eCoinomic ICO review

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eCoinomic is an ethereum based blockchain project which attempts to cut the gap between the fiat and cryptocurrency space. It provides a lending platform between individuals, small scale businesses/start-ups and institutional investors.
The major selling point of the project is the ‘lending of fiat loans with cryptocurrency as its collateral’. Cryptocurrency market cap is predicted to reach 1 trillion $ within the next few years so selling them is not a preferable option according to many holders (or should I say HODLERS), but at the same time fiat money is needed for various business or recreational purposes, this project aims to bridge that gap.
Services Provided:

Fiat loans with cryptocurrency as its collateral, currently the currencies accepted are CNC, BTC, ETH, XRP, LTC, BCH, EOS, NEO, ETC, ADA, TRX, DASH and the loan money is provided in USD or EUR.
Acts as a cryptocurrency exchange, for eg: while borrowing a loan if bitcoin was provided as collateral, he/she can exchange it for ethereum or any other cryptocurrency within the loan period.
Investment opportunity: institutional investors and other financial houses looking for a decent interest return in a short time.
Payment for goods and services using cryptocurrencies.
Issuance of virtual cards which are backed by cryptocurrencies.

How the lending works:
Initially the loan duration is 30 days with an interest of 10% per annum and a loan to value ratio of 50%. For eg: if the bitcoin price is 10,000$ and the lender provides 1 BTC as collateral, he/she can get a maximum loan of 5000$. Once the collateral is sent and confirmed by the smart contract of the platform, fiat money is sent to the lender’s account within few minutes. Once the borrower returns the principal loan amount plus interest the collateral is released and the lender gets back their cryptocurrency.
Usage of CNC token:
In order to use the eCoinomic platform the user needs to have CNC tokens to pay for the various service fees within the platform. The platform maintenance and further developments are done by collecting fees through these CNC tokens. The tokens can also be used as collateral for fiat loans and further products released in the future can be accessed only by CNC token holders.
Token sale:
The token symbol is CNC, which is a ERC20 utility token. Total token supply is 2.1 billion and the tokens available during the sale are 1.55 billion. The token sale is divided into 3 stages – presale, crowd sale and reserve.

The presale stage ended on 21st April, the price of 1 CNC was 0.05 USD with a maximum bonus of 25% (bonus tokens will be locked for 2 months after the reserve stage).
The crowd sale is between 1st and 31st of May, the price of 1 CNC is 0.05 USD and the hard cap during this stage is 6 million USD.
The reserve stage starts on June 1st and goes on till August 1st, the maximum tokens to be sold are 1,400,000,000. Hard cap during this stage is 106 million USD of which 81% is put aside as reserve.

Need for a high reserve:
The hard cap during the reserve stage is 106 million USD of which 81% (~81 million USD) will be put aside as reserve which will be locked in an escrow account. The high reserve acts as a catalyst to attract large financial institutions at present and also in the future, also during the initial stages the eCoinomic team provides full financial coverage of the amount borrowed, so this amount of equity provides a smooth cushion. This sounds reasonable since no institution investor would we willing to lend unless the project is backed by adequate financial resources.
Roadmap:

A fairly long roadmap extending till 2020, the token sale will be done by Q3 2018 and the Platform will be launched in December 2018.
In 2019 the major focus is on securing partnerships with financial organisations and institutional investors.
Launch of the crypto bank and its IPO will happen during 2020.

Final thoughts:
A cryptocurrency backed lending platform with a precise roadmap aimed to connect the crypto and Fiat space. Its closed competitor is SALT, which is well received and has provided reasonable ROI. If they can pull off the “crypto bank” which they plan to implement in 2020 according to the road map, this project could change the landscape of the loan industry.