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ICO Review: Could this be the Internet of Things with Wings (IoTW)?

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It seems like we have not been excited about ICOs in a long time, and for good reason. There were few hurts along the way due to ‘scams’ like Titanium (who boasted their individual and company profiles to cheat people and got under SEC scrutiny). Obviously, we ought to be careful in the crypto jungle, especially from the ICO quicksand.

The ICO we are reviewing today, Internet of Things World(IoTW), hopes to convert household and industry IoT devices into Micro Miners.

Dwell on that for a second.

IF successful, this could mean that our IoT devices may pay for their own electricity usage, without needing fancy deafening mining equipment or expensive electric bills.

The rest of this review is going to be analyzing that IF, because it is a big one.

Before we proceed any further, please note that this whole article is an opinion, not a financial advice.

We will look into the following factors to come to a decent basis for our conclusion.

 Blockchain use case
 What makes IoTW better than IoTA?
 Team and vision
 Social presence
 Tokenomics
 Caveat
 Conclusion

Blockchain use case

Most projects in the blockchain and cryptocurrency space fail because there is not a blockchain use case for the project. You can create as much hype as you want using slick marketing methods but eventually you will be called out on your con.

Does IoTW have a blockchain use case?

To understand this, let’s look at their operational model.

IoTW aims to provide an open source Software Development Kit (SDK) that IoT devices can download and use without any need for upgrade of the hardware itself. Once connected, IoT devices start mining IoTW coins without any significant surge in energy consumption.

We believe that to manage the global IoT devices connected to the network, calculate rewards and distribute the rewards in form of IoTW coins automatically without need for an intermediary on an auto-pilot requires Blockchain technology.

In fact, it is one of the most futuristic use cases of Blockchain technology we have come across thus far.

Existing Proof of Work (PoW) and Proof of Stake (PoS) algorithms seem to only benefit those who either have high-end machinery or a lot of tokens to stake, leaving ordinary people without deep pockets out of the race. These models also pose a huge scaling and centralization of processing power issues.

IoTW could help change that.

Instead of relying on heavy computing power or bag loads of tokens, how much IoTW you earn will depend on how many IoT devices you have connected to the network.

There are over 15 Billion IoT devices installed and are expected to reach 75 Billion by 2025. Connecting even fractional percentage of these devices to IoTW network will result in huge scaling capabilities.

IoTW may also have an edge in terms of having MVP, according to their whitepaper, yielding 3000 transactions on long-distance network transactions and 100,000 transactions on local network with a goal to reach 1 million transactions per second. Another advantage that IoTW proposes is creating extra layer of protection by keeping the nodes separate from the ledger layer, thus shielding it from 51% attack.

What makes IoTW better than IoTA?

Once we have established the Blockchain use case, next obvious question is what makes IoTW better than IoTA?

IoTW team may have anticipated this question themselves and have included a comparative chart in their whitepaper, see below:

Obviously, on paper IoTW looks better, however, IOTA has been in the market for longer and has more business connections. An amazing idea in crypto space means nothing these days, it is the execution (like we said before) will what will determine the future success or flat out failure of the projects.

Team and vision

We must say that it is refreshing to see individuals with real world experience of multiple decades coming together.

ico review

Fred Leung, CEO, has 30 years of experience in semi-conductor design including creating of world’s first AMD CPU chipset to his fame.

Marcin Dudar, founder, has over 20 years of experience in embedded software for security, Marcin is also the first person to decrypt Nintendo to create gaming DVD.

Peter Chan, CTO, has over 37 years of experience in semiconductor industry including setting up first wafer fab in Hong Kong for Eclap Electronics Ltd.

White paper only lists 6 profiles while the website lists 20 profiles in total, which is a decent size team to begin with. It is pretty impressive as to the patents that the team was able to file and/or getting ready to file.
ico reviewThey do mention about licensing these patents for free for those that help build on the IOTW network ecosystem.

They have 12 advisors listed on their site, including RSM as tax advisor which shows that they are not jumping into this to make a quick buck but have their ducks in a row to ensure the legal and administrative compliance in place.

Social presence

Team already has a beta testing established with Expressif Wireless LAN chipsets. Expressif has a cumulative sale of 100 million units. If adopted on all devices, this could mean considerable traction toward adoption of IoTW.

Team can also team up with IoT manufacturers and have them promote this as an ‘add on’ since IoT devices can start earning IOTW coins for the owners (which directly contribute to the energy savings factor).

Team already has partnerships in place with Consta Mobile and The California Wine Company. In addition, they have multiple partners listed on their website.

They even had news coverage by popular names in this space including Nasdaq, Financial War Reports, and other popular blogs.

Their Telegram is still under 10,000 at the time of this writing, which will probably get more traction as more and more people become aware of their platform. Their Facebook and Twitter handles will need more strength which at the time of this writing seems low.

