United Traders Rating Review
|Start ICO||29 Nov 2017|
|End ICO||22 Dec 2017|
We have reviewed project's progress as of December 2018 and identified that the team is significantly behind its roadmap - no significant milestones have been achieved since ICO. Moreover, there is no evidence that the team is actually doing anything - marketplace launch is overdue and the are no updates from the team in this regard. Therefore, project rating has been decreased to Stable.
We assign the UTToken project a "Stable" rating.
UTToken is a project from United Traders, which has been running a successful business since 2009 and has had high ratings for quality of services provided. An excellent level of services and products which are the company's own developments are noted by many financial traders.
UTToken is entering a market which is showing high growth rates and this tendency, according to experts, will continue in the future. We note the high level of professionalism of the team. The fact that management staff has been working together for a long time and have successfully developed a business implies that this project will also be implemented at a serious level.
The team have successfully and consistently implemented all stages of development throughout the company’s existence; we note a competent approach to project management, goal setting, budgeting and promotion strategies.
In the process of examining the information and writing the review, we have not identified any significant risks that could negatively affect the price of the token. In addition, we note that the risks for UTToken are significantly less than the risks for most projects planning ICOs.
We also note that the company has developed a number of mechanisms to increase the investment attractiveness of the token, such as buyback of tokens from the market if their price falls below a fair valuation. This approach cannot be often met in the ICO market, but it shows that the founders are well aware of the fundamental value of the token and are not afraid of short-term speculative movements.
Currently, there are too many projects on the ICO market which are trying to attract money; market statistics for the last 2-3 months shows that many do not reach the intended level of revenue. However, quality projects will certainly be of interest. We can regard this project as high in quality and recommend investors to participate in the ICO.
General information about the Project and ICO
UTToken is a project from United Traders – a dynamically developing company founded in 2009 with the use of blockchain technology in the field of investment and financial markets.
The project is a program for solving a number of tasks for expanding the business in three directions:
- United Traders Investment Marketplace as a meeting place for investors and business.
- Creation of a UTEX crypto exchange – an area where cryptocurrencies and crypto tokens will be used.
- Creating a Mega Dictionary - multilingual information portal.
The project will allow:
- Companies to expand their client bases and increase market share.
- Businesses to attract capital on optimal terms.
Investors to participate in new market projects for attracting financial resources on favorable terms.
Bitcointalk (14375 views)
YouTube (30K +)
Smart contract platform: Ethereum blockchain
Contract type: ERC20
Start date: 1.10.2017 00:00 GMT
End date: 30.11.2017 05:59 GMT
Minimum customer transaction: 70 ETH
Maximum customer transaction: 130,000 ETH
Start date: 30.11.2017 09:00 GMT
End date: 24.12.2017 23:59 GMT
Minimum customer transaction: 0.1 ETH
Maximum customer transaction will be announced 30.11.2017 03:00 GMT
Token price: 800UTT = 1ETH
Hard cap: 130,000 ETH
Accepted payment: ETH, BTC, USD, EUR.
Discounts are offered for the purchase of UTT Tokens during the pre-ICO:
Applications submitted by one user during the Pre-ICO are summarized. The total amount determines amount of discount. A buyer has the right to increase purchase amount during the pre-ICO. The token price does not change, but the amount of discount increases.
A total of 100,000,000 Tokens have been issued which are planned to be placed as follows:
All tokens that remain unsold before the end of the ICO will be burned.
If the buyer does not reach minimum limit, his funds will be placed at the end of the queue for the purchase of tokens at the main ICO. If the buyer exceeds maximum limit, part of the funds exceeding the limit will be placed at the end of the queue for the purchase of tokens at the main ICO.
The funds raised during the ICO are planned to be distributed as follows: Main Items:
- Development - 23%
- Product team - 22%
- Marketing and advertising - 18%
- Legal costs - 15%
- ICO projects - 8%
- Market Making UTEX - 8%
- Mega dictionary content - 6%
The documentation states that these items of expenditure can be revised when adjusting development plans as well as the results of a particular project.
Description of the services and scope of the project
United Traders is a proprietary trading company. In addition, it is also a software developer for trading.
The following software products from the company support the entire trading cycle: Arche – Client application for trading on NYSE and NASDAQ exchanges.
