Dear friends, we are glad to present our new product – Investment Review of the Coinvest project.
The DigRate has assigned “B1” Quality Rate High to Coinvest project.
Coinvest is an American project that is going to create a decentralized stock market for cryptocurrencies. The team plans to create a platform within which users can invest in cryptocurrency and create different investment portfolios using one token - COIN.
The project founders state that using their platform will significantly reduce the cost of investments, their risk and complexity, that is associated with the conduct of exchanges or other transactions. COIN will be used as the main currency of the platform through which all investments will be made, that will ensure its turnover. However, the project team declares that unsold during the ICO tokens will not be destroyed, but will be credited to reserves. Developers do not disclose for what needs and when these reserves will be used. There is a risk that the token will collapse if a significant portion of the backup tokens are released to the market.
The project team has identified the real problems of the modern cryptocurrency market, and presented a clear business model. The legal structure of the company is transparent, all the main documents are published on official resources of the company. Much attention is paid to the technology safety, but no independent audit of the smart contract was conducted.
The soft cap and hard cap differ 30 times, that indicates the uncertainty about the amount of investment the team needs. Probably for the same reason, the developers did not submit a financial plan and did not indicate the expected income and expenses.
Despite the fact that the team members are competent in their fields, the founders have not yet implemented a successful business in the stock market field. Nevertheless, the project is supported by two very well-known consultants. The project team published the smart contract code, as well as some elements of the product code itself, but there is no prototype that can be tested. The developers claim that the project is supported by large VC investors and cooperates with large partners, but this information is not disclosed and cannot be found in open sources.