BMJ Score: 4
Quick Summary23 Investors read this
CommentaryEveryone wants to be a part of the buzz that is crypto, but there is still a large learning curve for those who are new to this market. Enter CINDX, an ICO that wants to enable novice crypto investors to transparently make lucrative investments by syncing their accounts with the most efficient traders on the market. Investors will only be charged a fee when investments are successful, and then traders will be guaranteed to receive a commission. We like the concept, but our one concern with this platform is that its success is contingent upon demand for the crypto market. That being said, CINDX’s website is very detailed and even provides the option to test its working MVP. The project has a team of over 50 people and lists out several advisors and partnerships. We think the core team itself could use some more blockchain experience, but like that their network is talented. We are also impressed with their token economics as CINDX provides both a utility token to access the platform as well as a security token to gain a bonus and leverage voting rights. Ultimately, the market for crypto investing is very competitive. However, given the fact that CINDX has a working MVP, it already has a leg up on the competition, and we are excited to see how the project grows.
- How to invest: You can sign up to purchase CINX tokens on the front page of the main site.
- Discount: Aug 26 - Sep 16 - 25% Bonus; Sep 17 - Oct 7 - 20% Bonus
- Eligibility: Restricted countries for participation in the CINDX ICO include: Afganistán, Angola, Antigua and Barbuda, Bahamas, Barbados, Belize, Bosnia and Herzegovina, Burundi, Central African Republic, Comoros, Republic of Congo, Côte d'Ivoire, Cuba, Dominican Republic, Ethiopia, Grenada, Guyana, Haiti, Iran, Iraq, Jamaica, Kongo, North Korea, Lebanon, Liberia, Libya, Macedonia, Mali, Marshall Islands, Mauritius, Myanmar, Rwanda, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, El Salvador, Serbia, Seychelles, Sierra Leone, Somalia, Sri Lanka, Sudan, Suriname, Syria, Tanzania, Trinidad and Tobago, Tunisia, Uganda, Vanuatu, Venezuela, Yemen, Zimbabwe.
- Token Price: $1.00 = 1.00 CINXO = 1.00 CINX
- Jurisdiction: Estonia
- Minimum Investment: $50 equivalent.
- Accepted currencies: BTC, ETH, BCH, LTC, USD, EUR.
- Additional Information: During the token sale, investors purchase utility tokens – options [CINXO], which give them the right to receive security tokens [CINX] in the future. Security tokens [CINX] will be issued and distributed following the Prospect of Emission.
- Problem addressed/solved: The trouble with investing in cryptocurrency markets is that it is often a wild, uncharted territory. Currently, few investors have the knowledge to consistently and successfully profit in the market compared to the number of those with experience in the more familiar but much less rewarding traditional markets.
- Target customers/customer/ segments/verticals: The CINDX platform will consist of investors, traders, managers, and vendors. CINDX mostly wants to focus on amateur traders who, without proper guidance, would be hesitant to even participate in crypto trading.
- Value creation: CINDX is creating a platform where amateur investors can sync their accounts with the accounts of the best traders, benefiting both parties. The advanced traders receive compensation for allowing access to their methods while the amateurs get to reap similar rewards that typically only top-notch investors can achieve.
- Competition: CINDX is looking to separate itself from the competition by allowing anybody to profit from crypto without the need for skill or previous knowledge in the market. Many other startups like Tradealize and Trilliant are targeting the investor sector of the market, offering their platforms as a way for anyone to make money via crypto investments. Having said that, CINDX has a daring competitive analysis chart on page 18 of its whitepaper, detailing the features it can provide that differentiate it from competitors in the space.
- Market size/potential: CINDX will rely heavily on the increase of interest in crypto, whose market continues to drag its feet at approx. $200 billion in market cap currently. Although consumers continue to create new Coinbase/exchange accounts, the overall buzz surrounding crypto will have to pick up if CINDX wants a chance at significant market share.
- Regulatory risks: Regulatory risks will revolve around the crypto market. If governments place bans on this industry and banks do not allow for individuals to invest and trade, this market space will become obsolete.
- Investor value: The demand for the CINDX Security Token Offering could increase because the growth in the number of active users of the ecosystem affects revenue and as a result, creates more attractive conditions for token holders. Additionally, the number of tokens is limited in quantity, and additional issuance is prohibited. Therefore, demand will determine the price of CINX tokens. All investment and processing operations within the CINDX ecosystem will be implemented strictly in CINX tokens, whereas Success Fees can be paid in either CINX tokens or in other cryptocurrencies. An increase in users’ trading volume could increase demand for tokens. CINDX will additionally distribute 30% of the revenue amount generated in CINX tokens to the holders, who have “locked” their tokens in the platform with a smart contract.