Aurora – A multi-market platform which is the flagship product of the company, supporting work with NYSE, NASDAQ, BATS, ARCA, CVE, CBOE, CBOT, EUREX, MOEX, SPBEX, Kraken and (previously) with BTC. A Windows version of the application is available. The platform is adapted for trading on several exchanges simultaneously; its main specialization is American stock trading. The program interface provides a convenient and fast way to sell a large number of instruments, and, if necessary, open/close dozens of instrument positions in a minimal amount of time, fewer than in a similar situation on cryptocurrency exchanges.
Aurora manager – A platform with the ability to manage a group of traders, brokerage clients or multiple accounts of one asset manager. Access to the platform is granted upon request from any relevant proprietary group.
Trader account – a reporting tool for traders on Arche, Aurora, Sterling trader PRO, Laser trade, Fusion and Shiva.
The Educational platform holds courses for beginners in the proprietary trading system, with the provision of capital for all students. Duration of the courses is from 1 month; they include 80 practical classes designed to improve financial literacy. The best graduates from courses have the opportunity to join United Traders’ team of professional traders.
UT Magazine – An information and analytical portal designed to bring traders and investors together.
The main objectives of the portal are:
- Providing complete and timely information on markets and securities
- Search for and incorporation of the best traders to work in a team of professionals
- Providing the opportunity to receive both free and paid education in the field of trading
- Providing a number of services such as subscription to trading signals, opening a trading account, etc., providing better understanding of the market and trade revenue increase
- Enabling free communication between beginner traders and professionals
- Providing support to beginning traders, developing skills in trading for experienced traders and attracting professionals who can share their knowledge.
Investment Marketplace United Traders – this is a kind of online store for investment ideas on the one hand, and a platform for the presentation of ideas on the other, with each idea being evaluated by experts, whose role at the initial stage is performed by UT employees. The expert evaluation will be carried out later by users themselves.
The high quality of this vote will be guaranteed by the "weight" of votes, which is a reflection of the user's experience recorded in the blockchain. At this stage, the list of available investments will be the strategies of United Traders for the stock and cryptocurrency markets. There will also be ideas for investing in the shares of companies planning to place their shares (IPO) on the stock exchange, shares of private companies (OTC) and the tokens of start-up projects (ICO).
The following products are available for work with the investment marketplace:
- Kvadrat Black – a pool of algorithmic strategies that worked as part of a hedge fund.
- Kvadrat Black SPC – an audited report on the investor's request; one of the main products on the United Traders platform.
- Type C strategy (UT Crypto fund) – a pool of manual and algorithmic strategies that operates in crypto markets.
- IPO with United Traders – purchase of shares of companies entering IPO by pre-subscription, with the sale of these shares after the expiration of a 3-6 month lock-up period.
- OTC – purchase of shares in non-public companies such as Space X, Slack, Airbnb, Uber, Palantir and others.
Cryptus Exchange UTEX (United Traders EXchange) will be the next priority in project development. UTEX will include:
- Launch crypto exchange trades via the Aurora platform;
- Introduction of Smart route UT - a method of order execution, which allows large orders at the best price by distributing them over several crypto exchanges simultaneously. More details on the principle of Smart route UT operation can be found in "Engineering features of the project".
- Dark pool introduction – This is an additional UTEX exchange not providing quotations but with the ability to place limit orders. The market creator will provide liquidity inside the Dark pool, allowing a large trader to send an application and receive a result without affecting the market.
A special role on the portal is played by the trader financial dictionary (Megadictionary) - a multilingual information portal which is a dictionary with a search system and a subject heading for articles with a smart linking system, pop-up clues to terms, including audio and video materials for more informative content. The current dictionary contains more than 10,000 articles, and a variety of materials and terms with detailed explanations.
Engineering features of the project
GitHub hosts a smart contract repository which is currently under construction.
UTT is an Ethereum blockchain-based ERC20 standard token, available for storage in a variety of wallets compatible with this standard. UTT is a utility token intended to receive services and products within the United Traders platform.
In January 2018, it is planned to commence gradually introducing UTT Tokens as a means of payment for trading services - platforms at first, then trade commissions and exchange commission after launching UTEX.
The functioning principle of Smart Route UT deserves a detailed description:
The main concept of Smart Route UT is the one-time execution of maximum percentage of visible limit orders in the markets, with distributed liquidity.
