Overview

Competition Report

Project X

Dec 12nd 2018

Short Description


Project X is an independent wealth system that delivers stability, security and wealth protection on the Blockchain. Project X rewards and empowers users with the ability to manage the wealth independently.

NOTE: This example with Project X is used to exemplify how the competition report and its structure should look like.

Competitor 1

Short Description


Competitor 1 implements a new architecture of smart contracts called “C1Contract”, which realizes new billing methodologies over the blockchain. The C1Payment Protocol is a customizable chain of contracts that govern transaction behavior. There can be realized many payment mechanisms such as a simple single transaction and a complex one (recurring payments, pay-per-use payments, split payments, restricted payments, exchange rate corrections). Businesses can use these mechanisms or modify them to satisfy their needs.

Project started
October 2017
Country
Cyprus
Team size
Team members – 33;
Advisors - 7
Community size
Telegram – 8 103,
Facebook – 3 304,
Twitter – 4 378.
Raised funds so far
$117,019,041

Business model. How do they earn money? Revenue streams?


There is no direct revenue model. The protocol is open source. The team uses the money raised during the token sale. Their profit is the satisfaction of everybody using the protocol. However, Competitor 1 may introduce other services on and around the protocol that will not be free.

PROS (competitive advantages)


  • Project X ensures payment in USD, EUR or Crypto, and a person does not need to work with crypto, the platform does it on behalf of a user.

CONS (competitive disadvantages)


  • Project X offers only recurring payments, while Competitor 1 provides simple single transactions and complex transactions such as recurring payments, pay-per-use payments, split payments, restricted payments, exchange rate corrections.
  • Competitor 1 supports ETH, BTC and ERC20 payments.
  • Competitor 1 developed SDK (Software Development Kit), an off-chain set of tools to improve users adoption. It provides third parties with the ability to create extra business solutions (code review, insurance, billing services, product delivery, etc.).
  • Competitor 1 have already realized their wallet on iOS and will develop a Chrome-based application.
  • Competitor 1 does not charge any transaction fees.
  • Competitor 1 Pride allows crypto holders to find businesses that accept Competitor 1 tokens.
  • Competitor 1 has a huge amount of early adopters. They are incentivized by Competitor 1 token rewards.
  • Competitor 1 makes all transactions final and irreversible. There are no chargebacks.
  • The Competitor 1 Protocol works with both on-chain and off-chain components.
  • There will be created arbitration companies to solve commercial disputes.
  • The merchant has a trust score.
  • Competitor 1 issued own ERC20 tokens. The team is ready to migrate to other blockchains such as Orbs, EOS, Stellar and Cardano when it is needed.
References: (links, photos, videos, books etc..)
Competitor 2

Short Description


Competitor 2 is an infrastructural platform where users are able to invest in gold using mobile applications. One of the most important advantages of the project is the ability to buy gold without needing to open bank and brokerage settlement accounts.

Project started
2015
Country
Malaysia
Team size
40
Community size
Telegram – 10 025,
Facebook – 23 696,
Youtube - 954
Raised funds so far
ICO: $5,208,991
Market Cap $668,082

Business model. How do they earn money? Revenue streams?


The platform charges and expenses for the following services:
Charges
Expenses
The gold purchase/sale transaction value.
-2% (at spot+2%)
-0,79% purchase -0,5% sale (is due to the BS International contractor’s policy)

Annual management fee. This charge is Calculated daily and deducted monthly.
-2%

The debt amount of credits secured with Gold (paid by the creditor). The user does not have to pay the annual management fee in this case.
- 2-3%

Fee for the delivery of physical gold depends on the delivery volume. It includes administrative, delivery, and cargo insurance expenses.
- depends on the delivery volume.

