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Streamity Rating Review

Stable

Investment Rating

Expiry date : Expired 29 Jul 2018

Ratings

We assign the Streamity project a "Stable" rating.

Streamity is a project for the creation of a currency exchange platform. The team is developing a P2P solution for exchanging cryptocurrency for fiat which will be completely independent and secure, as a result of using smart contract architecture and API payment systems. It is also planned to create a centralized crypto exchange and information portal. The utility token sold during the ICO will be used for using the platform’s services.

The idea of the project is not a new one; there are many similar exchangers on the market, including those that are P2P-based. The Streamity project is distinguished by a strong security solution for the fiat aspect of the P2P exchange, the presence of strict KYC and low commissions.

We recognize the relevance of these features and expect continued popularity for P2P exchange services in the near future. The position of Streamity relative to its main competitor, LocalBitcoins, may prove to be sustainable, given a more convenient service and smaller commissions.

At the same time, we note the risks associated with the development of DEX exchanges, fully decentralized exchangers with cross-chain transaction technology. Despite the fact that DEX platforms operate in "simplified mode", their implementation of full functionality will not be complete for another few years. Competition between P2P exchangers and DEX is likely to be won by the latter.

The Streamity project is well documented; all basic information about the project is disclosed and the team has the necessary competence to implement the project’s declared functionality. However, a significant drawback is the lack of an MVP, which imposes a number of additional risks.

Another significant issue for Streamity in the future is the ability to integrate the platform with large-scale payment systems. It is partnerships with such operators and the use of their APIs that make it possible to implement a "full" P2P transaction; however, the platform must support the major operators to gain full popularity. At this stage, Streamity has only two regional payment systems on its list of partners; negotiations with larger players are only at the planning stage. At the same time, working with crypto start-ups carries certain risks, so the attractiveness of partnerships is not so obvious for the other party to such a deal.

The availability of a published business model which contains scenario modeling is a definite positive. However, some of the assumptions and projections of the model are not sufficiently justified.

General information about the project and ICO

Streamity is a project creating a multi-service platform for transactions with crypto and fiat currencies. The key product in the line is a P2P cryptocurrency for fiat exchange without intermediaries; Streamity offers an original solution for this, which has no current analogue in the market. Other services perform auxiliary functions – there is a converter for crypto currency and an information portal.

Streamity’s unique P2P solution connects a cryptocurrency smart contract simultaneously with the API of payment systems for fiat. This allows complete exclusion of mediators and the human factor from operations and makes them as safe and marketable as possible.

The fact that there is still no independent P2P crypto/fiat exchanger is due to legal and architectural barriers (the need to link payment provider systems and a smart contract), so possibilities for Streamity are highly dependent on the solution of these problems. First of all, we are talking about partnership with payment systems, as the P2P exchanger is implemented through the API mechanism of the payment system. At the same time, Streamity strongly depends on the legal climate in countries of operation, i.e. the platform can be vetoed by payment systems on the basis of regulator's requirements.

The project is led by a team of young professionals headed by CEO Vladislav Kuznetsov, who comes from a finance and asset management background. The current development of the project amounts to a closed MVP (video of its performance have been shot), co-operation with Yandex.Money and OKPAY’s API, as well as negotiations with other regional payment systems in Eastern Europe, QIWI and AdvancedCash. Negotiations with PayPal, VISA and MasterCard have been announced for the future. Legally, the project is represented by Streamity PTE. Ltd established in Singapore.

The ICO STM token is an infrastructure token, used for paying for subscriptions and commissions on the Streamity platform. The process of issuing the token is divided into two phases – Pre-ICO and Crowdsale. Currently, the team is preparing for the ICO which will also be divided into two phases with different bonuses.

ICO

Start: Mar 12, 2018

End: Apr 29, 2018

Soft cap: $5,000,000

Hard cap:  $26,000,000

Price: 1 STM = $0.2

Min investment: 0.01 ETH

Token: STM, standard ERC-20

Accepted payment: BTC, LTC, ETH, ETC, USD, EUR

Total emission: 186,000,000 STM

Distribution of funds:

  • 70% - Token sale

  • 25% - STREAMITY company

  • 3% - Bonus program

  • 2% - Advisors and partners

The team’s tokens will be allocated as follows:

  • 40% - A reserve fund for the development of Streamdesk, maintaining liquidity

  • 50% - Frozen for one year until the launch of mobile version of Streamdesk

  • 10% - Bonuses paid to employees.

Tokens for advisors and partners will be frozen for one year

Bonuses for the ICO are provided depending on the stage, from 30% at the Pre-ICO to 10% during the second phase of the ICO.