The functioning of Smart Route UT is divided into 2 components:
1. Synchronous arrival of orders in market centers
The main sources of problems with liquidity are so-called flash orders and flash cancellations. Flash order is a market order made ahead of similar orders made earlier, but via a less technological infrastructure. Flash cancellation is the cancellation of a limit order, after a market order is sent to the exchange which must execute it based on the parameters of both orders. To exclude such problems, it is necessary to place a pool of market orders simultaneously. Simultaneity should be understood as time in which information about an event on one market center reaches another market center.
For developed markets such as the US stock market (NYSE, ARCA, BATS, Direct edge, etc), such a task is not trivial, since the time required to send out orders by an active party server without much optimization exceeds the time it takes to exchange information between market centers. The speeds involved in such struggle in the US markets reaches microseconds (a millionth of a second).
This problem is solved by maximum preliminary preparation and further synchronous sending of the pool of such orders by a signal, using all available optimization at the level of x86 architecture, the network stack and taking into account the physical capabilities of the network channels.
In addition, the speed of processing orders by exchange cores of different platforms differs among them and depends on the load at each point in time. United Traders investigate the impact of these factors on the overall picture of delays, monitor them in real time and successfully predict the situation on the horizon necessary for making decisions and passing orders on the network.
United Traders try to achieve not just one-time sending of orders but the arrival of ordesr with such delays that the moment of the exchange of information about the performance of the exchange cores was synchronous. Thus, no opposing bidders can mislead a user of the Smart route.
2. Monitoring of real liquidity for current execution opportunities
Despite the overall success in the fight against flash orders and flash cancellations, it is not always possible to achieve an ultimate advantage. Therefore, Smart route constantly monitors its status regarding the market. The possibility of executing orders that can potentially be executed as Flash orders or cancellations by the principle of Flash cancellation is assessed. Thus, Smart route knows what part of the fake liquidity it can take at every moment of time. The order volume for each market center can be accurately calculated using this information. At the same time, without this information, the optimal solution is to send excess volume to each of the centers.
Application of UTT Tokens Investment Marketplace:
- Pay commission in UTT for participating in an investment idea.
- Change UTT Tokens to ICO Tokens of the projects.
- UTT is paid for offering an investment idea.
- Receive UTT for the implementation of investment ideas.
- UTT is paid for consulting on the ICO topic.
- UTT is paid for review of placement on the platform.
- Receive UTT as payment for their tokens at the ICO.
- Receive UTT for voting on admission of a project ICO.
- Receive UTT for voting on the admission of an investment idea.
- Receive UTT for admission of a successful project.
Exchange and trading:
- Pay commission for transactions in UTT.
- Receive UTT for meeting liquidity requirements.
- Pay UTT for commencement of their token trade.
- Pay UTT for clicks or ads.
- UTT is paid for articles, receiving a priority right to place advertising in them.
- Receive UTT from users as payment for their services.
- Recieve UTT for editing articles.
- Receive UTT for the layout of the articles.
- Recieve UTT for optimizing articles for search engines.
- Receive UTT for ad clicks in their articles.
- Recieve UTT from authors for translations.
The modern economy has fallen into a colossal dependence on the market as the main mechanism for the distribution of economic resources. Investing, issuing shares, bonds – without a doubt the entire economy is built on the stable and efficient operation of the market system.
The total capitalization of the global stock market has increased by 133% since 2003. Currently, this figure is $65.6 trillion compared to $28.1 trillion 13 years ago. The most influential component and center of liquidity remains the US stock market. From early 2017 until the end of April, the average daily turnover on NYSE was $63.6 bln and $43.6 bln on NASDAQ (statistics are given on shares only).
China is in second place. $36 bln flows daily through Shenzhen Stock Exchange and $30.6 bln flows through the Shanghai Stock Exchange. China was an unprecedented leader until 2015. All exchanges held over $165 bln per day on average for 2015 (about $80 bln for each of the exchanges). Peak turnover exceeded $380 bln per day.
Japan is established in third place - about $22 bln per day on average over the past 4 months. The UK is in fourth place; about $9 bln turnover per day passes through London.
Euronext, which unites the leading companies of Western Europe, is in fifth place with $7 bln turnover which is about 10 times less than on the NYSE.