- Disclosures: CINDX has an excellent set of documents for potential investors to review. The team provides a whitepaper, presentation, on-pager, financial model, and legal documents. The team also has a roadshow here people can go and meet with the team to discuss the project. Lastly, the team gave an interesting outlook of the company via three separate roadmaps that are based on how much money the project can raise: a $3.8 million, $12 million, and $21 million scenario.
- Token distribution: 12% Team, 6% Bounty, 7% Advisers, 12% Reserve, 3% Traders Recruitment Program, 9% Token Liquidity Support, and 51% Available for Sale.
- Use of proceeds: Marketing and PR 21%, Research and Development 41%, Operations 28%, Legal expenses 7%, and Community Grants 3%.
- Caps: Soft cap: $3.8 million USD; Hard cap: $21 million USD
- Track record: The CINDX team must have an absolute treasure trove of cash because they have over 50+ team members worldwide. They all come from a variety of backgrounds including business development, marketing communications, and IT/engineering. Furthermore, they’ve worked for extremely innovative companies like Tesla, Alfa Bank, MixCart, and CryptoActive, just to name a few. The CEO, Yuriy Avdeev, is a serial entrepreneur who has many different ventures under his belt, including a crypto company called CryptoActive, which he co-founded in October of 2017. His other ventures include EcoViileTrade, Method Delphi Investment Company, and Medical Group Ltd. Although it’s good to see a CEO with entrepreneurial experience, it appears that Yuriy bounces from one idea to the next. Investors want a CEO who’s in it for the long haul and the long-term growth of the company.
- Integrity: It’s arguable whether or not the CINDX team is too big to hold its integrity. Generally speaking, startups consist of a tight knit group with men and women who have either been friends or coworkers in the past. It could prove difficult to make sure everyone carries out their jobs with the utmost integrity considering how many employees are in the company. Having said that, the executive leadership looks strong and should at least be able to hold the group together in the early stages, assuming they don’t expand even more.
- Yuri Avdeev, Chief Executive Officer (LinkedIn)
- Val Jerdes, Product Director (LinkedIn)
- Artur Shamalov, Investment Director (LinkedIn)
- Mofassair Hossain, Chief Marketing Officer (LinkedIn)
- MVP: Curious investors have the unique opportunity to try CINDX simply by creating an account or utilizing the limited-function demo. The MVP has an impressive user interface and worked seamlessly when tested by BMJ analysts. Those who wish to test the MVP for themselves can do so at the following link.
- Token use case: CINX tokens allow users to pay for services in the ecosystem and receive rewards for freezing their tokens with smart contracts. The holders of CINXO tokens have the right but no obligation to exchange options for security tokens with a ratio of 1:1 after completing the KYC procedure with identification signature, address confirmation, and supply of other documents. The security tokens then make the holders eligible to receive dividends.
- Value-added: CINDX is tackling the tokenomics of the project with a unique double token approach, offering a utility token and option to exchange for security tokens. The utility token will carry out all functions on the platform and have low volatility so that users feel comfortable using them every day. The security token, on the other hand, allows users to cut a stake of the project for themselves and then share the profits of the business via dividends. Users could hold some utility and some security tokens at the same time in order to reap the benefits of each.
- Decentralization: The CINDX platform is a decentralized system with smart contracts that allow funds to be managed without being transferred to another trader.
- Token Supply: Max supply of 51.5 million CINX
- Technical difficulty/investment expertise needed: CINDX has a lot of different aspects to the platform like Cindx.talk, Cindx.hub, and Cindx.dao. Their platform is geared toward investors, traders, and asset managers alike. If you’re unfamiliar with the basics of investing/trading, then you could have some issues when trying to understand the full scope of the project. The CINDX official presentation can be found at the following link.
- Halo effect: CINDX has not yet acquired significant partnerships that are relevant for the average investor. A few of their partners include BTCBIT (payment processor), TradingView (market data), and YellowDoor (consulting). A full list of partners can be found on page 56 of the whitepaper.
- Buzz: CINDX neither impresses nor concerns with the buzz it has managed to generate. The project has 3,331 Twitter, 2,500 Facebook, and 17,510 Telegram followers. The team needs to do a better job of procuring engagement on their pages. Most posts on their Facebook and Telegram only generate 30-50 likes/shares combined. Their only features have been mostly crypto blogs/news outlets such as Token Desk and Coinfox.