ROCKZ Review: A Stablecoin Backed By Swiss Franc (CHF)
Cryptocurrency is a disruptive invention that can make P2P transactions done quickly and cheaply. However, extreme fluctuations in its value make the use of digital currencies practically minimal. The stability in its value is needed for merchants to trade goods and services because they need a fixed profit margin. Therefore, Alprockz AG launched a stable coin project called ROCKZ which was tied to the fiat Swiss Franc (CHF) to reduce risk due to the volatility of the cryptocurrency.
Disclaimer: I am neither a blockchain programmer nor an investment consultant. I neither advise nor responsible for the profits or losses of this ICO investment. This article is only information, not investment advice.
The ROCKZ project uses the two tokens concept, namely ROCKZ token (RKZ) and Alprockz token (APZ). ROCKZ Token (RKZ) is an ERC-223 token anchored to the Swiss Franc (CHF) with a 1:1 ratio which can later be used for more stable financial transactions. Meanwhile, Alprockz token (APZ) is an ERC-20 token used as utility tokens to access the ROCKZ platform. Users will get a variety of transaction fees discounts based on the ownership of the APZ token. Thus, to use the ROCKZ platform, users must have a certain amount of APZ, as follows:
- Topas (500 APZ): access to the ROCKZ platform
- Ruby (1500 APZ): access to the ROCKZ platform, credit card facility
- Diamond (3000 APZ): access to the ROCKZ platform, credit card facility, credit facility with collateral
Based on the explanation above, it is clear that Alprockz AG earns income from the crypto-crypto and crypto-fiat transaction fees, besides that, the also gain profit from market maker’s spread. Thus, in my opinion, this business concept is very reasonable.
This business model is not too different from ROCKZ competitors. However, ROCKZ has prominent advantages compared to Tether (for example). ROCKZ has direct ownership, conducts audits (transparency), separates assets, and provides protection to RKZ token holders in the case of default, etc. The following table lists the comparison of ROCKZ to other stable coins:
Therefore, we can say that the ROCKZ token is the most superior token in the stable coin sector.
As a way to get a strong userbase, ROCKZ conducts an ICO and holds bounty campaign program. These programs have been proven to increase the reach to the cryptocurrency userbase. In addition, they were also active in the blockchain conference to meet potential investors and crypto enthusiasts. Then, on November 27, 2018 — December 1, 2018, ROCKZ attended the BlockShow Asia conference in Singapore.
Previously, they also won the pitching competition at Seoul Block Surf.
Rockz has a transparent and communicative team. We can see their quality from their Youtube videos that explain various subject related to the ROCKZ project. These videos also act as proof that their identity is genuine. Therefore, these video interviews also serve as a strong signal that ROCKZ is a real (or legit) project.
Basically, the ROCKZ team has a background in banking, so they should have sufficient knowledge and experience to meet all the regulations. So, in my opinion, besides the team capability, this project is unlikely to get problems in licensing because Switzerland is the right country for ROCKZ.
From the feasibility perspective, this stable coin project has a relatively low risk. This stability feature exists because the ROCKZ token (RKZ) is backed by the Swiss Franc (CHF) with a 1:1 ratio. Furthermore, Swiss Franc itself is the most stable fiat currency in the world because Switzerland is a stable developed country, in the economy and also in geopolitics. Unlike its competitor, USD could fluctuate due to US geopolitical policies (for example because of war or some mess in the Middle East).
After I conduct this simple analysis, I think this ICO is not a scam, because:
- A project of a Switzerland companies (Alprockz AG and ROCKZ AG). Switzerland is a country that is very good in banking regulations and customer protections;
- Realistic and simple business model;
- The identity of the team members is genuine, there is a youtube video that proves this statement; and
- The team active in various conferences.
The above facts show that this ROCKZ token is worth to be collected and is pretty unlikely that this is a scam project. Besides, this token has the potential to be the best hedge token, because intrinsic value is backed by Swiss Franc (CHF) with a 1:1 ratio that is more stable than USD or gold.