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Globcoin

Globcoin is a platform offering payments and savings in its token denominated in a basket consisting of the national currencies of the 15 largest economies and Gold. Globcoin appears to lower currency risks and to minimize exchange rates.

Rating: 2.8

Official contacts
Location: N/A
Web-resources:   Whitepaper Website
Social networks: N/A
Product source tracking: https://github.com/Globcoin
Details Description Risks Full analysis Team

Detailed review

Stage of product development
Prepaid card and app have already been developed and are ready for testing. Token and smart contracts are also developed and available. The company is in negotiations with exchanges.


Token description
ICO date
12.02.2018 - 27.03.2018
Token price
N/A
Platform
Ethereum
Blockchain
Ethereum
Token distribution date
31.01.2018
Consensus method
Absent
Escrow
С All payments received for GCP tokens regarding the Initial Token Sale will be held in escrow in a secure multisignature address, and will only be released from the account with 2 out of 3 signatures: • Helie d’Hautefort – Founder • Bertrand Weisgerber – Cofounder • Linda Leaney – Partner
ICO currencies
ETH
Bounty camping
Total bounty will be set at 2% of the total raised (only if total at the ICO raised > ETH 25 000). Relevant sources include Slack, FB, Twitter, Bitcointalk and others.
Markets
N/A
Token functions
One token represents an exposure to the 15 largest fiat world currencies and gold. Token entitles holders to claim a reward on transaction fees collected on the system every quarter, but that mechanism is not specified
Tokens distribution
Investors (pre-ICO) (12.0%)
Investors (ICO) (38.0%)
Future business development (30.0%)
Team and consultants (20.0%)
Risks
MARKET

Tough competition with fintech and blockchain companies as well as with traditional banking Tough competition with ETHs and their diverse product range leaving Globcoin basket lagging behind.

PRODUCT

Lack of agreements with exchanges No mechanism indicated of ensuring tokenholder’s returns.

BUSINESS MODEL

Development strategy is based on Globcoin’s current products but the company does not disclose its previous performance results.

FINANCES

Lack of Revenue, Profit margin, Net profit and FCF forecasting Team and consultants’ part in token structure is high and equals to 20%. Also their compensation does not appear to be related to KPIs Transaction fees concept and forecasts stated are not described in clear way Funds usage process and plans are not disclosed High pre-sale discount (40%), that increases the risk of rapid token sell-offs after ICO start date and further falling token prices.

TEAM

No blockchain specialist is found in the team Technical specialists do not have previous significant experience before entering Globcoin Some members combine Globcoin activity with working at other companies what may result in softening the focus on ICO project.

Full analysis
Market

Globcoin’s product is a part of two main markets: payments market and asset management market where it faces tough competition with ETF services. 1) Payments market. This market is likely to demonstrate growth that is driven by the growth of non-cash payments globally especially in emerging markets with CAGR 2015-2020 about 21% (World Payments Report). Promising point is that Globcoin is going to cover such markets. Overall global CAGR promises to make up about 11% with 6% in mature markets. With debit cards increasing demand (in comparison to credit ones) Globcoin is on trend with its Mastercard product. By the way, although the market tends to grow Globcoin is to face tough competition with fintech and blockchain startups as well as with traditional banking. 2) Asset management market. As Globcoin’s product is marketed as a currency risk hedging instrument it may be considered as an alternative and substitute for exchange traded funds (ETF). This market is projected to double to 2020 driven by such factors as ETFs’ wide product range and low price, according to Source UK Services Ltd. On the one hand Globcoin is considered to be more accessible and client-friendly for target users, but on the other hand ETFs demonstrate wider product variety also including different multicurrency baskets.

Product

The token doesn’t have the lack of real asset backing its value. One token represents an exposure to the 15 largest fiat world currencies and gold. The portfolio of the basket aims to capitalise on the market trend towards a globalized world by leveraging algorithm using the GDP of each country adjusted by the Purchasing Power Parity. Whitepaper provides clear and transparent calculation methods applied. Thanks to blockchain technology Globcoin sees possible to offer the basket concept previously tested on major costumers to the wider community. In addition, Globcoin users will have an access to close-to-interbank currency exchange rates. Globcoin has been providing a multicurrency prepaid card together with an app since 2016 and token will be added after the ICO for transactions and savings. Service usage is free of charge. One of the purposes of ICO is to disseminate the use of dedicated baskets in specific regions of the World, in accordance with the local regulations that may apply. Using the token its holders will be able to tactically switch to the stable basket, proven by Globcoin staff experience to be more stable than the Swiss Franc. Roadmap presented ends in 2019 but detailed steps are indicated only for 2018.

Business model

Globcoin counts on the wide adoption and value increase of its token but still it remains unclear how specific currency prices will effect this process. GCP token holders do not receive any dividends but GCP token entitles holders to claim a reward on transaction fees collected on the system every quarter but this right is not specified thereafter. The token doesn’t appear to be structures as a security. Three main purposes of ICO are indicated: raising funds to enhance the current platform, making the platform available to larger community of users and delivering a currency basket service globally.

Finances

Token sale will include pre-ICO stage. Targeted soft cap equals to 10 000 ETH (6M USD with 600 ETH/USD rate) while hard cap is limited by 158 500 ETH. Pre-ICO is projected to end after raising 30 000 ETH. 1 GCP price is equal to 0.01 ETH (excluding discounts). Globcoin discloses only fund usage list, but its amount, structure and feasibility still remain intransparent. Milestones are indicated and include several scenarios: in general, funds above the soft cap will be sent to geographical expansion. Financial plan is mostly based on Tether success, but forecasting methods are uncertain. 50% of tokens issued are intended for ICO crowdsale. In addition stringent audit is promised but no further details are revealed.

Team

Project’s team is well assembled and professional. The vast majority of members have approved experience indicated in social networks. CEO has vast experience in currency management, his portfolio reached 20B USD in 2011. Co-founder Bertrand Weisgerber does not have social network profiles but his experience is mentioned in open sources (Bloomberg). CFO indicates 20 years’ experience in investment banking and currency trading holding the post of UBS managing director. CTO and the leading developer do not have significant experience before entering Globcoin, but the team also includes Blockchain Partners as technical specialists involved in project.

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