ICO review of INGOT Coin (): valuation, analysis, tokencost | Digital Rating Agency

RATING

A2

Better than 56% of projects

SWOT

No SWOT

QUALITY

High

Better than 53% of projects

EXPECTED ROI

No ROI

General

INGOT Coin

INGOT Coin

INGOT seeks to be a pioneer in the financial industry providing innovative techniques and solutions to link global markets with global market participants. The INGOT team is working to create an integrated solution for combining cryptocurrency and traditional financial markets. The Ingot ecosystem will consist of a crypto exchange (the key product of the system, which will enable to trade fiat currencies as well as cryptocurrencies and traditional financial instruments), a cold wallet, a broker-service, a digital bank, a liquidity aggregator (integrated with top world exchanges), and an educational portal.

As technology progressed, the global markets and their efficiency progressed along, providing investors with more opportunities. INGOT continuously works on providing all stakeholders an ever-growing broad range of innovative products and services globally, thus allowing it to gain sufficient expertise to link this knowledge to the new blockchain environment and create an all-inclusive and
self-serving Ecosystem.

INGOT Group provides through its entity INGOT Brokers, a wide variety of products and services which includes ETFs, international shares and indices, commodities, metals, energies, as well as currencies. INGOT Group additionally serves as a member of Global Alliance Partners (GAP), which is an international network of regulated financial services companies that focuses on the mid capital market. GAP’s international reach gives its member firms greater clout and a wider platform to conduct investment banking, wealth and fund management, broking, and other financial services across international markets.

Place est.:
Ticker:
IC
Platform:
Ethereum
Status:
Past
Links:

Overview

Summary

The Ingot project team plans to create an integrated investment platform that will unite financial instruments and will be able to bridge the gap between traditional financial, stock and cryptocurrency markets. The concept and tools proposed by the developers are necessary for the further development of the entire cryptocurrency market, according to them, and in the case of a full-fledged implementation of the business model, they could make the cryptocurrency market more convenient and easily accessible. The project team presented a detailed roadmap, outlined the profitability targets for the next 3 years, as well as implementation costs (justifying the collection of investments). A detailed business model and commissions, which will be charged for the Ingot services are also provided. In addition, the project itself was created by the founders and managers of the Ingot Group and Sigma Investment LTD, these companies have already proved themselves in the global financial market. All of the above facts leave no doubt about developers’ serious intentions and their possibilities of implementing all plans.


To unite the classic stock, fiat and cryptocurrency market, the project team offers the following system of interaction. All cryptocurrencies will be assessed against the IC token, and IC, in turn, will be the only asset that will get permission to trade against fiat currencies. Thus, technically, for the trade of any cryptocurrency asset against the currency, for example BTC / USD, the transaction will be divided into two transactions - BTC / IC and IC / USD. The same principle will be applied to trade with traditional assets. Let's say that BTC will trade against Apple shares. The transaction will be divided into 3 transactions - BTC / IC, IC / USD, USD / AAPL. This solution is really innovative for the cryptocurrency market and will allow the company to achieve its goals without violating the modern legislative framework.

Despite the high competence of the team, some aspects still raise questions.

For example, the legal nature of the IC token, which has features of a security, is not defined. Only cryptocurrency exchanges are examined in detail within the analysis of the competitive environment, other services are paid little attention, although hundreds of exchanges, dozens of digital banks, wallets, broker-services and training centers accumulating most of the trades have already been established on the market and offer similar to Ingot’s  tools.

These are crypto exchanges with fiat currencies - Kraken, Bitfinex, the stock exchange aggregating liquidity - B2BX, digital bank - Datrius, integrated solutions - United Traders, BeEsy. There are also many broker-services on the market - Exante, Coinbase, FXTM, Forex4you, etc. Competitors are likely to be able to increase volumes and modify their products / services in accordance with market needs, by the time the project succeeds in releasing a full ecosystem in 2021.

Nevertheless, there are no integrated systems on the market that could offer users the fullest range of financial services with cryptocurrencies, fiat currency and traditional assets. Ingot’s solution is still unique. In addition, the Ingot project is supported by an international holding company with a 20-year history. However, given that the prototypes of the platform products have not been developed yet, and the legislation on regulation of activities on the aggregate cryptocurrency and traditional financial market is not available, a stable and rapid development of the Ingot project can be jeopardized.

