Analysis of Civic Token - Crush Crypto

Analysis of Civic Token

Summary

  • Project Name: Civic Technologies
  • Token ticker: CVC
  • Website: https://www.civic.com/
  • Whitepaper: https://tokensale.civic.com/whitepaper
  • Hard cap: $33 million (33% of total token supply)
  • Soft Cap: None mentioned
  • Total token supply: 1 billion
  • ​Maximum market cap at ICO: $100 million
  • ​Bonus structure: None
  • ​ERC20 token: Yes
  • Timeline: June 21 to 28, 2017 (visit https://tokensale.civic.com for more information)
  • Token distribution date: Tentatively July 29

Note: In order to participate in the ICO, you need an account with Civic. As Civic’s product is a digital identity service, they decided that participants are required to have a Civic account so as to prevent buyers creating multiple accounts to purchase more tokens. Each participant can purchase up to $25,000 in the ICO.

This is a smart move that can (1) ensure a fair and wide distribution of the ICO, and (2) acquire Civic users and drive adoption at a very cost effective way. 


Project Overview

What does the company/project do?

Civic is building an ecosystem that is designed to facilitate on-demand, secure and low-cost access to identity verification (IDV) services via the blockchain, such that background and personal information verification checks will no longer need to be undertaken from the ground up every time.

A sample use case: A company hosts a product giveaway that is only eligible to US citizens. The company partners with Civic and provides a QR code (or something in that nature) that checks whether participants in the giveaway are US citizens. Participants who have a Civic account can quickly verify the information using his/her Civic account without having to provide documents to the company proofing that he/she is an US citizen.

How advanced is the project?

Civic already provides an App for its digital identity platform known as the Civic Secure Identity Platform. You can download the app here (only iOS version available now): https://itunes.apple.com/us/app/civic-secure-identity/id1141956958?mt=8

Watch this video (1:38 long) to learn more about the secure identity platform: 

How can token holders make money?

The tokens (CVC) will be used to transact in IDV-related services. The CVC paid in a transaction is distributed to the validator and the user as a reward for sharing information. The more usage for CVC, the more valuable the tokens should be.

Below is a diagram illustrating how the token are rewarded to users and validators:

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Team

Vinny Lingham, CEO

 - Serial entrepreneur who previously founded the digital gift card platform, Gyft, which was acquired by First Data Corporation in 2014. After over a decade of experience in e-commerce, he realized that no one had a universal solution to tackle identity fraud for consumers.

- One of the sharks in the South Africa’s version of Shark Tank from 2014 to 2016.

- Fun fact: he invested in a company using bitcoin instead of dollars in November 2016.

Jonathan Smith, CTO

- More than 15 years of experience in banking and technology advisory. After a successful career in some of the most complex and security sensitive environments, Jonathan brings his talent for technology leadership, innovation and delivery to the world of digital identity.


Opportunities

 1) Solves a real problem that can be benefited from the decentralized platform

  - Right now, identity verification is a pain in the butt. You need to give away so much personal and sensitive information to different companies.

  - The whole process is also very inefficient – oftentimes you are sending the same information over and over again to different organizations.​

  - If you are in the cryptocurrency game, you know about the hassle that you need to go through verifying your account in every single exchanges. Not to mention that the time it takes for each company to verify and approve the documents that you sent.

  - If Civic becomes successful, it is going to dramatically cut down the time and cost associated with verifying users’ identity.

2) Great team – Vinny Lingham, being a star on Shark Tank, lends a lot of credibility to the project.

3) Unlike most ICO nowadays, Civic already has a product – the secure identity app. Although the app is still in an early stage, I can see how users can benefit from using the app.

  - If you are performing an action (creating an account, making a purchase, etc.) on companies partnered with Civic, the website will show a QR code which you can scan using the Civic app. Your identity will be instantly verified once the code is scanned.

4) The ICO structure levels the playing field and ensures smaller participants can get in.

5) There is a network effect for this project – the more users the token has, the more valuable they are.


Concerns

1) Market cap of $100 million is on the high end of ICOs. It may affect how quick the token price can move.

2) Civic is asking for a lot of sensitive information from users – some users may feel uncomfortable sharing so much personal information to an unproven startup. If this happens, it would be difficult for the project to scale.


Conclusion

Overall, I like this ICO because it has the potential to disrupt a very inefficient and frustrating process. Our thoughts of the tokens for short term and long term are as follows:

1) For short-term holding:

  - May not be that good because (1) the market cap is higher than most recent ICOs, and (2) the ICO structure allows pretty much everyone to be able to participate in it, reducing the demand for purchasing the token immediately following its trading on exchanges.

2) For long-term holding:

  - Very good potential for the following reasons:

    i) Vinny Lingham is a high profile and experienced entrepreneur – this can dramatically increase the odds of the project being successful because Civic would have an easier time finding large corporations as partners.

    ii) I believe identity verification has not seen much innovation in the past. If Civic is successful, it can disrupt and dramatically improve the current model, and in the meantime, make a lot of money for token holders.

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

Company website: https://www.civic.com/

Whitepaper: https://tokensale.civic.com/whitepaper

Reddit: https://www.reddit.com/r/civicplatform/

Podcast interview of Vinny Linghamg by Laura Shin about Civic and blockchain technology: http://unchained.forbes.libsynpro.com/bitcoin-oracle-vinny-lingham-on-why-bitcoin-is-overpriced

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