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Vault12 Rating Review

Stable

Investment Rating

Expiry date : Expired 15 Nov 2018

Rating report

Stable

From the results of the performed analysis, which takes into account all risks associated with the Vault12 project as of June 2018, a “Stable” rating has been assigned to the Vault12 project. The rating could be reassessed once whitepaper is published, and ICO details are announced.

The project is based on a cryptographic algorithm, Shamir’s Secret Sharing, and assumes the creation of a mesh network to store shards of the user’s data.

Although the project has an experienced team & well-known investors, and its product is well described with visual examples of the mechanism and applications, important parts remain undisclosed.

Token description, its economics, distribution and demo versions are available only for US-accredited investors via direct mail in Telegram.

Roadmap is not published.

ICO details are not announced.

If the project implements a really worthy product, economics, token information, and ICO, details should be available for all interested parties. A lack of information could mean an absence of the final vision of the project and its financial vulnerability which could be due to the early stage of the project.

General Information

Vault12 is a distributed, decentralized and serverless digital custody for cryptocurrency and a high-value asset which is assigned to trusted people or devices.

Platform: Ethereum

Token: Vault Guardian Token (VGT)

Payment facilities: no data

Foundation date: unclear, all social activity started in 2018

Location: San Francisco, US

Restricted countries: no restrictions (confirmation via Telegram)

ICO date: ~August/September 2018, TBA (confirmation via Telegram)

Website: https://vault12.com/

Whitepaper: only for US-accredited investors, link to technical whitepaper is available via Telegram

Techpaper: http://bit.ly/vault12-whitepaper-public

GitHub: https://github.com/vault12/

MVP: only for US-accredited investors, small part is on video https://youtu.be/22g1skC9Usw?t=124

KYC: only US-accredited investors, further details via direct mails in Telegram

Founders: Max Skibinsky, CEO  and Blake Commagere, COO

Team: 4 members, including Founders

Advisors: 8 advisors

Investors: 7 investors, including private and corporate

Community: ~9k Telegram , ~ 800 Twitter, <10 Facebook,  <10 Instagram followers

https://t.me/vault12

https://twitter.com/_vault12_

https://www.facebook.com/GetVault12/

https://www.instagram.com/vault12/

Partners: no data

Ecosystem partners: no data

 

Access to key information is limited and available only for US-accredited investors via direct mail with the Project’s team.

According to the open sources, the token distribution scheme looks as follows:

40% of all issued tokens will be sold

10% will be allocated for a community reward pool

50% will remain locked in company inventory for one year after the end date of the initial sale.

As it was announced in the Telegram group, the public ICO will take place on an accredited listing platform, like Coinlist, and will be held for accredited investors only in the August-September timeframe. For investors/funds/syndicates, the Project is restricted to working with US-Accredited investors and funds who have a Regulation D 506(c) certification for KYC regardless of where you live.

 

Despite a lack of information, several individuals and funds are already invested in the project.  

Naval Ravikant, AngelList CEO & Co-founder – an entrepreneur and angel investor with relevant experience in IT and blockchain.

Website: https://about.me/naval

Jon Callaghan, True Ventures Co-founder – an early-stage venture capitalist with relevant experience in M&A and IT spheres.

Website: https://trueventures.com/team/jon-callaghan/  

Cameron and Tyler Winklevoss, Winklevoss Capital Management Co-founders, who are among the first bitcoin billionaires, invest across many asset classes with an emphasis on providing seed funding and infrastructure to early-stage startups.

Website: https://winklevosscapital.com/  

Data Collective – is a venture capital fund that invests in entrepreneurs building Big Data companies.

Website: https://www.dcvc.com/

Collaborative Fund – is a venture capital firm focused on providing seed and early-stage funding to technology companies.

Website: http://www.collaborativefund.com/

Space Whale Capital – is a capital company which offers institutions and individuals a total return investment strategy in digital assets. Lack of details.

Website: http://spacewhale.capital/

#Hashed – is the largest Korean crypto fund, and has accelerated South Korea's largest wallet provider, CoinManager, as well as ICON and Medibloc, successfully launching their tokens through ICO. 

Website: https://www.hashed.com/  

SUMMARY: There is a lack of general information on the website, as well as the majority of the main information is available only for investors via direct mail in Telegram. The ICO date has not yet been defined. Meanwhile, the pool of investors looks well, including several well-experienced individuals, like the Winklevoss brothers and Naval Ravikant.