Tokenomics

A price of 1 ETH for 5000 IOTW is set, although in our opinion, 100,000 ETH for 26% tokens made available for ICO sale is on the high-end.

While 43% tokens will be available for mining through the IoT devices in the future on the blockchain network, the expectation is that the IOTW tokens will grow in demand when companies look to buy user data, goods & services on the network and also to perform micro transactions within the blockchain network.

Unless IOTW adds a layer of utility for holding IOTW Tokens in a wallet (incentivizing the holding by creating an add on staking or creating a tier based rewards system for holding X amount of IOTW tokens), we do not see dramatic shift in demand for the tokens to create multiples in the short-term. If they do create such an incentive system – we can see IOTW soar through and also encourage individuals and companies to join the network.

Existing device usage without adding expenses toward high-end equipment is certainly enticing, however, crypto space is not like traditional markets where people go crazy for a 3% yield per annum or such. Unless we have some kind of compounded reward system that rewards people not only for participating in the network but also for holding the tokens in the long-term – it is difficult to garner interest from the Crypto folks, especially in these bear times.

Owner data collation and trading, from IoT devices, and possible monetization of the user data (for company and the individuals) is definitely the direction that blockchain space, especially the ones involving IoTs, will be heading toward.

Caveat

100K ETH for 26% pool is on the high end. So short-term multiples may not be great, if that is what you are after.

Protocol detail about wallets or other mechanism that shows how their system avoids exploitation by the bad players from mining IOTW on IoT devices without owner’s knowledge and/or stealing IoTW earned by IoTW devices from the owners of IOT equipment is missing.

Will the minute surge in electricity consumption be covered by IoTW earned by the device? Will adding the IOTW protocol to the device impact IoT device’s performance? These need to be addressed as well, at least with an hypothetical example.

Conclusion

Absent answers to the above raised questions and tokenomics concerns, we are inclined to participate with a minor stake, only because we like the direction and vision of IOTW, this is how blockchain projects should be thinking in terms of vision.

It seems, all great visions somehow fail to address the economics which is what most general public is concerned about. While visions are what matter in the long-term, economics is what keeps the fuel burning to get to the vision, so both vision and economics need to be given equal footing. As such, we believe that team should clarify these questions to gain better traction.

Source: www.iotw.io
Whitepaper

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IMPORTANT DISCLAIMER: Do your own research before investing. Crypto space is very volatile, don’t invest more than what you can afford to lose. Everything in this article is an opinion, not an advice of any kind.

If you would like for us to review an ICO that you are looking into, drop a note in the comments. I cannot promise that I will be able to review all requests but I will try to if our schedule permits. Your comments will also help keep us in the know about the ICOs that we may have missed.

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5 questions we want XRP army to answer!

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xrp investing news

What follows is our opinion.  

Let’s not be hostile.  

Top 5 Cryptocurrencies 2020

We are simply posing some questions based on the information we came across and our own limited interpretation. 

It is quite possible that the sources we are referring to are at fault or our interpretation is. Either way, just answer these questions for us so that we can learn new things about XRP that we did not know.

Our readers know that we have been anti-XRP for a long time. We got trolled, mocked and called ignorant. Well, to each their own.

Our questions to the entire XRP army are simple, here they are:

Question 1: If crypto was to replace (or at least reshape) the entire banking business then what does a token whose sole business model is based on ‘accommodating’ banks have any future?

To put differently, when the world starts conducting commerce via text messages why do we need banks and Ripple which wants to serve banks?

Our basis for this question: 

In the future when we will start doing business with each other over text messages, wallets and email signatures, why do we need a payment gateway from Ripple?

We know that WeChat payment enables users to transact over chat.  Other companies are trying to catch up with this (primarily why Facebook was looking at creating its own currency, Libra).

However, once we have a digital dollar, we do not even need an outside stablecoin since one could, in theory, use the digital dollar directly.                  

Question 2: Why do you have to pay businesses to use XRP if it is so superior?

Our basis for this question: 

Financial Times reported that Ripple paid Moneygram to use Ripple technology.

Here is a direct quote:

It turns out Ripple has been paying a significant amount of subsidies cash to MoneyGram’s business since buying into the company in June. In the third and fourth quarter alone the Ripple benefits amounted to $11.3m.

What’s more, until a consultation with the SEC**, MoneyGram had been more than happy to book these cash flows as revenues. Due to the SEC guidance, however, it has now had to restate fourth-quarter guidance to account for Ripple payments as “contra expenses”.

XRP Twitter

Question 3: What is Ripple’s revenue worth without the ‘selling’ XRP?

