What is Coinvest?
Coinvest (COIN) is a decentralized trading market for cryptocurrencies where users can invest in multiple cryptocurrencies and index funds with one account, one wallet, and one token.
What does this really mean?
It means than when using Coinvest you can purchase a complete portfolio of cryptocurrencies using only their DApp and their native token COIN. Coinvest will allow users to hand select the cryptocurrencies they want regardless of the blockchain that they are attached to. There will be no dealing with trading pairs, just a point and click mechanism for selecting virtual cryptocurrencies to purchase with COIN.
Virtual Cryptocurrencies?
Yes, it sounds strange and futuristic but it’s what makes everything work. In order to purchases an entire portfolio of cryptocurrency with one transaction, Coinvest created a system using what they call cryptonized assets. Lets say a buyer creates a portfolio of:
Traditionally the buyer would have to visit an exchange, purchase BTC or ETH then trade for OMG and ACT. The user would then have to store those in the appropriate wallets.
Using Coinvest the buyer would use a DApp to create a smart contract that holds $20 worth of COIN but tracks the real world values of OMG and ACT. Think of it like creating a digital index fund inside of a smart contract.
If the investment goes up in value (or down) and the buyer wants to cash out they will use the DApp to withdraw their COIN (plus profits) from the smart contract. If a user deploys a portfolio with 20 COIN and the underlying assets double in value it will then be worth 40 COIN to the user.
These cryptonized assets are backed by two reserve funds of COIN that are constantly replenished. All investments made by users are collateralized by the reserve.
How does this work?
The three main components of Coinvest are what allow the system to work. These components are:
Coinvest Dapp
The App is the user interface that allows customers to:
-Invest in an individual cryptocurrency
-Create and invest in a custom portfolio (collection) of cryptocurrencies
-Invest in an index fund or active managed fund of cryptocurrencies.
-Track their portfolios
-Withdraw COIN
After selecting or creating their fund the user will execute a trade using COIN and sending it to a smart contract. The Coinvest App will act like an exchange user interface and will allow for advanced trading including short selling, limit orders, and in the future, margin, option and futures trading.
Coinvest Protocol
The protocol is the heart of the project, it is how transaction information is recorded onto the blockchain. When a user executes a trade and sends their COIN to a smart contract the details are recorded to the blockchain.
The details stored on the blockchain include time of trade, user wallet address, index name, cryptonized asset names, asset prices, asset allocation, amount invested and eventually the sell timestamp.
The smart contract will provide a truly decentralized experience because a users funds are not touched by a third party API.
Reserve Funds
In order for users to trust cryptonized assets Coinvest has created two separate reserve funds so that all investments are fully collateralized (backed by real assets). This should minimize the risk of default or non performance of cryptonized assets.
The reserves will be funded intially via the crowdsale then by using 75% of company profits to continuously replenish the ecosystem.
The first reserve is the liquidity pool (aka COIN reserve). The COIN reserve is completely autonomous managed only by smart contract and its purpose is to ensure collateralization, back portfolio investments and to distribute trading profits.
The second reserve is managed by asset managers at Coinvest and will provide additional collateralization, redundancy and insurance for investors. This fund may track user investments 1:1 or may skew and attempt to beat the performance of users.
Let’s put it all this information together and see what happens when Jane wants to purchase an index fund of cryptocurrencies.
Jane selects a Top 50 fund in the Coinvest App that invests equally into each of the top 50 coins.
She executes the trade using 6000 COIN ($5000 USD).
The cryptonized assets and their values are recorded into a smart contract and her money is held in escrow.
The price of her assets goes up (it can go down too).
She wants to collect profit so she withdraws her COIN using the Coinvest App.
The Smart Contract pulls her COIN from escrow and the profits from the reserve pool and sends them to her wallet inside of the Coinvest App.
How Does Coinvest Obtain Revenue?
Coinvest will charge a flat fee of $4.99 for trading within a portfolio. Although the fees appear high they are actually lower than comparable products.
What about the debit card?
Future plans for Coinvest include the issuance of a debit card or partnering with a project like TenX, Metal or Monaco. This would allow a user to spend COIN without having to leave the Coinvest ecosystem.
Are their competitors?
There are a small number of competitors in this field and each offers something different. Neither of the two mentioned below offer a complete ecosystem like Coinvest as they both focus on doing a singular task well.
The main competitor is Covesting which unfortunately has a very similar name. Covesting does not allow users to create their own portfolios but instead relies solely on copy trading. Copy trading is the process by which one user subscribes to another user’s portfolio and replicates their trades automatically. Covesting is marketing itself as a way for users to replicate the trades of successful traders. The fees for Covesting are much higher than Coinvest. The fee for copy trading is 18% (of the profit) and it goes to the pro trader. In comparison, the flat fee in Coinvest is $4.99 and the copy trade portfolio receives half of that.
A second project with some similar ideas is Iconomi. At this time, Iconomi has one digital asset array that they have created. It is a digital index fund that tracks many different cryptocurrencies and shares can be purchased in the form of the ICN token.
What about the team and advisers?
