Coinmetro ICO Review & Analysis
CoinMetro is a new crypto exchange looking to enter the market and solve some of the problems that are part of the exchanges in the current market, such as really bad customer support, exorbitant high fees, dubious practices (search Tether), and also adding a few more goodies to make it shine against it’s competitors.
For this review, I have studied the Whitepaper, the team involved, the market they plan to enter, token value for investors, looked for pros&cons, possible red flags, and also have spoken directly to somebody involved in this project to answer my questions and doubts, in the case of this ICO I have spoken directly to Kevin Murcko, the CEO of CoinMetro.
Let’s look at some of the features that make CoinMetro unique:
- Customer support: CoinMetro will have a dedicated 24/7 customer support team, as well as video walk-through tutorials for common questions. I asked Kevin if they plan to add support in other languages and I was told that the plans for that arealready on the way, we could expect additional languages (and fiat currencies) for all markets where crypto investing is growing, such as Latin America (Spanish, Portuguese), Russia, and the Asia market (Chinese, Japanese, and perhaps Korean as well).
- Debit card: As part of the roadmap for this year the platform will have it’s own Debit card, this card will allow customers to withdraw fiat currencies (EUR, USD, etc) in their local ATMs for a fee, the core of the CoinMetro team already implemented a debit card on their FX Trading platform, fxpig, that is also lead by Kevin Murcko, so this is a very achievable goal.
Here is how the Debit card will work, the user will have his money (either fiat or crypto) in a default balance account on the exchange, and a secondary account, so if for example lets say a user has LTC in his default account and BTC in the secondary, he proceeds to withdraw €500 in his local ATM, CoinMetro will automatically sell some of his LTC for €500 and he will get his fiat cash right away in his hands, if his LTC balance is not enough to cover the draw some of this BTC will be sold as well in the same manner.
- Low fees: CoinMetro is looking to offer some of the lowest possible fees on the market, starting at 0.1% on it’s launch, which is already the lowest when compared to any other exchange on the market, moreover, Kevin revealed that as CoinMetro grows and other exchanges lower their fees, CoinMetro will lower their fees even lower in order to always stay ahead of the competition.
- Atomic swaps: CoinMetro will allow atomic swap trading between users in their platform, this will be done in with nearly zero fees from their side.
- Tokenized Asset Management: Something exclusively to CoinMetro is to allow professional Traders to create their own tokens inside the platform, users will then be able to hire those traders to manage their investment portfolio.
- ICO Express platform: An feature that will allow ICOs to be launched in the platform, the aspects, legality, team, and feasibility of the ICO will be reviewed by the CoinMetro team prior to the ICO, and once the sale ends the new tokens will be immediately available in CoinMetro for the investors to trade.
- Basic and Advanced GUI: CoinMetro plans to attract both casual users by having a simple to use graphical interface where users can do basic buy/sell trading operations, but they will also have some more complex gui to attract advanced traders.
- Trading Operations: Advanced trading options such as Lending, Margin trading, Leverage, etc, are going to be available in the exchange.
The team
The core of CoinMetro team has also been involved in the creation of FXPig, a Forex Trading platform that has been on the market since 2011, the team has a strong background that involves technology, trading, and finances. So I feel like they are more then capable of pulling this project giving their experience and also their already working forex trading platform.
Quick Analysis of the Market & Competitors
There are two exchanges in the market that operate in a similar business model to CoinMetro, meaning they also have their own token for users to pay their trading fees, doing a quick search on token value of those 2 exchanges, Binance and Kucoin, we can see they had a significant gain in a short period of time since their ICO was launched, and are now on the top 50 crypto coins.
Keeping in mind that neither Binance or Kucoin, support fiat currencies, and they not offer many of the benefits that will be given by CoinMetro.
Token Usage & Value
For an investor the most important thing to look for in a ICO is the token he is investing, and if the platform will do anything in order for the token value to continue to increase in the future.
In the case of CoinMetro’s COIN (XCM), the platform will be doing quite a lot to make sure the XCM continues to increase together with the usage of the platform, for instance:
- all fees charged by CoinMetro will be converted to COIN, for example if somebody wants to buy/sell BTC for USD, the trading fee (0.1% default) will be placed as a small buy order for COIN in the platform, meaning there will always be a demand for COIN, as long as people are trading inside the platform. This could lead to COIN spiking up as soon as the exchange goes live.
- Part of all COIN coins used in fees will be burned, meaning COIN will be a deflationary currency.
- Holding COIN will provide discounts, holders will have lower trading fees, this would incentivize daily traders to buy and hold COIN.
- Kevin explained that, If there is a very high sell/buy order of COIN but not enough supply/demand, the CoinMetro team would step in and buy/sell some of the COIN from the market, this will be done to prevent the COIN coin from being as volatile as other crypto currencies in the market.
- There will be a Token buyback program, so some of the platform’s net profit will be used to buy back some of the COIN on the market.
ICO Details
Main Token Sale Start Date: February 21st 2018 at 21:00:00 UTC
as of now, the token price is EUR 0.11 per COIN
1 “TBPR” stands for “Token Buyback Program Reserve”
2 Commissions reduced to 0.075% maximum on all exchange volumes and equivalent discounts (25%) on all CoinMetro fees.
3 Commissions reduced to 19 per million maximum on all traded volumes across all available platforms.
Here is also the token distribution model, 50% of tokens will be available for the ICO, unsold tokens will be burned.
Check their website for more details.
Pros & Cons
Pros:
- The Debit card could be a game changer when compared to other exchanges and even crypto currencies, for comparison there is a bitcoin atm in the city that I workthat charges a unbelievable absurd 6% fees on withdraws, not only CoinMetro will charge significantly less but you will be able to withdraw any crypto that is listed on the exchange.
- Tried and tested business model
- Team has a solid experience in this sector and already delivered other product on the market (fxpig).
- Exchange will focus on customer support and low fees to gain more customers
- CoinMetro has a very solid plan to increase it’s token holder value
Cons:
- There will be more exchanges coming this year, competition will be more fierce in this sector of the market as more technologies are being released.
Verdict:
I consider CoinMetro a very solid investment for year, they have a great team behind it that showed results in the past, they have a very solid and achievable roadmap, and a excellent token value plan that will make the token price as the platform grows.
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Disclaimer: I’m a amateur investor not a financial adviser, the purpose of this review to give a second opinion about this ICO from my own research and perspective, use this as a second opinion and always do your own research before committing your money into any investment including this one.