Expert Coin

Analysis of ICO Cointrade

25.04.2018

Product

Cointrade is a global cryptocurrency exchange, that will be centered on customer satisfaction, making all interactions safe, fast and easy.

The team declares that their number one priority is to build the platform based on trust and user’s confidence.

Cointrade will provide a tool set for trading in various combinations of Crypto to Crypto, Fiat to Crypto, Crypto to Fiat. The lack of necessary trading pairs oftentimes results in a double charging, where an exchange user is forced to sell certain crypto asset to purchase the one he currently needs and pay a fee for every transaction. The exchange will support fiat deposits and withdrawals, and will offer pairing with the following currencies: USD, EUR, GBP, CAD and JPY. Based on demand analysis, flexibility of crypto pairing is one of the key parameters, when it comes to choosing an exchange for trading crypto assets.

It will be possible only after the completion of the project to judge how much the new cryptocurrency exchange Cointrade will be better than those that are already working. This market niche is already quite filled by existing players in the market, and the project Cointrade will have to fight for its market share.

Business plan

The beta version of Cointrade platform will appear in the 1st quarter of 2019. In September 2018 CTT token will be listed on the exchanges. The full launch of the platform will take place in the 4th quarter of 2019.

Token distribution:

  •         ICO 79%
  •         Pre-ICO 11%
  •         Team 10%.

Fund distribution:

  •         Research & Development 50%
  •         Business cost 30%
  •         Marketing 15%
  •         Legal 5%.

CTT is a utility token which will be used on the platform to pay for transactions.

Although the White Paper doesn't contain the description of the business model, it is obvious that Cointrade will earn on commissions charged to the users.

The road map of the project is not detailed enough; the business model of the project is not described. The business plan needs to be elaborated in details.

Marketing Strategy

The marketing strategy of the project is almost missed.

The team is planning to take a series of measures that will make the experience for new users as pleasant as possible. The team will present a user-friendly interface and will make it easy for new users to trade without unnecessary obstacles. The platform will also have a wide variety of languages available for both the platform and customer assistance.

However, it is not clear how Cointrade will attract users to the platform, what marketing tools will be used.

Team

The project team consists of 6 people experienced in the commerce and sales sector, workgroup management, finance, software designer, blockchain development, and marketing.

The Cointrade website contains information that 30 employees are working on the project, but this information is not confirmed. According to experts of Expert-coin rating, the team members have no experience which is necessary for such projects. There are no professional traders or professional blockchain investors among team members.

The Vision of the Market

The White Paper provides an overview of the cryptocurrency market with statistics.

The founders of the project are well aware that Cointrade is not the first cryptocurrency exchange. There are six competitors that stand ahead of the crowd by a large margin based on 24-hour trade volume. These six are Bitfinex, Coinone, Kraken, Coinbase GDAX, and Bitstamp. The White Paper gives an overview of each of these competitors.

The project team considers in detail the problems of cryptocurrency exchanges:

  •         Prone to Hackers
  •         Lack of Liquidity
  •         Fraud
  •         Flash Crashes
  •         Outdated Tech and Bad Actors
  •         Bank Fears
  •         Application Process for New Currencies.

The founders of the project believe that the cryptocurrency market is at a very early stage of development. And cryptocurrency exchanges will be improved along with the cryptocurrency market development.

It can be concluded that the founders of the project perfectly aware of the market to which they will bring their project.

Understanding of the Target Audience

The project team doesn't pay attention to the research and description of its target audience. In general sense, the target audience of the project is the owners of crypto-currencies who trade on exchanges as well as professional traders and investors. The project team should have studied the target audience more closely and singled out those segments that would be most interested in Cointrade.

Competitive Advantage

According to the founders of the project, Cointrade's main competitive advantage is wide variety and combinations of crypto currency pairs.

Cointrade will have other advantages compared to existing crypto exchanges:

  •         Intuitive User Interface.
  •         Flawless operation
  •         Safe coin storage functionality
  •         24/7 Customer support.
  •         Lower Transactional Fees
  •         Advanced trading and reporting
  •         Defined listing policy.

According to the founders of the project, the high efficiency of Cointrade, together with its easy-to-use interface and fast customer service will make Cointrade the leading exchange for new and experienced users.

It is difficult to say how the claimed benefits will make Cointrade more attractive compared to existing cryptocurrencies. This will become clear only after the completion of the project. It is possible that competitors who have appeared before have an uncomfortable interface and outdated software. But they also don't stand still and are being improved. Therefore, the Cointrade project will have to try very hard to occupy significant market share.

Summary

The Cointrade project has the following strengths:

  • Clear vision of the market
  • Precise description of competitive advantages.

But the project has several significant disadvantages:

  • Banal idea of the project
  • High competition in the market niche
  • Lack of marketing strategy.