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Infrastructure, Financial Services, Exchanges

Ferrum Network

Ferrum is a fast interconnectivity network designed for decentralized financial applications. Ferrum brings blockchains together and enables fast and inexpensive transactions without taking custody of user's assets. Ferrum Network enables decentralized transactions that are an order of magnitude faster and less expensive than the current alternatives. Ferrum DEX is the first decentralized exchange that offers centralize exchange experience along with advanced features such as short selling and margin trading features. Ferrum technology also enables a consistent merchant and retail experience for digital asset payment solutions, and other decentralized applications that are in early development.)

Rating: 3.2

Official contacts
Location: Ta' Xbiex, Malta
Web-resources:   Whitepaper Website
Social networks:
Product source tracking: N/A
Details Description Risks Full analysis Team

Detailed review

Stage of product development
The prototype is available.


Token description
ICO date
20.12.2018 - 31.01.2019
Token price
N/A
Platform
N/A
Blockchain
Token distribution date
N/A
Consensus method
PoW
Escrow
N/A
ICO currencies
Bounty camping
N/A
Markets
N/A
Token functions
Token is native for Ferrum Network. It is required to use all platform’s functions and using as a “gas” for transctions.
Risks
MARKET

None of current DEXs have solved the main technical problem – low speed and liquidity.

The other problem is advantages of larges exchanges, which have huge number of users and it is easier for them to create a decentralized network.

In addition, there is a big law risk – SEC has not approved current DEXs, nut USA is the biggest market for such platforms. The situation is that the first good project is going to win the competition and capture the market. 

PRODUCT

Now Ferrum is developing two main products – DEX and wallet. Both of the products have many other already existing analogues.

BUSINESS MODEL

Ferrum Network has strategic partners - TLG Ventures, KOSMOS, Token Research Group. Some of their team members represent these funds.

FINANCES

Ferrum’s business and token’s cost fully depend on the number of users. During the communication with the team, they have mentioned that their main market is USA, but it is still big legal risk with American jurisdiction. In addition, business is built on cryptocurrency market and if it is going to fail this project will be unclaimed.

TEAM

There are 8 people and 5 advisors. Half of a team are from investment funds and the other half has some technical background. There is one important moment – most of the founders haven’t changed their main workplace in LinkedIn.

Full analysis
Market

There are two global problems for Ferrum Network: technical and legal. First of all, blockchain technology is still underdeveloped, all DEXs have low speed and high costs of their transactions. These two factors make decentralized platforms unpopular and it decreases liquidity of these DEXs. The other problem is regulation; current projects cannot work legally in the USA. Ferrum said that they are going to solve legal problems, but only 5% of their fundraising goal is intended for legal advisory. In addition, new releases of decentralized platforms are scheduled in 2019. Also, the is uncertainty about cryptocurrency market’s future, and there is no information about institutional investors interests in DEXs. 

Product

Ferrum Network Team has validated the demand and defined the main problems of the current crypto market. In the future, they want to develop a global ecosystem that will be operating as an infrastructure for digital assets. The product has not any working analogues. Key advantages of this platform are the ability of transactions between different blockchains and tokens. Also, they are going to use a typical centralized exchange model with standard and popular products – margin trading and short positions. Another product is their wallet is also unique, it is something between hot and cold wallets, which allows solving problems of both products: low level of security, insufficient mobility and speed. So, the team is planning to create a range of potentially popular products.

Business model

Ferrum has a typical utility-token business model: users have to buy tokens to use platform’s functions. They are developing a scalable network, which will allow users to have access to a wide range of services and will use as a “gas” and burn, which is positive for token’s value. In addition, projects have made its own node systems, in which users need only their laptop to be a part of the ecosystem.

Finances

Now project is looking for large strategic investors and only after finding a pool of strategic partners, they are planning to make a crowdsale. Only 30% of their fundraising goal will be directed to the main business - 15% R&D, 5% - legal support, 10% marketing. It may be insufficiently for realizing their plans. Other 70% are divided in the following way: 40% for public sale, 20% team and advisors, 10% strategic partnerships.

Team

Half of a team are from investment funds and has expertise in investing in blockchain projects also, they represent funds, which have invested to Ferrum. The other half has good technical background in Microsoft, Bloomberg, e.t.c. and good educational experience – PhD Stanford Computer Science. It might be problems with designing such difficult technological project with only four IT specialists, and it difficult to solve legal problems without lawyer. There are some doubts in their competence to solve main problems – legal and technical. Also there is one important moment – most of the founders haven’t changed their main workplace in LinkedIn. However, we should mention that this team participated at finals in Consensus Pitch Competition.

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