Ziftr Merger and Rebranding: an arbitrage opportunity
Ziftr successfully concluded the presale of Ziftrcoins (ZRC) back in January 2015, raising almost a million dollars. ZRC was created to function similar to a coupon or points program. Any consumer using ZRC could make purchases through merchants partnered with Ziftr and redeem each Ziftrcoin at $1 for up to 5% of the total transaction cost (essentially a 5% discount off any merchant in the Ziftr network if you have Ziftrcoins).
We’re guaranteeing a minimum redemption value of $1 per coin for up to 5% of each transaction conducted within Ziftr’s merchant network when ziftrCOIN is valued at less than $1 on the open market…
Ex. A merchant partnered with Ziftr is selling an iPhone 6 for $600. $30 (5% of total cost) of the iPhone can be paid for with 30 ZRC ($1/ZRC). The remaining $570 must be paid for based on actual rates.
The purpose of the presale was to fund the continued development of Ziftr and promote the adoption and use of ZRC. At the end of the pre-sale, slightly over 4.1 million ZRC was sold for roughly $0.21/ZRC.
Since launch, ZRC has seen minimal development other than the merger announced with GoCoin back in December 2015. As a result of the lack of development and use cases, ZRC has mostly been in a long-term downtrend in valuation. However, there have recently been some positive developments. GoCoin has announced near-completion of the payment platform for GoCoin Merchants along with a re-branding of ZRC into GoPoints in order to better fit the company name of GoCoin. The successful launch of the platform will finally give ZRC an actual use cause, allowing it to be effectively used as a 5% discount towards an product offered on the platform. This discount incentive should also help drive consumer adoption of GoPoints. Although ZRC will most likely not reach former valuations or the $1 value as offered for redemption by GoCoin, I expect that the arbitrage between the actual value of ZRC and its redeemable value will decrease. There are several other critical aspects required for the overall success of GoPoints but release of a easy to use and functional platform for using GoPoints is the first prerequisite.
The current value of ZRC is about 0.000005 BTC/ZRC or $0.002/ZRC.
