Analysis of Simple Token (OST)
Simple Token is a recently closed ICO (raised $37 million) that aims to allow users to easily develop tokens on their network and speed up the user verification process.
It is a protocol to support native tokens used in consumer applications. They want any application to be able to launch their own ICO using the OpenST protocol. The Simple Token software gives the application developers tools to manage their respective tokens. With the recent increase in ICO regulation, Simple Token’s platform helps developers manage their compliance.
They have developed an off the shelf solution to “Know Your Customer/Anti-Money Laundering” management for token sales. This allows companies to whitelist Ethereum addresses that wish to participate in the token sale by selecting only ones that pass the KYC/AML. You pay for these services with Simple Tokens.
Upcoming events in February and March include the launch of their platform ostKIT. This is the software that they have created for managing tokens on an application. The software is currently in alpha testing. Users can create an account and simulate transactions using their testnet.
30% of their tokens were sold in the initial token sale. An additional 14.56% will be available in another token sale in approximately 6 months. This raises some red flags because the team gets to keep approximately 50% tokens, and they make no indication that they must be used to pay developers or make the platform better.
My Thoughts:
The future of Simple Token is unclear. According to their roadmap the new developments being made this year include “Initial consumer-facing deployments” and “Further consumer-facing deployments.” This raises concerns for me because I like to know specific goals that a project is trying to complete, and here I am not even sure what kind of consumer-facing deployments they may have.
Overall this project need to prove itself way more before I am willing to invest. If they do make progress in the future, I would revisit in 6 months. The things I would like to see from them include:
- More transparent description of how founder tokens will be used.
- A working instance of mainnet software.
- Multiple products built on top of the Simple Token protocol.
- Expert testimonies regarding their KYC/AML compliance software.
Additional Resources:
Please note: all opinions I have expressed are my own.
