Creating a blockchain may have become trivial in 2018. However, finding valuable data to store on that blockchain has been more difficult. PundiX is one of the few projects aiming to add a hardware component to its blockchain and distributed ledger project.
This ICO was a fast-moving proposal, with the ending planned for January 31 – but the token sale ended earlier, underlining heightened interest. The ICO was sold out in 90 minutes, but we know little about how fairly the tokens were sold, and whether there are no whales able to manipulate the price.
The project aims to add a hardware component to spending cryptocurrencies. This solves the problem of having to rely on the VISA payment system, which has caused troubles for many card-based projects recently. Monaco, TenX, Bitwala and other projects saw their plastic cards frozen due to problems with their financial intermediary. So PundiX may be the ICO that would bring the right hardware to solve this issue, and truly bypass the banks as an intermediary.
The proprietary point-of-sale hardware is a simple use case resembling the Internet of Things, and also a way to popularize the coin with merchants.
What is PundiX?
- PundiX White Paper
- Country of origin: Isle of Man
- Ticker: PXS
- ICO Dates: 21-31 January (Sold out)
- Hard Cap: Unknown, 35 million tokens
- Funds raised: 38,703.55 ETH, 603 BTC, 597,442 XEM, 50,000 QTUM, 2,000,000 ACT
- Industry: Payment Processing
- Funds accepted: Ethereum
- My Rating: 4/5
PundiX Social Media
PundiX was the rare ICO which went beyond Ethereum and Bitcoin, gathering a whole array of digital assets, including QTUM, ACT, and XEM from more than 11,000 backers. With the wide contribution call, this ICO seems to have hit a strong rapport with the crypto community, diversifying its holdings and achieving its aims faster than expected.
The mission of PundiX is to make the purchase of cryptocurrency as easy as buying a bottle of water. Right now, sellers of any form of digital assets have to report their customers, due to the need to handle large sums of money. We can't know what coins, and how many, the PundiX hardware device would sell. But at least it is a step forward in bringing coins to users in a secure, accessible way, without the need for registrations, verifications, or delayed funds, either fiat or cryptocurrency.
The product promised by PundiX is a cryptocurrency ATM and a card, able to achieve instant buying and selling. There is also a proprietary PundiX card, which presumably has nothing to do with the VISA system.
The promises of PundiX are ambitious:
“In three years, Pundi X will be present in 100k stores in cities globally, giving over 100 million users access to buy cryptocurrency at their nearest shops, cafes, or convenience stores. If the ICO exceeds expectation, we will deliver faster with extra milestones. Pundi X and the blockchain ecosystem needs your support.”
The PundiX Team
The PundiX team is international, based in Jakarta and Shenzhen. The management is hosted in Indonesia, and the Chinese office holds the R&D team.
The team seems to be business-savvy, being made up of entrepreneurial-minded developers.
The team also includes:
- Constantin Papadimitriou (Kiki), President and advisor;
- Zi Bin (Zac) Cheah, CEO;
- Pitt Huang, CTO, COO;
- Danny Lim, CFO.
About PXS Token
The PXS token will serve as the “gas” for network and transaction fees. The token would be needed, so that merchants and owners of the POS device will be able to connect to the network. The PundiX team believed the ICO was the most convenient way to buy and store PXS for future use.
The ICO aimed to distribute 35 million PXS tokens. After that, the total number of tokens will be about 175 million, the exact amount to be determined. Some of the new tokens would be generated over the course of three years and distributed as rewards to owners. Owners of PXS tokens would receive monthly dividends for that period, but about 40% of the tokens would be front-loaded to the first year.
The PundiX token and ecosystem aim first at Southeast Asia, a region where there is great demand for everyday use of cryptocurrencies.
Investing in PundiX: The Pros
This digital asset would only be available by visiting an exchange, as, unfortunately, the ICO sold out very fast. Owning PXS tokens would mean exposure to the Southeast Asian cryptocurrency market, where adoption and everyday use may be way ahead of other regions.
In addition, the unique idea to include a POS device, instead of relying on wallets and smartphones, adds a layer of security to this project.
The post-ICO period may also be a benefit to late potential buyers, as the exchange price may turn lower, or still be accessible. This token is a long-term proposition, with the added bonus of staking rewards for years to come.
The Risk of PundiX
In the short term, PundiX saw what many ICOs encounter – a faked site attempting to phish backers. At one point, the PXS token was trading at the IDEX exchange, a decentralized market, while not all users had received their assets.
IDEX itself asks for your wallet's UTC file, which is a major risk point. In owning PXS tokens, it is therefore best to create a new wallet, and never use it again, due to the dubious exposure of the private keys.
The risk of PundiX is related to general business problems, and whether the project's team would be able to convince shop owners to carry the PundiX device. Until now, many ambitious plans to offer cryptocurrency payments have been foiled by generally low demand.
And while some may be optimistic about Southeast Asia and its relationship to cryptocurrency, little is known about laws and regulations. The lack of transparency makes the venture look riskier.
Also, there is the logistical risk of actually designing and producing the POS devices on time, and making them work as smoothly as current payment options.
Final Thoughts on PundiX
For this ICO, My Rating is 4/5 for the original idea and the very high interest. In 2018, as users are growing more skeptical, ICOs sometimes lag and never manage to reach their hard cap, even for big projects.
Most of the ICO budget would go toward distributing and promoting the devices in the real world. Let's hope the project has a plan to do this, as the budget for this venture, given current ETH prices, is around $4 million. However, the ICO has not even gathered half of that sum, so the team would have to do with roughly $1.5 million for the task.
Still, because of the clear token use case, as well as the chance of seeing trading on Southeast Asian exchanges, the PXS token remains an exciting proposition.
Should YOU Invest?
Honestly, most people looking to invest in altcoins, tokens, and ICOs are hoping they discover the next Bitcoin or Ethereum. The chances of that are rare.
So where is your money best invested? My recommendation might surprise you. It's free to join, and won't require that you invest in risky cryptos!