The cost of gold storage and insurance.
-0.39% per annum

PROS (competitive advantages)


  • No additional security features such as biometric identification.
  • The holders of tokens do not need to become project miners, they just need to wait patiently until Competitor 2 earns a profit and accrues some sort of dividend from it (unlike Project X, where holders will receive commissions from transactions all the time while people transfer X tokens to each other). Moreover, the potential earnings of Competitor 2 investors are limited to a specific amount of 3,800 kg of gold.
  • High storage fees, commissions on conversions between assets, redeeming fees. For example, ETF GD (X Gold Trust), where CFO of the project worked, has a brokerage fee 0.1-0.2% and management fee 0.4% per annum. Moreover, investors pay $0,25 to invest small amounts using a simple smartphone application.

CONS (competitive disadvantages)


  • Financial model forecast of the project is quite realistic (that is much better than what Project X and other competitors like Competitor 1, Competitor 3, Competitor 4 and Competitor 5 have. That is due to the relevant experience and professionalism of the staff.
  • As for August of 2018 Competitor 2 also shows significant progress in this direction and it has already issued more than 3,000 X tokens backed by gold.
References: (links, photos, videos, books etc..)
Competitor 3

Short Description


Competitor 3 is a project for the creation of a cryptocurrency, G3, which is 100% guaranteed by physical gold or another derivative financial instrument with a basic asset in the form of gold.

Project started
Q1 2017
Country
Singapore (team from Russia)
Team size
17
Community size
Telegram - 9 365,
Facebook – 78 384.
Raised funds so far
$6,935,639

Business model. How do they earn money? Revenue streams?


Competitor 3 is a platform that will issue a G3 certificate, 100% guaranteed by physical gold or ETF shares. The project will have its own blockchain, the consensus in which will be achieved based on the Proof of Stake (PoS) algorithm. CMP3 - utility tokens, which will be used to confirm transactions in G3. The more the CMP3 tokens, the more blocks it can add to the chain.

The Competitor 3 platform will use 2 types of tokens: G3 and CMP3. As already described, tokens of the first type will be used by participants as "digital gold". The second type of token is technically used and will be needed to confirm transactions in G3. As a reward for the creation of the block, miners will receive a commission in the form of G3 tokens of about 0.225% of the transaction amount.

PROS (competitive advantages)


  • The financial model of the organization is completely absent.
  • Their management is known to use older principles of business which did cause the failure in the past. They have a hard time adapting to new practices.
  • Their Customer Support on public social media channels is very defensive when asked about the tokenomics and token distribution. It feels like they are hiding something and poking further into the topic might exploit a weakness.

CONS (competitive disadvantages)


  • Competitor 3 is using their own blockchain. They will use its own PoS blockchain system based on the GRPx platform, developed by the authors of the BitCompany project.
  • CompetitorX Bot devices will be used in autonomous pawnshops network. They will outwardly look like ATMs and their internal structure includes a spectrometer, scales and a computer based on Linux OS connected to the G3 blockchain platform. The founders of the project expect that CompetitorX Bot will be located in small banks, pawnshops and other relevant institutions. People will there take their gold products and almost immediately be able to exchange for G3 cryptocurrency.
    CompetitorX Bot 2 – Competitor 3's innovative storage unit is programmed to automatically identify and store gold jewelry, small ingots (up to 100 grams) and coins, without human intervention.
  • Possibility to use cryptocurrency as collateral for loans. After passing the KYC procedures, the G3 coin holders will be able to apply for a loan at Competitor 3 itself or with its partners.
  • Competitor 3 project token holders will receive commissions from transactions all the time while people transfer G3 tokens to each other (unlike Project X).
References: (links, photos, videos, books etc..)
Competitor 4

Short Description


LHCoin is a utility token for trading Forex, CFDs, Gold and Cryptocurrency Markets.

Project started
2017
Country
Hong Kong
Team size
51
Community size
Telegram - 9 229,
Facebook – 2 322,
Twitter – 4 258
Raised funds so far
$10,810,000

Business model. How do they earn money? Revenue streams?