A list of leading exchanges is given below:
In the table, North and South America are marked green; Europe, Africa and the Middle East are marked blue and Asia is orange.
The capitalization of shares listed on the NYSE exchange is over $20 trillion; $8.6 trillion is for NASDAQ, $5.2 trillion is for Japanese stock exchange and $4.4 trillion is for Chinese stock exchange.
Currently, there are about two hundred stock exchanges worldwide. First of all, the role of stock exchanges is ensuring optimal conditions for the circulation of securities, as well as determining their market price, disseminating information and maintaining a high level of professionalism among market participants. Thus, it can be confirmed that stock exchanges are indicators and regulators of the state of an economy.
In addition to classic exchanges, the popularity of crypto exchanges is increasing. According to coinhills data, the top-7 leading crypto exchanges are as follows:
As can be seen from the rating of the leading exchanges, bitFlyer occupies almost 20% of the market and its daily trading volume is 200,113 BTC (approximately $1.6 bln at the current BTC exchange rate).
The crypto market is in the active phase of growth and the formation of key players. United Traders which has strong positions in the classical stock market has every chance to take a share in this market.
The United Traders team is represented by 64 specialists, including experienced traders, marketers, technical specialists, financiers, sales managers, analysts and designers.
The management of United Traders consists of 3 of the most experienced traders who have worked in US and Canada-based proprietary trading companies, as well as a technical director with many years of experience as a developer and software architect.
Roman Vishnevskiy. (LINKEDIN)
Managing Partner of United Traders. According to many experts, he is the best scalper in the US stock markets. Roman leads the Russian division of United Traders and perfectly combines the work of the head and trader. He also conducts consultations and personal training for the business partners of United Traders. In 2011, he became the winner of the "Reputation of the Year" award as "the best young entrepreneur" in the field of finance.
Managing partner (co-founder) at United Traders since 2009. Private investor on NYSE Euronext from 2006 to the present.
Anatolii Radchenko. (LINKEDIN)
Anatoly Radchenko is Managing Partner for United Traders. One of the leading specialists in the company, Anatoly trades on any platform in almost all styles. Anatoly's knowledge is so vast that he is sought after for advice by many financiers with vast experience and education.
Managing partner at United Traders since 2009. Hedge fund manager of Kvadrat Black from 2013 -2016.
Dmitry Belousov. (FACEBOOK)
Dmitry Belousov - managing partner of United Traders. A great scalper and teacher. Participates as a consultant in all educational projects of United Traders, and conducts the direction of teaching scalping.
Managing partner (co-founder) at United Traders since 2009. Previously worked in Canadian company Swift Trade.
Alexander Kurdyukov. (LINKEDIN)
Leading developer and manager of corporate scale in a wide range of applications. Has extensive experience in project management, requirements analysis and software architecture. Technical director and manager of United Traders since 2011. Manages software development and administration:
He is the current technical director for many projects. Previously, worked at BPC Banking Technologies as Lead Developer / Architect from 2009-2011.
- Aeroflot payment solution working in less than 3 weeks
- American Express merchant integration with both front and backoffice in a month
- Payment solution implemented for SberBank of Russia
- Payment solution implemented for TatFondBank
Professionalism and team experience play an important role in the formation and development of the project; the team is rich in specialists with different profiles who have worked together for a long time.
Financiers generate truly high-quality investment ideas and select the best companies and projects. Sales managers establish and develop communications with investors, partners and customers. Marketers work in close contact with developers and sellers and constantly adapt products to the needs of users. 90% of developers work remotely.
The team of both developers and other professionals will expand and be replenished by professionals with the goal of developing the business in different countries and localizing the product. By the end of 2018, the total number of team members will be close to 200.
Thus, we draw the attention of investors to the fact that the composition of the team does not raise any questions in terms of doing business. The project has a good chance of a successful implementation due to the experience of all participants.
Development strategy and Roadmap
The documentation and the website contain all necessary information about the future development of the project. Short, medium and long-term plans are considered in detail.
Thus, the introduction of blockchain technology and smart contracts into the ecosystem of United Traders will provide an opportunity to improve the performance of all its components with a phased implementation up to 2019.
