OVERVIEW OF THE PROJECT
Crypto community is growing every day and cryptocurrency receives more adoption. If you are an active ICO investor or trader, you are constantly looking for market data and better if it is in real-time. For such purposes, Coinmarketcap exists and there are other analytical resources with a high level of trust (e.g CoinDesk; Cointelegraph). Obviously, that there is no demand for new services of a kind, but ZiChain is going to try and now we’ll see what do they offer and does their project has an internal value or it is another attempt to make money out of thin air?
ZiChain is a project which is going to create 4 different web-portals:
- Cryptoeye(.com) (currently in Beta) – it is an analytical platform with similar functionality to the Coinmarketcap. It will be extremely difficult to compete, by the way.
- Theindex(.Fund) (under development) – In basic terms, it will be another analytical tool with their own indexes, based on current market data.
- BAMP (no links provided) – It is a platform where you can create your own investment strategy, share it with others and test it in the real-life (in case, if they will use API of crypto exchanges)
- ZiChange(.io) – It may be only one of these 4 products which may be useful and on demand, because they are going to provide a crypto-to-fiat exchange. Not clear how it will work but that’s what declared. ZiChain declared, that they already have obtained a license and launch will be soon.
ICO industry has generated dozens of near-zero or even nonsense projects, which have implemented blockchain only to raise money through an ICO. We’re talking about projects, which should work without blockchain, but at the same level of efficiency. For instance, manufacturing projects going to build a factory using ICO funds, but without any guarantees of company share for its investors (example: Labrys ICO (now they’re doing rebranding)).
In our opinion, ZiChain is one of such companies who is going to conduct an ICO only to raise money for their own purposes. That is because we cannot identify why do their products need blockchain. For example, for Cryptoeye.com (their analytical resource) we may provide basic performance data which proofs that such portal based on traditional centralized architecture will be much faster and maintenance will be much cheaper in comparison with blockchain-based infrastructure.
Only one of their products, ZiChange(.io) may be efficiently placed on blockchain technology and only if it will be DEX (decentralized exchange) if not, it still is much better and faster to use centralized architecture.
WHAT IS THE PROBLEM OF ZICHAIN
The problem is the same as with many other projects. ZiChain is not doing something new, or revolutionary, they just going to create several websites which will be clones-like for the existing and trusted services (e.g Coinmarketcap). How do they plan to compete with existing services, how will they earn trust points (what is really matter in the crypto world)?? There is only promises and dreams, described in their WP and no real plans for future strong competition.
ZiChain will conduct their ICO in 3 stages: Private Sale; Public Pre-Sale and Crowdsale. Their token – ZCN – will be an ERC-20 compatible and used only for access to their service with a 30% discount on it. Let’s see token terms of ZiChain:
- Token Price: 0.1 USD
- Total token supply: 703 125 000 ZCN
- Tokens for sale: 450 000 000 ZCN
- Bonus on Pre-Sale: 20 %
- Tokens for the team: 21 %
- Tokens for the advisory board: 10 %
Team tokens will be locked for 24 months, but there are few notes about it. According to their whitepaper, if the token price will do x3 of the ICO price, 25 % of team tokens pool will be unlocked and 25 % more will be unlocked in case if the price will be x5 from ICO price.
TEAM OF THE PROJECT
ZiChain team is very small for such huge project with its 4 different services. There are 9 team members mentioned on their website. Now, we’re going to analyze the experience of the executive team of the project:
- Khachatur Gukasyan – CEO of the project. His LinkedIn is open, but actually, there is a lack of information regarding his previous experience and skill set. Previously, he was working on the leading positions at very famous Russian companies from banking sector: Troika Dialog and Aton. His entire experience is 11 years, but the skill set is questionable and cannot be verified.
- Sergio Geller – COO of the project. His LinkedIn looks very poor and working experience includes only 2 places and both are operating since 2017. Skillset verified by only a few people and cannot be trusted too.
- Stepan Tsaturyan – CTO of the project. His profile is the biggest grey area of the team. He hasn’t mentioned ZiChain as his place of work and there are no mutual connections between him and other members of the project.
- Andrey Gunin – CFO of the project. He is the most experienced team member and his LinkedIn is trusted more than others. Previously, he was working as a CFO and COO at very big and famous Russian companies, such as ROLF and Media-Most.
ROADMAP AND CURRENT STATE OF THE PROJECT
RoadMap of the project is detailed enough and divided quarterly. The first step is Q2 2017 where the concept has been actualized and the last step is Q1 2020 – with localization for 2 more foreign languages. Currently, ZiChain has released their beta version of an analytical portal – Cryptoeye and landing page for their ZiChange exchange.
- ZiChain is going to create 4 different websites and presents it as a separate product. There will be an exchange, asset management platform and news aggregators.
- There is no visible reason to use blockchain. Implementation is questionable. We cannot understand why their analytical services need blockchain under its hood.
- The team is a grey area. A lot of questions regarding the previous experience of the executive team and only 9 members without even advisors.
- No actual demand for their product exists. Already working services look better and it will be hard to compete with them for ZiChain.
ZiChain received Low-interest level from our research team because their products are:
- Not unique and existing competitors are very strong (e.g CoinDesk and Coinmarketcap)
- They declared that their ZiChange exchange will provide an ability to buy and sell crypto using fiat money directly. Currently, banks are mostly declining transactions related to the crypto industry and probably, these promises will be only promising and we will receive another crypto exchange where competition even stronger.
- Team section and experience of its members is questionable.
- Blockchain implementation is not clear at all. Our requests left unanswered