Our basis for this question: 

The question seems to be answered by the XRP’s CEO himself. Here is an excerpt:

Asked if XRP was keeping everything cash flow positive at Ripple Labs, Mr Garlinghouse answered: “Well XRP is one source. I don’t know how to answer that because if you took away our software revenues, that would make us less profitable. If you took away all our XRP, that makes us less profitable. So I don’t think about it as one thing.” 

He clarified later: “We would not be profitable or cash flow positive [without selling XRP], I think I’ve said that. We have now.”

In our opinion, we think that the only reason Ripple (XRP) is even operational is because of the billions upon billions of XRP tokens that they keep dumping on the unassuming investors.  

Is this a wrong assumption?

Question 4: If Ripple does not need XRP, why is XRP needed?

Our basis for this question: 

This is based on our understanding that Ripple’s technology can be used by the businesses without having to use XRP.  It is recommended but not ‘required’.

Is this accurate?

Ripple’s solutions can work without XRP (its native token).  So, if XRP is not a utility token in strict sense, how are its creators able to mint and sell them at will without tripping any security laws?

Question 5: If Ripple [XRP] is to act as the ‘stable’ value while the transactions take place on Ripple network, why should anyone trust XRP which is backed by nothing instead of stablecoins like USDC that are backed by real world assets?

Our basis for this question: 

We would personally trust USDC more or even Facebook’s Libra rather than XRP which is backed by nada.

This is what Demelza’s opinion was during our interview:

“The main point is that if XRP were able to back their currency with financial assets and stabilize the purchasing power of the currency, then that would mean XRP coins should have no price appreciation. In fact, only the equity shares of Ripple Labs would profit from XRP’s adoption as a global reserve currency. But Ripple Labs is a privately held company. After fully understanding what XRP is, one realizes that XRP’s investment pitch does not make sense at all.”

Conclusion

We are trying to convince ourselves as to why we need Ripple in the crypto space if:

  • Future of payments is going to be ‘self-bank’ & over the chat
  • There are better stablecoins in the market 
  • Ripple itself as a technology doesn’t need its own native token, XRP

For this very reason, our opinion is that the money will flow out of XRP and the creators will keep dumping their bags into the market until the market can no longer absorb it and then it will be ‘lights out’.

We await for the XRP army to provide us insights that we did not know and our opinion changes…

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

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IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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DeFi is Not the Holy Grail of Crypto, Here is Why

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Defi Yfi

DeFi has been making millionaires overnight and turning millionaires broke at the same speed.

Those who are on the bandwagon are rejoicing and those who either missed out or got burned by one of the fake projects are yelling ‘Scam’ at DeFi.

Top 5 Cryptocurrencies 2020

Our views are a bit different on the subject.

We do think DeFi is going to be a successful vertical among the blockchain (and crypto) solutions.

It will not be THE holy grail for the redemption of crypto status though.

Supply Chain, Crypto Lending, Insurance, Financial Services, Accounting, Identity, and many more verticals will collectively take blockchain and crypto to the masses.

Shifting our focus back on DeFi, here are some of our thoughts on the current state of DeFi. We do appreciate you dropping any insights you have that we might have missed.

DeFi is not a ponzi, here is why

If the DeFi project you are eyeing meets the following conditions, it is not a ponzi:

  • Audited code: Is the code on which DeFi runs is audited by reputable blockchain auditors? 
  • Reliable team: Who is behind the project? Do they have the know-how? Do they have a history of running scams or leading successful projects? 
  • Actual (sustainable) revenue model: What is the revenue model?  Is it too ‘scammy’ sounding or is it based on sound mathematical (and algorithmic) models?
  • No lock-in periods: Is it easy to get in and out of the platform without any restrictions or lock-in periods?

If you answered yes to ALL of these questions then there is a 100% certainty that the DeFi you are dealing with is not a ponzi (or scam).

However, a caveat is due here.  

Just because the project is not a ponzi doesn’t guarantee its success. Lot of well intentioned companies fail, that’s just the nature of business.

So, do not be one of those guys who sells their home to invest in crypto or DeFi (and that itself is not advice, just an opinion).

If you don’t want to hear it from us, listen to what Yearn Finance creator has to say about DeFi tokens (not all, obviously) having ZERO value.

Source: Crypto Culture

DeFi on Ethereum is not sustainable, here is why

Ethereum DefiMost, if not all, DeFi projects that are making the news today are on Ethereum. 

Ethereum is not a reliable blockchain when it is overloaded.  It gets choked and crashes.  

People are already complaining about exorbitant fees on the network due to the DeFi craze.  

DeFi itself as a crypto vertical is quite new and we are sure there are going to be a lot of ‘killer apps’ that will show up on the scene.

We are currently looking at the DeFi solutions that are being built on other blockchain networks (subscribe for free to know when we post that article).

PolkaDOT is not the end all be all, here is why

Polkadot Defi EcosystemMany are turning to the DOT as the next big thing after Ethereum.