This element of the platform has been operational since 2012. In October 2017, the company created an internal component of the platform for investors. It is intended to develop the platform in the direction of improving its functionality with the implementation of the following services in this sequence:
- Enabling users to offer their investment ideas.
- Assessment of ratings for peer review.
- Ability to save a rating in the blockchain database.
- Voting for placing ideas on the platform.
After translating all systems into English, launching advertising and promoting the product, it will be available in Spanish, Chinese, Japanese and Portuguese.
Medium-term development plans include the provision of access to ICO of various projects on the platform:
- ICO UT - primary token sales for other companies’ projects, prepared with the assistance of United Traders.
- Pre-ICO on exclusive terms: the purchase of a large volume of tokens in exchange for a large discount, to provide opportunities for investors with little capital.
- Providing the opportunity to buy the tokens of as many projects as possible.
According to the founders, the next stage in the development of the crypto industry may be the tokenization of shares in private companies; the platform is planning to increase investment ideas related to the shares of non-public companies and provide an opportunity to sell these shares to other platform users. This mechanism is clearly shown in the following diagram taken from the white paper:
After the ICO, it will be possible to pay all commissions in UT Tokens providing a discount on payment which will make the platform use more profitable.
The company is aiming to attract between 30,000 to 100,000 active users by the end of 2018.
The creation of UTEX is divided into several stages:
The first interface providing access to the auctions will be the Aurora platform. In the short term, the company is planning to launch trading on third-party crypto exchanges via Aurora. The first such exchange will be HitBTC; the list of available exchanges will then expand.
The second step should be the addition of a new type of order execution - "Smart route UT".
A further platform (UTEX) will be added to the possibilities for the "Smart route". The founders are aiming to attract large traders to execute orders via this platform.
After that, the opportunity will be given to place limit orders; In 2018, it is also planned to release a web interface for the exchange and its mobile version.
In January 2018, the company is planning to add payments for trading services in UT Tokens: payment for platforms, trade and exchange commission, are eventually indended to be switched to payment in UTT Tokens completely.
The long term goal is to enter the top 10 crypto exchanges within the first few months after the full launch and to enter the top 3 crypto exchanges in terms of trading volume before the end of 2018.
The company is planning to launch its Mega Dictionary with articles in English, Spanish and Russian. It is intended to write 100,000 entries for each language for 2018. The number of visits to the site will increase as a result.
The documentation states that this roadmap is indicative. Adjustments to the plans may be influenced by the success of United Traders’ business, the use of UT Tokens, and future legislation in the field of cryptocurrencies.
The white paper also describes the gradual development of the business, starting from February 2009. According to this information, the management clearly adheres to the timing of the implementation of various stages of the company development in all directions. This once again clearly emphasizes the high professionalism of the founders and characterizes them as successful businessmen.
As can be seen from the presented development strategy, the project has clear plans and all the necessary tools for their implementation, as well as experience in development strategy formation taking into account the requirements of modern markets.
The team understands the dependence of the platform’s success on the number of its clients, so a lot of attention is paid to marketing. The details of the marketing strategy are planned both for the platform itself and for the ICO.
Thus, according to the development plans, early platform users will comprise UT investors who have worked with the company since 2013, as well as representatives of the world crypto community, who learned about United Traders through educational courses, speeches at conferences and wide activity on social media.
Significant attention is paid to attracting new users via the UT Affiliates network and UTMagazine portal (Mega Dictionary). Currently, the company is working on scaling. The partner system allows bringing customers to UT in order to earn income on it. Traffic arbitrageurs and individual agents of influence (traders, investment advisors) have been chosen as partners. Partners are selected from the CIS, the Baltic States, Latin America and Asia.
UTmagazine.ru developed from a blog on livejournal.com. Very soon, this will become an independent Megadictionary platform. Currently, it is an advertising channel and will serve as the model for intended advertising revenue:
- Every 50,000 entries up to 2000 punctuation marks can generate up to 1,500,000 unique visitors per month.
- Every 50,000 subject articles with a size of more than 5,000 punctuation marks can generate up to 3,000,000 unique visitors per month.
- Therefore, with 100,000 vocabulary and 100,000 subject articles, up to 10,000,000 million unique visitors per month is expected.
- The average monthly value of the number of visits will grow annually due to the addition of new visitors and will be 15,000,000 visits.