The project is an effort to Tokenize the business of an existing Forex Broker, L and H. Funds raised by the project would be used to build a platform that will allow users to use cryptocurrency to trade Forex Pairs. Gold and CFDs. The platform is currently in Beta. Companies primary source of income is trading fees on their platform which are not made public yet.

PROS (competitive advantages)


  • They have issues with keeping the website online. Sometimes their website is not available and this raises doubt about the quality of their service.
  • Slow progress. They have not been hitting their targets. They are now 11 months after their ICO and are only processing the first cashback payment.
  • Questionable location raises an issue. In their official documents, ICO has listed Hong Kong as their base of operations but most indications are that Hong Kong is little more than a mail drop and everything else is believed to be taking place in Moscow.

CONS (competitive disadvantages)


  • Investors earn cashback from fees generated by the platform. This is a quite unique and attractive incentive for the token-holders.
References: (links, photos, videos, books etc..)
Competitor 5

Short Description


FoxTrading is an automated Forex and Cryptocurrency trading platform.

Project started
2014
Country
Spain
Team size
24
Community size
Telegram - 21 450,
Facebook – 12 005,
Twitter – 11 200
Youtube – 1 245
Instagram – 7 199
Raised funds so far
$300,000

Business model. How do they earn money? Revenue streams?


Competitor 5 offers 3 products:

  • a trading signals service
  • an automated trading platform for Forex and Gold
  • a trading pool.

Competitor 5 earns money from a combination of trading fees and a membership fee. Tokenomics model is based on membership fees being only payable in COM5 utility tokens and demand for membership will drive up the price of the utility tokens.

Trading fees: 0.1%-0.2%
Membership fees:

  • Basic – 550 COM5 tokens/month ($55)
  • Pro – 1500 COM5 tokens/month ($150)
  • Enterprise – 2500 COM5 tokens/month ($250)

PROS (competitive advantages)


  • Lack of funding. The company only raised $300,000 and though they have been making progress and are now preparing a launch of their beta, it is not a lot of money to launch a business with. Unless they can find additional sources of capital or start generating positive cash flow in the short term they may run out of money.
  • Inferior security feature like voice recognition is no match to biometric identification which Project X offers.

CONS (competitive disadvantages)


  • The platform uses an automated trading algorithm based on MT4 that is compatible with the major cryptocurrency, forex and gold exchanges which is far superior to what Project X is offering.
  • Competitor 5 has a proven signal service with 85% accuracy rate and they have been in the business since 2014.
References: (links, photos, videos, books etc..)
Summary

Many of projects allow people to use their cryptocurrency as collateral for loans and payments. Project X does not cover this issue.

If we take into account the biometric iris identification – Project X has a leading position. There are a lot of ICOs with biometric identification (for example, Project Y, Project Z, Project Q). However, they most often use fingerprint identification and voice recognition, which is inferior to iris identification.

Based on TechX (a leading market research company) projections, the global iris recognition market is expected to grow at a CAGR of over 21% to reach nearly US$5 billion by 2020. TechX Research released a report that forecasts the whole global biometrics market for the retail sector to reach over US$2 billion by 2020.

There has been a growing adoption rate of iris recognition biometrics in the banking, financial services, and insurance (BFSI) sector as a replacement for PINs, account numbers, and paper-based credentials. Using iris biometrics, banking customers have the ability to check their account balance, perform transactions, and access other financial services in offices and from remote locations (e.g. ATMs).

If the team published a small review of the advantages of this method, it would have caused more confidence among investors. For example, CX ICO published a technical paper on their revolutionary identification technology, based on the analysis of the electromagnetic field of the person.

Competitor 1 is the most competitive project. They have already realized their product, and have many advantages over ProjectX. Project X already has a solid base to take a big chunk of the market from the competitors and there are a few things that will certainly have to be addressed beforehand. Lowering the fees would be the first step to attract more customers.

It is important to notice that there are some crucial milestones that could be improved by Project X: creating GitHub, writing a clear Roadmap and improving the product features. In addition, finding corresponding partners would help the project to take off.

References: (links, photos, videos, books etc..)