Description of Services

Vault is a decentralized custody for cryptocurrencies.

Vault12 enables you to safeguard your cryptocurrencies, using a cryptographically secure network made up of trusted people and devices.

Based on the hierarchy of Shamir’s secret sharing: The cryptographic algorithm of the Hierarchical Shamir's secret sharing (H3S) combines the personal control and complete privacy of self-managing cryptostorage.

Designed as an application: Application makes securing of crypto tokens easy by selecting people from friends and relatives, then provides the mechanism with protection of their valuable coins until the owner wishes to use them.

Each crypto owner's trusted circle is considered as a mesh network of mobile devices for distributed storage, and, at the same time, is also considered as a method of social verification of each owner's identity.

The Hierarchical Secret Sharing allows to categorize participants into three sections:

Owner and his/her Master Device

Guardians: family members and best friends who deserve a high degree of trust. An owner can also add his additional personal mobile devices as a Guardian.

Custodians: a large number of acquaintances that the owner can easily contact. That tier provides additional redundancy and availability since the number of weak connections will greatly outnumber high-trust Guardians.

The typical process of securing crypto assets works as follows:

The owner recruits Custodians - a few trusted Guardians and a number of casual friends - whose phones become distributed storage nodes.

The application on the master device converts critical data into schema shards which are then encrypted using master device PKI keys.

These schema shards are immediately distributed to the Custodian devices for permanent storage. Once the shards are transmitted out, the application verifies the storage of the shards in a trusted circle and monitors the health of the Vault over time.

An active Vault can dynamically generate new shards if the owner invites new Guardians and increases the size of his/her Guardian circle.  

To unlock the Vault, the owner requests threshold shards from Custodian devices via social verification. Owners can use personal U2F, HSM or biometric devices when authenticating shard requests with Custodians.

After collecting a threshold number of shards, the master device reconstructs crypto asset data, allowing the owner to access and use them. Depending on the policy selected during Vault creation, at least one Guardian device is required by the hierarchical schema to complete reconstruction.

If the owner's master device is lost or destroyed in an accident, the owner can contact Guardians for higher-level social verification and request restoration shards. This would allow to restore the master device setup on a new phone.

The Vault12 project offers two solutions for data storage:

Vault12 mobile application: creates the mesh networks used to store owner's cryptocurrencies. Any mobile device can be a master device for its owner, while also being a Guardian for any number of friends and family.

Vault12 desktop client for Windows and OS X pairs directly with the master device to establish a secure, unbreakable communications channel.

While the demo video of the product is available only for US-Accredited investors, there is a YouTube video with some useful information.

Vault Cryptostorage platform features:

The Mesh Information Storage (MIST) Network automatically tracks the storage and health of all shards of all information stored in cryptostorage Vaults. Sharded files exist as distributed MIST spread across Custodian devices.

Zax is asynchronous messaging network provides all the communications necessary to connect owner and Guardian devices around the world. This allows each device in the relay network to simply send a short burst of encrypted communications to a few nearby relays, and return to sleep mode to conserve battery power. Relays also do not know the identities of devices participating in communication sessions.

Secret Management Module is responsible for converting any assets or documents, given to the platform applications, into H3S shards according to the policies set up by the owner. It is also responsible for reconstructing original documents from given shards.

The Authentication Module is a verification tool. Verification can be made via phone call, video chat or another direct communication channel. Owners can use 2FA/U2F/HSM devices for faster authentication.

SUMMARY: The Project provides quite a good description of the product with visual examples of the network and applications. The protocol is based on Shamir's secret sharing which provides storage security and transparency. The concept of the project looks like a secure private network where owner shares data with friends and assign a hierarchy.  

Roadmap

Roadmap has not yet been published as of June 14th, 2018.

SUMMARY: The absence of the Roadmap says that the Team does not have the final vision of the project yet. The project’s development can be accessed when the roadmap is published.

Market Outlook

Data is one of the most valuable assets that individuals and business have at their disposal, covering anything from financial transactions to important clients and personal details. That makes it vital to take data security seriously and to ensure the necessary precautions are in place to protect this important asset.

  • In 2017, 6,5% of people were victims of identity fraud — resulting in fraudsters defrauding people of about $16 billion.

