UpToken ICO Review – UP Investment Analysis

https://uptoken.org

ICO Details

Symbol – UP

WhitepaperLink

When – Monday, October 16th, 2017

How to Participate – ETH, BTC, BCH, XRP, and LTC will be accepted in the sale.

Soft Cap – 10 Million USD

Hard Cap – Uncapped for the first 12 hours of the sale, followed by a 100 Million USD Cap

Total Max Market Cap At ICO – 125 Million USD

Exchange Rate: Variable:

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Total Tokens in Circulation At ICO – 10 Billion


Overview

atm

UpToken is an ERC-20 token built for two purposes – firstly, to help fund additional Cryptocurrency powered ATM’s by parent company Coinme, and secondly, to provide further incentives for ATM users. One of the glaring flaws in crypto markets today are the lack of real world solutions and bridges that help connect the gap from digital currencies and real world use. ATM’s that are specialized for cryptocurrency are both a valuable asset to people in the local area as well as helping to provide free advertisement and increase market saturation of the ever-growing cryptocurrency space.

Coinme already provides 39 ATM’s in the state of Washington, with each ATM handling around 100’000 USD in monthly transaction volume. With month to month volume increasing by 16% per ATM since November 2014, Coinme believes they can create a global network of crypto ATM’s with the UpToken ICO.

The UpToken is a natural outgrowth of the customer-focused mission. As one more way to make a Crypto ATM useful to customers, and as part of Coinme’s recent and planned expansion of its suite of products and services, Coinme sees its new UpToken product as a potentially attractive fit for its ATM users.

 


Team

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Michael Smyers

Michael Smyers is a serial entrepreneur who helped to found Zipwhip, a company he worked on for several years and is now valued at 280 million dollars.

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Steven Olson

Steven Olson will serve as the Chief Financial Officer for Coinme, and he has plenty of experience and knowledge to provide the team. Coupled with his entrepreneur streak of creating successful businesses, he has also worked extensively with several large companies such as Antenna Software.

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Glenn Reph

Glenn is an accomplished businessman, and while his experience in the financial field isn’t very wide, it is extremely deep – his work with the National Bankcard Association turned it from a small fledgling to a 2 billion dollar company in his 12 years of work there.


Positives

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The entire concept of an ATM is one that has been tried and true, and this gives investors a lot of confidence in this project. While it’s not particularly flashy or hype-y, it does have plenty of reasons for it to succeed. For further proof, Coinme has provided several charts and data points that indicate their ATM’s to be a large success.

A second point that works to their benefit is the sheer newness of cryptocurrency in general. I like this to investing in TenX or other cryptocurrency cards – these will be ubiquitous items in the future and an early investment now into something like an ATM will pay back dividends over the course of time.

The ICO details are also quite fair, with token buyers in the sale making up 80% of the total sale, and Coinme reserving only 20% of the pie for themselves. While their ICO cap IS very high (at 100 million dollars), I have suspicions that this simply won’t be an ICO that hits its cap due to the fundamental nature of the idea. I expect this will likely top out around 15-30 million dollars, making this a rather attractive ICO that falls in line with most other sales.

With values referenced below (in the Negatives section), and calculating a stagnant volume (unlikely, it is more likely that volume will increase) in ATM usage, we can expect around a 300 Million dollar volume of transfers that these ATM’s will handle per month. Taking the 1% buy back feature from that will mean monthly buying pressure of around 3 Million USD into Uptoken from Coinme – a great amount if the sale were to cap around 30 Million Total. The value increase will eventually come from people holding their Uptoken instead of selling it (so as to gain a 30% discount from future ATM usage) as well as investors holding their tokens to appreciate.


Negatives

Speaking strictly on a mathematical level, it costs anywhere from 1’000 – 25’000 USD to purchase/manufacture one ATM. Giving a conservative estimate one can guess Coinme’s ATM’s will likely cost around 10’000 USD each. To put that in perspective, if Coinme were to raise 30 million dollars in their ICO, they would only be able to manufacture around 3’000 ATMs. While this is certainly a lot more ATM’s than they currently have (39) it’s a long shot before they can put an ATM on “every corner”.


Conclusion

Uptoken is a great, if boring project – the idea of placing more crypto ATMs around the world helps not only investors who are looking for their tokens to gain value, but it also helps the space grow. This kind of system will create a causal loop that will simply provide increased growth and opportunities for crypto investors, as well as onboard ramps and advertisement for new users. A solid buy.

 

Investment Grade: 75%

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