GATCOIN ICO Review – Tokenizing Point Reward Systems - Crush Crypto

GATCOIN ICO Review – Tokenizing Point Reward Systems

Summary

  • Project name: GATCOIN
  • Token symbol: GAT
  • Website: https://www.gatcoin.io/
  • White paper: https://www.gatcoin.io/wp-content/uploads/2017/09/170919v2-Whitepaper-EN.pdf
  • Hard cap: $14.5 million for 50% of the total supply
  • Conversion rate: Total token supply is 1 billion
  • Maximum market cap at ICO on a fully diluted basis: $29 million
  • Bonus structure: 20% presale bonus (Min. 2 ETH contribution) / 5% first week bonus (Min. 0.5 ETH contribution)
  • Presale or white list: Presale will run from December 17, 2017 to January 7, 2018
  • ERC-20 Token: Yes
  • Countries excluded: The State of New York, and China
  • Timeline: Crowdsale will run from January 14 to January 28, 2018 (please refer to Gatcoin’s website for the most up-to-date information)
  • Token distribution date: Tokens will be immediately distributed, but transferable only after the token sale ends
Video summary (video is 8:12 long):

Project Overview

What does the company/project do?

GATCOIN provides monetization for consumers’ loyalty points programs and marketing opportunities for businesses based on geographical areas.

In reference to the first feature, the basic idea is that merchants that work with GATCOIN will provide token incentives, in lieu of traditional points specific to their store. Then, using the GATCOIN platform, one can use those tokens in a number of ways.

For instance, one can spend their accumulated tokens to purchase discounts, or other promotional deals at the respective store. Furthermore, the GATCOIN platform also serves as a partially closed exchange, whereby the merchant points can be traded for GAT tokens, and the GAT tokens can be traded regularly on normal cryptocurrency exchanges.

This way, GATCOIN is providing liquidity for customers who could monetize the points that they have accumulated from various merchants into GAT tokens.

The marketing opportunity for merchants comes with greater brand awareness stemming from two main features.

  1. Logging into the GATCOIN marketplace, one will instantly have access to the points related to each store within reasonable proximity.
  2. GATCOIN has a patent pending technology called A-Drops, which will drop a promotion of tokens for certain shops to potential customers within geographical, demographic, and preference range.

The GAT System is comprised of several components:

  • GAT Wallet: a mobile token wallet, shopping platform and payment portal
  • GAT Marketplace: an online marketplace of participating merchant stores where Merchant Tokens can be used for products and services
  • GAT Exchange: a full feature cryptocurrency exchange where members can trade Merchant Tokens for GAT tokens and trade GAT tokens for other public cryptocurrencies such as Bitcoin and Ethereum
  • GAT Network: private consortia networks on which Merchant Tokens are circulated

Below are the screenshots of the GATCOIN app:

Gatcoin app screenshot
How advanced is the project?

The GAT app is still under development, and, according to the white paper, it will be publicly launching the GAT exchange in January 2018. They will launch the Beta around June 2018 with a full release in October 2018. On September 27, 2017, a patent was filed to protect their A-Drop technology.

The team has also secured a partnership with COTOCO, a subsidiary of SK Planet Japan. With the partnership, GATCOIN will have access to 21 major brands, 30,000 retail stores, 80,000 restaurants, and 60,000 beauty outlets. 

Here is a summary of their roadmap:

Q1 2018

  • Wallet Demo Launch
  • GAT Exchange Launch

Q2/3 2018

  • Feature Integration
  • Live Testing A-DropTM Technology
  • Integration of Payment Gateways
  • Beta App Launch

Q4 2018

  • General Development and Debugging
  • GATCOIN full launch
What are the tokens used for and how can token value appreciate?

GAT tokens are needed in order to obtain access to the services on the GAT ecosystem. For merchants, it serves as a payment mechanism. For users, it serves as a way to unlock special discounts and to exchange Merchant Tokens.

On the demand side, the GAT token will appreciate in value based on the uptake of the GATCOIN platform by both interested merchants and consumers. If the platform takes off, then the demand for GAT tokens, which have a fixed supply, should go up.

Another way will be through GATCOIN incentivizing large GAT holders by increasing the probability of getting special/better deals based on how many GAT one is holding.

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Team

The Team has a total of 9 members. The Bios of key team members is posted below.

Simon Cheong, Founder and CEO - Over 18 years’ experience in finance and business, and was a former Lawyer for the World Bank.

Chris Tong, Strategy & Marketing - Over 9 years’ experience with retail brands working with The Tong Group, and KAI Partners.

Steven Davis, UI/UX Engineer - Over 6 years’ experience in product design, with his BS with honors from the University of New South Wales.

Belinda Hau, Strategy & People Operations - Over 15 years’ experience in HR and team development.

Tudor Barbulescu, Product Developer - With GATCOIN for 2 months, over 8 years in programming experience while in school/tutoring.

There are several advisors stemming from a number of diverse backgrounds, including Ross Stokes, the regional director of ETP international, which has ties to South-East Asian and Australian markets, Samson Lee, advisor to Universa blockchain, Gibraltar Stock Exchange, and President of Next.TV, Yoshimitsu Homma, CEO of United Bitcoiners Inc, and more. 


Opportunities

  • The idea of the monetizing reward points is interesting and there shouldn’t be much competition to the project, at least in the beginning.
  • The project provides a way for consumers to access their reward points in one single place instead of having a different app for each merchant, saving a lot of hassle for consumers.
  • It is essential for GATCOIN to partner with a large number of merchants to create the network effect so that consumers have incentive to use the platform. The partnership with SK Planet Japan is huge and provides a large number of merchants to GATCOIN right off the bat.

Concerns

  • No working product has been released, so this project is essentially a white paper ICO.
  • It looks like Gatcoin is more targeted to avid shoppers who we believe aren’t really cryptocurrency users. It may be difficult for such audience to use cryptocurrency before it gets mainstream. Hence there may be issues with consumer adoption.
  • GATCOIN needs to negotiate with each retailer one by one to add their reward program on the platform. This is another area that can slow down adoption of the platform. 

Conclusion

Overall, we are neutral about the short-term potential and like the long-term potential for this ICO. Our thoughts of the tokens for short term and long term are as follows:

For ​short-term holding

Neutral. The hard cap is reasonable but because this project is at white paper stage, some investors shy away from projects at such an early stage. The market awareness is average as we believe this project is overshadowed by some other popular projects with a similar timeline.

For long-term holding

Good. The idea is interesting and could disrupt the rewards point program space. We believe not many companies has tried something similar before. Therefore, if this project takes off, the potential can be substantial.


For more information about the ICO, please visit the following links:

* The information contained in this article is for education purpose only and not financial advice. Do your own research before making any investment decisions.

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