Vaultbank aims to bring stability and ease of use to the world of cryptocurrencies. Those two propositions may appeal to newcomers, especially as cryptocurrencies are becoming more mainstream, but sometimes scaring users and investors with unpredictable prices and the need for special knowledge to use smoothly.
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What is Vaultbank?
- Vaultbank White Paper
- Country of origin: Unknown
- Ticker: VB
- ICO Dates: 18 January-18 February 2018
- Hard Cap: $10 million minimum, else returned to backers; $100 million max
- Funds raised: Unknown
- Industry: Personal Finance, Fintech
- Funds accepted: Ethereum
- My Rating: 3/5
Vaultbank Social Media
Vaultbank aims to bring together the best of both worlds- fintech and cryptocurrencies, wrapped in one card-based product featuring a token and a system of rewards and dividends. Vaultbank plans to issue a debit Mastercard, allowing users to switch from crypto to fiat for everyday use. In addition, Vaultbank would act as an investment bank and operate a portfolio of assets, giving quarterly dividends to card holders and token owners.
The Vaultbank project will use the Random Forest Capital approach through AI to achieve trading results, and harness machine learning in its investment strategies.
Users of the Vaultbank card would also have access to other cryptocurrencies for daily spending. At the same time, the product would offer a system of wealth management akin to hedge funds and other types of investment vehicles.
The Vaultbank Team
The Vaultbank team draws in experts from finance, the legal sector, as well as blockchain developer talent. Advisors from large financial and wealth management firms have also joined the team. Austin Trombley is listed as president and CTO, and one of the board members is CJ MacDonald, founder of blockchain startup Gyft. With advisors hailing from Bank of America, MasterCard and Black Rock, this ICO is well-staffed to perform its task.
The team of experts means the project will have centralized oversight and rely less on the community, beyond usage and general popularization.
About Vaultbank Token
The VB token will be a digital asset on the Ethereum blockchain, and it will be at the heart of the reward system and earnings distribution. The VB token will work together with Ethereum-based dividends. There will only ever be 240 million tokens.
The curious thing is, while the token itself is not a security, it does offer a form of ownership of the underlying company.
This is how the relationship between the token and the company is described, with still unknown details on how regulators would see this arrangement:
“The token represents a beneficial ownership in non-voting shares of Vaultbank, to be held by the Nominee in trust for the holders of Vaultbank Tokens.”
The token itself will have a relationship to the cash available in the card. In fact, users will not receive returns in digital tokens, or Bitcoin, but in cash. This relationship is a bit strange, but it may serve some users, who want access to both worlds.
So the 20 million tokens in pre-sale, and the 100 million ICO tokens, will offer a chance in participating in a fiat earnings scheme based on the investment of Vaultbank. How the relationship between tokens, fiat, and the non-voting shares would unroll in the future is anyone's guess.
Investing in Vaultbank: The Pros
The pre-sale and ICO are an early-bird call to this appealing card-based project. So far, cards based on cryptocurrencies are few and far between, with Monaco one of the most prominent projects. Vaultbank may easily find its brand of fans, especially with rewards and extra liquidity.
The team seems to be ready with a clear-cut product scheme and has a set of tasks based on ICO proceeds.
The Risk of Vaultbank
The chief risk of Vaultbank is that at first, the ICO did not gather up enough funds to achieve its tasks. The team also foresees the possibility of a failed ICO, in the case of gathering less than $10 million and returning the Ethereum proceeds to backers.
The other risk is the nature of the token. While the VB token may be trading on the open market, once within the Vaultbank investment system, its value would only be counted as cash proceeds. It is unknown whether the amount of tokens owned is guaranteed, or if the owner may end up owning more cash, but less of the initial digital assets. This has a hidden risk of parting with VB tokens or other coins, even Bitcoin and Ethereum, and trusting Vaultbank to achieve better market results compared to the price growth of the underlying assets it represents.
But those are only hypothetical risks for now, and the best approach would be not to over-invest in Vaultbank, and only make use of the generous early bonuses.
Final Thoughts on Vaultbank
Vaultbank has an ambitious idea and may draw in backers, but it is one of the more centralized projects in the crypto space and holds the risk of an overly-hyped ICO. In the coming months, it is best to wait and see how the project is attracting buyers, and if it will manage to fulfill its promises, or only offer a partial product.
Depending on ICO proceeds, the portfolio of Vaultbank may vary from $150 million to $1 billion, with vastly differing results and returns. Participating in this ICO will expose users to more than a single token, and instead give them access to the results of a relatively large investment and technological team.
Because of the risk of ICO failure, My Rating for Vaultbank ICO is 3/5, with a possibility to achieve gains in the longer run, but also having the risk of missing out on Bitcoin and Ethereum appreciation.