Expert Coin

Analysis of ICO COTI

03.05.2018

Product

COTI is a payment transaction network powered by native digital currency. There are no fees for buyers and low-to-zero fees for sellers. The platform provides full buyer protection and processes tens-of-thousands of transactions per second. The ecosystem uses innovative distributed ledger technology. Payment solution includes the COTI base protocol, native currency, Mediation System and Trust Scoring Engine.

Business Plan

COTI coin is at the core of the platform’s functionality. It serves as the common denominator of all transactions - payments, fees, mediations - as an incentive for node operators in the network. These features will determine COTI’s price in relation to other currencies. There are three types of transactions for which small fees are paid in order to support the platform:

  • One user transfers COTI to another user (the fee is paid by sender)
  • User pays COTI coins for goods and services (the fee is paid by merchant)
  • Merchant transfers coins to another merchant or user (the fee is paid by sender).

COTI is also a currency exchange that provides users with access to liquid markets in a range of digital and fiat currency pairs. There are other apps and services in development, which will provide more solutions for consumers, merchants and mediators operating within COTI network. The team is currently develops licensing foundations to be able to comply with regulations - both as payment platform and a currency exchange.

There are no ICO dates in the WP, but Bitcointalk thread states that private sale was held in March, while public pre-sale in April.

Marketing Strategy

There is no marketing plan in the WP. Marketing activities will get 15% from funds raised. The goal of activities is to fuel COTI network and to build acceptance of platform’s coin. The team is highly active on all social media platforms. Numbers of followers are high, especially on Telegram (25+K).  

Team

Team members have experience within target industry (payments, cryptography, asset management, FinTech, banking services). There are also professionals from legal, HR, engineering, business development and marketing. Some members previously worked at such companies as Ernst & Young, KPMG, HSBC. Advisors add expertise in VC and hedge funds, private banking, blockchain, law and finance.  

The Vision of the Market

The project targets online payment market. The WP offers rather extensive market research and outlines conditions under which the crypto market is developing. The main issues of cryptocurrencies are coming from the biggest problem of blockchain technology: a slow throughput of transactions per second (TPS). This happens due to lack of ability to scale in volume and speed. Online and mobile payment systems suffer from the following limitations:

  • High processing fees
  • Long settlement periods with high rolling reserves
  • Absence of a shared trust mechanism, no unified system
  • Lack of multi-currency support.

All these issues resulted in low adoption and usage of digital currencies in everyday payments. COTI aims to eliminate current inadequacies.

Understanding of the Target Audience

Target audience is segmented into four groups: consumers, merchants, mediators and external projects.  The WP lists issues faced by each of these groups and solutions offered by COTI ecosystem, including applications and services like: wallets, debit cards, processing tools, hedging services etc.  

Competitive Advantage

The competitor analysis was conducted between card networks, digital currencies and COTI’s features. Factors of comparison included: governance, scalability, reliability, buyer-seller protection, transaction costs, ease-of-use, compliance and trust model. COTI is focused on matters related to consumer payments (unlike other digital currencies, like Ripple). Other advantages include Mediation System and Trust Scoring Engine. Mediation provides buyer-seller protection, while Trust Scoring Engine rewards highly trusted users with low or zero fees.

Summary

Strengths: COTI simulation is available for testing. Escrow accounts will be available. There is separate WP describing complex technology behind the project. The main WP is very comprehensive. High rate of feedback from the team on all social media platforms.  Strong team.

Weaknesses: no financial plan/projections, no marketing plan. The idea to introduce cryptocurrency to the mainstream market is not new, there are number of companies aiming to do the same. Bitcointalk thread states that private sale  and public pre-sale were held in March and April, but no results are published.