ICO OpenFinance Network project review - FFC Media

ICO OpenFinance Network project review

Name: OpenFinance Network

Token Symbol: OFN

The method of fundraising: Security Token Offering

Web: https://​www​.openfinance​.io/


Documentation: White Paper, LitePaper, SmartSecurity Standard

ICO status : processing, from April 1, the completion date is unknown

OFN — security token, which is based on Ethereum. 125 million tokens were issued, and 40% of them (50 million) are sold during the crowdsale. Hardcap is $ 50 million. The tokens price is $1. The minimum limit for investments is could not be found out; at the presale stage there were bonuses for large investors (with investments of $625 000 — $5 000+)

There are no restrictions on citizenship for participation in the token sale, but you need to undergo a more strict (in comparison with usual ICO) verification procedure. The company promises the 10% dividends of the platform’s gross revenue to OFN owners.

Project Summary

During the project there is a new trading platform Open Finance Network. OFN will be the first platform to support trade in security tokens. In a recent interview, the CEO of the site said, that from the first day of the start of trading, they will start trading security tokens SPiCE VC, then Blockchain Capital, Science, Protos, MintHealth, Corl, Bloxroute, Property Coin.

The aim is to integrate the cryptocurrency world with the world of alternative financial assets, including illiquid securities held by hedge funds, private equity funds, etc. Thus, the project solves the problems of both markets. Here you can buy, sell or exchange security tokens, which are not traded anywhere else. And you also could sell illiquid securities, which are possible sold at other venues, but it is difficult due to the tightened timeline, the outdated trade rules and other problems.

The target audience of users, according to White paper, — are participants of the stock and financial market. This includes 634,000 brokers of 3,700 firms, 200,000 investment consultants of 34,000 companies, and 60 million individual investors and developers.

In the White Paper (WP) project, this market is estimated at $ 80 billion a year. The launch of the platform is promised in the near future, and they have already accept applications for listing from asset owners. That to trade on the site, you need to pass the verification and get the investor’s passport. From the first day of work, pairs with USD will be available, in the future they are going to add ВТС, ETH, XLM. Using OFN on the platform is not necessary, but it gives to investors a discount on commissions.

The idea of the project is in demand: there are more and more security tokens, it means that there should be a platform for trading them. The convergence of the traditional financial market and the digital asset market seems to have a good prospect.

Something similar, but without an emphasis on security tokens, is already being done by the Blackmoon platform, which offers to invest in both traditional financial assets and crypto‐projects. But in general, there are few competitors in this field.

Open Finance Network will be the first to launch trading of security tokens. There are good prospects to win this market, which is still in the beginning of the road.

Where Does Blockchain Come in?

Blockchain provides transparency of accounting and movement of all assets. The platform has a system of checking transactions zero‐knowledge: it allows you to hide from what address the payment went, how much money and to what address is transferred, but at the same time to prove the fact of sending and receiving. It is impossible to track such a transaction: this system is implemented in the Zcash cryptocurrency and provided complete anonymity.

Project Team

The team members are presented as «industry veterans».

CEO Juan J Hernandez is presented as a serial entrepreneur, the creator of several startups, including Endurance Commerce, CFX Marcets, which is confirmed by the websites of these companies.

The operating director Jim Stonebridge has 25 years of experience in the financial markets, which is confirmed by a number of reputable publications.

The technical director Kael Shipman also worked in CFX Markets, he has its own page on Github.

There are three advisors — Anthony Pomliano, founder and partner of Morgan Creek Digital, David Crell, co‐founder and former president of International Securities Exchange, and Jeff Carter, co‐founder of West Loop Ventures.

The team is strong and experienced. The project has several large partners, including Huobi Group.

Friendliness to the Investors

Friendliness to the Investors is low. The site has a non‐working link to the company’s chat in Telegram. There are about 2000 people in the chat , but admins appear rarely and answer questions selectively. We’ve been trying to contact them in the chat, and by personal messages to get the exact answer at least the date of the token sale. But we did not succeed.

Positive Indicators

  1. The promising idea.
  2. The strong team.
  3. There are large partners.
  4. Active GitHub.
  5. Because OFN issues SEC‐tokens, the project is legally clean and agreed with regulators. Investment risks are lower than if you participated in the ICO with the Laundry tokens.
  6. There is a not long road map: the launch of the platform is promised in the 4th quarter of 2018, the beta version of the platform has already been launched.
  7. Dividends in the amount of 10% of the platform income are availible for token holders.

Negative Indicators

  1. Friendliness to the Investors is low
  2. Unknown date of crowdsale and the minimum limit for purchase
  3. You can do without the OFN token, which calls into question the demand for the token. -After the launch of the platform, it will be possible to sell tokens only on this platform (until the other platforms, supporting trade in security tokens, will appear).

Summing Up

The project is interesting for long‐term investors. The promising idea, a strong team and the approval of the SEC significantly reduce the risk of the investment, traditional for all parties to the ICO.

Security‐tokens form a share in the company and give the right to receive dividends. From a regulatory point of view, security tokens are considered an investment, which imposes additional requirements on the companies that issue them. The investor can be calm that he will receive the promised income, and the project will not «get off» and will not disappear with his investments.

OFN conducts initial token placement to assess and measure community interest: most likely, the company could do without ICO. This approach explains the low friendliness to investors in chat rooms and the lack of information about crowdsale.

Probably, the main investors of the platform will be large funds and companies, not individuals. We put 8 out of 10.

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