Strengths and Weaknesses

Strong sides
  • The team understands real market problems and offers their solutions.

  • The project team members have extensive experience in the in the financial field.

  • The founders of the project are known in professional circles.

  • There is a clear roadmap.

  • The team cooperates with major well-known companies.

  • The project participants have a clear motivation for owning the tokens

  • The project succeeded in attracting experienced advisers.

Weak sides

    • There is no product prototype.
    • Smart contract code for token sale, a protocol and smart contract for the platform are not published on GitHub.
    • The legal nature of the IC token is the basis for classifying the project's token as a non-documentary security.
      • The measures to stabilize the exchange rate of the IC token are not sufficiently thought out.
        • The potential legal risks that the project may face are not well thought out.

        Project concept (5.6 / 7.0)

        The project developers note several main problems inherent in centralized financial ecosystems (in particular, crypto  exchanges) that need to be solved:


        Firstly, despite the large number of e-wallets and various services with the help of which you can convert cash to the cryptocurrency, transactions are subject to a rather high commission (in the majority of 3-7%). Currency transfer between cryptocurrency and fiat exchanges is also difficult due to high commissions.

        Secondly, not all cryptocurrency broker-services are ready to offer the maximum functionality for working with digital currency: the possibility of trading on the weekend, when traditional exchanges are closed, realization of wider spreads during a strong market volatility, the provision of suitable commissions and fees for servicing the digital currency trade.


        The Ingot team proposes to solve these problems by creating an integrated financial platform. The solution of the problem of high commissions will be achieved by combining the financial, stock and cryptocurrency market and giving users the opportunity to exchange different assets using one service (IC Exchange or IC Brokerage). In this case, users will not pay extra costs for withdrawing funds from one exchange (for example, crypto exchange) and transferring them to another one (for example, a fiat one). To solve the problem of the limited functionality of broker services, the project team develops its own  IC Brokerage service, which will be available 24/7, will have the same conditions for both large and small investors, a low entry threshold and will conduct all transactions using smart contracts.


        A complex of services is supposed to lay in the basis of the new Ingot ecosystem. The group of Ingot companies (Ingot Group) already has a functioning broker service for trading shares and traditional assets, this service will be integrated with the crypto exchange and other products of Ingot, that are currently being developed.

        IC Exchange is a key component of the platform that will provide users with a convenient graphical interface and will be able to offer a wide range of trading tools (precious metals, US and UK shares, European shares, Asian shares, African shares, and indexes for the latter, such as the S & P 500 and DowJones, ETF, bonds, options, etc.).

        IC Wallet is a cold wallet for storing crypto assets, fieat currency and traditional assets, integrated with other Ingot products for more effective interaction.


        IC Brokerage Service provides investors with the ability to trade different financial assets and provides users with a high liquidity pool due to communication with the best exchanges (agreements with exchanges have not yet been signed).


        IC Digital Bank is a digital bank, available 24/7, capable of managing customer funds. To increase reliability, IC Digital Bank will receive a financial banking license from an authoritative strict regulator (the company is studying regulators in Germany, Latvia, Belarus, the UAE and Bahrain, but no final decision has been made) that will ensure safe and smooth transactions. The bank will offer such services as opening an account, issuing a debit card for account holders, electronic transfers and payments.


        IC Liquidity Pool will be integrated with the best exchanges in the world (the list of exchanges is not disclosed) in order to exclude price manipulation and ensure deals at the best price in the market along with the highest liquidity.


        IC Crypto Certifier will provide market participants with the opportunity to participate in webinars, that will have a direct impact on increasing the awareness and knowledge of the global crypto community. Users will be provided with free courses in finance, history of cryptocurrencies and much more, as well as professional accreditations.


        The unification and functioning of the cryptocurrency, stock and currency markets within a single ecosystem is a unique offer on the market and will be in demand by investors both from the traditional financial market and crypto market. As for the additional services of the platform (training service, digital bank, e-wallet, exchange of cryptocurrency for fiat), these products will be presented in a highly competitive market and their competitive advantages for users are not obvious.


        A research of the cryptocurrency market and exchanges that would compete with Ingot was conducted in a business plan provided to DigRate analysts in private. The generalized statistics on services offered by digital banks, on the functionality of cryptocurrency wallets and on average prices for learning the basics of the blockchain development are presented. However, in addition to the list of major exchanges, the project team does not give other names of projects which Ingot will face in the market. There are more than 200 crypto exchanges, more than 20 cold wallets, more than 50 digital banks and more than 40 cryptocurrency broker services in today's cryptocurrency market with a capitalization of $ 417 billion (as of April 25, 2018), so it can be stated that the project will operate in a highly competitive environment.