  • The average cost for each lost or stolen record containing sensitive and confidential information is $141 

  • A single data breach costs the average company $3.8 million

Currently, the most popular solution is the Public Key Infrastructure. The purpose of a PKI is to facilitate the secure electronic transfer of information for a range of network activities, such as e-commerce, internet banking, and confidential email.  It is required for activities, where simple passwords are an inadequate authentication method, and more rigorous proof to confirm the identity of the parties involved in the communication.  

The global Public Key Infrastructure market is expected to grow to USD$ ~1.99 Billion by 2023, to ~22.7% of CAGR (compound annual growth rate)  between 2017 and 2023.

To store and secure cryptocurrency data – the most precious digital asset today –, different hardware/software wallets or centralized, online accounts are used.

The number of cryptocurrency wallets is growing significantly which shows the demand from the community to store and secure its information.

There are four main types of cryptocurrency wallets:

  • Hardware wallets6 – are physical devices that store cryptocurrencies offline.

  • Immune to viruses;

  • The safest solution;

  • Expensive;

  • Loss of the device means loss of data;

  • “x” digit password to update a device and recover lost data.

  • Desktop wallet – is kept on the PC and

  • Quick installation;

  • Free, or low cost;

  • Loss of the PK means loss of data;

  • “x” digit password to create a new account and recover lost data.

  • Web wallet – are third-party websites.

  • Access from anywhere;

  • Risk of trusting someone else and hacker attacks;

  • “x” digit password to create a new account and recover lost data.

  • Mobile wallet – are directly installed applications.

  • Access from anywhere;

  • Wide range of applications;

  • “x” digit password to create a new account and recover lost data.

The Vault12 project assumes that these approaches have significant weaknesses due to hacker attacks and requirements to remember/save the recovery password.

Below is a comparison of current solutions and Vault12.

PRODUCT

HOT WALLET

HARDWARE WALLET

VAULT12

Possession

Downloaded application

Purchase of a physical electronic device

Downloaded application

Security

Encrypted

Encrypted
Isolated
Offline

Encrypted
Sharded
Distributed through several users' devices

Recovery

Recovery password

Recovery password

Collect shards from users' devices

Advantages

Easy to install
Convenient to send and receive payments
Allow access to funds across multiple devices

Easiest way to securely store cryptodata
Easy to backup and secure
Protected from hacker attacks

Sharding process
Serverless
Full control over user's assets*
(according to techpaper)

Disadvantages

Not safe due to hacker attacks and recovery password

Loss of the device means loss of data

The project is not launched
Rely on people, not on technology

SUMMARY: The data custody market is actively growing due to an increasing number of transactions on the web and complicated security requirements. There are several solutions for data storage on the market. All of them have pros and cons, but, depending on the requirements of users, it is possible to find an optimal solution. The concept of the Vault12 project assumes that the user’s data are stored in pieces within the network of Guardians. Comparing the aforementioned solutions in the case of Vault12, users have to rely not on the servers and technology, but on the smartphone of the user’s related parties.   

Team & Advisors

The project’s team is represented by developers, engineers and sales managers with relevant experience in IT and blockchain spheres.  

Name

Position7

Total Experience

Relevant Experience

Relevant Education

Professional Achievements

Linkedin

Connections

Endorsements/ Recommendations

TEAM

Max Skibinsky

Co-founder & CEO

15 years

Yes

Yes

Partner at Andreessen Horowitz  and Founder.
Ran research and diligence for a $90M investment into Tanium.

Yes

500+

Yes

Blake Commagere

Co-founder & COO

18 years

Yes

Yes

40 under 40, Silicon Valley Business Journal.
Patent - Method and apparatus for providing content units during application use.

Yes

500+

Yes

Brandon Forant

Chief Designer Officer

21 years

Yes

Yes

Semi Finalist - DropZone - competition to conceive, design, launch, and pitch a startup.
Finalist : Fast Company Innovation Award.

Yes

500+

Yes

Wasim Ahmad

Chief Crypto Officer

29 years

Yes

Yes

Executive-level startup experience in launching enterprise B2B2C companies.

Yes

500+

Yes

ADVISORS

Jarrod Dicker

Advisor
CEO of Po.et

10 years

Yes

No

Hottest Digital Publication : The Washington Post .
Most Innovative Publisher: The Washington Post.
30 Most Creative People In Social Media Marketing: Business Insider.

