Analysis of ICO TraXion
ICO dates: 15.06.2018 - 31.07.2018.
TraXion proposed to be a bank product group which has integration of traditional banking and blockchain-powered technologies. At this moment it has probably launched 2 products:
- Fundraising platform gavagives.com – charity solution for Philippines. Looks functional.
- TraXionPay.com – looks like first page of payment service but without a functionality, despite of declared full product functionality.
Also there is on the way to launching wallet service TraXionWallet as a part of gavagives.com
Also, founders announced these services as a parts of TraXion project:
- HyperTraXion Wallet – upgrading TraXionWallet for using cryptocurrencies and management dashboard
- Healthcare and Insurance services
- Crypto-trading system for beginning and senior traders
- P2P Lending service
- API for integration in other services.
Most of the services were planned to be launched to the end of 2018; P2P lending – at 2019, despite of ICO in May 2018 and no MVP despite of fundraising portal now. Founders announced partnerships with MasterCard and IBM, but there are no proofs of this.
So, there are scam signs like ambitious plans to create universal service and change the world, and bright pictures as a proof to have abilities to do it.
Founders plan to allocate on ICO 50% of issued tokens, 20% - locked on 12 months for team, 20% - will be reserved for future usage (12 month blocked). Funds received will be allocated according these proportions: Product development – 35%, Business development – 30%, Operations – 15% (probably including the marketing).
Hard cap is 100000 ETH (or USD 64 million at this moment).
Founders present forecasting of their revenues as USD 2 billion at 2022, additional USD 1 billion at 2023, and USD 3 billion over this at 2024. No calculations were presented that can prove these amazing data, so these promises can be additional scam signs.
As marketing strategy, founders present their “unique selling proposition” – very ambitious estimating of impact that their product, according their opinion, can make on crypto-exchanges, banking, payments processes etc. But there are no details how founders will make their solutions so popular between real market participants.
As team members, founders presented 14 key personnel with LinkedIn profiles that looks realistic. Also, there can be found Manila Times article that proves existing the founders’ charity foundation at Manila.
Advisors team are mostly from blockchain world, one fintech person and one legal. So, team looks professional, but there is a question – why so professional, brilliant-look team prepared so little information about marketing strategy, about business plan and so ambitious sales plans without any calculations.
The Vision of the Market
WP contains no marketing research – maybe because founders believe that they can change all the world via changing the global mechanism of performing payments. But ambitious goals like this need in very clear understanding of market structure, mechanisms, huge players etc. – and nothing of this were shown in WP. It’s very unprofessional and strange for so brilliant team like presented in WP – and may look like a scam.
Understanding of the Target Audience
WP contains a brief description of issues which were created by existing global banking and finance system – financial inclusion; low speed of payments; high cost of payments; existence of global bureaucracy; no tracing of performing payments. Founders believe that they can solve these issues by blockchain technology implementation in fiat currency payments system – but there is only description of these issues but no clear researches of customers, no clear ways to problems solutions.
Despite of many bright words in WP, there are no clear competitive advantages presented – only wishes to change the nature of finance system and establishing a new trans-national bank with blockchain-powered payments mechanism without any proofs of ability to make this. No clear competitive advantages presented and looks there are completely no them.
Project strong sides: brilliant-look professional-oriented team.
Project weak sides: ambitious plans without any supporting by business plan, researches or marketing strategy presented; probably fake payment system website which announced in WP as launched part of project.
So our position is negative, probably scam.