        One of the Ingot’s competitors is B2BX exchange that has already aggregated the liquidity of the 5 largest crypto exchanges. Current B2BX customers are 35 medium-sized brokerage companies and 5 famous giants of the crypto industry. Bitfinex and Kraken exchanges can also offer users cryptocurrency and fiat trade and they are in the top 10 exchanges in terms of daily trading volume on CoinMarketCap.

        United Traders (A2 investment attractiveness score), Beesy (A2 investment attractiveness score), that are working to create an integrated cryptocurrency ecosystems and have already presented their products to the market, as well as the Datarius digital bank, can be mentioned as competitors. In addition, there are many cryptocurrency broker-services (Coinbase, FXTM, Forex4you, etc.) and classic broker-services, that initially operated in the traditional financial market and then integrated with cryptocurrency services, for example, Exante. However, none of them, unlike Ingot, does not offer a solution that would allow direct exchange of traditional financial instruments for cryptocurrency and vice versa.


        The main competitive advantages of Ingot are the presence of a cold wallet (IC Wallet), integrated with the exchange, which will increase the security of funds storage and aggregation of liquidity from other exchanges in IC Exchange and IC Brokerage, that excludes failures in the periods of high market volatility. The developers of the project also claim that they will be able to offer an unlimited number of trading tools in IC Brokerage and IC Exchange, will list on their exchange all new cryptocurrencies, will list a lot of already issued tokens, and will also be able to offer shares and fiat currencies trade. However, as is known, crypto exchanges with fiat currencies have strict regulation by financial state regulators, and the list of possible cryptocurrencies is very limited.


        The team suggests the following to solve this problem: all cryptocurrencies will be evaluated against the IC token, and IC in turn will be the only token on the exchange that will get permission for trading against fiat currencies. Thus, for the trade of any cryptocurrency asset against the fiat currency, for example BTC / USD, the transaction will be divided into two transactions - BTC / IC and IC / USD. The same principle will be applied to traditional assets trade. Let's say that BTC will trade against Apple shares. The transaction will be divided into 3 transactions - BTC / IC, IC / USD, USD / AAPL. Transaction costs will be low due to calculations through the IC token.


        This solution is really innovative for the cryptocurrency market, but the question is whether this solution is necessary for the market. If the exchange of traditional assets for cryptocurrency is in demand, it is likely that other existing exchanges and financial ecosystems will implement this service. Since the exchange of traditional assets for cryptocurrency within the Ingot ecosystem will be available only by 2021, according to the roadmap, new competitors with a similar solution may appear on the market.

        Tokens (5.6 / 7.0)

        The project team notes that the IC token will have a number of utility token features - using IC as a payment tool in the Ingot ecosystem, payments with the IC token are being subject to preferential commissions, as well as transactions within IC Exchange involving IC, although the token will not be the only means of payment within the ecosystem. Developers also note the security nature of the IC token. The founders of the project promise to pay dividends to all the holders of the tokens after the Ingot ecosystem becomes stable and profitable. The project team declares the satisfaction of the token owners and the provision of economic benefits as one of the main objectives of the project. Representatives of the team declare that the IC tokens will be quoted on the top-level crypto exchanges (that are not specified) and the project team is currently negotiating with the exchanges. Since IC has clear security features, the token must be registered with the securities market regulators in those countries where the law requires it (for example, the USA).

        A total of 120 million IC tokens will be issued with a base cost of 1 IC = 1 $. All unsold tokens will be destroyed. Soft cap is $ 37 million, hard cap is $ 90 million. The ratio of soft cap to hard cap is optimal. The developers do not approve that the investors' funds will be returned if the soft cap is not reached, but designate this amount as the minimum necessary to implement the first stages of the project. Since the project will also carry out activities on the traditional stock market, it will require appropriate licenses, depending on countries in which activities are supposed to be carried out. These licenses are quite expensive, so DigRate analysts believe that Hard Cap is adequate. Early investors will be offered bonuses of up to 30%.