Yes

500+

Yes

Sathvik Krishnamurthy

Advisor

31 years

Yes

Yes

Patent: E-mail firewall with stored key encryption/decryption.

Yes

500+

Yes

Vinny Lingham

Advisor
Co-founder & CEO of Civic.com

18 years

Yes

No

Technology Top 100 Winner: Business Day.

Yes

500+

Yes

Dr. Yevgeniy Dodis

Professor at New York University

18 years

Yes

Yes

PhD at Massachusetts Institute of Technology

Yes

300+

No

Terrence Spies

Advisor

17 years

Yes

No

Certificate at Financial Markets.

Yes

500+

Yes

Roman Storm

Contributor at POA Network
Advisor

9 years

Yes

Yes

-

Yes

500+

Yes

Name

Position

Total experience

Relevant experience

Relevant education

Professional achievements

LinkedIn

Connections

Endorsements/ Recommendations

Matt Pauker

Advisor

16 years

Yes

Yes

Hottest Digital Publication : The Washington Post .
Most Innovative Publisher: The Washington Post.
30 Most Creative People In Social Media Marketing: Business Insider.

Yes

500+

No

Beryl Li

CEO Founder at CapchainX
Advisor

6 years

Yes

No

Co-authored the Philippine Startup Report and is a book contributor to Moats: Competitive Advantages of Munger and Buffet Businesses.
Has  cryptocurrency trading experience since 2013.

Yes

500+

Yes

SUMMARY: The team is represented by 4 core team members. Further development of the Project assumes that the team will achieve project completion. After this, it will be possible to come to a conclusion on team competence. Advisors have relevant experience in blockchain and IT.    

Token & Economy

Vault Guardian Tokens (VGT).

The project provides detailed information only for US-accredited investors via direct mail.

According to the open sources, the fixed supply is assumed in the amount of 1 billion (1×109) VGT.

VGT is intended to be used for the following purposes:

  • Payment for storage services to be paid to Custodians.

  • Token charge for a higher level of service, such as higher overall bandwidth, or more reliability, to be paid to Relay operators.  

SUMMARY: As the project does not disclose the information on tokens, its role in the system is not obvious. The absence of token distribution and budget plans could be the consequences of the financial concept’s vulnerability. The project’s economics can be accessed when ICO details and Financial data are disclosed.

Token Price Factor Analysis

Due to the lack of information on token ICO details, only fundamental factors could be evaluated:

FACTOR

DESCRIPTION

PRICE EFFECT

 

Development and release of new products according to the roadmap

Roadmap is not published.

⬇︎

Demand for the platform

Based on the hierarchy of Shamir's secret sharing, it enables new security and storage models which are designed for owners of crypto assets.
To power the day-to-day operations of cryptostorage platforms, the project has introduced a new ERC20 token, Vault Guardian Token (VGT), which is designed to incentivize all actors on platform ecosystems.

⬆︎⬇︎

Sale of tokens by the team, advisors and contributors

Distribution data are not announced to the public.

⬇︎

Significant bonuses during the private sale round

No data on private sales and ICO for the public.

⬇︎

Token inflation mechanism

No data for the public.

⬇︎

Volatility of cryptomarket

Tokens could be used as an internal payment mechanism within the system, therefore, due to high volatility of cryptomarkets, token prices could fluctuate, or even speculative activities could be used (pump&dump, etc.).

⬆︎⬇︎


SUMMARY: Due to the lack of analysis information of tokens, the price is raw. After disclosure of the information for the public, factors could be reassessed.

Investment Risks

RISK

DESCRIPTION

LEVEL

ICO details

 

Absence of ICO details, such as ICO date, payment facilities.

High

Token

Absence of detailed token descriptions (available only for investors via direct mail). Role of the token in the system and its necessity is not obvious.

Medium

MVP

Available only for investors.

Medium

KYC

Available only for US-accredited investors, further details via direct mail in Telegram.

Medium

Partners

No confirmed partners.

Medium

Roadmap

Absence of the Roadmap .

High

Concept

Data are stored in pieces within the network of friends. Transfer of the control from servers and technology to people.

High

Competitors

Strong competitors with a wide range of available solutions.

High

 

 

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.