At the Pre-ICO or the first day of the ICO, buyers of 1250 STM tokens or more will be granted a subscription to Streamdesk at the appropriate level as a bonus.

Description of the services and scope of the project

The basic service offered by Streamity is named Streamdesk, which consists of architecture for exchanging fiat for cryptocurrencies using peer-to-peer (P2P) transactions. A cryptocurrency converter is provided as part of the service - exchange of coins with other coins. These solutions are implemented in different ways; the most innovative and fundamental is still the P2P exchanger for fiat/crypto currency.

The general scheme of service implementation is visually presented in the documentation:

The scheme describes the basic parameters of service functioning. Users register on the platform and place orders for purchase or sale of cryptocurrencies onto the system. A transaction can also be made without an application, based on the satisfaction of already submitted bids. In this case, the user accepts the terms of the buyer/seller. After determining conditions (volume, price and method of payment) a transaction can be started. Security calculations are implemented by escrow smart contract for cryptocurrency and by using an automatic payment system response (via API) for fiat.

Streamity gives an example of the fiat/crypto exchange on the Russian payment system Yandex.Money. The example explains the operating mechanism of the platform.

  1. The first stage is the placing of an order for the purchase/sale of cryptocurrency. This is possible only for authorized users (a user will be asked to register), the application specifies information about the transaction, the method of payment, the Yandex.Money wallet number.

  2. After creation, the application falls into a list on the Streamity page.

  3. Other users can accept the application, acting as buyer or seller. They also need to choose a payment method (when buying) and a wallet number, register or authorize. After that, the application will receive a "waiting for confirmation" status and the application owner will receive notification of the start of the transaction.

  4. After re-confirmation of the application, the system writes off cryptocurrency from the wallet and creates the smart contract; the application receives a "pending payment" status. The term of the smart contract is 3 hours; cryptocurrency must be paid during this time.

  5. After receiving information from the payment system (Yandex.Money) about the transfer of fiat, the escrow contract transfers cryptocurrency to the second party. Conversion to fiat takes place through a one-time payment to the seller’s wallet via the OAuth2 authentication protocol.

From a technical point of view, the operations and relationships of the architectures in this example are as follows:

Exchange of cryptocurrency is also possible with the help of a KYC procedure. Streamity does not provide a detailed description of the transaction process, only the basic principles of KYC policy. We think that the protection of one party will also be ensured via smart contract, and that operation will be safe due to the possibility of identifying fraudsters and filing a claim to court.

According to the KYC policy, Streamity may refuse to work with a client if there is doubt regarding personal data. The following documents are required for identification: a copy of an identity document (overseas passport, driver's license, ID card, etc.); a utility bill or a bank statement; a copy of a bank card; selfie with passport; copies of constituent documents (for legal entities).  In other words, a standard list of documents for compliance on crypto exchanges.

The cryptocurrency converter functions on the basis of a centralized service; in this case, Streamity independently determines the exchange rate based on trades data. The procedure from the client's side is extremely simple and similar to most exchangers on crypto wallets.

Another Streamity product is the creation of an informational, analytical, educational and investment online resource. This will be available via the link Streamity.org, currently being developed. In the documentation there is a general description of the topic and principles of the portal. Thus, users can independently create content and gain rewards in STM: Articles and information, bonus programs and rewards, forecasts, news, etc. It is worth noting that there are not any innovations here, there are many such portals in the network so competition is great. In this regard, it is difficult to assess the feasibility of creating such service, especially given the current status of portal development.

There is practically no information on the limits and commissions of payment systems in the documentation. However, this information will depend heavily on the particular operator, through wallet of which the movement of fiat will occur. In each case, the limits and commissions are dictated by the terms of the provision of the services of the payment operator.

Market review

Perhaps it is not necessary to state the obvious about the need to develop cryptocurrency exchange services. Industry demand and constantly growing competition from both sides are pressurizing current exchanges and demanding better services. Currently, there are a number of crypto exchanges; services such as coinmarketcap constantly monitor volumes and quotes from most platforms [CoinMarketCap]. According to data from the aggregator, daily trading volumes are above $20 billion but this indicator continues to be quite volatile.

Historically, centralized platforms have been used to exchange decentralized assets. There were reasons for this choice, mostly technical ones. At the initial stage, there were no technologies for cross-chain transactions without third party involvement. The second problem was and still is the low capacity of the main blockchain. As a result, most exchanges carry out off-chain transactions.