        The project team states that the use of IC tokens within the system will be encouraged by preferential commissions (up to 50%), that can potentially stimulate the turnover of tokens and the growth of the IC exchange rate. It is planned to lock the project founders’ tokens for 18 months, project teams’ for 12 months and advisers’ for 3 months. Additional deflation mechanisms are not ensured by the project team.



        Business model (6.0 / 7.0)

        Ecosystem revenues will be generated through from the IC Digital Bank services commissions (commissions for transfers and transactions inside the system), IC Exchange (exchange commissions), IC Brokerage (fees for brokerage services), IC Crypto Certifier (fee for user certification). Users will be able to purchase IC tokens during ICO  and store them on IC Wallet. Tokens stored on IC Wallet can be easily used to pay for other platform services. At the same time, users will receive discounts of up to 50% paying for services with IC tokens. The cost of IC Certifier services is denoted as the average for the market and will be $ 400 - $ 2000 depending on the exchange rate. 50% of the cost of the training course will be transferred to teachers and the remaining 50% is Ingot’s profit. The IC Exchange and IC Brokerage transaction commissions will range from 0.05% for Fiat vs Fiat transactions to 1.10% for the Crypto vs Traditional and, after deduction of costs, will also form the Ingot’s profit. IC Digital Bank services will be subject to a depositary commission of 0.05%, a 1% management commision and fund management performance fee of 10%. The commissions indicated by the Ingot team are average or below the average for the market.

        A detailed roadmap is available on official project resources. The project announced ICO rather recently, therefore it is at the very beginning of implementation and it is not possible to assess the compliance with the terms of the project development. The project's income will reach about $ 200 million by 2020, $ 800 million by 2021, according to the project team’s calculations. The exchange rate of the IC token will grow to $ 5 by 2020 and to $ 40 in 2021. This forecast is too optimistic taking into account the presence of strong competitors with the finished products, according to DigRate experts, however, in order not to overstate the indicators, the project team took indicators below the average in the market for all calculations.

        Project support (6.0 / 7.0)

        As of the date of the report, the advisory board of the project consists of ten members, the first one was Naviin Kapoor – a well-known ICO and a contractor adviser that will be able to provide substantial tech support to the project. Warren Whitlock is a PR and marketing adviser, also known for his "Twitter Revolution" book. Involving a well-known experts will help the project to conduct an effective campaign and become famous on the world stage. Naviin Kapoor confirmed his participation in the project, confirmation of participation of Wareen Whitlock was not received. The project states that they attracted the following blockchain advisors: Pranav Bhatia (blockchain), Victor Chow (business), Sydney Ifergan (marketing), John Van Der Voss (ICO) , Bogdan Fiedur (technical development) and George Mentz (jurisprudence), Jim Preissler (ICO), Saad Mohib (ICO). LinkedIn profiles of advisors indicate cooperation with Ingot.

        The partners of the project are such companies as Sigma Investment LTD, Dreamtechs, that, like the Ingot project, are part of the Ingot Group. Employees of these companies are not directly involved in the project and will advise the project on investment, financial and tech issues. Ingot Group is also a member of Global Alliance Partners (GAP) - an international network of regulated financial companies specializing in the market of medium capital. The international coverage of GAP gives its member firms more opportunities and a wider platform for investment banking, capital and fund management. The Trade.io project provides Ingot with advisory support in conducting the ICO. Ingot concluded a partnership agreement with Modern Finance Chain on matters of ensuring sufficient liquidity. There are also announced partnerships with ZICHAIN, Stella, HalalChain, Kakushin.tech and Bineuro. Details of the agreements will be disclosed later.

        The project team claims that a number of large VC funds such as Wamda, Dash, Oasis 500, Shamal Start, East Chain and Ahli FinTech showed interest in the project, however, no actual investments in the project is reported, and no such information was found in news resources. 


        The tech (3.6 / 7.0)

        There is no reference to the product prototype on official resources of the company. Release of the first product (IC Wallet) is scheduled for the second quarter of 2018 (before the start of the crowdsale), according to the roadmap. IC Wallet will be equipped with all the declared functionality and fully launched by the end of 2018. Further IC Digital Bank will be released in the second quarter of 2019, and all other products will be released (IC Brokerage, IC Certifier, IC Exchange) by the end of 2019.


        The source code of the smart contract and platform protocol are not published on GitHub. The project team promises to publish a smart contract by the end of June.


