Exchanges became big business in the past months, as buyers suddenly flocked to overheating new coins. But there were always the rumblings of high trading fees, and the worst bane – hacks and withdrawal problems. Losing one's coins on an exchange is still one of the most likely scenarios, especially when it comes to new assets with troublesome networks.
Not surprisingly, many startups are trying to improve on the idea of a decentralized exchange, solely based on smart contracts. This means no third party holds the coins, exposing them to attempted wallet hacks. This is the chief idea of Streamity, aiming to perform fast, cheap and secure trades via proprietary smart contracts.
Table of Contents
What is Streamity?
- Streamity White Paper
- Country of origin: Canada
- Ticker: STM
- ICO Dates: 12-25 March
- Soft Cap: $500,000
- Funds raised: $2.8 million pre-ICO
- Industry: Fintech/Exchange
- Funds accepted: BTC, LTC, ETH, ETC, USD, EUR
- My Rating: 2/5
Streamity Social Media
What is unique about Streamity is that its service would not only allow trading and exchanges, but also deal in fiat. For now, buying digital assets for fiat is limited. Streamity will provide a fintech solution to that problem, potentially bringing liquidity to the market.
The chief product to be offered is StreamDesk, a P2P exchange mechanism. Somehow similar to the LocalBitcoins service, this time, the exchange would be secured by a smart contract. Because of the handling of cash, Streamity has a KYC procedure in place, to achieve a fully legalized exchange.
The Streamity Team
The Streamity team is well balanced between IT experts understanding the inner workings of blockchains and smart contracts, and trading professionals who have taken their experience into the world of crypto coins. The founder and CEO, Vladislav Kuznetsov, is an experienced business person and trader. Dmitry Martianov is an experienced developer and IT business holder.
Most of the team consists of Russian experts, making this ICO an example of the Russian drive to adopt blockchain technologies. The team is complete with front end developers, designers and marketing experts. The creation of a DEX in 2018 is a varying affair. Some projects manage to produce a working app quickly, while others tinker with the rules and keep the decentralized exchange in experimental stages for long months. With a dedicated team, Streamity may be able to build up the promised product.
About Streamity Token
The SMT Ethereum-based tokens serve two functions: of course, the raising of funds, but also being the means of payment for using the platform. Some exchanges launch their proprietary token for purposes of creating trading pairs. It is unknown right now if SMT would be traded akin to the Binance Coin, or serve to pay for the smart contract.
The token price at the ICO is set at $0.20, and the total number of SMT issued would be 180 million. Supposedly, the team believes the token would command a much higher price when the service becomes operational. A minimum ownership of 1,250 SMT would give trading privileges and lowered fees.
The Streamity team has set aside 25% of tokens for itself, a rather steep cut, of which most would go to “product development”.
Investing in Streamity: The Pros
Exchanges are living through months of rapid turnover and competition. And the market has never been more hungry for easy to use, secure exchanges. So Streamity arrives at the right moment, and if it is able to pull off a product launch,
The idea of a decentralized exchange also gives hope for more resistance to hacks, at least when it comes to directly attacking the wallets of a centralized exchange, as in the cases of Bitfinex, and more recently, Bitgrail.
The Risk of Streamity
Streamity is a project offering to raise funds directly in fiat. And while this may be suitable for newcomers, it also looks a bit suspicious. At the moment, ICOs may be having a hard time collecting the funds needed to launch their product, and adding a cash option means reaching out to a wider community. Time would show if the generous bonuses starting at 20% would attract enough customers.
The other risk is that this ICO comes from the Russian crypto space. While the country has unparalleled developer talent and business sense, there are red flags and many unknowns. For one, there is no knowing if the token would be listed on quality exchanges, or rely on its native app to be traded. There is also the possibility for listings and trading on Russian exchanges, with comparatively low volumes.
The other big risk for the project is the ability to secure banking services for handling fiat.
Can you name banks and payment systems with which you have already signed cooperation agreements?
— ana karyana (@Toymingste10) March 11, 2018
For now, there is one agreement with the OK Pay system, but it is questionable if a project ran from Russia would be able to secure partnerships with the financial sector to service customers worldwide. This is especially true in a climate where the financial industry is getting more reluctant to serve companies related to crypto coins.
Final Thoughts on Streamity
For this project, My Rating is 2/5. Buying up the requisite 1,250 tokens may be a risk worth taking, for making a bet on a workable decentralized exchange. In fact, investing cash instead of Ethereum may be relatively less stressful, as the fluctuating ETH price may mean losses on owning the original asset. So while at the moment the 1,250 tokens would be worth roughly 0.3 ETH, the future price may be much lower. Until the exchange opens, owning the actual tokens is a great unknown. There are other ambitious DEX projects with a much-touted native token where the price went down fast after the ICO.
In the case of Streamity, it may be better to wait and see if the exchange offers quality. Decentralized exchanges have also seen hacks in another form, and the smart contract is a weak spot in this project. There is big talk of building a community around the exchange, but this once again comes up to general interest in crypto coins. The Russian community is strong, but may not be as helpful to international investors.
In my opinion, Streamity is showing hopeful results, thanks to the experienced and well-known team, challenging and relevant idea, the only one of its kind.#Streamity #StreamityICO #ICO pic.twitter.com/5BCI9ZzeaK
— Роман Белебенцев (@Romafia44) March 11, 2018
The buzz for this project happens in the Russian social media space as well, with mostly positive reviews which begin to look like hype, or even shilling. Investors would need to be more careful in those cases.