The main issues with centralized exchanges are related to security problems and vulnerability of client funds. Here are just a few known cases of the hacking and stealing of funds from crypto exchanges:

  • February 2018. BitGrail - $195 million [FORTUNE]

  • January 2018. Coincheck - $532 million [Japan Times]

  • August 2016. Bitfinex - $72 million [Benzinga]

Whether it is correct to call this a trend or not is unclear, but it is obvious that security problems for centralized platforms are acute.

The most promising direction towards fully decentralized exchanges is the introduction of Atomic Swaps technology. There are many decentralized exchanges (DEX) enabling the trading of ERC20 tokens without intermediaries. In order for the technology to become available for cross-chain transactions, separate blockchain protocols require improvements. We think that the creation of fully decentralized exchanges is approaching very rapidly.

Whilst DEX exchanges are developing and balancing in areas of low liquidity, there is another means to make exchange of cryptocurrency more secure than on centralized crypto exchanges; this is good old peer-to-peer exchange. It would seem that interest in such exchangers would decline with the growth in DEX platforms, but this trend is not observed so far. Below is a graph of weekly volumes from one of the longest-established services, LocalBitcoins; as can be seen, volume is still close to the maximum.

Thus it does not look like P2P exchanges will close down any time soon. There are a number of reasons for this. First, the mechanism of these exchanges suits many users; security of transactions is supported by internal rating systems, feedback systems and escrow mechanisms. Secondly, the platforms themselves are not exchanges in the literal sense, which makes them somewhat more flexible to regulation. Mechanisms for maintaining loyalty are also implemented on these platforms quite often, rewarding clients for attracting new users, for example.

Probably the best-known P2P exchanger is LocalBitcoins. Founded in 2012, this service for buying and selling bitcoins in exchange for national currencies or alternative cryptocurrencies conventionally anonymous users. The basis of security transactions is escrow. LocalBitcoins operates with Bitcoin only, which can be currently considered a drawback.

A concept for a ​​P2P platform for exchanging cryptocurrency for fiat was successfully presented by the Qvolta project. The project had a successful ICO, and the QVT token is being traded on a number of platforms. Qvolta considered LocalBitcoins as its main competitor, and main development efforts were aimed at providing a more attractive functionality (lower commission and a mobile application).

Streamity’s main innovation is the protection of transactions via smart contract and data from the payment system. The smart contract will not only execute P2P transactions but also determine a fair price based on an aggregation of prices from the main trading platforms.

Summing up, the Streamity project is entering a large market where a share can be claimed if they are able to implement their services to a high standard.

Team

According to the project’s website, the current team has 11 members and support is provided by 6 advisors.

Based on the descriptions, team members’ experience is diverse and covers all the required competences. It is important that the founders have not only business experience but software engineering skills. For a better understanding of the position of the project management, reference should be made to an interview by CEO Vladislav Kuznetsov.

It is necessary to elaborate on the founders of the Streamity project; descriptions are taken from the official website of the project.

Vladislav Kuznetsov, CEO, Founder

Being a think-tank and a successful business owner able to inspire and lead the team, Vladislav is a true business professional. He motivates people to follow him, always has a clear vision of the final goal, and knows what success is and how to achieve it. Vladislav’s followers were captivated by his passionate belief in a possibility to change the world and contribute to development of blockchain technology. He has managed to assemble a team of the best experts. He has more than 10 years of experience in business and asset management at the stock market. Now he is also familiar with unlimited possibilities of blockchain technology. Vladislav confidence, experience and unique vision of crypto-era will allow him to break a new ground in technology!

More detail: LinkedIn

Dmitry Martianov, CTO, Co-Founder

Business owner, software engineer and web developer with more than 8 years of experience. Participated in the development of major projects, such as Pegas Touristik and Nordwindairlines. Not only does he manage each stage of product development and coordinate actions of the team, but also participates in performance of complex technical tasks with the highest level of quality. He has generated the idea of StreamDesk together with CEO, and that how the Streamity project was launched. Having thought through the architecture of StreamDesk service, he has focused on its development. He believes that the mission and the team are the most important elements of success. He is particularly committed to the idea and sure that the project will make it into the history of cryptocurrency development.

