GBX ICO Review – RKT Investment Analysis

https://gbx.gi/token-sales/

ICO Details

Symbol – RKT

WhitepaperLink

When – February 7, 2018

Soft Cap – 10 Million USD

Hard Cap – 27 Million USD

Total Max Market Cap At ICO – 75 Million USD

Exchange Rate: 1 RKT = 0.10 USD


Overview

The Gibraltar Blockchain Exchange is looking to be one of the world’s first tokenized securities exchanges built on the blockchain.  GBX, a subsidiary of the current Gibraltar Stock Exchange, will leverage the current infrastructure and experience of the operating company towards the crypto markets in a bid to push tokenized securities and tokens adhering to strict regulatory standards into the mainstream.

The GSX intends to develop a fully tokenised stock exchange system that will aim to provide a pathway from listing and trading initial token sales through to accessing funding via the traditional bond market or equity issuance route. This should give issuers an opportunity to issue tokenised securities to a wider capital base.

One of the useful advantages of blockchain that many crypto enthusiasts often have touted throughout the years is the ability to do things like tokenizing securities and streamlining the process of buying and selling company shares without having to move through a broker. Brokers often impose high fees on purchasers and actively work against their clients in order to make money for themselves. For example, many instances exist regarding manipulation of buy/sell spreads by brokers in order to generate profit at the expense of the paying client. Decentralizing and tokenizing securities is one way of reducing or outright removing these kind of regulatory malpractices and can be considered one of the “killer apps” of blockchain.

Tokenized securities are also one other way that blockchain can improve upon the existing financial system. Instead of doing an IPO and diluting company value by releasing shares into the hands of other parties, a company can retain full ownership of the operating business while simultaneously raising funds through ICO’s that offer securities of the company – either paying in dividends or allowing some other form of advantage for token holders.

Tokenizing securities is an extremely nascent concept, and many ideas have been put forth on how to best tackle this potential. That being, said methods to distribute securities and enable their trading have until now been in a relative grey area. With GBX, the parent company hopes to create the world’s first real tokenized exchange – thus passing regulatory checks and allowing companies to tokenize company assets and deliver value in heretofore unseen ways.


Team

nick-cowan

Nick Cowan

Nick is the founder of the Gibraltar Stock Exchange. Nick has 34 years of experience in capital markets, including being the head of capital markets at Bear Stearns and ING Barings, managing up to 2,500 employees in 43 countries, including 40 stock exchange memberships.

adrian

Adrian Hogg

Adrian is a Fellow of the Institute of Chartered Accountants in England and Wales. Adrian is Chairman of the Gibraltar Funds and Investments Association and sits on the Gibraltar Finance Centre Council. Adrian is a financial services and regulatory expert with over 20 years in the profession having overseen the licensing and establishment of the Gibraltar Stock Exchange and multiple licences including an e-money institution, investment dealers, brokers, asset managers and hundreds of funds. Adrian was a partner of Grant Thornton Gibraltar for 10 years (audit, regulatory and financial services) and was formerly of KPMG and the Bank of East Asia (in the British Virgin Islands).

samuel

Samuel Reid

CEO and Co-founder of Geometric Energy Corp, as well as Director of SpaceBit.

Positives

GBX is one of several upcoming security exchange projects that we will see as 2018 plays out, which means they will have some level of competition down the line – that being said, the positive here is that GBX will be the very first. Competitor tZERO, for example, is launching their exchange sometime later this year, while GBX plans to release during Q1 of 2018. This gives GBX the first mover advantage and certainly bodes well for the platform.

gbx3

Another thing that is great about GBX is their team – this is a world class team, and it needs to be stressed that these guys have done their homework and approached this project from the right perspective. If you’re looking for an MVP, the Gibraltar Stock Exchange is quite possibly the greatest form of “proof” that one can ask – the fact that GSX is a part of the Enterprise Ethereum Alliance is only icing on the cake.

As GBX will be completely compliant with European regulations and practices, tokens and ICO’s traded on their exchange will enjoy the benefits of customer confidence. As a reminder, we have yet to see a blockchain project that is actually targetting tokenized securities as of yet in this space. Most exchanges, such as Binance keep their cards close to the vest, while others such as Bittrex will outright delist any tokens that have a resemblance to a security. GBX will be the first to truly embrace tokenized securities and should have lots of hype moving in to the sale and beyond.

tZERO should be discussed a little bit further in this article – while there will be other security exchanges, it is in my humble opinion that tZERO will likely be the most relevant one next to GBX. One of the things that pushes this matchup further in GBX’s favor will be the token metrics themselves. tZERO is looking to raise around 250 Million USD, while GBX will only be looking to raise around 27 Million as part of their offering. That’s almost a tenth of the asking price and will leave massive headway for upwards appreciation in RKT tokens.

Finally, it’s my own personal speculation that tokenized securities will be one of the biggest performers of 2018. There are billions of dollars waiting to enter the markets on a lot of these new projects, and the only thing that has stopped them has been the lack of a product such as GBX. Technology is an ever evolving market, and in order to maintain exposure to projects such as KodakCoin, Lottery, and others, firms and funds will have to buy these tokens in some form or another – a platform such as GBX is the perfect fit for these investors.


Negatives

One of the negatives of GBX is also related to their token sale – unfortunately, they sold around 21 Million of the total 27 Million hard cap reserved for crowdsale during their presale. That means that there will only be around 6 Million dollars left allocated for investors to get during the upcoming mainsale. However, rates during the presale were kept very conservative, only giving presale buyers an advantage ranging from 10-25%.

gbx2

The fact that GBX is such a completely new and original product is also one of the things that could cause it troubles in the future. It’s difficult to say whether tokenized securities are truly understood well enough yet to say with absolute certainty that this is a thing that will happen without any kinks, and you can certainly expect a lot of lobbying and obstacles put in the way of these tokenized exchanges should the markets start to move in their favor from current incumbents. It’s a bold move, and an investment here could certainly fall flat.


Conclusion

GBX is one of my favorite projects of the year, and has the makings to be one of the best. It’s a platform, has plenty of token incentives, and is a completely unique and original idea. The all star team will be able to leverage their positions from the stock world with their new connections in the Enterprise Ethereum Alliance to create a product that, I expect, will be one of the biggest winners of 2018. For this reason, I am giving GBX the highest grade possible, a 100%. That doesn’t mean that this project is without its flaws or risks, but for an investment opportunity, there can be no better set up. Look to get these tokens as soon as you can, either in future crowdsales or exchanges to come.

Investment Grade: 100%

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5 thoughts on “GBX ICO Review – RKT Investment Analysis

  1. Note that Gibraltar also recently partnered with Quoine (QASH token). Should be a pretty big partnership once Quoine’s World Book Beta is launched.

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  2. Here’s what I am reading on the whitepaper

    Total token supply for the Rock Token is 900 million.
    318 million, or 35% of the total token supply will be sold to the public during the sale.
    A private pre-sale was conducted in December 2017 during which time 258 million tokens were sold.

    Are’nt 60 mil available on the Feb 7th public sale ?
    Is this really a 900 mil market cap out of the door post ICO !

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    1. Between presale and public sale they’re looking to raise 27 Million – Public sale will be limited to around 6 Million as they’ve already sold the vast amount of sale tokens during presale. They’re /not/ selling their remaining tokens for 27 Million but for 6.

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    2. lol Math much? HTF did you get 900 million market cap from 900 million tokens? First off, they are not being sold for $1 each. 2nd, you calculate the mcap by looking at the circulating supply. 3rd, the TOTAL, including both private and public, amount is 27 million.

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