Published 03 Oct by CryptoDiffer Team
Midgard Research ICO Review: idap.io
Update: The testnet of Crypto Deravatives Exchange is Live, you can check it here: https://testnet.idap.io/
Problem & Solution:
Idap is a crypto derivatives exchange with token based on WRC20 (Wanchain).
The main feature of the platform is derivatives trading such as futures & options trading for major cryptocurrencies and crypto indices. Apart from derivatives trading, Idap plans to create a whole financial ecosystem:
Exchange - Crypto/Crypto & Crypto/ Fiat trading.
Calendar spreads and Butterfly. Calendar spreads are frequently used in the futures markets to roll over a position for delivery from one month into another month. The Calendar spread is a difference between two futures contracts. Butterfly - is a difference between two spreads. These can bring additional liquidity to Idap exchange because around 40% volume in derivatives Market across the globe comes from these types of trading products.
Lending platform - a lending platform that enables individuals to lend and borrow crypto and fiat assets. Competitors that have recently finished their ICO: Libra credit ($26m on ICO; $13m - Market cap now) and Lendingblock ($10m on ICO; $1.9m - Market cap now);
VC Fund - which will operate as a pool, but with a proper legal and governance model. This fund will allow retail investors to join private stages of ICO projects.
ETFs - Idap will offer their own ETFs such as Crypto payment coin ETF, top 20 Cryptocurrencies ETF, and other sectoral ETFs. (important note: this is subject to regulatory approval).
Idap plans to fundraise no more than $12.5mln to build all the mentioned features.
Idap is planning to launch simulated trading before an ICO. According to their words, the App is ready and they are currently shifting it on the testnet. The first product will be released not later than in 3 months after the ICO.
The roadmap is very short and the team plans to deliver all of the features by Q2 2019. Afterwards, they will work on innovation and start incorporating more and more advanced features both in terms of infrastructure and trading instruments.
Awanish Rajan (CEO) - trader with 12 years of experience and with a technical background.
Atish Katyal (CFO) - also a trader with 11 years of experience on the derivatives market. Last 3 years he worked as an Associate Manager in “Futures First” - the company he worked before in regular positions. Atish also has a technical background from Thapar Institute of Engineering and Technology.
Murali Thakur (CTO) - has a working experience as a derivatives trader in “Futures First”, experience in software engineering and also he is a co-founder of “Octle” - technical consulting firm.
Anupam Agarwal (COO) - has a working experience as a business technology associate and consultant.
Other team members have relevant experience in programming and trading.
To summarise - the team is not all-star but well experienced and solid, there is a lack of honorable achievements, influence, and marketing in here.
Advisory board consists of experienced people from different backgrounds. There are advisors from different spheres (top management, mostly connected with software engineering and financial sector; some professors from data science and cloud computing), but no one from worldwide well-known companies.
It needs to be mentioned that team cooperates with the WanChain team.
Idap has partnerships with several trading companies.
Wanchain team helps Idap with the application of the Wanchain Technology, potential partnership, brand building and the application of the Wanchain technology.
They closely working with Stigasoft, CEO and CTO of Stigasoft are advisors in Idap.
There are hundreds of crypto exchanges, lending platforms at the market right now. In case of derivatives trading, there are only few ICO stage competitors, for instance, Evermarkets (Hard cap $28mln). There is a successful example of Digitex (about $6m raised on ICO and $62m market cap right now). Digitex provides the only mechanism for futures trading (part of derivatives trading) and they are not focusing on creating the whole derivatives ecosystem.
In the case of Idap, we can assume that they have a quite big potential. All of their features cost many times more in their competitors.
Tokenomics is quite good - tokens are a vital part of the ecosystem:
50% permanent discount on trading fee if paid in IDAP token. (like on Binance exchange)
Applicable Management & listing fee will be charged in IDAP token.
Burning mechanism: 20% of IDAP tokens received as fees will be burned
Staking mechanism - for master trader account (it is used for trading companies) - you need to buy and to stake 1.25m tokens, which is about 0.1% of total supply. Moreover, they give Lifetime Zero trading fee for ICO Contributors, buying and holding 20,000 or more IDAP Tokens.
To conclude: Tokenomics looks promising, all the mentioned factors may result in an increase in demand (commissions and fees) and may decrease supply (burning and staking), therefore driving the price of the token up.
They have the plan to raise 12.5mln. Token distribution is fair. Team and advisors have a vesting on their allocation (25% of total every 6 months).
A small risk is in the bonus system. Idap has offered a 50% bonus on private sale with no lockups for early investors. They also give 40% of additional bonus to everybody. Finally, a crowd-sale bonus can reach up to 20%, it depends on the crowd-sale stage.
In numbers it will be: private sale price is about 0,0142 ; crowdsale (20% bonus) is 0.0178 and crowdsale (0% bonus) is 0.0214.
To summarise - 38% is the average difference between private and crowd-sale price, importantly private sale investors have no lockups.
Verdict: 8 out of 10
Binance has cracked the spot trading market. Someone has to crack the derivatives part, Idap team has both derivatives experience as well as FinTech. Digitex proofs that this sphere has a big potential and Idap has a lot of useful features which can bring liquidity to their exchange. We have deducted 2.5 points because of the bonus system and lack of proven accomplishments of the team members. Overall all the documentation and tokenomics is well prepared.
Our investing decision regarding this project will depend on the quality of their MVP (must be ready before ICO), and the overall market situation. We don't see a flip potential because of the bonus system, but this project has mid and long-term potential if only the team succeed to bring liquidity to the exchange.
Rating update: IDAP TestNet Alpha is live. IDAP release new trading product: Calendar spreads and Butterfly for crypto derivatives exchange; Desktop application; The rating was increased by 0.5