More detail: LinkedIn

 

Team

Oles Sribny: LinkedIn

Head of Investment

Maksim Smirnov: LinkedIn

Software Engineer

Sergey Bevzenko: LinkedIn

Back-end Developer

Egor Okhterov: LinkedIn

Software Engineer

Pavel Bolgarskih: LinkedIn

Blockchain Developer

Maxim Yarushin: LinkedIn

Business Development

Olga Prosalova: LinkedIn

Marketing & Community

Daniil Lobov: LinkedIn

Content Manager

Sergey Kolomiec: LinkedIn

Online coaching & Investment

Advisors

Andrey Zolin

Blockchain Advisor

Sergey Bogatirev

SINGEXPERT (Singapore)

Aleksey Gaiduk

CEO, Founder Fortifier

Stephan De Haes

Promotional Advisor

Opinder Preet Singh

Blockchain Advisor

BBS PTE. LTD. Best Business Solutions

Consulting company

Token analysis

STM is a standard utility token; it is the only mechanism for creating internal value or stimulating demand on the platform. STM are used as part of subscription payments (membership fees) for free operations on the Streamity platform, it serves as a means of paying commissions for turnover above certain free quotas. There is also an opportunity to purchase a "package" with privileges; pricing is given in the white paper:

The base cost of STM is $0.2. The minimum subscription fee is 5 STM per month. If the token rate increases, the subscription fee will be recalculated.

Within the converter, Streamity indicates neither the existence or the magnitude of commissions, nor their nature. Most likely, commission will be integrated into the rate by analogy with most other exchangers.

For the analytical information portal, STM tokens will be used to create content and pricing of partner services. In addition, there will be the opportunity to purchase Streamity training packages (courses) and access to the trading community of partner project ScriptTradeCoin.

Analysis of factors affecting the future price of the token

The STM token is deeply integrated into Streamity’s services - primarily into Streamdesk. Considering the need to pay for a subscription and for exceeding the tariff rate of turnover, token demand in the market will correlate with client activity, scaling according to Streamity’s popularity. It is worth noting that there are no additional mechanisms to stimulate the value of STM.

The team has authored a separate document, the Business Model, which describes the financial plan in three scenarios. Both financial and operational benchmarks are given up to 2021. According to the ‘medium’ scenario, it is planned to reach 800,000 subscribers and generate about $15 million revenue by 2021. In general, planning does look realistic and the existence of a public business model that contains scenario modeling is a positive. However, some assumptions and predictive indicators of the model could be better justified, i.e. there are very few scenario conditions.

An exact pricing for services and a description are given only for the P2P exchanger; demand from users for the other services is difficult to determine. However, we want to point out a low hardcap and size of token emission. With the standard bonus program, we do not foresee a huge excess in token supply over demand in the future.

An important role in forecasting the future value of the token is played by the breadth of coverage of payment systems. First of all, we are talking about the biggest operators - VISA, Mastercard and Paypal. When conducting successful negotiations and connecting to these operators, Streamity’s business will sharply move up, since these are the most popular players; most payments are made through them.

In fact, long-term market potential will be associated with coverage and marketing activity, as the competition among exchangers is really serious; there are many solutions, all of them vary in simplicity and safety but global platforms gain the most popularity by being integrated with the most popular payment systems and operators. Currently, Streamity is developing services based on the API of the Russian regional payment operator Yandex.Money; a partnership with OKPAY has also been announced. Unfortunately, this is clearly not enough to position the project as global.

Regarding short-term and medium-term price factors for STM, it is worth noting the simple architecture and speedy release of a fully-fledged product. Although the road map does not state the exact time of release of the final product, according to its logic, the web version of the platform will be available in the first half of this year. In the light of imminent publication of the MVP and the implementation of plans to develop Streamdesk, market prospects for the token will be higher.

Investment risk analysis

Streamity is planning to gain a firm foothold in the P2P exchange services sector. Current trends show that this sector is on the rise and that turnover of transactions is maintained near maximum levels. For this reason, with other things being equal and assuming successful implementation of announced services, we expect that the Streamity project is able to occupy a share of the P2P exchange market.

The most significant risk factor will be associated with competitive activity in exchange transactions. The current market for P2P exchange for the most part is limited to the exchange of cryptocurrency for fiat, primarily Bitcoin exchange. LocalBitcoins is in the lead here. In relation to LocalBitcoins’ service, the positioning of the Streamity project is understandable - to offer a more convenient service, to expand the list of currencies, to ensure the security of transactions via smart contracts. The situation with DEX platforms is slightly different, which will soon change the alignment of forces on crypto exchanges in general. Most likely, DEX platforms will be able to force out those based on P2P transactions but this is not a matter for the near future.

The current crypto industry is under constant pressure from all regulators. Many active crypto owners continue to seek anonymity and do not want to disclose personal information. For this reason, DEX exchanges will gain great popularity in the absence of strict KYC procedures. Conversely, projects like Streamity will provide security based on KYC. At some stage this could both positively and negatively affect the number of new customers attracted.

 

 

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.

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.