Analysis of ICO BITRUST
ICO dates: 02.04.2018 - 31.05.2018.
BITRUST is positioned as insurance peer-to-peer platform for cryptocurrency investors. There are two roles: Buyer (of insurance) and Seller (insurer). For example, Buyer wants to insure against ETH dropping in price to 30% in the next 96 hours. Insurance fee is USD 5 and insurance body is USD 15. There is a Seller who wants to insure this risk. Seller locks in platform USD 15, Buyer locks USD 5. After 96 hours:
- if ETH drops 30% or more, Buyer receives USD 20 minus 0.1% BITRUST commission
- if ETH doesn’t drop 30% or more, Seller receives USD 5 minus 0,1% fee plus returns back his USD 15.
Tokens (BTF) will be used as internal currency in this ecosystem.
In usual insurance, values of insurance body, insurance fee are calculating by actuarial algorithms based on mathematical modelling. Whitepaper contains no information about these calculations in a platform, looks like these numbers are establishing by both sides. So, this platform is more usual betting service than market insurance.
Whitepaper contains not business-plan, just short information about ICO times, token economics and distribution of received funds (60% of them will be used on product development and 20% on sales and marketing). Note that ICO will be finished at 31.05.2018, and MVP will be shown, according Roadmap, only 30.09.2018; beta version will be launched only at 31.11.2018. So, founders now have only idea, UK-based company and nothing more – with start at June 2017.
The Vision of the Market
Whitepaper contains just review of cryptocurrency market (brief analyze of market capitalization, number of wallets and exchanges) based on Cambridge University review and growing number of hedge funds (with announced plans to establish own one). On our opinion, there is a gap in main part of information – there is no number of active speculative traders, volume of their operations and other related details. But these are the main part of potential customers of product-like services.
There is no marketing strategy described in WP.
Founder Alex Duamel is former KPMG person. Team looks well balanced on all directions: management, finance and marketing, and all profiles in Linkedin looks real.
Advisors team are all from blockchain community, but there are no proofs of partnership.
Understanding of the Target Audience
No information about target audience were presented in WP but, on our opinion, these are cryptocurrency traders with small or medium volumes who want to minimize their risks, on one side – and market analysts, on the other side.
There is no competitive analysis presented in WP. Looks like there is no sharp competitors to product, but there are existing close competitors – like BTC futures on NYC, or hedge funds assets etc. And this product looks more risky than them – because it is just a betting place like a binary options on usual markets.
Project strong sides: well-balanced team with founder’s KPMG background; really existing need in risk insurance on cryptocurrency market.
Project weak sides: no marketing plan, no business plan or detailed market analysis, not included actuary calculation engine in product.