        Developers state that the introduction of blockchain and crypto technologies in the Ingot Group business will allow reaching a wider audience, making transactions between ecosystem users reliable and transparent. It will also unite the traditional financial market with crypto market, will cut costs, entry thresholds and commissions. Cost savings will also be achieved due to the use of a distributed network and smart contracts in IC Brokerage and IC Exchange services to execute orders that automate most of the activity. IC Wallet will also be based on the blockchain and store all transaction data in it. The data on the issued IC Certifier certificates will be recorded in the blockchain.The project team admits that they are using a hybrid system and integrate a centralized and decentralized data storage and processing structure for building the Ingot ecosystem. The construction of such a structure is possible without blockchain technology, however, the use of such technology in the registration, storage and exchange of data is important and valuable for any financial project, including Ingot.


        IC Wallet, where funds are protected by cryptographic ciphers, as well as a storage with a lot of signatures, which will protect market participants from any external access, will be the main security measure of the system. IC Wallet users will be able to transfer their assets safely between the ecosystem wallets through a set of procedures that will include KYC, AML and multi-signature procedures.


        The project team has not yet publicly submitted a smart contract and has not conducted its security audit.


        Communication (5.0 / 7.0)

        The project team conducts an active marketing campaign, the number of subscribers in social networks and BitcoinTalk is quite high, however, there is no extensive discussion of the project. The highest activity by the number of comments is observed on Twitter. The team also published a marketing plan with further actions.


        Information about the project is found on many resource trackers and was published in more than 30 news platforms from 26.04 to 30.05.2018. The project team also took part in several May conferences attended by many MENA and Asian investors. However, active discussion of the project by public and blockchain enthusiasts is not observed.

        Team (6.0 / 7.0)

        All project founders occupy leading positions in Sigma Investment LTD, some of them are also managers of the Ingot Group. The CEO of the Ingot project is also the Chief Manager of the Ingot Group. It is worth noting that Ingot Group is a successful and well-known company that has been operating in the financial market for more than 20 years and has representative offices in different countries of the world (Australia, Estonia, Switzerland, Bahrain, etc.). The official resources of the project provide information on other team members, with a description of their experience and contact information. Most of the team members are also employees of Sigma Investment LTD. The project team is represented by 16 specialists from various professional fields: marketing, software development and design, financial analytics. However, despite the professional merit, it can not be said that the team has considerable experience in the implementation of blockchain projects. Absence of specialists in the blockchain field is compensated by the fact that experienced advisers are attracted to cooperation.

        Jurisprudence (5.0 / 7.0)

        The company that will carry out operations and acts as the issuer of the IC token is INGOT COIN OÜ (registered on 29.03.2018 in Estonia at Parda tn 4-411-1, center of the city district of Harju County 10151, registration number 14459943). Information about the management of the company and its beneficiaries is not disclosed.


        The team has developed and published legal documents: Terms and Conditions, Privacy Policy, the SAFT for the sale of tokens. Information about the use of an escrow is absent.


        White Paper mentions that all investors will have to undergo AML and KYC procedures for the acquisition of IC tokens. The internal KYC system for users of Ingot services is also provided. SAFT contains recommendations for residents of all countries with strict regulatory rules for cryptocurrency. Residents of the United States are not allowed to purchase IC tokens.


        The project team plans to start activity in Europe (Germany, France, Estonia), then in the Middle East (Dubai, Bahrain, Lebanon, South Africa, Egypt). It is planned to expand activities to all regions where operations with cryptocurrency are not prohibited as far as obtaining permits. The project has already received an exchange license from the Estonian regulator, and is in the process of issuing a banking license from the German regulator. Tests on the non-recognition of the token as a security were not presented by the team, although there is a high probability of recognizing the token as a security by the market regulators, since the project team directly declares the payment of dividends to the token holders.

        Recommendations

          1. Publish a detailed analysis of the competitive environment.
          2. Work out a strategy and mechanism for maintaining the IC token's exchange rate at a stable level.
            1. Denote a set of financial tools that will be offered to users.
              1. Publish a smart contract for ICO and conduct security audits.
                1. Work out possible factors of regulatory and legal risks of the project.
                  1. Conduct and publish the results of Howey Test.
                    1. Think about how the project will attract the audience and compete with similar products that are already in the market.
                      1. Create and submit a prototype of the first ecosystem product (IC Wallet), then expand the platform functionality according to the roadmap.