- Average viewing depth - 1.5 pages for entries and 3 pages for subject articles which on average can give more than 30,000,000 page views per month.
- The average time for one visit should be at least 3 minutes - this is the minimum expected figure.
The Megadictionary project is designed to fully ensure the increase in new participants for the United Traders ecosystem. At the same time, 90% of the share of new visitors will be constant in the first three years of the portal; this will then drop to 80%.
YouTube channels are a much-used way of attracting users to the platform. The developers have 3-5 channels. The founders have commented on this element of the marketing strategy as follows:
“Currently, the most successful user is trader Anatoly Radchenko. We constantly conduct experiments with formats and improve performance. You can find more than 10 different "shows" on the channels. They brought different results, but there is a global trend towards improving indicators”.
Also, some comments were given to us in the process of communication with the founders: “The team refers to the planned purchase of system traffic as a future marketing action, and also the systematization of approaches to PR, community management, events, advertising coverage, non-internet advertising, focusing on geo, etc.”
The company ICO is also given a lot of attention and its promotion is taking place on the following channels:
- Cointraffic platform.
- Social media (targeting and retargeting) FB, Google, VK.
- All the platforms that have been traditionally used for ICO: Telegram, ICO calendars.
- The participation of Roman Vishnevsky and Anatoly Radchenko in a huge number of events. The nearest are held in Singapore on 28-29.11, Dubai
24.11 and New York on 27.11. Also, its own event should be noted - the largest conference on blockchain, mining and cryptocurrency to be held in Moscow on 25.11.
- Meetings with investors worldwide.
- Active promotion of the forthcoming ICO on social media and maintenance of constant communication with the community.
- Posting materials on all possible media outlets, internally or by contractors. Special attention is paid to 2-3 upcoming information guides. The most powerful of them is "Advisors-Partners".
- Bounty program.
Thus, we note the well-planned marketing of the project. In our opinion, its strongest side is a systematic approach to the issue of product promotion, which the founders comment on as follows:
«We adhere to flexible approaches to management in marketing. This means that any attempts to convey values to users begin with communication with representatives of target audiences. Next, the experiments will take place. From smaller ones, giving enough statistically significant data for conclusions to larger, scaling local successes».
Competitors and competitive advantages of the project
The crypto market is attractive for many players, and more and more intend to take advantage of blockchain and integrate it into projects giving access to their own trading platforms.
As a result, more and more crypto exchanges are in demand, and their appearance becomes more necessary. The main competitors for United Traders and its UTEX stock exchange can be considered as the following:
Binance - this is a relatively new exchange which began operating in 2017. Currently, Binance exchange is in the top 29 exchanges for daily trading volume. The headquarters of the Binance Exchange are located in Shanghai; it is headed by Changpeng Zhao.
The most popular trading pairs on Binance are NEO / BTC, GAS / BTC, ETH / BTC and BNB / BTC. BNB is Binance’s own cryptocurrency, which was issued to attract initial funding during the ICO.
Binance stands out against the competitors with low fees for trading on the platform (0.1%) and fast processing of transactions. Binance’s technology allows the exchange to process up to 1.4 million orders per second.
KuCoin – A crypto exchange based in Hong Kong, and launched in September 2017. KuCoin Shares Tokens (KCS) allow trading on more favorable terms. Currently ETH, LTC, NEO / GAS, OMG, QTUM, PAY, CVC, EOS, SNT, KNC, BTM,
and BHC are already traded on the exchange. The exchange is planning to list the 50 top cryptocurrencies by the end of 2017 and more than 1000 by the end of 2018.
Users who hold NEO coins on the platform will receive GAS tokens on their accounts daily. KuCoin has become the second exchange that distributes GAS tokens to NEO owners and the first one who does it daily. The first such practice was introduced by Binance which charges the GAS tokens at the end of each month.
Traders who hold KCS on the exchange will receive a 50% discount on commissions for platform transactions.
HuoBi – one of the largest exchanges in the world. It was registered in 2013 in Beijing. Huobi supports two pairs for exchange: BTC / CNY and LTC / CNY. In recent months Huobi has expanded its range of services.
Huobi has acquired the status of one of the most convenient platforms and almost the whole country trades cryptocurrency using this service. This provides a huge volume of exchange transactions and a constant improvement in the exchange rate. Huobi takes the third place in the world in terms of trading volume.
