Gigzi Ecosystem Business Model Explained

5 min readDec 2, 2018

In this article you would be able read and learn about the business model Gigzi ecosystem has been established on. The article aims to present a general information about the ecosystem, tools provided, revenue streams, marketing strategy and minimum threshold. You would be able to my concluding remarks on the presented subjects.

Introduction

Cryptocurrency market had a bubble in year 2017. Many people bought bitcoin and other cryptocurrencies while Bitcoin was making it’s way to the All Time High in November and December 2017. Especially during this period, cryptocurrency market experienced heavy volatility. Although, this volatility presented a unique opportunity to veterans and experienced traders and cryptocurrency investors to gain multiple returns on their investments, some people who are new to the ecosystem lost their funds. These losses harmed the people just entered into the cryptocurrency space and in my opinion represent the main reason the extended bearish market we are in. Volatility seems to be a problem which would further prevent wider adoption of cryptocurrencies.

Although many security layers applied to all of cryptocurrency wallets, hackers find ways to steal user’s funds. According to the statistics, more than $200 million in cryptocurrency has been stolen, hacked or locked-up in 2017 due to poor storage and inappropriate security measures.

Because of the instability of the cryptocurrency market, prices would fall or increase 50–100% in the matter of hours. Infancy of the market makes it susceptible to sudden crashes which puts many investors into loss overnight. Learning risk management would prevent these circumstances but most of the people introduced into the ecosystem would not be able to find the right resource for training and it takes time and effort to understand and start to apply and to become experienced on the risk managements techniques.

Gigzi is a cryptocurrency-based wealth management platform established to overcome these problems by simply providing three solutions. First of them is the introduction of the Gigzi Metal crypto-assets, Gigzi Gold, Gigzi Platinum and Gigzi Silver which has their price is pegged to the price of the represented precious metal. This eventually eliminates the hyper-volatility by simply offering a stable price as the precious metals carry. Second solution is the introduction of Gigzi Iris, a state of the art biometric device which enables users to access their wallets. It completely eliminates the private key usage and related hacks and robberies. Finally, the integrated exchange offers any cryptocurrency or Gigzi Black (the native cryptocurrency backed by market) to be converted into Gigzi Metal crypto-assets thus provide users to prevent the losses that are probable with sudden market crashes.

Business Model

Revenue Streams

Gigzi business model relies on 5 main revenue streams.

· First one comes from the transaction fees. 60% of the transaction fees which is 0,2% of the transacted amount, is awarded to the Gigzi Black holders and the remaining 40% is retained by Gigzi S.A.;

· Another revenue comes from conversion of Gigzi Metal crypto-assets into represented precious metal, which is 0,8% of the total transacted amount;

· There will be another revenue stream consists of the profits coming from the each Gigzi Iris unit sold;

· Fourth revenue stream comes from the transaction fee of 0,5% coming from the payments made by using other supported cryptocurrencies. 50% of each fee will be paid to the liquidity provider and the remaining 50% will be retained by Gigzi S.A.;

· Finally, fiat money exchange transactions will generate an escrow fee of 0,5%.

Marketing Strategy

Gigzi will utilize both direct marketing and social media marketing to communicate the Gigzi brand and the benefits it will provide to the cryptocurrency investors and users. Moreover, press releases and journal articles explaining the technology included in the ecosystem will be published.

These marketing activities will raise awareness about the uniqueness of the core elements of the platform, and how each represent a superior option to the users.

Funds Required and Minimum Threshold

It is estimated that the full implementation of Gigzi roadmap necessitates $24 million until the year 2020. Minimum threshold on the other hand, for releasing the three Gigzi core applications including core features and functions, establishing a dedicated professional team and with operational costs covered until the end of the year 2020; is determined as $7 million. So, these two figures represent the hard cap and soft cap of the crowd sale respectively.

Conclusion

The three solutions created by the Gigzi team are unique and will capable to provide the promised values to the ecosystem participants. These solutions offered make the platform to become a pioneer in cryptocurrency-based wealth management platforms.

Revenue streams established are realistic and based on working models in the cryptocurrency ecosystem. Five of them have the potential to enable the business to be sustainable. Team determined the funds necessary to reach the point of liquidity and I suppose they have calculated the worse scenarios. For this one I was not able to find any clue in the project documents provided. Investors need to consider the worst scenarios possible and make investment decisions accordingly.

As for the funds needed for the business to be successfully conducted, soft cap is a bit high for the existing market conditions. There are many estimations including an extended bear market made by credible veterans. This might affect negatively the fund-raising process of each project which is preparing to launch token sales.

As a concluding remark, these are the ideas of a single person who is not a financial consultant. Therefore, I suggest strongly to make your own research and make an investment decision.