As of 1st December 2017, only the private beta app was launched (August 2017). The commercial launch for fiat is expected by the end of 2017. The cryptocurrency wallet is expected to be launched in Q3 2018.
11.12.2017 - 14.01.2018
Stack will be realized on a public blockchain of Ethereum as ERC20 token.
Role of token:
STK tokens will be used to access the State Channel platform which allows to exchange currency. STK tokens can also be used to fund transactions (then the fees are waived).
1 STK = 0.000672 ETH
Pre-Sale: * 20% Discount => actual price: 1 STK = 0.0005376 ETH
Tier 1 Discount (First 48 hours of Sale): * 10% Discount => actual price: 1 STK = 0.0006048 ETH
Public Sale: 0% Discount => actual price: 1 STK = 0.000672 ETH
Sum of tokens:
500 000 000 for the amount of 130 000 000$
Accepted currencies ICO:
STK has reserved 1% of tokens sold to reward bounty participants. All of these STK tokens (STK) will be fully distributed among the STK bounty campaign participants.
Token distribution date
Stack enters the market of B2C mobile payments. The growth rate for the market for 2015-2020 is expected to be 6% for developed markets and around 20% for the emerging markets, according to Capgemini. Therefore, Stack’s focus on developed markets – Canada, US – may yield lower returns. According to the World Fintech Report from Capgemini, the implementation of mobile payment technologies in consumer finance is likely to happen soon. However, this industry is considered as highly competitive with low barriers to entry. There are players ranging from IT-Startups (TenX, CryptoPay, Monaco) to traditional banks and payment systems (PayPal, Visa, MasterCard) Also, there are already several competitors in the area of crypto to fiat conversion/spending with existing products available for customers (TenX). According to Gartner Report, replacing an existing near-real-time payment solution with a blockchain-based one will deliver little intrinsic benefit and it will not lead to significant shifts in the industry. To sum up, the market for mobile payments does not have large growth potential for Stack.
The company aims to create digital multi-currency wallet that will allow tap-to-pay payments via both fiat and cryptocurrencies using both virtual and physical prepaid card. Stack offers its services without fees: neither for card delivery nor for ATM withdrawals. Stack will only charge fees for transactions via State Channel, the amount of fees charged is not given in WP. The mobile app allows to store up to 10 currencies, both crypto and fiat. In September, Stack announced a partnership with MasterCard that added a mobile tap-to-pay option to the digital wallet app. As of 1st December 2017, the private beta app was launched (August 2017). Currently, the company does not have paying customers, but, according to WP, there are 20K+ people on the beta waitlist. The commercial launch for the fiat part of wallet has not yet been made and is expected by the end of 2017. The crypto part of the wallet will be only available in Q3 2018. Therefore, until Q3 2018 it will be just ordinary fiat mobile payment service with prepaid card. This kind of products have already been available in the market for a while. In fact, Stack has several competitors which already have commercial versions of applications (TenX - available in AppStore/Google Play) with the same functionality that Stack will only launch in Q3 2018. Moreover, nowadays customers are interested not only in the convenience of payments (which is now considered as given), but also in loyalty programs, such as cashback options or discounts. Stack does not offer any of these features so it might be hard to attract customers from traditional banking. Also, according to GitHub, there is just one repository of the project and the last update was made 24 days ago. There are just 2 contributors and both were not active for the last month. The competitors' comparison in the white paper seems unprofessional: there is a table of Stack advantages that do not provide names of the competitors.
Several team members have experience in payments/digital payments industry (MasterCard), they also have experience in digital at Virgin Group. However, there is no one in the team who launched and managed startups in the past. All of the team members only had experience in large corporations. It seems like the team lacks technological expertise: there are several Strategists, PR, Marketing specialists. However, the team of developers consists only of 2 people: Yervant Kulbashian (CTO According to LinkedIn) and Sharaf Ansari (Intern according to LinkedIn). Moreover, the Blockchain specialist - Adam Lemmon - is not employed at Stack (according to LinkedIn). It is worth to notice that Ethan Wilding is employed as Head of Strategy and is on advisory board simultaneously. Also, one of the team members - Jeffrey Ace Fulgar - has been freelance worker for the last 11 years. The amount of tokens saved for the team - 15% seems excessive.
Stack is a digital multi-currency wallet which can be used for instant point of sale transactions using cryptocurrency or fiat. Stack is aiming to make cryptocurrency payments instant via creating liquidity pool, which will be used to facilitate transactions: the cryptocurrency from the buyer’s wallet will be transferred to the liquidity pool where it will be converted to fiat currency and then transferred to the PoS of the merchant. Later, the information about transaction will be recorded into blockchain. This series of operations is called "State Channel" and will be executed off-chain in order to make the payments instant. Stack will charge fees for the closing of the state channel. There is no information about the number of fees charged. Stack will also issue prepaid card that can be used for the same purpose. It is not clear if it will be possible to use only virtual card/bundle. Also, they do not clarify the currency of the prepaid card (crypto, fiat). Thus, Stack implements classical commission business model although they narrow down the range of customers’ activities that can be monetized only to transaction execution fees. The business model described above can be at risk for several reasons. First of all, the liquidity risk should be considered as during the peak hours the pool may face liquidity shortages because of the lack of fiat currency and long waiting time for the cryptocurrency transactions execution. Also, the model replicates typical digital banking app with prepaid card. The only difference is that they introduce crypto payments that are made using their own liquidity pool. To sum up, the business model Stack wants to implement already exist and is typical for the digital payments industry. In fact, it has already been implemented in fiat currencies by “digital banks”, such as Monzo, Monesee, and others.
During ICO, Stack is planning to raise from 3 600 ETH to 155 172 ETH, which is roughly equivalent to 1 656 000 USD soft cap and 72 000 000 USD Hard Cap (as of 1.12.17). The Hard / Soft Cap Ratio is relatively high and equals to 50 which means that the financial needs of the project are not clear. Stack plans to allocate the funds raised to Marketing and Customer Acquisitions (55%), Android & IOS app and Crypto-to-Fiat Exchange platform development (20%), Operational Costs (20%) and Legal Costs (5%). The Stack team does not provide more detailed information about the expenses. Also, Stack only provides the percentage terms of expenses, which can significantly vary depending on the number of funds raised, as the hard/soft cap ratio is high. Financial forecasts of the Stack’s activities are not disclosed. The company does not provide information about the potential customer base and their growth expectations. Also, the company does not state that the funds will be returned back to the buyers, in case the soft cap will not be reached. Using venture capital approach we can assume that the company is currently on Seed stage. Then, according to PitchBook data, the company valuation should be around 6M USD. The company values itself from 3M to 130M USD, which is very volatile. Also, according to PitchBook data, the round for a company in commercial services sector on the seed stage is around 1M USD. Stack is aiming to raise at least 1.6M USD, which is above average and seems excessive.