It is the only major Chinese stock exchange working with USD (via Hong Kong offshore). Another feature of the exchange is that there is no commission at all for some trading operations.
Despite the fact that all the above projects, in the same way as United Traders have an existing business that has been transferred to blockchain, it is not their sphere of interest to provide services uniting businessmen and investors on a single platform. Typically, these are projects that offer customers the most common brokerage services. Thus there are no real direct competitors for United Traders’ project.
The concept and tools offered by the United Traders developers are absolutely necessary for the further development of the ecosystem of the entire crypto market since the modules created by United Traders within the framework of its platform will undoubtedly attract large amounts of capital and serve them in conditions that require large-scale business projects. Currently, there is no such infrastructure on the market.
The developers demonstrate a competent and pragmatic approach to the entire crypto ecosystem and intend to solve its most pressing problems by introducing a set of products to the market within a single platform.
In addition to the above, we highlight several more competitive advantages of the UTToken:
- A strong project team with proven experience in successful joint business. The founders are confident in their abilities and are not afraid of appearance of a counterpart in the market, if it happens.
- Due to successful business dealing for many years, United Traders already boasts great brand awareness, not only among professionals in financial markets.
All these advantages speak of professionalism, experience and trust in United Traders which automatically makes this project worth investing in and attractive for participants.
Economy of the Project
The development team represents a large operating business and participates in it with its own capital.
United Traders is setting serious but quite feasible tasks.
The market in which United Traders operates is "giant", comparable to the volume of transactions in all currencies combined. To better imagine what its volumes are, we will describe them not in figures but point by point.
For the investment marketplace, the following are relevant segments:
- The private investment market, in terms of the volume of capital on hand of investors investing in traditional products for individuals, including bank deposits, mutual funds, ETFs, and others.
- The ICO market, in terms of the volume of capital of active investors on hand, who understand investments in tokens.
- The market for venture investments, in terms of increasing the attractiveness of investments in startups by providing access to the best projects to private investors, previously available to venture funds only.
- The small business lending market in terms of volume, which can be transformed into investments by the ICO.
- The P2P lending market, in terms of its social component which can be repeated in investments by the ICO on the United Traders platform.
The philosophy of the UT investment marketplace implies an orientation towards the private investor with small to medium amounts of capital. However, it does not exclude the use of the platform by large organizations and financial institutions.
Income will be gained from the commission charged to investors for participation in this or that idea and to the authors of investment ideas that have placed ideas on the platform. To encourage payment in UTT Tokens, the team provides users with a discount, making payment more profitable. Initially, the price will be dynamic and tied to the exchange rate of the UTT Token.
To attract the most promising projects staging their ICO to the investment platform on exclusive terms, United Traders will buy their tokens at the earliest stage. This amount will be used as equity or it will become the basic component for a new investment product, similar to Type C strategies. The team allocates 8% of the pool of funds collected for the ICO for investment in ICO projects.
The team is planning to achieve the following indicators by the end of 2018:
- Attraction of about 30,000 - 100,000 active users to the platform with an average deposit of $20,000.
- The average lifetime of a user’s engagement (LT) being more than 5 years.
- The revenue of the platform will be 2 - 3% of the average annual deposit of investors.
To cope with problems such as ensuring the liquidity faced by exchanges, the developers have recourse to the help of market creators (both their own and those attracted). A loyalty program has been developed to attract these. At the initial stage, they will receive a reward for providing a fixed amount of quotations with a given spread for more than 95% of trading time. Further, such a system will be replaced by significantly lower commissions for liquidity providers. The developers will allocate 8% of funds raised during the ICO to the Market Making UTEX.
From January 2018, payment of commissions for trading and exchange commissions (after the launch of UTEX) can be made in UTT Tokens. At the same time, the cost will be lower compared to the payment of commissions in other currencies.
The first traders who will start trading in cryptocurrency will be United Traders themselves, who are currently trading in American stocks. Additional volume will be created by such traders who started trading cryptocurrency on foreign exchanges but are interested in using the Aurora desktop trading platform in daily trading. If we add the ability to trade cryptocurrencies on the UTEX exchange, the volume for cryptocurrency transactions will be more than the current $1.5 bln.