It may very well be.

However, it has not had the chance to prove itself, not yet.

Ethereum’s resilience (or lack thereof) was revealed only during the ICO craze (and then later during CryptoKitties debacle).

What monsters lie in the DOT’s belly?  We don’t know and we would be weary of anyone who claims to know with certainty.

Other things to consider

Entire DeFi space is pretty new and we do not know what we do not know about potential vulnerabilities.

While this is true of Bitcoin itself, Bitcoin has withstood assault for over a decade and still stands stronger.  

Same cannot be said about DeFi.  

Can you imagine someone investing their life-savings into DeFi only to have funds taken because of a bug in the code?

Needless to say, many folks are exploiting the looping system in the DeFi where they take loan against their deposit then lend it back to the platform to take another loan against their deposit, and ad infinitum.

This is causing the DeFi systems to show more liquidity than what truly is.

Conclusion

We think DeFi is an exciting development, however, we still put it alongside ICO craziness for now.

When this space matures and we see reliable solutions emerge – DeFi has the potential to drive a trillion dollar vertical on its own.  

That is just the potential, all the trials and tribulations that we have to go through to get there is going to be one hell of a ride.  

So buckle up and enjoy (and please do not lose your shirts on the ride)!

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

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IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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These forgotten gems could resurge during this bull run

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Forgotten Crypto Gems

Forgotten Crypto Gems

Disclaimer:  We own few of these tokens and there is no guarantee that these coins will actually resurge. Everything you are about to read is an opinion.  Our intention is to put some projects that have taken the backseat in recent times.

If you are curious as to why we give away so much for free – please check this Crypto Freebies page.

Top 5 Cryptocurrencies 2020

Crypto market is quite weird.  

It deceives the onlooker as if it’s learning from its past mistakes but it’s really not.

For instance, during the 2017 ICO craze, anyone could pitch any half-assed idea and raise millions from unassuming investors.

This bull run in 2020 is all about DeFi and Data Oracles.

Just slap ‘DeFi’ to any project without an actual product or even a single line of code written and you will make a boatload of money.

Because the ‘pump and dump’ practices are not closely monitored in the crypto space, many YouTubers are dumping their bags on their viewers.

It is so blatant that the YouTuber will start out saying “I loaded my bags with this” and then go on about all the mooning stuff and throw in a small disclaimer somewhere and voila. 

They make hundreds of thousands or even millions each day. And we are not exaggerating about that.

You contrast that with what you find here.  

We are giving away all the information we are digging up for free (including our Top 5 tokens for the next decade that we hope will 100x).  If you are curious as to why we give away so much for free – please check this Crypto Freebies page.

We recently started the microcap gems series where we are looking to dig up projects with a decent team, an actual product and lower market cap (usually under $5 Million, sometimes even less).

Because of the $$ limit on the microcap gems, there are some projects that we couldn’t cover in that series.

However, we wanted to float these projects in front of the discernible audience (and newbies who may not have looked into these).

This article’s sole aim is to ‘point’ you to these projects. It will not be a deep dive and as always we encourage you DYOR before investing.

Dragon Chain

Dragon Chain price prediction“Dragonchain is an enterprise and start up ready platform to build flexible and scalable blockchain applications.”

Like most projects we pick, Dragon Chain has solutions ready for business today.  This is not a pipedream or a 15 year roadmap.  That is why we think this is a forgotten gem.

This project is still going strong in the background in terms of development and traction.  They released a video in August about how their anti-fraud and transparency proof systems are used by an exchange.

Website: https://dragonchain.com/

Ticker: DRGN

ATH: $5.27

ATL: .02

Current Price: $0.079

Cindicator

Cindicator CND price prediction

“Cindicator builds predictive analytics by merging collective intelligence and machine learning models. Cindicator’s analytical products are available exclusively to holders of CND tokens.”

Market pays top dollar for prediction data.  Cindicator is one of the first projects to build an AI based market intelligence platform on blockchain.

Cindicator boasts over 135,000 analysts from over 135 countries.

In our opinion, Cindicator is a viable project, although it has not gained traction.

Website: https://cindicator.com/

Ticker: CND

ATH: $0.347

ATL: $0.002

Current price: $0.011

FunFair

Funfair Price Prediction

“FunFair is a revolutionary blockchain technology platform that provides low cost, high quality, transparent casino experiences that are Guaranteed Fair.”

The space that FunFair is targeting is a massive one and is expected to grown even more in the coming years.

Ticker: FUN

ATH: $0.33

ATL: $0.0010

Current price: $0.0052

This page will be updated with future ‘forgotten gems’, so please consider subscribing

Acronyms used: 

ATH: All Time High

ATL: All Time Low

DYOR: Do Your Own Research

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

best Crypto Tax Software

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

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