Experts consider an independent evaluation of an ICO and its future development prospects as a key factor for your investment success. The 4T-Model is a simple and effective way to assess 4 most important elements of an ICO, which determine its success: Theme, Tech, Team, Token.
Let’s analyze the Theme of ICO Azbit.
What client problems does the project solve?
The main idea behind the Azbit project is to provide traditional financial services to cryptocurrency projects and private users:
- For blockchain businesses and individuals: banking and financial services for carrying out operations with fiat currencies, as well as brokerage services;
- For traders and investors: access to spot and margin trading; investment instruments within a single platform, such as copy trading, social trading and portfolio management;
- For all cryptocurrency users: access to online cryptocurrency trading, as well as to utility and security tokens.
Thus, the Azbit project responds to the crypto market needs in two key sectors: banking services and cryptocurrency asset management.
Is there market demand for the services provided?
- The cautious attitude of the banking sector to cryptocurrencies and the tougher rules brought in by regulators in many countries have led to the fact that a lot of blockchain projects and private crypto investors lack access to the traditional banking services: accounts, deposits, payments.
Visa and MasterCard stopped servicing most plastic cards supporting cryptocurrencies in 2017–2018. As a result, a lot of cryptocurrency projects have lost practically all their business.
In 2017–2018 banks in many countries unilaterally stopped servicing cryptocurrency projects and businesses due to regulatory pressure on the USA and European banks. The founders of Azbit have studied the issues of collaboration between banks and crypto business and set the objective to provide banking services to crypto market participants, accurately and thoroughly complying with all legislative procedures. It’s a complicated, but the only possible way to address this pressing issue of the cryptocurrency market.
- Despite the rapid growth of the cryptocurrency market, crypto asset management industry is just at an early development stage. According to fintech analysts, only 1% of crypto assets is currently under management, whereas for fiat assets the figure stands at 30–40%. Therefore, the crypto asset management industry has a potential growth of 30–40 times!
Holders of crypto assets are in urgent need of high-quality services that might help novice investors to understand the nuances of exchange trading, provide investment analysis tools and minimize risks. At the same time, they might also help experienced traders to realize their potential and attract investment. At present, there are only few such services with a limited range of basic functions on the cryptocurrency market.
What are the project’s competitors and how successful are they?
In 2017, several successful ICO projects were conducted, which planned to provide banking services for the cryptocurrency industry. However, none of them have been able to fully implement declared plans on providing banking services for the cryptocurrency industry. Most likely, this was prevented by the tougher rules brought in by financial regulators in regard to cryptocurrency startups, as well as the general cryptocurrency market downturn in early 2018.
At the same time, none of the existing cryptocurrency projects offer banking services for cryptocurrency market in conjunction with its own financial ecosystem, as Azbit does: multi-cryptocurrency exchange, trading and investment platform, electronic payment and crypto wallet systems, and algo market.
Is the use of blockchain technology justified?
The use of blockchain technology within Azbit financial ecosystem is implemented for monitoring brokerage activities. All quotations will be automatically stored in the blockchain. This would exclude the conflict of interests between investors and traders — in case of a controversial situation it will always be possible to confirm the status of the transaction.
Blockchain technology will also be used in the work of Azbit DEX-platform. Azbit DEX is a decentralized cryptocurrency exchange, which will address one of the most pressing issues of crypto trading — the problem caused by liquidity shortage. The smart token exchange model based on Ethereum blockchain system has successfully proved itself in the cryptocurrency industry. We plan to apply this model to Azbit DEX-platform operations.
Blockchain will also be implemented in the work of Azbit Foundation charitable non-profit fund for ensuring that donations are properly distributed.
Are the Roadmap and objectives set by the project team achievable?
Our Azbit team is comprised of entrepreneurs, programmers, IT specialists, famous crypto enthusiasts and angel investors such as Roger Ver — investor in Bitcoin startups Bitcoin.com, Blockchain.com, Z.cash, BitPay, Kraken, Purse.io and Mate Tokay — COO Bitcoin.com. All participants have practical experience in implementing successful commercial projects with different level of complexity.
The founders of the project have built up a wealth of experience of dealing with banking structures and payment systems.
We’ve obtained a Payment Institution license (SPI) in the Czech Republic. The next stage will be to get a banking license in the European Union. To provide crypto / fiat trading instruments, we are establishing a company under EU jurisdiction, which will be regulated by EU laws. We will also obtain all the necessary brokerage licenses and documents. This will allow users to trade legally using fiat and cryptocurrency instruments.
Our parent company Azbit will set up a new company with its jurisdiction outside the EU. The latter will host an investment platform and a cryptocurrency exchange without support for fiat currencies for operations with utility tokens and crypto coins. The looser regulations will allow the functionality to be implemented and the platform launched significantly more quickly. This will allow Azbit project and our investors to start receiving profit even before the main, regulated platform is fully launched.