COTI ICO Review
Following requests from our readers, we have selected COTI to be our next ICO review. Built on a DAG data structure like IOTA the ICO looks promising. Let’s dive deep to get a closer look.
Today’s online payment industry has billions of people involved with over a trillion dollar transaction volume which is further expected to grow in the coming years. Though online traditional payment systems can offer scalability and faster transactions, they charge high fees. This is where digital currencies can offer an amazing alternative by facilitating greater security and low fees. However, they face the challenge of scalability and low adoption rate. Our today’s ICO review is of the company that targets these obstacles by developing a decentralized network that integrates the benefits of both the systems.
Stay tuned for our COTI ICO Review to know how it plans to achieve this!
- Token Pre-Sale Begins: Jun 4
- Token Presale white-list: 21st May to 23rd May
- Max supply: 2,000,000,000
- Token for sale: 600,000,000
- Hard Cap: 30,000,000 USD
- Price: 1 COTI = 0.1 USD
- Accepts: ETH, BTC
COTI: Digital currency built for payments
COTI (Currency of the Internet) is a payments transaction network that is supported by its native digital currency. It combines the best of both traditional payments and blockchain technology to set the standard for the payment system.
It is more than just a platform or a digital currency, it is a digital payment ecosystem that comprises of DAG-based consensus model, Mediation System, currency exchange, Trust Scoring Engine, and decentralized governance.
This payment network facilitates an efficient global commerce via its instant, reliable, and low-cost payment solution. An advantageous option for merchants and consumers alike, it will further accelerate on-demand markets and mobile payments while enabling the mass adoption of digital currencies for payments.
Now, the evaluation time!!!
A detailed whitepaper
COTI has a detailed technical whitepaper along with two other papers that describe business overview and token economy. Coming onto the prototype, which is an integral part of a project is lacking here. The team doesn’t have anything on the GitHub as well which doesn’t provide the investors with something concrete to put their trust in.
The project also involves a multi-currency wallet along with the services of inexpensive multisig and escrow account, however, there is no info on where will the initial funds will go.
ICO funds budgeting
The project gives a clear breakdown of funds that allocate the biggest chunk of the funds i.e. 30 percent on R&D. 15 percent of the funds will go towards marketing while legal & compliance department will get 15 percent.
To establish a functioning market for COTI, 7 percent goes to market maker while 8 percent will be allocated to Merchant services like hedging services. 7 percent of the funds will be covering the operational expenses and another 7 percent will be set aside for the COTI fund while the remaining 5 percent of the sale proceeds will target cyber security.
A team of 21 people, COTI surely knows people are what it takes to make a project successful. From data science, research engineering, software engineering, finance, legal & compliance, business development, marketing to community, social & operations, software development and blockchain, COTI team is well endowed in vast industry experience.
Shahaf Bar-Geffen – CEO, Shahaf has previously co-founded a digital media advertising company and has a B.Sc degree in Biotech and Economics from Tel Aviv University along with being an Israeli Air Force officer (Major, reserves).
Dr. Nir Haloani – CTO, An innovator in machine learning, AI and data compression, Nir has over 19 years of experience in leading research and development teams. He has a degree in computer science and mathematics and a Ph.D. in applied mathematics.
Idan Lakritz – Blockchain Expert, Idan has been in the blockchain space since 2013 with a professional experience as CPA at PwC and E&Y.
Initially, ERC20 tokens will be issued to have an official record of sold tokens. Once its Mainnet launches, ERC20 tokens will be converted into COTI’s token. It has also been expected that ERC20 tokens will be listed on at least one major exchange before the end of September 2018.
The native currency of the COTI will run the network and the interactions between merchants, mediators, consumers, and node operators. This currency can be used for various purposes:
Though the COTI network supports other digital as well as fiat currencies, COTI offers low-to-zero transaction fees. For mediation, one needs to have COTI coins and node operators will also be incentivized in native currency and would further need them to validate any node activity. Moreover, all the fees can only be paid with COTI coins and merchant rolling funds are denominated in these coins as well.
