AppCoins boasts about being an ICO that would serve 200 million active users, who are currently drawn to app stores. AppCoins will aim to integrate payment options for apps with a blockchain-based transaction system, in a mix of fintech and an already established mobile internet use case.
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What is AppCoins?
- AppCoins White Paper
- Country of origin: Portugal
- Ticker: APPC
- ICO Dates: 13-20 December (sale closed for reached target)
- Hard Cap: $15.3 million (60,120 ETH)
- Funds raised: $15.3 million, $1.8 million in pre-sale
- Industry: Mobile apps, mobile payments.
- Funds accepted: Ethereum
- My Rating: 2/5
AppCoins Social Media
AppCoins was a highly publicized and promoted ICO that reached its rather modest hard cap within days. As an investment opportunity, AppCoins will be available through the open markets, once the tokens are released. This ICO is expected to appear on exchanges on January 15, and its tokens, currently priced at $0.27, may be a catch in the new year.
Like other coins and tokens, AppCoins offers a decentralized payment system, and links it to today's most widespread wave of mobile device usage- apps. AppCoins does not strive to build distributed apps, but only add a payment option in its proprietary token. The success of AppCoins hinges on convincing app stores that its proposal is the best option.
The AppCoins Team
The AppCoins project hails from Portugal, and boasts an 18-strong team of developers. While the ICO team is from Portugal, the project is registered in Singapore, a currently friendly location for ICOs. Still, the token sale of AppCoins has passed, despite some talk from Singapore trying to curb the trend of fundraising.
The project's founder is an open-source enthusiast and Linux developer Paulo Trezentos.
The team has clear-cut roles and experts to fill them:
- Alvaro Pinto – COO & Founder
- Tiago C. Alves – VP Asia Pacific
- Ren Tang – VP of Product
- Carolina Marçalo – Head of Partnerships
- João Casal – Head of R&D
- Luís Pinto – Marketing technologist
- Diogo Pires – Backend developer
- Martin Užák – Backend developer
- João Castro – Head of Administration system
- Luís Guilherme – UI Lead
- Felix Lange – UX Lead
- Marta Keller – Head of Developers Relations
- Cláudia Fernandes – Head of Community
- Daniel Kisluk – Head of Marketing
- Frederico Santinho – Android Developer
- Marcelo Benites – Android Developer
- Pedro Almeida – Investor Relations
About AppCoins Token
The AppCoins token is an ERC-20 standard digital asset based on the Ethereum network. As such, it has no additional features such as privacy, and requires Ethereum to send and receive. The token would be used to pay for apps directly, as well as for users' attention and viewing ads. How this would be integrated with transactions requiring gas payments is still unknown, but it is one of the biggest technical issues for any project trying to link a blockchain with mobile apps.
Inside the AppCoins ecosystem, various developers would get a ranking, to avoid payments to dubious third parties, as well as a hidden feature – a high gas price required for some forms of Ethereum based payments. Setting a high gas price or taking ETH fees may be hidden forms of earnings for third-party developers.
The AppCoins could be bought with fiat, bought on an exchange or earned. The coin's total supply is 450 million. The sale saw only 160 million tokens distributed. Another 67. million would be released through the app store in years to come. There are nearly 100 million tokens for the team and for development of the project.
The first launch of the token would only link the Aptoide App Store, with the hope of adding more app stores in the future.
Investing in AppCoins: The Pros
Apps and tokens are still only a hypothetical possibility, and several projects have tried to link the two uses. AppCoins will offer both a payment option and a way for developers to monetize their apps, only in cryptocurrency. Tying up advertising and tokens is also an alternative to current monetization, such as with Basic Attention Token (BAT)
The project has the most needed ingredient for success- a clear idea and a full team intent on delivering a product in Q1, 2018. Lagging products have been the biggest stressor for new post-ICO coins.
The GitHub for the project has seen a lot of activity until October, which has stalled in the months leading up to the ICO. For now, the team has built the basics, a smart contract and attempts to communicate with the Android environment.
The Risk of AppCoins
AppCoins is not truly original in its approach. Also, despite the many attempts to link apps with cryptocurrencies, for now there are too few viable products, mostly limited to wallets. In-chat micropayments, monetizing ads or paying for digital goods are still in the initial stage, and sometimes a niche for crypto-enthusiasts. The silver lining is that in 2018, cryptocurrencies may remain in the mainstream attention, and therefore reach app users.
The other risk is that AppCoins would only be used in a limited way, on a few app stores, while the biggest hubs would use the traditional approach, or easily build a proprietary payment system.
The third risk is the exchange trading, which may come with dramatic price swings and lead to potential losses. Right now, the entire cryptocurrency market is in flux, the price of Ethereum has risen and fallen, so buying APPC after the ICO invites more caution- an asset can wipe out a lot of value quickly, so it is best to wait for a suitable price and not overinvest.
Final Thoughts on AppCoins
AppCoins has the unique risk of overly hyped ICOs- the risk that it will not deliver on its prices, or its token price would slump. The quality of the token would also depend on the quality of the apps. When it comes to combining apps and crypto payments, there is an increased technical risk. With higher asset valuations, dishonest apps and outright phishing attempts may be the biggest risks for AppCoins, and users may always lose their coins inadvertently or through third-party apps.
There is also the risk of AppCoins remaining a niche product, with a seldom-used token.
In this case, the Kin project and KIN token remain a cautionary tale- as the Ethereum network saw severe congestion in November and December, Kin may have to migrate to a similar platform, hoping for a smoother token transfer that is up to speed with the habits of mobile users.
But the monetization of mobile net usage is expanding all the time, and AppCoins may be just in time for setting the pace. Therefore, My Rating for AppCoins is 2/5, for the chance of hopping on a large trend through a relatively small investment.