" [dash.org] will help. We highlight this shadow feature of crypto cards in order to highlight one of the significant risks.
Just recently, many Visa crypto cards have stopped functioning due to the fact that Visa has ceased to work with WaveCrest, a large card provider. This Gibraltar company controlled up to 70% of all crypto cards; CryptoPay, Bitwala, TenX, Wirex and many others have been working through it. The true nature of the conflict between Visa and WaveCrest is unknown. Visa representatives have claimed repeated violations by WaveCrest. In fact, the interest of individual jurisdictions in such transactions and an insufficient level of disclosure of information about individual users are the key issue.
Therefore, one needs to be prepared for the fact that crypto cards are not yet a completely reliable tool; as long as there are gaps in regulation, WaveCrest-like cases will continue to appear.
Team and stakeholders
The MoxyOne project team stands out in some ways among most other projects. It is obvious that success directly depends on the team, experience and reputation of the founders. It is often difficult to verify the reliability of all available information.
In the case of MoxyOne, the experience and qualifications of the founders promote confidence - Mo Abbas and Tanshul Kumar have very detailed pages on LinkedIn.
It can be seen that the founders are experienced IT specialists; this is also evidenced by the documentation and the GitHub repository. Therefore we do not doubt the team’s competence in the technical field, and we think that all declared functionality will be implemented to a high level. We hope that the team will have enough experience in other areas of business.
8 team members and 5 advisors are listed on the project website. In the framework of this review, we will discuss the founders in more detail; other participants will be simply listed.
Bennett Gale LinkedIn
Shivangni Singh LinkedIn
Marketing & Research
Rick Kennerknecht LinkedIn
Exchange Listing Consultant
Samer Abbas LinkedIn
Business Development Consultant
Chelsey Singh LinkedIn
Director of Communications
Jade Mulholland LinkedIn
Business & Technical Advisor; Founder of Social
Frank Bonnet LinkedIn
Blockchain & Technical Advisor Founder & CTO of DCORP
Mike Balagna LinkedIn
Marketing Communications Advisor COO of DCORP
Hansco Leek LinkedIn
Operations Advisor Service Manager of DCORP
Ian Scarffe LinkedIn
Blockchain ICO Advisor & Consultant Expert at ICObench
The SPEND ICO token is a currency for commission payments. For partner wallets or cards, MoxyOne does not charge additional commissions to the customer, only a standard license fee. The partner can independently establish additional commissions.
The documentation shows the size of fees and the cost of card issuance:
In addition to the white label, LPs must also accumulate SPEND token. LPs can participate in the ecosystem with a minimum 100,000 tokens.
Despite zero rates for most services, commission will still be non-zero for the end consumer. Thus, the partner can and most likely will establish commissions for the cost of connection to and operation with MoxyOne. Zero commissions also look unrealistic for other items, whether currency exchange or cash withdrawals at ATMs, because of costs for banking sector and payment systems. Such commissions are also doubtful when attracting LPs, as these participants also need material motivation, although their activities may entail legal consequences in their own jurisdictions.
Analysis of factors affecting the future value of the token
The price of SPEND tokens will depend directly on the volume of the MoxyOne client base, and the client base will be formed from partner projects using the white label application. To obtain a partnership and a wallet, third-party ICO projects will need to consolidate a certain number of SPEND tokens. There are no other mechanisms for increasing the value of the token in the business model.
On the one hand, the B2B orientation makes it easier to occupy a market share; on the other hand, it greatly shifts the opportunities for turnover control. At the same time, the functionality and breadth of coverage of MoxyOne services are very important for partner projects, as most projects are oriented not to the Australian market but to the European and the USA.
After implementing all announced plans, the platform could become much more attractive; in this sense the project is highly dependent on funds raised at the ICO. As a result, the high hardcap with the absence of hype around the ICO is a negative factor in forecasting the future price of SPEND.
Currently, there are only two confirmed partners for white labeling which seems insufficient. This is the main problem for the chosen business model. The team states it is active in finding and attracting projects, so long-term potential will directly depend on the number and quality of partnerships involved, as well as on the size of the client pools. If prospective partnerships are found, this immediately affects the value of the token; the effect could be significant.
An extensive bonus program could also be a negative factor for the value of SPEND in the long term. Bonuses reach 40% depending on the time of purchase (in the first 24 hours) and 65% depending on the amount of investment (above 2500 ETH). This risk is partly compensated for by the fact that in the second case bonus tokens are frozen for up to 150 days.
Summing up, we see a strong dependence of the value of SPEND on team efforts to attract partner projects, which in current realities could put pressure on rates. The business model and the idea of using tokens for household calculations looks strong; the demand is justified by the advantages: the absence of development costs, the flexibility of commissions and the breadth of scope of the services offered.
Investment risk analysis
The MoxyOne project is subject to several significant risks. The first lies in the future service model. Targeting b2b clients implies a stream of consonant projects for white labeling and those who wish to release branded cards. Only two partners have been listed on the website which is certainly not enough; we hope that there will be more partners by the results of the ICO.
The second risk is associated with the first one and arises from competition. Some services already connect (any) ERC tokens to cards, so many ICO projects may not require their own cards.
It is unclear how widely-used existing payment systems will function with crypto cards. We hope that common sense and a rational business approach will promote the development of mutually beneficial cooperation but we need to understand that stability will be engendered by stricter requirements for services regarding disclosure of customer information.
There are also specific questions for the MoxyOne project itself. The technical side of the project is well-covered, but the economic and financial sides remain closed. From our point of view the project has a rather high hardcap, while the model according to which it would be necessary to collect these funds is not clear.
The information contained in the document is for informational purposes only. ICORating received monetary compensation from the entity rated in this report for completing the ratings report. However, the entity rated in this report did not have the opportunity to approve this rating report before the report was published, nor did the rated entity have the opportunity to edit or remove this report once it was published.
The views expressed in this document are solely those of the ICORating Team, based on data obtained from open access and information that developers provided to the team through Skype, email or other means of communication.
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