The distributed ledger of COTI is based on directed acyclic graph (DAG) data structure, similar to IOTA. This structure will allow COTI to conduct over 10,000 transactions per second.
The project follows the know-your-customer measures along with anti-money laundering standards.
As for the restricted areas, COTI is not allowing quite a good number of countries to participate in this ICO viz. People’s Republic of China, Afghanistan, Bosnia and Herzegovina, Central African Republic, Cuba, Democratic Republic of Congo, Democratic People’s Republic of Korea, Eritrea, Ethiopia, Guinea-Bissau, Iran, Iraq, Israel, Libya, Lebanon, Somalia, South Sudan, Sudan, Syria, Uganda, United States of America, Vanuatu and Yemen as mentioned in its FAQ page.
The project has six backers and advisors apart from the main team that includes Dr. Matt McBrady, Steven Heilbron, Avi Chesed, Stas Oskin, Sebastian Stupurac, and Ophir Gertner who are the experts in the field of investment and blockchain.
COTI is registered in Gibraltar which has been aiming towards regulating the promotion, sale, and distribution of digital token. Gibraltar is a crypto friendly nation that is working towards providing adequate and balanced information to investors buying tokens.
Token Distribution: Out of the total 2 billion COTI tokens, 30 percent will be used for both public or private token sales i.e. 600 million. 440,000,000 (22%) COTI tokens will get to reserve for the development and stability of the ecosystem.
The team will be allocated 15 percent of the tokens as compensation for early involvement that will be locked for 6 months then proportionally released quarterly.
13 percent of the tokens will go to the incentive program for merchants, partners, users, and validators for early adoption that doesn’t have any locking period. Backers, partners, and advisors get 10 percent of the tokens while other 10 percent will be allocated to providing liquidity measures.
Security: As for the security of its currency exchange, the exchange implements a multi-tiered security architecture which limits attack vectors and attack ingresses. All traffic in COTI’s exchange is encrypted end-to-end using Transport Layer Security (TLS) 1.2 (utilizing SHA256 keys) and all data-at-rest is secured with AES-256 encryption
The team follows a wider communication approach by being available on a number of platforms like Twitter with 12.4k followers, Facebook, Youtube with 742 subscribers, over 2k followers on LinkedIn, and about 29,000 members on Telegram. They are also present on Steemit, Medium, Reddit, Bitcointalk, Bountyox, and, GitHub.
Stage of Project
The Alpha net which will be performed by 10 Nodes will be launched in Q3 of this year. The roadmap of the project talks about its others milestone as well, the test net of COTI’s services is expected in Q4 of 2018 while the Mainnet will come during Q2 of 2019.
Average Rating: 8.2/10
A note to investors
COTI targets the online payment industry which has a great potential. By providing a thorough solution that offers benefits like decentralization, security, low fees and scalability along with an added layer of trust and a native currency exchange. All of this and a dynamic team with crypto-friendly Gibraltar as their registered country, COTI has a lot of potentials.
The most pressing issue is the non-availability of the prototype whose Alpha version won’t be released until after the ICO.
To rate an ICO, we follow a list of parameters that are basically the KPIs (Key Performance Indicators) of a project viz:
- Whitepaper – Availability of code or prototype, the breakdown of funds, wallet for crowdsale
- Team Profile – Team’s strength and reputation
- Business Model – Problem solved, purpose & utility of the token and the economic model
- Backing Technology – Blockchain infrastructure, clarity of terms & conditions and token software
- Crypto-sale Resilience – Incorporation, token distribution, legal risks and security aspect
- Community Acceptance – Clarity & frequency of communication and social media presence
By asking the right questions, we maintain the integrity and viability of our ICO review while following a rating method that is based on the criticality of a particular factor. For instance, elements like token utility and funds breakdown have been given the highest importance while the team members’ reputation and plan to attract a user base are of medium criticality.
We have a team of robust professionals who rate the ICO projects in completely unbiased manner.
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I am an associate content producer for the news section of Coingape. I have previously worked as a freelancer for numerous sites and have covered a dynamic range of topics from sports, finance to economics and politics.