FIC Network ICO Analysis | Fixed Income Assets on the Blockchain

Name: FIC Network ICO Review
Item: FIC Network ICO Analysis | Fixed Income Assets on the Blockchain
Rating: 9.5
Author: Coindrift Team

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Coindrift Team

March 9, 2018

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FIC Network ICO Key Info

Total Supply: 633,000,000
Available in Sale: 50%
Hard Cap: $16 million
Market Cap: $32 million
Token Type: ERC-20 initially, moving to own blockchain forked from Stellar
Ticker: eFIC
Whitelist: Sign up for pre-sale at: https://ficnetwork.com/en, public sale whitelist open March 16th
Private Sale: Accredited investors only with minimum 10 ETH contribution. 3500 ETH soft cap now reached
Pre-Sale: Begins after private sale, 10 ETH minimum contribution
Public Sale Live: May 7th, will be cancelled if hard cap reached in pre-sale
Volume Bonuses: 60% bonus in private sale, 30% in pre-sale.
Lock up Bonuses: 35% for 90 days, 70% for 180 days.
Token Distribution Date: Shortly after public sale ends on May 7th
Website: https://ficnetwork.com

9.5 Total Score

FIC Network ICO Review

FIC Network is a decentralized infrastructure designed to tokenize traditional fixed income assets, as well as create financial instruments for lending and borrowing cryptocurrencies. These will include loans, bonds, collateral loan obligations, loan syndication, credit default swaps and futures, which can all be listed and exchanged on the network. FIC will also introduce a new product called Expected Cash Flows (ECFs), allowing investors to divide up cash flows from loans e.g. by interest, maturity etc. to suit their preference, and then to trade those ECFs on an exchange.

Market Size

Team

8.5

Token Utility

Product Development

Social Signals

PROS

Global credit and fixed income market valued at more than $230 trillion, so market size is significant and FIC Network have first mover advantage.
Similar projects targeting tokenization of securities and other assets have been well received, e.g. Polymath market cap currently around $150 million. However, these projects are focusing on equities, whose market size is substantially less at around $70 trillion. Therefore, it seems feasible that FIC will be worth at least as much as Polymath if not more in the future.
FIC Network improves on the existing fixed income infrastructure by reducing costs as there are no intermediary fees. Current industry fees for loan securitization can reach 5%, compared with FICs fee estimate of 0.0001%. Also increases security due to immutable blockchain and cuts settlement times from days/weeks to seconds. With so many benefits we do not see adoption as a major hurdle.
Working product with demo released and some institutions already testing the platform. Almost every aspect of development is ahead of schedule, with FIC Mainnet ready for launch in June 2018 - almost 6 months early.
Tokens have high utility in the platform in the form of bidding on ECFs, publishing financial instruments, staking and more. Therefore, increased usage could lead to future rises in token value.
Strong team with experience in both the financial industry and blockchain projects.

CONS

Adoption of the network by financial institutions is heavily dependant on whether it operates within security market regulations. As these can often differ between countries, ensuring FIC abides by specific regulations of each country will require a lot of research and could slow development.
Whilst established players like Polymath are not currently targeting the fixed income market, it would not be difficult for them to adapt their current infrastructure to support other securities. If this were to happen then there would be a lot more competition. Even so, the market size is significant and FIC would still have first mover advantage.
At the time of writing the review, the community aspect was lacking in FIC network, with very few Reddit subscribers, Twitter followers, YouTube subscribers etc. The Telegram was a bit larger with 2000+ members, but was still relatively small. This is less of a problem with a platform that is designed for institutional use over commercial, but a strong community can be important for initial testing and bug bounties. However, since that time the FIC community has grown pretty rapidly, with the Sub Reddit growing to 1500+ subscribers! As such, this is no longer a major concern.

User Rating: 5 (1 votes)