BMJ Score: 3.9
Quick Summary8 Investors read this
CommentaryIt’s no secret that mass adoption is a concern among blockchain companies. Citowise aims to solve this problem and help build the infrastructure to make blockchain a part of daily life where payments are transparent, secure, and completed in seconds. Today, companies that want to work with crypto face challenges due to legal jurisdictions that are not crypto-friendly. Citowise allows people to purchase a company from 28 jurisdictions that are crypto-friendly and provides a marketplace for the exchange of tokens. We are impressed with the significant lead time advantage that Citowise has over the competition, as well as the fact that they have a working MVP and existing track record with clients for their wallet services. The team is large and already has established partnerships as well as prior experience in working with ICOs. Our one concern is whether startup companies will want to leverage Citowise to alleviate some of the regulatory hassle and streamline their business setups. However, with a working product, solid partnership, and large client base, we feel that Citowise is one step closer to their goal of bridging the real world with the blockchain for business and consumers.
- How to invest: You can participate in the Citowise ICO through the Citowise wallet. Download the wallet from the Apple or Google Play store and upload your account with Ether or bitcoin. Then, pass the compulsory KYC process and send your cryptocurrencies to an ICO smart contract.
- Discount: Bonus will range from 30%-50% depending on the time you invest.
- Eligibility: The Citowise ICO will not be available to citizens, residents, or entities of Kuba, Myanmar, North Korea, Iran, Syria, and Ivory Coast.
- Token Price: ~ $0.15 at rate of $600 for ETH
- Jurisdiction: Estonia
- Minimum investment: 0.5 ETH
- Problem addressed/solved: The most pressing issues that Citowise wants to solve include 1) difficulties in fundraising for ICOs 2) the complications that come with operating with crypto in unfriendly jurisdictions and 3) the lack of accounting systems for cryptocurrency companies. An overwhelming number of ICO campaigns are tied to the ERC20 token standard to facilitate token integration into third-party software and it is currently challenging to have a proper wallet for multiple cryptocurrencies.
- Target customers/customer/ segments/verticals: Citowise’s prior excursion with their all-in-one wallet solution had a much more sizable market compared to their new ICO venture. Citowise will target a niche market, looking to attract businesses who want to use crypto to buy/control other companies remotely.
- Value creation: Businesses that are in unfriendly crypto jurisdictions can now use the Citowise wallet (corporate version) to purchase a company with crypto remotely. This function essentially erases boundaries of business operations and opens new opportunities for private deals. Citowise has a unique marketplace where businesses can find people located in their bought company’s jurisdiction to work for that company. The wallet, which is compatible with Android, iOS, and desktop, will enable users to have ultimate control of their funds, and businesses will have access to premium services like web payment gateways, charity campaigns, and in-app purchases.
- Competition: The Citowise solution for businesses appears to be the first of its kind, or at least one of the early players. The early stages of this project could breeze through without much competition in the arena.
- Market size/potential: The size of this market has yet to be determined. At the moment, it’s unlikely that there’s major demand for the new Citowise corporate version as not many companies are venturing to buy/own other companies using crypto. There is a huge problem with mass adoption in the crypto space. Citowise already has a working product with users, and it has integrations with existing companies like Trezor and Ledger as well as a credit card gateway and marketplace.
- Regulatory risks: The goal of this project is to address regulatory risks head on, rather than to avoid them.
- Investor value: The Citowise token has built-in value stemming from their all-in-one solution to digital assets for the common consumer (84,000 downloads). They want to build on that value with an additional corporate version. It’ll certainly bode well for earlier investors of Citowise if the ICO performs well, and new investors could have the opportunity to see their new tokens increase in value as the Citowise platform gains traction.
- Disclosures: The best aspect of Citowise’s disclosures is their hyper-detailed roadmap. They’ve got tons of information as to what features of the project will be implemented at each stage. Their whitepaper, lite paper, and FAQ section are also top of the line, which is expected from a company that’s on to its second ICO.
- Token distribution: 10% sold during private presale phase, 17% sold during public presale, 43% sold during public ICO phase, 11% Citowise company, 7% advisers reward, 7% team reward, and 5% bounty/airdrop.
- Use of proceeds: 20% Expanding Business Team, 20% Marketing team, 20% Technical team, 15% Legal team, 5% Support team, 4% Infrastructure, 3% Office space, 13% Operational reserve.
- Caps: Soft cap: 20,000 ETH; Hard cap: 90,000 ETH
- Track record: The Citowise team is 17 strong along with six key advisors. Citowise has plenty of specialists on the team to align their specific talents with one sector of the project. Max Zab (CEO/CTO) has extensive experience as a backend and web developer. He’s a blockchain enthusiast with a tech background, a rare sighting in a CEO. His most recent venture, LEXIT Inc., is a marketplace used to sell assets like technology, copyrights, and patents. The CMO, Aleksandr Kents, also has an engineering background with a touch of blockchain experience.
- Integrity: Citowise lists nearly all of their employee’s individual emails on their bios. It’s clear that each team member is in for the long haul, believing in the future success of Citowise.
- Max Zab, CEO/CTO (LinkedIn)
- Aleksandr Kents, CEO/CMO (LinkedIn)
- Jaroslav Gorjachev, Head of Engineering (LinkedIn)
- MVP: Alpha versions of the Citowise corporate functions (buying business and token processing) are currently being tested. They expect to launch the beta version in November of 2018.
- Token use case: The Citowise token will be used as a means of payment for the services and products that include, but are not limited to, wallet listing, crypto payment processor fees, conversion to debit card balance, payment fee for company registration service, and more. The Citowise token will connect various parts of the Citowise ecosystem so that all transactions and processes will run uninterrupted.
- Value-added: The Citowise token comes into play with some value backed by their current wallet solution that already has plenty of users. The new corporate functions will look to build on their prior success and further increase the value of the token via a new avenue of demand.
- Decentralization: Citowise is one of the few wallets that is both safe and decentralized as it does not keep private user keys.
- Token Supply: 350 million CTW
- Technical difficulty/investment expertise needed: Citowise prides itself on a user-friendly interface, and they intend to apply that same UI to their new corporate wallet.
- Halo effect: Partners include Coin Traffic (Advertising), Crypto Compare, and a few other blockchain companies.
- Buzz: Although Citowise has an established crypto wallet that has thousands of users, its social media buzz is rather low with only a combined 6,500 followers among their Telegram, Twitter, and Facebook accounts. The Citowise wallet has 40,000 active users, which could translate to a faster adoption of their corporate model.