Pareto ICO Review – PXT Investment Analysis

Author’s note: Crowdsale details have since been updated. Find all the new informaation here: https://medium.com/@paretonetwork/news-presale-extended-binance-exchange-listing-and-cancellation-of-public-sale-e035135c584d

https://pareto.network

ICO Details

Symbol – PXT

WhitepaperLink

When – Ongoing presale with crowdsale starting December 1 2017

Soft Cap – Unknown

Hard Cap – 32 Million USD

Total Max Market Cap At ICO – 80 Million USD

Exchange Rate:

1 USD = 4 PXT during Crowdsale

1 USD = 5.5 PXT during Presale

Total Tokens in Circulation At ICO – 500 Million


Overview

Pareto Network is a decentralized information sharing platform where investors and analyists can trade information amongst themselves with the use of their PXT token. Pareto aims to make data more easily  available to investors and crypto traders by the use of their gamified system, increasing overall stability of the markets while also creating a new industry in the cryptocurrency space that as of yet does not exist.

Data is king in the world, and being able to find actionable data in the modern age is much more difficult than it would seem. That’s why we have companies that do things like back-end research, scientists who provide many data samples on populations, as well as survey groups that go out and bring actionable feedback. Focus and test groups are another facet of this, which are services that are often used by the Film and Games industry in order to find flaws in their products and offerings. All of this is to say, that having a supply of relevant real world data and feedback is extremely important to a modern day company, and it is one of the things which crypto (being in its crib stages of development) as of yet does not have.

One example of the Pareto system in action is for events, exploits, or other problems that can be profited from. The cryptonote exploit was found earlier this year, which essentially enabled an intelligent coder to create a nearly infinite amount of a coin. While this initially affected Monero and has since been fixed, many other cryptonote coins do still have this vulnerability within their code. On the Pareto system, such a finding could be sold for a fair market value, where investors and traders take this data and decide to either go long or short a cryptonote asset based on this kind of invaluable information.

pareto2

With the Pareto system, exploits such as the cryptonote bug (as well as many others, for example the Parity and DAO exploits) are able to be sold to the market. This creates a great marketplace that firstly incentivizes traders to be on the lookout for this kind of information, and secondly, blockchain development teams to use this information and plug holes in their software before others hear about it. Beyond bugs and exploits, however, is a lot of other actionable information that can be sold on the marketplace. For example, certain large wallets moving recently have shown a spike in Bitcoin Cash prices several days later, with 100% accuracy. China ban news earlier this year could have been sold on the marketplace, where other traders could have gotten out of their positions and saved themselves plenty of money – all of these and more are possible with Pareto.

The Pareto Network is a service for incentivizing the generation and sharing of
information about tradable opportunities in cryptocurrencies and related assets.
It is designed to elevate information about market inefficiencies and promote
more accurate price discovery. What that means is that it should steer the
markets toward the correct pricing of these assets.

It replicates the function of research desks at investment banks, providing a
flow of information that anyone can access, and aligns economic incentives to
promote that reality.

pareto4


Team

team-3

Chris Eberle

Syracuse Newhouse School BS, Harvard Business School Exec Ed | Facebook | Federated Media | Meebo (Google) | AOL | 20 years in digital content development and marketing. Writer, Speaker, Creator

 

team-4

Dr. Anna Becker

Technion – Israel Institute of Technology PhD, A.I., MS, Comp Sci | Designer of end-to-end multi-asset algorithmic trading platforms. 20 yrs. leadership in algo development for hedge funds

 

team-7

Ian Balina

George Washington MS, BS | Prominent voice and investor in cryptocurrencies, prior work with IBM, Deloitte

 

Positives

Pareto’s primary positive is the idea backing their project. It’s completely unique, and will become extremely valuable in time should their marketplace take off. As an investor, unique ideas are often the most lucrative and interesting ones, because of the fact that they can fill a previously unfulfilled market. Contrasting again to historical data collection companies, one can make a relatively safe bet that Pareto will be a success given the success of non-crypto data providers.

A second positive for Pareto are their presale terms – they are currently on their presale, and their tokens are extremely cheap, going for around 18 cents per PXT. While the total cap of the crowdsale at the end will be around 30 million dollars, at these large ~40% discounts the effective market cap you’re buying into (should Pareto fill their hard cap) will be around 15-20 million dollars. That’s value.

A final note is the backing of Ian Balina on the Pareto team – Ian Balina has proven himself in the past months to be a bastion of great ICO’s, having a positive record with his investments and showing the world exactly how ICO investing is done. He himself is backing this project, which makes this author extra bullish with regards to expectancy. Look for Ian Balina to increase the hype of this project, as well its desirability, and ultimately, price.


Negatives

pareto3

One issue I have with Pareto is their cap – it’s relatively high for a project like this. While the average project ICO of late has had around a 30 million dollar cap, it feels like with so many projects, scam ICO’s (Confido, anyone?) and simple market dynamics, that most crowdsales are either opting for smaller caps or simply raising less money. This lowers my overall “standard” hard cap of a project I would be willing to invest in to around 20 million USD, which Pareto clearly outpaces. Time will tell if their cap will be a problem for investors, or if the Pareto team’s targets will even be hit.

The other real negative I have about this project is the seemingly low amounts of hype going into the presale- while many team choose to keep their presales hush hush, the presale for Pareto is followed right after by their crowd-sale. This means that there won’t be much time to “ramp up” their marketing and hype, making Pareto ultimately much harder to notice. I’ve already spoken with several ICO investors who mention they would invest in this project if the hype was a little higher – as it stands, they currently only have a few hundred members in their Telegram, and barely anyone is talking about this project. Still, if you like a Dark Horse pick, Pareto could be just what you’re looking for.


Conclusion

Pareto is for me, a more of a risky buy, but a buy nonetheless. The relatively low hype is concerning, but should their project raise a lower amount than projected it may prove to be a boon to their profit potential. Ian Balina on the team makes me more confident, and secures my own buy in into this product. Look to invest into this unique idea with a great team, and keep your eyes out especially for actual use of their platform, as this might be one of the few projects to get it.

Investment Grade: 80%

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One thought on “Pareto ICO Review – PXT Investment Analysis

  1. Hi ,

    Even Ian Balina has in his own rating a approx. 55% for Pareto , which is the low end and therefore no investment , although he is an adviser to them ……
    The fact that he rates this ICO low although he is an advisor to them , makes me stay away from this ICO ….

    Like

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