Monetha ICO Review – MTH Investment Analysis

https://www.monetha.io

ICO Details

Symbol – MTH

WhitepaperLink

When – Thursday, August 31st 2017 @ 2 PM GMT

How to Participate – MTH tokens can be bought by contributing ETH (Ethereum) tokens

Soft Cap – ETH equivalent to 7 Million EUR (Currently ~24’000 ETH)

Hard Cap – 95’000 ETH (~28 Million EUR)

Total Max Market Cap At ICO – ~48 Million EUR

Exchange Rate: Based on current total contribution:

mth2.jpg

Note: The above value has not yet been updated to reflect a 7 million dollar soft cap. A 28’000 ETH soft cap would make an 8.2 million Euro soft cap based on recent rising Ethereum price levels.

Total Tokens in Circulation At ICO – 402 Million MTH


Overview

 

Monetha in simple terms is a payment gateway – traditional online payment gateways include such services as PayPal, VISA, and other credit based methods. The problem that Monetha is attempting to solve is multifold – firstly, current payment systems take a large percentage fee out of a payment for processing as well as any additional fees that they may incur. As an example, a 10$ Paypal payment for a digital good might be charged a 30 cent flat rate fee as well as anywhere from 2 – 6% percentage fee. At the end of these fees a vendor may come out with $9.77 using a 2% fee. Monethas system, on the other hand, introduces a simple 1.5% fee structure with no flate rates, charging this same 10 dollar transaction with this rate and leaving a vendor with $9.85. From an economic standpoint, the decision is clear for any vendor looking to increase margins and reduce cost.

Monetha also has a built-in reputation system – if a seller or buyer don’t feel they have gotten great service, they can leave reviews and feedback on a buyer/seller, similar to what we have with eBay and Amazon. The advantage here, is that these ratings aren’t exclusive to one platform but transfer along with the vendor:

If you’re a small/medium sized merchant in China and you are selling goods to the global world, the only way to do that and be trusted at the same time is to be a part of “Alibaba”. Moreover, if you decide to start selling goods on “Amazon”, there is no way you can transfer the trust that you have built on “Alibaba”. With Monetha, this small merchant will not only be able to accept payments with Monetha payment processor, but also build his universal trust rating while paying only a fraction of a cost compared with centralised marketplaces and existing payment processors.

Finally, Monetha touts the ability to pay a vendor instantly and with a one step process – compared to traditional banking gateways that may takes several business days to weeks, business on the blockchain is running 24/7 which reduces down time greatly.


Notable Team Members/Advisors

Andrej Ruckij

andrej.e381cbb3

Andrej Ruckij was one of the original employees at AdForm, later going on to lead over 300 workers in developing advertising platforms used today by big businesses such as Telecom Italia, ESPN, and The Guardian. Andrej has a proven track record of team management and will serve well providing experienced leadership for the Monetha project.

Eric Duprat

eric-31facbbd

Eric Duprat worked for PayPal for 3 years as a General Manager. He also worked in managerial positions for such prestigious companies as Verifone and Hewlett-Packard. Eric Duprat has the experience as well as specific insights into their competitors (such as Paypal) that the Monetha team will be able to leverage to improve their product.


Positives

timeline.jpg

Monetha’s positives include their all-star team, their fully complete Minimum Viable Product, as well as the strength of their idea. Online commerce is an evolving technology, and one that has only been around for a very short amount of time – this means there is a lot of innovation to be made in this space, and it’s perfectly possible that inter-service reputation systems become the key aspect and killer app of Monetha’s service.

The ICO details are fair enough, allowing a maximum circulation of 40 million euros (or around 48 million USD). I have doubts that this maximum cap will be reached, however, and careful attention should be paid to how quickly this ICO plays out.

 


Negatives

Monetha is based on the Ethereum blockchain – while that can be seen as a strength for some, for others it can be seen as a huge drawback. Currently, the maximum capacity for Ethereum is around 7-15 transactions per second. Paypal can handle about 200 transactions per second, and this value balloons when looking at services such as VISA, which can handle well over 1’000 transactions per second. Scalability will be the primary problem here – Monetha simply will not be able to scale on the Ethereum chain, and I have doubts that it will work even on single web sites such as eBay and Amazon. This is a glaring flaw that the team will have to tackle, and no amount of advisors or years of experience can help with Monetha’s chosen platform.

A second negative to this project is their adoption – vendors will have to opt in to use the Monetha system, and while standard users won’t have to pay for MTH tokens when purchasing a product, they will be required to use some form of cryptocurrency (and furthermore, only ETH based currencies) to pay for goods and services. The question among all blockchain projects of the day remain whether there is an actual market for these services yet or if these are simply solutions to problems that don’t actually exist.


Conclusion

Monetha has a great developement team behind it, a fair ICO distribution and goals, and a great idea behind their project. Several questions remain to be answered however, and it’s of my personal opinion that while Monetha has the right idea, their approach using Ethereum is flawed and they will hit significant problems with scalability if Monetha truly takes off.

 

Investment Grade: 70%

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