BMJ Score: 1.8
Quick Summary24 Investors read this
CommentaryGaxCoin seems to be biting off more than it can chew. This group wants to create a decentralized platform for multiple markets. They want to include an ecommerce marketplace for buying and selling goods, a network to recruit freelancers, a place to book and promote tourism, a way to expand education through e-learning, and a network for sports betting and gambling. This is enough to make our heads spin, and while there is no direct competition for one platform to do all of these initiatives, we think that’s because the initiative is a non-starter. Aside from not having a clear focus, GaxCoin has a very small team, and the leadership team’s profiles have no mention of GaxCoin. While they do have a partnership with Trezor, it is unclear how this partnership will help their development. The blockchain platform itself will be based on the ETH platform, but the GaxCoin team does not disclose when this will be functional. The whitepaper is very vague, and their roadmap is not detailed. Furthermore, there is hardly any press or followers for GaxCoin’s channels, but this is hardly the biggest concern we have for the project. Ultimately, we do not feel confident investing in GaxCoin because their value proposition is not targeted, their team is not the most experienced, and their MVP does not exist.
- How to invest: Interested investors can register for the GaxCoin presale at the following link.
- Discount: GaxCoin offers a 50% bonus for all presale investors
- Eligibility: Unknown
- Token Price: 1 GAX = $0.11
- Jurisdiction: Cayman Islands
- Minimum Purchase: 0.1 ETH
- Problem addressed/solved: GaxCoin wants to simplify the process of purchasing the services and products of around 80% of the global online market in the travel/holiday, training, freelance work, gambling and casino sectors, and a crypto-marketplace designed specifically for the end user. They believe their platform, with help from the GAX token, will ease the hassle of purchasing/interacting with all these markets.
- Target customers/customer/ segments/verticals: GaxCoin does not focus on one specific demographic, but rather claims its platform will be of use for “everyone everywhere.” It’s not the best strategy to just open a platform that has no specific use case for a particular group of people, at least while you're in the startup stage. We believe GaxCoin should find a target market that would get the most utility out of their platform and then expand to other markets.
- Value creation: The aim of GaxClub (GaxCoin’s crypto-marketplace) is to offer instantaneous connection throughout the world for services based on the blockchain because GaxCoin believes that life should be built around this sense of community and freedom. They offer everyone, everywhere, an easy opportunity to use their money in their ecosystem in a secure, transparent, and reliable way.
- Competition: It’s hard to tell if GaxCoin will have any direct competitors since they’re somehow targeting four enormous markets while providing an odd assortment of services like hotel booking and educational technology all on the same platform.
- Market size/potential: According to the front page of the website, GaxCoin will be used in four different market places that include holidays & travel, e-learning and freelance, betting & casino, and a general crypto marketplace where peer-to-peer transactions take place. The sheer size of these combined markets will likely be valued in the trillion dollar area, but the competition is massive and barriers to entry are extensive. GaxCoin might be spreading itself too thin by going after all these marketplaces without a clear competitive advantage.
- Regulatory risks: It will be hard to manage all the regulatory risks for this project, which spans multiple industries and will have to prepare to address the government scrutiny on gambling, the PCI compliance of ecommerce, and the general information data regulations around GDPR.
- Investor value: Investors in the GaxCoin ICO could see their coins rise in value as more users join the platform and utilize the GaxCoin in their purchases and P2P transactions. It’s essentially a basic utility token and could realize its future value based on its inherent demand.
- Disclosures: It could be due to a rough English translation, but whatever the case, it appears that the GaxCoin whitepaper only further confuses those who want to learn more about the company. It does have a lot of information, but the majority is skewed, disorganized, or irrelevant to the project. GaxCoin doesn’t offer much on the website, so their lackluster whitepaper is the only supporting document.
- Token distribution: 60% For Sale, 5% Marketing & Advisors, 5% Developers, 10% Founders, and 20% Reserve.
- Use of proceeds: Marketing, Digital & PR 25%, Platforms & App Mobile 15%, Develop Networks 10%, Advisors & Legal 5%, General Provisions 5%, and Reserve for Providers 40%.
- Caps: Soft cap: $2.5 million USD; Hard cap: $5 million USD
- Track record: The CEO, Gaspare Matino, appears to have a mix of a sales and managing background. The rest of the group has some relevant experience in their respective fields, but they lack the all-star standouts that are almost necessary for the success of an early-stage startup. It should be known that GaxCoin provides no information whatsoever regarding their team experience or knowledge. They also have three different employees registered under “Translations,” which seems unnecessary, to say the least.
- Integrity: The supposed CEO of the project doesn’t have his LinkedIn profile on the site. Upon further research, it turns out that his online profile has no mention of him being the CEO of GaxCoin at all. In fact, not a single person with a LinkedIn profile has GaxCoin as a current or future employer. That is concerning, to say the least… not to mention the fact that under “fund allocation” it says that 40% will be “reserved for providers”, which could mean anything.
- Gaspare Matino, CEO (LinkedIn)
- Mario Stagliano, Server Management (LinkedIn)
- Vincenzo Ajello, Developer (LinkedIn)
- Oleg Abrosimov, Smart Contract Developer (LinkedIn)
- MVP: According to the GaxCoin roadmap, the beta version of the app was released in Q3 of 2017. The website claims the full version of the app will be available on the App Store and Google Play sometime soon.
- Token use case: The GaxCoin token will serve as a utility token, being used as a medium of exchange and for purchases on the platform. It will be used P2P and for direct purchases with partnered companies whose services or products exist on the GaxCoin platform.
- Value-added: GaxCoin claims that their token will allow seamless cross-border transactions, helping its users avoid unnecessary currency conversion fees or taxes typically involved with such transactions. GaxCoin fails to provide more information on the actual benefits of a token for their platform. It’ll likely just serve as the ecosystem’s payment tool.
- Decentralization: GAXCLUB is a decentralized P2P platform for the exchange of most of the services, including betting and entertainment.
- Token Supply: Max supply of 400 million tokens
- Technical difficulty/investment expertise needed: The GaxCoin project is confusing to say the least. It appears they want to create an ecosystem that supports holidays and traveling, e-learning & freelance, betting & casinos, and a general crypto marketplace for the purchase and sale of goods. The goal of GaxCoin is very vague, and it takes time to see what exactly they’re trying to offer.
- Halo effect: GaxCoin has some legal services and ICO marketing partners. They are also sponsored by Totowinbet.com. Overall, these are very underwhelming and unimpressive partnerships.
- Buzz: The absolute lack of buzz on the GaxCoin project is quite concerning. They only have 13 Facebook, 7 Twitter and 48 Telegram followers. It’s especially concerning considering their accounts were opened in the early summer of 2018. On the other hand, at least it appears they’re not purchasing followers to deceive investors.