BMJ Score: 3.1
Quick Summary32 Investors read this
CommentaryToday, buying and selling cryptocurrency is not only difficult and time consuming, but it is also risky due to cyber hacks and regulatory fluctuations. Adding to this frustration, it can take days or weeks to complete transactions and verify account profiles. CryptoCasher wants to make this process easy, fast, safe, and anonymous in ways that are not possible through current centralized exchanges. It will even allow those without bank accounts to engage in crypto trading as well. The platform itself will leverage geolocation features to help users connect with buyers or sellers nearby. After both parties agree on the price and escrow transaction fee/location, the buyer will go to the escrow, scan the transaction QR and cash in. The escrow will then immediately release the crypto to the buyer’s wallet and the seller will get notified that the cash is ready to be claimed. While there are many startups out there trying to make the process of buying crypto easier, CryptoCasher is unique due to their escrow backing. Any legal business can become an escrow service provider and earn money by taking a fee for each transaction. Moreover, each transaction will always be insured by CRR tokens, which will only be released upon the deal being closed. In the event of a seller not being paid cash, the seller will be paid in CRR tokens from an escrow account. While this is unique, the CryptoCasher team does not address any of their potential competition in the whitepaper. The team itself is made up of 18 people headquartered in Estonia. The team has a great mission statement and has made a disclaimer that part of all proceeds will be donated to charity. While they have decent experience in leading and managing businesses, the team lacks blockchain experience and does not list any partners or advisors. Another big concern we have here is the lack of product or infrastructure. The team does not discuss development on the ETH blockchain until 2019, and will not launch their AET escrow ATMs until 2020. This is a long way off, and we worry that a competitor might be able to come in and try to do something similar sooner. Ultimately, we think that CryptoCasher has a very interesting idea for making crypto trading and adoption fast, simple, and safe. However, we would encourage them to expand their partnerships and advisory board to help them grow their network and focus on actually getting their infrastructure developed.
- How to invest: Register for the CryptoCasher token sale at the following link.
- Discount: 15% bonus throughout presale.
- Eligibility: N/A
- Token Price: 1 CRR = 0.0014 ETH
- Jurisdiction: Estonia
- Problem addressed/solved: People who hold mostly cash as their assets might have limited access to crypto investments, which means they’re left out of the market. Additionally, crypto holders often lack liquidity as it can take days and even weeks to cash out your crypto from either a wallet or exchange. CryptoCasher wants to give the ones with cash access to crypto and the crypto holders access to liquidity.
- Target customers/customer/ segments/verticals: The target market for CryptoCasher will mainly consist of current investors, interested investors who are cash heavy, and small businesses that would provide escrow services for a fee.
- Value creation: CryptoCasher seeks to create a platform where you can conveniently buy or sell cryptocurrency for cash worldwide. Buying or selling cryptocurrency in personal meetings can be a dangerous activity. You can easily lose all your money both as a seller and as a buyer, but most importantly, you put your personal safety at risk. CryptoCasher puts those worries to bed with their decentralized platform that partners with local businesses to use as escrow.
- Competition: As of writing, BMJ has yet to review an ICO that seeks to use escrow services for the purpose of a peer-to-peer decentralized marketplace where cryptocurrency can be converted to cash and vice versa. It’s definitely a unique idea that might be one of the first, especially with the added AET (Auto Escrow Terminal) which will serve as another escrow method once developed.
- Market size/potential: Cash is fundamental to financial inclusion as it allows everyone, including the more than 2 billion global citizens without access to a bank account, to participate in day-to-day society. The current number of unique active users of cryptocurrency wallets is estimated to be approximately 25 million, and CryptoCasher wants to tap into that market and allow them to transfer their assets for cold, hard cash. It creates a better system for liquidity for investors, and allows cash heavy individuals to invest in crypto. The success of this project largely depends on the overall success of the crypto market.
- Regulatory risks: This project is heavily dependent on favorable crypto regulations and is also dependent on interest in the crypto market. CryptoCasher will have to be aware of PCI compliance in dealing with financial transactions as well.
- Investor value: CRR tokens are classified as utility tokens, which are used inside the CryptoCasher system to access premium and limited features, such as escrow, AET, and discounts. Therefore, CRR will derive value based on its demand, as is the case with most utility tokens.
- Disclosures: Although the CryptoCasher whitepaper is a bit shorter than average, the team makes up for it with plenty of details on the site and a link to the smart contract code (also on the site). They additionally have UX/UI screenshots of their platform on page 3 of the whitepaper.
- Token distribution: 70% token sale, 15% team tokens (locked for 2.5 years), 8% advisors and partners, and 7% bounty program.
- Use of proceeds: 55% product development, 30% sales and marketing expenses, 5% legal, 5% security, and 5% infrastructure.
- Caps: Soft cap: $1.65 million USD; Hard cap: $16.5 million USD
- Track record: The CryptoCasher team is 18 strong but with no sign of any advisory related roles. Roman Pustoshilo (CEO) and Ivan Bilorus each have significant leadership experience as former CEOs of multiple companies. Pustoshilo was the leader of a company called “Bitsgap”, which was a trading platform predicated on providing novice traders the right tools to get high returns on their investments. It’s rare to actually find a CEO of an ICO who has experience on the blockchain side of things, so it’s especially positive when you find multiple executives who boast strong blockchain resumes.
- Integrity: Although the CryptoCasher team has legitimate experience in the blockchain industry, it’s questionable as to whether this is the sole focus of the entire team. For example, Roman Pustoshilo (CEO) has been the CEO of five different companies over the last decade, which could indicate a “get in, get out” mindset. Furthermore, many of the employees seem to be working for other projects as well, which could derail their focus.
- Roman Pustoshilo, CEO (LinkedIn)
- Ivan Bilorus, Head of AET Technical Development (LinkedIn)
- Jouni Suoranta, CMO (LinkedIn)
- MVP: Product development will begin in Q1 of 2019. It seems that CryptoCasher wants to use the majority of funds raised from the ICO to begin their product development.
- Token use case: CRR tokens are intended as a guarantee fund for escrow service providers to operate. An escrow provider can make transactions only for the amount that it has on its balance in equivalent to CRR tokens. Once the deal is closed and contract executed (seller has received cash), the funds will be released again. However, a buyer can also benefit from holding CRR tokens. All escrow fees paid in CRR tokens have 50% discount, which can save buyers a lot of money.
- Value-added: You do not need CRR tokens to be visible on the map or make deals with other buyers and sellers. The escrow function of the app can be unlocked with the use of CRR tokens. It appears that most of the value of CRR will be for the Escrow providers as they must hold a certain number of CRR in order to provide their service. Having said that, all escrow fees paid by the consumers will be 50% when paid in CRR.
- Decentralization: PSP decentralized crypto cash exchange.
- Token Supply: Max supply of 75 million CRR
- Technical difficulty/investment expertise needed: No expertise is needed for this project. It seeks to transform the way people purchase cryptocurrency by opening an avenue for cash exchanges. If you’re still unfamiliar with the proceedings of the project after running through the whitepaper, take a look at their video explainer on YouTube.
- Halo effect: CryptoCasher does not list any partners as of writing, which is a bit concerning when you consider how they’re supposed to partner with businesses to provide escrow services. According to their roadmap, Q3 of 2019 is the target date to begin hiring escrow services.
- Buzz: CryptoCasher has 7,800 Twitter, 7,400 Facebook, and 8,000 Telegram followers. They seem to have actually generated a fair amount of buzz with their Twitter posts as some of them exceed 5,000 likes and shares per post. They also have a solid YouTube presence with over 1,000 subs on their channel.