The main source of MegaDictionary’s income is the placement of contextual, banner and other types of advertising in the dictionary and thematic articles with a Cost Per Action payment system. Also, other ways of monetizing the website are planned: The paid posting of customer articles; Subscribing users to paid services; exchange of articles, authors and translators.
The developers are planning to implement blockchain technologies in the system of charging ratings and payments to authors. The cost of articles will depend on their size; the rate starts from 50 cents per 1000 punctuation marks. Minimum, maximum and desired size will be specified for each category. Given the specifics of different languages and the difference in rates of payment, the price for an article can range from $1 to $50.
Moderators will be hired both to work for a fixed salary with a daily plan for checking articles and on piece-rate wage conditions. At the initial stage, developers, authors and moderators will be paid at the project’s own expense.
Authors and moderators will be paid from the pool of funds raised during the ICO. 6% will be allocated to this expenditure item.
It is important that United Traders is not a startup, but an existing platform boasting ready-made solutions and prototypes of future modules. Some of the products have already been developed and some are in alpha and beta testing. This reduces the product market entry, the payback period of investments and also allows scaling as quickly as possible. Due to these factors, there is no need to doubt the implementation of the project plans, which is very important to current investors.
The team has long shown itself to be first-class specialists and United Traders offers a single set of tools for solving all tasks in its remit. Even with such a reputation, however, the platform faces some standard risks.
Recently, there are a lot of projects trying to stage ICOs. There is increased competition among ICO projects and the market is overloaded with offers. It is a real struggle for the investor and this, of course, can affect the results of token sales.
In addition, since the project is only planning to switch to blockchain technology, it remains unclear whether United Traders will be able to transfer their current business to this environment and make it as successful as it is on the classical platform.
The success of United Traders directly depends on its number of customers and their trading activity. Therefore, this requires paying due attention to marketing. Only large-scale, high-quality marketing will be able to attract enough customers to the platform.
However, United Traders has all trumps in its hand. Such position needs to be maintained in the future. Any successful trader knows well what the reassessment of his risk capabilities can lead to. We believe that the team has already proved by its long time success that it understands what risks are and has always kept them under control.
Token investment attractiveness
UTT Tokens do not grant holders any right of ownership or rights to receive profits, nor payments or revenues as a result of acquiring, owning, managing, disposing, executing, restoring, or expiring any rights, interests, property rights or material interests in United Traders, United Traders platform, other United Traders property or its part.
The tokens of United Traders do not fall under the status of Security and this makes them absolutely legal. This is necessary in order to attract the largest and most important partners for development of the platform (exchanges, hedge fund and financial institutions). According to the Howey Test, the UTT Token will not be recognized with a probability of 80%.
UTT tokens are completely infrastructural. The entire volume of services sold on the United Traders platform is paid for with UTT Tokens, which will become a single payment method for all modules. Accordingly, if the volume of services sold increases, the total value of tokens also increases. (The white paper details the use of tokens on the platform). This approach will ensure the maximum liquidity of UTT Tokens both in the secondary market (crypto exchanges) and within the framework of the United Traders ecosystem.
Long-term retention of tokens by investors and crypto funds removes them from circulation, reducing liquidity wherever they may be bought for use of the platform services. The less liquidity, the higher the price of the token. According to the founders, the project has already attracted a number of large investment funds with investments of about $10 mln (exact figures before the start of the main stage of the ICO were not disclosed).
With good marketing, United Traders will attract a large number of customers to the platform. The current number of active traders (users of the Aurora platform) has grown from 1,000 to 3,000 people in less than 3 years.
At the same time, forecasted data for the attendance on the portal is quite impressive - more than 15,000,000 visits in 2019 (more in the “Marketing strategy” section.) The growth in the number of users will directly affect the price of the token and with such statistics and forecasts; given that the forecasts are built on the example of the UTMagazine.ru portal, the UTT exchange rate will grow.
We can assume that due to an active promo campaign and a low limit on the number of tokens per buyer, excessive token demand will be achieved which will remain after the ICO. Thus token price at the start of trading on the exchange is likely to exceed the price at the ICO.
We also want to point out the right approach for developers to conduct a soken Sale. There are no large bonuses for 50-70% for early participants in the Pre-Sale; all investors receive equal conditions. Exceptions are just large-scale investors (from $250,000 upwards), but their bonuses compared to many ICOs are not large.