Karatcoin ICO Review 2018

/Karatcoin ICO Review 2018

Karatcoin ICO Review 2018 2018-07-03T08:56:15+00:00
Karatcoin ICO Review 2018

Currently, lots of challenges exist in the gold market globally. For instance, in the centralized market, the bond value has been reducing since the last decade and now sits at a low yield of 1.6% interest rate annually. Other problems in the market range from the scarcity of gold for investors brought about by high demand and low supply by gold mines to a lack of adequate security systems to store and protect investor’s gold. Karatcoin solves the problem of scarcity of gold by linking investors directly to selected gold mines hence eliminating middlemen. It also deploys smart contracts for managing transactions and provides bond yields of between 5% and 6% depending on durations.

Important Facts

  • Eliminate intermediaries by linking investors directly to gold mines which have been selected based on their credibility in extracting gold. This will increase the supply of gold while also increasing the value of the Karatcoin which will be used for trading gold.
  • Karatcoin offers a bond yield of 5% for a one year period and 6% for a five year period. The bonds will be issued in terms of a Karatcoin Gold Asset Certificate.
  • Karatcoin allows you to convert your gold into Karatcoin tokens and use it to trade in the Cryptocurrency market.

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The ICO Team

Claudia Busato

Co-founder/ Creator of Karatcoin – Possesses a master’s degree in marketing and communication from Bocconi University. Previously co-founded Dreammy in 2014 which developed new technologies and services for use on the internet. She is highly skilled in developing good business relations with financial institutions

Simone Orso

Co-founder – He is a full stack developer who has worked on various projects for over 15 years. He previously worked at Sungold Srl from 2009 – 2012 as a management consultant where he spearheaded the adoption and use of solar energy worldwide

Jimmy Song

Software Developer – He hails from the US and has a professional experience of 18 years working in a variety of industries as a full stack developer. He previously worked as a venture partner for at Blockchain Capital

Market Research

  • There has always been a need for a gold digital currency for use as an alternative payment system for various financial services. This demand has increased recently in what has been termed as ‘gold rush’ due to the emergence of blockchain technology which provides a more secure transaction and accounting method for exchanging gold. Countries such as Kyrgyzstan are also planning to develop their own gold digital currency called GoldenRock.
  • The project is intended to be used in the financial and investment industry and the Internet of Things especially for the development of decentralized applications by web developers, service providers and more making use of Karatcoin’s blockchain technology and digital currency.
  • There are numerous companies and upcoming ICOs in the gold-backed cryptocurrency industry which use different cryptocurrencies. However, most of these companies do not clearly state how they store and protect investor’s gold. Since Karatcoin details how it secures gold in their platform using Ethereum blockchain, it’s expected to be a better alternative to most of the existing and upcoming companies.

MVP

The MVP of the project is to develop a decentralized application on the Ethereum blockchain. The MVP is scheduled to be ready by the second quarter of 2018.

Business Model

The company will generate income by selling desktop or mobile versions of the platform to users. Users will buy contracts in three ways:

  • Downloading desktop client version from Karatcoin.
  • Buying directly from Karatcoin.co which eliminates the need for downloading the blockchain.
  • Using various wallets supported by the Ethereum blockchain such as mist.

Karatcoin will also generate income by selling gold certificates and also transaction charges for using their native cryptocurrency Karatcoin for trading and various payments.

Potential/Use Cases

  • The Karatcoin platform is developed inside the Ethereum blockchain, which makes it much faster than other blockchains such as Bitcoin and more secure.
  • The Karatcoin platform is going to be used as a safe for storing gold.
  • Due to the use of a decentralized database, Karatcoin guarantees privacy and anonymity to its users which means no personal information will be stored.
  • Karatcoin offers flexible smart contract capabilities, which can be used for trading virtually anything of value such as money or stock shares in a transparent manner.
  • The use of Karatcoin tokens in the platform is going to accelerate the rate of adoption of cryptocurrency and blockchain technology into the gold market as a means of storing and trading gold.

Partnerships

  • Karatcoin has partnered with gold mining companies and is currently searching for more companies, which it will finance in territories with large gold reserves in Latin America and Africa.
  • Current partners include Sahara Royal Gold Refinery and Koafrik Gold Mining Company Ghana Ltd.

Capitalization potential

  • The ICO has a target of raising 45,000,000 US Dollars.
  • The company has not yet made any pre-ICO sales and has not specified discreetly the exact date it will begin.
  • Similar ICOs that were launched before have been able to raise up to 20,000,000 US Dollars but Karatcoin has a good prospect of raising even more due to its enhanced capabilities.

Scam check

  • Of all the team members, only six have credible LinkedIn accounts while for the rest are currently unknown.
  • The Karatcoin platform is built inside the Ethereum blockchain, which provides adequate security to its users.
  • So far there have not been any scam reports made. This is probably because the project is still in its initial stages of development and hence has not gained proper public attention.

Trading Rumours

  • Various experts dealing with cryptocurrency have expressed doubt and uncertainty in the platform, since it is unclear why the parent company, Dreammy which is a music sharing service has suddenly decided to develop and invest in the global gold mining industry.
  • There is no recent ICO news that has been communicated.

Tokensale

  • Fundraising goal: 45,000,000 US Dollars
  • Maximum tokens: 15,000,000 KTC
  • Payments will be accepted in both BTC and ETH.
  • Karatcoin ICO token sale dates have not been set yet, but according to their roadmap it is scheduled to start in the 1st quarter of 2018 after a successful pre-ICO sale.
  • Token Price is 3 US Dollars for each token.
  • Karatcoin offers a bonus sale depending on how early an investor buys tokens.

Coin Supply/ Purpose

  • Of the total supply of Karatcoin ICO tokens, 30% is allocated to the crowdsale, 40% reserved for Liquidity Network for future development, 10% for project developers, 10% for operating costs and 10% for current and future team members and advisers.
  • The total coin supply is 15,000,000 tokens.
  • To protect participating investors, any tokens which will not be sold in the crowdsale will be locked in a multisig wallet for a period of one year after which they will be distributed to the team.
  • Smart contract capabilities of Ethereum blockchain will be used to securely mint tokens to investors.
  • The purpose is to buy asset gold certificates and gold cards and also to be used for trading in the cryptocurrency market.

Wallets and Exchanges

Wallets: All users of the platform will require a wallet for storing various digital assets. The Karatcoin platform will have a built-in Karatcoin wallet for storing users’ gold holdings. Other supported wallets include:

Exchanges: Tokens will be exchangeable after the end of the crowdsale using the popular exchanges for ERC 20 tokens such as EtherDelta.

FAQ

What is Karatcoin?

Karatcoin is a gold-backed cryptocurrency project that aims to incorporate gold assets and certificates to the Ethereum blockchain.

How are my gold holdings kept safe?

Physical gold assets belonging to users are stored in a secure refinery vault and the owner is issued with a Proof of Asset document that certifies him/ her as the true owner.

What is the Karatcoin Gold Certificate?

This is a document that contains all the proof of asset information that has been uploaded into a decentralized system permanently. Each certificate has a value of 1,000 US Dollars.

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