CDRX — Update Q1 2019
2018 was the year in which realism returned to ‘crypto’ — a market previously dominated by hype. Like many other businesses, CDRX’s Q4 2018 TGE raise was inconsequential by 2017 standards. Investors in 2017 experienced an expensive lesson in the perils of unregulated markets, and were understandably wary in 2018. Businesses likewise found that service providers were unable to deliver on their promises, and were likewise disappointed.
In nascent markets, initial euphoria and hype (the ‘boom’) is often exploited by scammers and overpriced service providers. After the ‘easy money’ is gone (the ‘bust’), the survivors tend to be solid business models, which deliver true value creation. Those who remember the dot-com bubble will also remember:
1994 — Amazon, market cap. $820bn+
1997 — Netflix, market cap. $150bn+
1998 — Google, market cap. $790bn+
1998 — PayPal, market cap. $100bn+
The differentiators of success:
- a highly experienced and capable team;
- deep understanding of the target market and its micro-structure;
- well designed and executed product that delivers consistent genuine value; and
- great customer service
CDRX might have missed the TGE ‘boom’, but is backed by long-term private and institutional investors, who have enthusiastically embraced its fintech model; its $600tn target market; and its highly experienced and capable team.
The CDRX plan (as outlined in the 2018 whitepaper) budgeted for a significant increase in headcount from Q4 2018. This was curtailed by the December TGE result, limiting additional hiring and slowing rapid early progress. Nevertheless work continues strongly.
With a timeline contingent on a successful raise, CDRX faced a choice between: 1) delivering less within the same timeframe; or 2) taking more time to deliver what was promised. CDRX opted for the latter.
Competition within the securitised token market continues to look patchy and CDRXs view is that focusing on the right product is better than rushing a substandard outcome. There have been sweeping claims made by a number of ‘STO’ companies over the past 6 months, but a closer look at the details reveals many to be hype and exaggeration —remnants of the ‘boom’ time mentality.
The CDRX digital asset platform opened on schedule for testing and beta in Q4 2018. Its risk management, security and operational framework, has yet to generate a single point of concern from any external or regulator review, and CDRX continues to pursue regulatory authorisations in all phase 1 jurisdictions.
In Q1 2019 the decision was taken to modify the architecture to incorporate even higher grade performance, redundancy and security. As refactoring progresses, additional design changes are also pending (incorporating feedback from testers and early adopters). The revised end-to-end platform is scheduled to re-enter testing before the end of Q1 2019, with certain accredited investors scheduled to join closed beta in Q2 2019.
In addition, CDRX has signed further institutional investment agreements, and its securitised listing pipeline has reached at least $1.3bn.
While disappointed it will not hit its Q1 2019 go-live target, CDRX continues to work hard towards it and will provide further updates as work progresses.
Signups for CDRXs digital asset platform will be opening this month, keep an eye on its website!
ABOUT CDRX
CDRX is a fintech business with offices in London and Singapore. It’s team includes includes veteran bankers from Goldman Sachs, JP Morgan, Merrill Lynch, MUFG, HSBC and UBS, and is backed by private and institutional investors.
Visit https://www.cdrx.io for more information
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