BMJ Score: 3.6
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CommentaryThe banking sector has no shortage of problems with regard to crypto, including a saturated market, numerous regulations, and an antagonistic attitude from the “traditional” big name banks. The market needs a one-stop-shop for individuals to access and process their crypto investments, and MCB intends to provide it. We were impressed by MCB’s large team and blockchain experience, their advisory board, and their already solid infrastructure and serviceable assets. We have some concern around user adoption, given the competition in this field and MCB’s lack of notable partners. MCB has created a promising and functioning platform, but will it be able to differentiate and gain market share in an already saturated sector?
- How to invest: Create an account on the MCB website, which requires providing some personal information. Payment methods include: BTC, ETH, LTC, BCH, EOS.
- Discount: Starts at over 58% off. The price per token will start at $0.20, then increase by 2 cents each week during the pre-sale.
- Eligibility: Not offered to citizens, residents and/or tax residents of the U.S.(including all territories of this country).
- Token Price: 1st week $0.20; 2nd week $0.22; 3rd week $0.24; 4th week $0.26.
- Jurisdiction: Currently under the Jurisdiction of Estonia but might transfer to the Cayman Islands.
- Problem addressed/solved: The crypto community lacks stable access to regular banking services. Many banks and financial institutions are even blocking potential investors/enthusiasts from investing in crypto due to systematic risks for the banks. Meanwhile, international money transfers are costly, slow, and difficult; it is hard to find one wallet in which to store multiple cryptocurrencies; and the exchange of crypto and fiat currencies is somewhat volatile.
- Target customers/customer/ segments/verticals: Economically active individuals, younger than 25 years old, that have most likely never done the typical actions associated with a traditional bank (international money transfers, financial planning, savings and investments, stock trading and other international financial markets, receipt of loans, credit, and mortgage loans). MCB wants young professionals to skip the banks of the past and jump right into the future: online banking with the added benefits of crypto and blockchain.
- Value creation: MyCryptoBank seeks to become a fully digital bank, accessible all over the world and at any moment. It will have all the functions of a traditional bank, including consulting services, Forex trading, multi-digital card/payment ring, and, most notably, the use of crypto, all at an inexpensive price point.
- Competition: There are a multitude of other “crypto banks” in the market today. Even though a comparative analysis chart in their whitepaper claims their solution is superior to 10 other crypto banks in the market, it will still be a challenge for them to thrive in an industry with such stiff competition.
- Market size/potential: Recent data demonstrates double-digit growth of technology adoption in the last 18 months. According to the FinTech Adoption Index 2017 study, out of 22,000 people interviewed in 20 countries, 50% use services for making payments and transfers and 65% are going to do it in the future. The rate of adoption for Fintech involving bank functions is at a record high average of 33%.
- Regulatory risks: As with all things financial, there are incredibly high regulatory risks here. MCB will have to address security audits, PCI compliance, and international trading regulations.
- Investor value: The driving factor for a token price increase is the demand for bank services. Due to the restricted number of tokens, increase of user counts will result in an increase of the token price. Token holders who reach 300 MCB will have standard functions on the MCB platform that include secured loans, P2P crediting system, and fixed deposit, all at standard rates. MCB already has working crypto ATMs, a crypto exchange, and a Forex terminal.
- Disclosures: MCB has an informative white paper that is full of helpful images, creating a user-friendly reading experience. The highlights of their disclosures include a hyper-detailed roadmap and two documents proving obtainment of required Crypto Licenses.
- Token distribution: 65% token sale, 15% reserve fund, 10% team, 7% partners and experts, 3% bounty.
- Use of proceeds: 30% development and integration of blockchain platform; 20% marketing and partner network development, obtaining banking licenses and maintaining bank liquidity; 10% development of crypto ATM network with fingerprint and face ID; 10% development of innovative products; 10% infrastructure development.
- Caps: Soft cap $3M USD; Hard cap $100M USD.
- Track record: MyCryptoBank is an extension of Viplat, organized in 2006 as a manufacturer of payment terminals and software development. This company has 10 years in the market, 5,000 terminals in RF, and 10,000 self-service machines of different purposes. Using the relationships established by Viplat, MCB plans to install thousands of crypto ATMs where legally possible. Many of the MCB team has experience in trading or financial services in general, including the CFO, Nikolay Panchenko, a successful Forex and crypto trader with more than 10 years of experience as well as an investor of early-stage fintech projects.
- Integrity: MyCryptoBank has one of the larger ICO teams at 22 employees. A good portion of the team worked for Viplat before it transformed into MCB, indicating strong team chemistry and prior knowledge on the basics of payment terminals. An established company tuned ICO project should give investors a sense of trust as the group has a clear and reputable past.
- Yuriy Bolshukhin, CEO & Co-Founder (LinkedIn)
- Vladimir Bronnikov, COO (LinkedIn)
- Nikolay Panchenko, CFO & Co-Founder (LinkedIn)
- Maksim Markov Chief Business Development Officer & Co-Founder (LinkedIn)
- MVP: MyCryptoBank has a functioning MVP in the form of their exchange. Users can access the MVP with the following link. MCB also expects the MyCryptoBank wallet app and platform to be released in August 2018. Lastly, MCB has an excellent YouTube video demonstrating the functionality of their crypto ATM prototype.
- Token use case: The project token is a utility token, used for the internal functioning of the platform, giving access to defined services, depending on the number of tokens held by the user. The users will get more services and discounts within the platform if they hold more tokens.
- Value-added: MCB token is the central element of MyCryptoBank segment, integrating all components of the financial ecosystem. It will help keep transaction fees low and payment fast. It’s also the determinant as to how much privilege each user has based on the number of tokens that they hold.
- Decentralization: Fully decentralized, unlike the centralized nature of traditional banks.
- Token Supply: Max supply of 795,500,000 tokens. All ecosystem tokens will be issued in the course of the ICO, with no possible additional issuance upon ICO completion.
- Technical difficulty/investment expertise needed: Essentially a bank with enhanced features, MyCryptoBank can perform the same functions as a traditional bank along with extra services involving crypto. MCB explicitly states that it wants to become the most user-friendly crypto bank on the market.
- Halo effect: MCB lists 8 different partners but none catch the stare of potential investors. They’re mostly fintech companies that will likely help MCB facilitate business or develop their platform/software.
- Buzz: MyCryptoBank has been able to generate some buzz around their project. They lay claim to 19 followers on Facebook, 778 on Twitter, and 1,127 on Telegram. Buzzsumo tracks their top article as a piece done by Yahoo Finance. That said, there's not much going on via YouTube, Medium, or Reddit, which indicates the project needs to put more effort into marketing to generate better buzz, a problem acknowledged in the whitepaper.