Lightcash Blockchain System Ratings by CryptoStandard
Lightcash Blockchain System aims to be the first legal and secure international system for exchanging cryptocurrencies for fiat. The value of one of its tokens, LCSH, is pegged to gold mined from an operating gold deposit owned by Lapri Mining Company LLC, which is owned by Lightcash.
The analysis is based on our rigorous CryptoStandard Score model which is supported by over 80 parameters. The distribution of the score and the explanation are shown below:-
Lightcash has presented a rather confusing view of its business model as it is not clear whether the exchange platform or the gold-pegged token is the actual appeal or focus. Even regarding the exchange platform itself, Lightcash does not seem to have identified the priority for its functions. Our team considers these a major hurdle for investors to buy into its idea.
Numerous competitors can be found in the space of cryptocurrency exchanges, gold-pegged cryptocurrencies and cryptocurrency fundraising. The strength of Lightcash lies in its integration of all the above functions, but it is doubtful whether Lightcash will excel in all areas.
Most of the information available on the white paper is reasonable, but some of the details are not found, for instance, the targeted soft cap, treatment of unsold tokens. Our team’s greatest worry about the ICO is the possibility of it being treated as a security token as the purchase of tokens will enable token holders to receive a stake in its subsidiary Lapri Mining.
The lack of blockchain experts in the core team and lack of direct contact with founders are likely to cause investors’ concerns over the ability of the team to successfully carry out the project.
The size of the company’s community is far from acceptable, with limited people talking about this ICO on one hand and some people expressing worries on the project.
Lightcash is recommended to expand its presence through establishing conversations on channels such as Reddit and Steemit, as well as conducting more interviews on mainstream media.
Lightcash offers documents in multiple languages, including English, Chinese and Russian, which should help it reach a wider spectrum of investors. However, it has not detailed its use of proceeds or explained fully its competitive edges, which may impede investors’ evaluation of the project.
Lightcash does not provide any financial projections, except for the operating data of its subsidiary Lapri Mining Company.
The relatively low reliability of the project stems from the lack of a testable prototype or minimal viable product. Equally, Lightcash fails to offer a road map in a sufficient level of detail, shrouding the project in considerable uncertainty.
The project does not seem feasible enough as it will likely face difficulty in obtaining the relevant licenses for money transfer and currency exchanges, in addition to the blurred focus of the firm. The pegging of the token to gold might provide investors with confidence to some extent, but that is likely to be offset by the lack of clarity on its potential additional token issue in future and the status of the token.
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