This team is extremely strong with multiple Microsoft Alum including Founder Damon Nam (15+ years) and Byron Levels (Tech Director). One of two lead blockchain engineers is Dexeran Derat, the founder of Ethereum Commonwealth, who has worked directly on the BIP for the ERC-223 token standard. The remaining teams resumes are all impressive from a broad set of fields including marketing, data analytics and engineering.
The adviser group is small with only three members but they are all very impressive. Pete Cashmore is the Founder and CEO of Mashable, Tony Scott was the U.S. Chief Information Officer under President Obama and has worked with cybersecurity firms and VMWare, Microsoft and The Walt Disney Company. The newest member to the advising team is Kendrick Nguyen, the CEO of Republic and a well know figure in the technology space.
All team members have thorough LinkedIn profiles available and many have large histories on the web.
What the purpose of COIN?
COIN (ERC-223) has multiple uses, all of which play an integral part in the Coinvest ecosystem.
-Create investment transactions and portfolios in Coinvest. (Access to Protocol)
-Receive assets from investment portfolio profits and index fund investment fees. (Store of Value)
-Purchase goods and services from merchant partners. (Currency)
-Receive trading fee % when users use your custom designed indexes. (Rewards)
-Buy and sell on supported cryptocurrency exchanges. (Asset)
What’s up with the ICO?
The ICO consisted of a private presale and a crowdsale. The presale is officially over, it was oversubbed by 3.3x but the project held the purchases to a total of $3.3 million or 4% of the total token supply. The crowdsale is set to begin on February 16.
This crowdsale is mid cap with a hardcap of $30 million. This places the value of the total supply at approximately $75M (token price of $.70 * total supply of tokens) which is higher than most recent ICOs but this project needs a high number to create a useable reserve liquidity pool. The ICO funds and future fund distribution are as follows:
There is no whitelist but KYC is required. The price per token for the crowdsale is approximately $.63 including the 10% bonus. The presale group received 25% bonus and no lockup. However, large strategic partners, team and advisers have tokens vested over a 5 year period.
The token sale is attempting to sell 49% of the approximately 107,000,000 COIN tokens. All unsold tokens will be stored in the reserve liquidity pool. Tokens will be released immediately but frozen until the end of the crowdsale.
Marketcap & Token Supply
The project is selling 49% of the tokens during the token sale which will create a $36 million marketcap (52,430,000 COIN @ $.70 each) if no additional tokens are released at the time. This project is comparable to Covesting ($27mil) and Iconomi ($207 mil). These tokens are all different in nature as previously discussed.
We have no idea what marketcap or price COIN will achieve but do like to compare it to other similar tokens for analytical pleasure.
Partnerships
The partnerships for Coinvest include names that aim to have a synergistic effect. The biggest names are the Enterprise Ethereum Alliance (see Team) and Civic. Civic is a well known blockchain personal identity project, Oraclize is an oracle service that carries data from the web to DApps and Changelly provides easy (but sometimes expensive) cryptocurrency exchanges. The partnerships are listed below:
-Civic
-Oraclize — Will provide oracles to transfer market data to Coinvest
-Changelly
-Crypto Compare
-AXIS Block Group
-Amplifi
-Olshan Law
-Enterprise Ethereum Alliance
Social & Hype
The Coinvest Telegram group has a solid 13,000+ members. The Telegram is not extremely active but the admins are professional and respond quickly to in depth questions with responses from the team. Team members also visit the chat on a regular basis.
The FOMO levels are low as the crowdsale is currently a little below the radar. If the current trend continues the momentum will build closer to the opening of the sale. The current ICO environment has left retail investors struggling to find public sales so it is likely they will soon discover Coinvest. Research did not discover any FUD, as this project, team, marketing and whitepaper all appear to be in sync, and fairly transparent. As always do your own research.
Overall
This project has a very solid team and set of advisors. The plan is well described, the fees are reasonable and construction of the reserve fund appears to be viable. The reserve fund should also help to keep circulating supply in check in the future. For those interested in decentralization, this project relies on the blockchain and smart contracts to autonomously execute and record most of its main financial functions. Coinvest is a little bit under the radar right now and not having a limited whitelist may result in increased popularity closer to the time of sale.
Interestingly, Coinvest is a legal for-profit company in the United States of America.
As with any investment do your own research, we do not rate ICOs or projects we just provide unbiased analytics and perspectives for all to use.
ICO Info Sheet
Keep a copy, share and tweet the cryptoisfun.com analytics info sheet below. Use it to compare all the ICOs you may be thinking about participating in. And don’t forget to keep your mind on your crypto and your crypto on your mind.
*This information sheet does not contain investment advice. The information provided on the sheet has been compiled from publicly available websites and presented in a single page document.
For more information visit :
Website : https://coinve.st/
Whitepaper : https://docs.google.com/document/d/1ePI50Vd9MGdkPnH0KdVuhTOOSiqmnE7WteGDtG10GuE/edit?usp=sharing
Telegram : https://t.me/CoinvestHQ/
Twitter : https://www.twitter.com/CoinvestHQ
Facebook : https://www.facebook.com/CoinvestHQ/
Blog : https://medium.com/@CoinvestHQ
