Expert Coin

Analysis of ICO Gelios

30.03.2018

Product

Gelios is a cryptocurrency lending marketplace providing a new level of flexibility to the lending industry. Gelios utilizes a decentralized credit bureau built using the Hyperledger Fabric blockchain infrastructure to allow people from all over the world to receive capital.

This capital may be used for various purposes. These may include personal finance, SME financing, or long-term loans.

Gelios aims to provide a “pure platform” approach, that enables different parties to interact, communicate. This approach will lead to synergy in work and better credit process.

The main operative function of Gelios platform is to bring potential creditors and borrowers together by way of a matching mechanism. This mechanism helps both parties reach consensus on the period of loan, interest rate and identification and validation procedure. This will make borrowing process fast, easy, and available online to anyone, anywhere.

The key feature of Gelios is platform approach — not to provide scoring or KYC by itself, but let services connect to it for better coverage and synergy. Risk-analytics are miners of blockchain, encouraged by data about borrowers, implemented into blockchain. Lender can choose risk-algorithm, focused on particular country, age, income, etc.

This product can be of great interest to consumers. This depends on how the platform will function. But the idea itself does not Shine originality. Platforms for loans on the principle of peer-to-peer have long been no news on the lending market.

Business Plan

Hard cap is only $ 7 million, and the project creators say it's enough to build a product on a global scale that will allow the project to attract a large number of participants. These funds will be spent on development, marketing, legal issues. The approximate composition of expenses for 2018 – 2020 is given.

In fact, at the time of ICO, the product is already functioning. The collected funds will be spent to make the platform global, accessible anywhere in the world. Thus, the founders of the project expect to scale the business and modernize it. The road map of the project is described until 2020 and includes activities for the development and implementation of various components of the platform.

There are no details in the White Paper on how the platform will earn, but it is obvious that this kind of services earn on fees charged to users ' transactions.

The business plan doesn't look too detailed, but quite adequate.

Marketing Strategy

The founders of the project say that they consider marketing activities as the most important, as customer acquisition costs on the lending platforms are very high. Marketing activities will widen during the ICO.

In 2018 – 2020 marketing activities are planned in the most general terms: working with community of KYC providers to attract more options to the marketplace; holding at least one conference dedicated to attract KYC and risk-analysts community.

For bounty and referral program it is planned to spend 2 and 5% of tokens, respectively.

Some rudiments of marketing strategy are present, but there is no detailed marketing plan even for this year.

Team

The main team, which is sometimes referred to as the “backbone” of the Brainysoft Company (formerly eStable web), has been developing automated accounting systems in the field of microfinance since May 2002. Currently, the company has a well-coordinated team actively working in both the offline and online lending markets, developing a gateway for customers to enter external services. The platform currently has more than 20 integrations, and this number is constantly increasing. Undoubtedly, this is an essential plus for the team.

The team members have experience in the field of lending and microfinance, business development, legal issues. The experience of the team members is described quite clearly and in detail. But, unfortunately, among the members of the team there is not a single software developer and it engineer. Such a project is unlikely to be implemented without experienced specialists in this field.

The Vision of the Market

There is in the White Paper sufficiently detailed and supported by statistical data analysis of the three major traditional platforms peer-to-peer loans. A small review on the platforms peer-to-peer loans in the cryptocurrency industry is given. In general, it seems that the team is well aware of the market on which they plan to expand their business.

Understanding of the Target Audience

There is no detailed analysis of target audience segments. From the White Paper analysis it can be concluded that the platform is intended for residents of developed countries, where investments bring low or even negative income. Giving out loans to people in developing countries, they will be able to get much more than bring bank deposits and bonds.

Accordingly, residents of developing countries with high interest rates will be interested in loans on more favorable terms.

But this is only the most general assumptions.

Competitive Advantage

One of the main advantages of the platform its creators see that investors from developed countries, where the low interest rate of the Central Bank is established, can benefit from loans in those countries where the Central Bank's rate is high. And it is so.

Gelios provides a unique tool — a ready-to-use personal area for borrowers regardless of KYC methods in a particular country. You choose your KYC method, your risk-model and select the type of credit product you wish to offer.

Lending in fiat money on classic platforms means that you can only lend in one country or region. Gelios will not be bound to any one location.

Lending platforms based on blockchain already exist, but Gelios is a well-thought-out tool compared to other platforms. The project details the debt collection process, which is one of the most problematic for any lending platform. The platform will allow lenders not only to issue loans, but also to organize compulsory return of a debt. The creators of the project say that one of the main goals of the Gelios project is to provide a connection between the fiat and crypto worlds. If they succeed, it will be a great advantage of the product.