The ICO rush is upon us, with dozens of new initiatives popping up every day. And while some ICOs will be the next big thing, some are doomed to fail from the get go - telling who's who is no easy task. This article is a part of a series of reviews created by the Finance Magnates Intelligence Department as a public service.
Introduction
B2BX is an aggregator of cryptocurrency liquidity for marginal trading, trading with physical delivery and distribution of liquidity to brokerages powered by B2Broker, according to the official website.
Unlike similar projects, B2BX focuses mainly on institutional clients - especially hedge funds, crypto-exchanges, DMA and FX brokers. The aggregator will be also integrated with popular trading software provided by Metaquotes, PrimeXM and Spotware.
The main facts:
- Category – Cryptocurrency liquidity exchange
- ICO Date – 02.10.2017-17.11.2017
- Phases –
- Stage I (5 million EUR), Japan expansion
- Stage II (10 million EUR), Cyprus expansion
- Stage III (15 million EUR), UK expansion
- Stage IV (20 million EUR), Hong Kong and Dubai expansion
- Stage V (25 million EUR), Australia expansion.
- Total supply – 50 million B2BX (40 million crowdsale members, 5 million company, 4 million team, 1 million bounty program)
- Maximum raise – 25 million EUR
- Available Payments – BTC, BCH, ETH, LTC, DASH, XMR
- Founded – 2017, B2Broker founded in 2014
- Blockchain platform – Ethereum
- Token standard – ERC 20
- Regulation – unsold tokens will be destroyed
- Website – https://www.b2bx.pro
Team
The B2BX project is fully supported by the B2Broker team:
Artur Azizov – Founder and CEO of B2Broker, a liquidity and FX technology provider. Previously connected with another project called ABK Technologies. He started his professional career in 2010 as a development manager at TKS Group.
Evgeniya Mykulyak – COO of B2Broker, responsible for almost every process in the company except product development - from sales and client support to marketing, partnership relations and visiting expos.
Vladislav Posivenko – CTO of B2Broker since the beginning and the CEO of ABC Technologies. Previously connected with Broco Investments as a Head of Technical Support and VSI Technical Support as a CTO.
Technology and features
B2BX plans to develop an aggregator for institutional clients, where only accredited participants can work, choosing three directions of growth: physical delivery exchange (on the basis of the company with the Japanese license), marginal trading (for that purpose B2BX wants to obtain CySEC, FCA and ASIC authorizations), and exchange of the cryptocurrency for another cryptocurrency (exchanging will be available to institutional clients under the jurisdiction of Singapore).
Members of B2BX will need to meet all standards that are required by the financial market watchdogs, which should protect against fraud and illegal actions.
The founds obtained during the ICO will be used to develop the legal framework, grow the partners and experts teams and widen the current technical base. The legal entity carrying the ICO was registered in Hong Kong and the smart contacts and tokens will be released on Blockchain Ethereum according to the ERC 20 standard.
Review
B2Broker is conducting the ICO to attract funds to provide to B2BX. In each of the five stages, the obtained capital will be mainly used to finance connection to cryptocurrency exchanges (24-33%), to open new offices (18-21%), and to aggregate and distribute crypto liquidity (7-18%).
According to the projected revenues and costs, the project should become profitable in Q3 2019, guarantying net gain of above EUR 800,000. According to B2BX, the main component of the revenues will be connected with the crypto and forex liquidity – social trading and trader’s room should be treated as ancillary services.
To achieve its own projections, the company needs to have at least 200 customers by the end of 2017 and 740 by the end of 2020. After the end of the ICO, token holders will have the option to buy B2Broker products and services by using B2BX.
After analyzing the ICO whitepaper, we feel that there are grounds to believe that the value of the coin has a chance of growth. B2BX token will be freely traded on crypto-exchanges created as a part of the project and offered by brokers using the aggregator. What is more, some of the tokens distributed between the members will not be tradable for six months after the end of the ICO – which should protect against the risks of dynamic value loss in the first phases.
Verdict
Focusing mainly on institutional clients may be a source of stable and long-term profit for B2Broker - if the cryptocurrency market maintains its popularity. Despite the potential risks of poor marketing activities, the company’s experience with brokerages and liquidity aggregation suggests that the project could be an interesting investment alternative for crypto traders. B2Broker has already won the trust of the important industry representatives (e.g. IG Group, Metaquotes, Swissquote).
Finance Magnates Ranking:
- Team – 3.5/5
- Legal – 4/5
- White paper – 4/5
- Partners – 4/5
- Financial Model – 3.5/5
Overall – 3.8
In conclusion, the tokens may be profitable in the long run (2-3 years), but there is a chance that B2Broker will also try to make its own coins more attractive for ICO participants in the short term.
