Debitum ICO Review
Global lending network available for anyone in the world and based on blockchain technology to provide its users with extremely low fees. That is the concept of the new ICO – Debitum Network.
They’re going to unite all parties involved in the lending market and integrate them into one big infrastructural solution. According to the research of World Bank, around 70 % of SME’s lack access to the traditional bank’s loans. It is true because for small businesses it’s hard to apply for such kind of loans because banks have a lot of different requirements and do not like to provide loans to startups and just-established companies. However, this type of companies need loans more than anyone else. With an existing level of competition is very hard to build a successful business without constant cash flow.
All this, giving companies like Debitum a competitive advantage. Blockchain technology has brought the system of value transfer and now all financial operations are as easy as buying bread at the supermarket. The main goal of the Debitum Network is to provide access for everyone who is looking for fundraising of their business to the global lending market and shift control away from entirely centralized banking institutions to the next-gen decentralized solutions like Debitum.
An additional feature of blockchain is security, and Debitum will use it to provide creditors with a reliable database with a credit rating of the borrower. It will ensure the quality of the loans and provide loan payment guarantees which will also increase a trust level of the platform.
To provide governance functionality, Debitum‘s team has implemented another invention of the crypto industry – Smart Contracts. All operations such as loan acceptance, instalments, escrow services and so on will be regulated by the software application called Smart Contract. This excludes human factor and bureaucracy in the process of accepting/providing loans. The process is entirely automated and if the company is suitable for requirements for the loan, it will get it anyway.
Within the platform, users will operate with DEB token – the fuel of the Debitum Network. All fees taken by the system will be processed in DEBs. It’s a utility token and there’re 2 main use cases of DEBs:
- 1. “Value Exchange” – as Debitum token is one and only means of payments inside of the Debitum Network.
- 2. ”Arbitrage Toll” – all service providers should ‘freeze’ certain amount of DEBs to ensure execution of future obligations via Trust Arbitrage mechanism.
Another advantage of the Debitum Network is an existing Minimum Viable Product. When we’re talking about ICO industry it is a huge advantage for the project if they’ve got ready to use MVP, not just an idea. In this terms, Debitum is successful and trusted, because they’ve got a clear and realistic roadmap and ready-to-use MVP to ensure their investors that they’ll not disappear after collecting money. One thing they should do is to use an Escrow service to increase trust level and attract even more investors and supporters. Currently, they’re not using an escrow for their ICO.
A team of the project is big enough and has a good skill set balance (Tech/Business/Blockchain) to successfully develop such big infrastructural project as Debitum Network. All members have LinkedIn profiles and their experience could be verified using their contact’s network. Debitum is incorporated under laws of Gibraltar and has declared that they’ve got support from the Ministry of Economy of the Republic of Lithuania because mostly team members are Lithuanian.
- 1 ETH = 6 500 DEB (basic price without bonuses)
- A bonus will be decreasing after reaching milestones. Biggest bonus is: 20%
- Min purchase amount is 0.05 ETH
- Accepted Currencies: ETH
Debitum’s Token Sale will be conducted in two steps:
- Round A: (ended) 7.12.2017 – 21.12.2017; raised $ 1.2 Million
- Round B: 25.01.2018 – 25.02.2018; HardCap is 20 000 ETH (approx: $ 20 MLN at a current exchange rate
Surely, projects which are using blockchain according to its nature will be successful. In this case, blockchain brings trust to the system and transfer value between participants. So the most important moment is – the team behind of the project. They hadn’t been noticed in any fraud or scams. Social networks are moderating good and quick enough.
One red flag which we strongly recommend to recognize is an escrow service. They’re not using it for ICO, so we should read Debitum Smart Contract code very carefully to identify potential threats. Regarding ICO terms, they’re detailed enough and look realistic and reachable by this project. Another good thing about Debitum is an availability of MVP.