ICO Review: Traxia – the first Cardano based project on the market
Traxia is a utility token which will provide liquidity solutions for small and medium sized enteprises (SMEs) in order to address their short-term cash flow issues. Their primary token is the TMT, basically a membership token which will give you access to the Traxia ecosystem.
Project name: TRAXIA
Token symbol: TMT
White paper: Traxia Whitepaper
Hard cap: $92.7 million for 60% of the total token supply
Conversion rate: 1 TMT = $0.15 Conversion rate during presale: 1 TMT = $0.09
Maximum market cap at ICO on a fully diluted basis: around $154 million
The problem they will address is very large and very simple. Everyday businesses around the world, especially SMEs declare around $43 trillion of accounts receivables and accounts payables on their books. According to Traxia’s whitepaper banks only finance around 7% of that volume or $3 trillion, while the other $40 trillion are considered as locked capital or in other words cash the business have only on paper. Traxia Ecosystem will provide a mean for these businesses to deal with the liquidity issue by offering these accounts receivables in a decentralized marketplace based on smart contracts and blockchain. This will ensure transparency, trust and provide working capital for the business.
In order to be part of and engage with the Traxia Ecosystem you will need the TRAX token (TMT), which in essence means that the token is comparable to a membership. The platform will be a transaction-based model, which will generate demand for the TRAX token with every trade that will be financed through the system. The supply of the token is limited to 1 billion tokens, which ultimately should generate scarcity.
In addition the TMT token will:
I really liked the The Traxia team and advisors. Good individuals with proven record and experience in blockchain technologies, finance, supply and everything that you would expect from a team that can deliver results. Most of the people are involved with LiqEase a blockchain technology company with a proven track record and winner of 2017 SLUSH rewards in Shanghai.
More detailed information can be found on their blog: Here
They also have investors from Emurgo (the Cardano investment hub) and SOSV a World-renowned accelerator fund with $300M assets under management and 600+ companies on portfolio.
Positives and Negatives
Overall the project looks really strong – it will try to tackle a huge and widely known problem with a simple solution, which seems that should work. The team is very strong with good advisors and known investors which means they passed a basic due-diligence.
Initially they will be launched as a ERC-20 token based on the Ethereum blockchain, but in April they plan to move the platform to the Cardano blockchain. Traxia will become the first project based on Cardano which in my opinion will generate significant hype.
In addition, they showed a good token utility with limited supply of tokens. The potential of the project is significant, if businesses start to adopt their idea and platform, they will eventually create scarcity and huge demand for their token.
If successful, the project can provide substantial amount of capital for businesses around the world.
On the negative note I should mention that currently they haven’t disclosed an official Github page, where we can look at their code. As per their roadmap, they should have a beta version of the platform, which I couldn’t find.
In addition, the price of the token is correlated with the use of their platform, which is a three-sided marketplace. They will need Suppliers, Buyers and Investors, which means they need significant amount of partnerships and businesses to trust in their idea.
In my opinion Traxia is a decent project, which if successful should generate significant value for its supporters. In addition, the pre-sale bonus of 40% should be enough to guarantee profits after their transition to the Cardano blockchain.
As usual, this is not an investment advice folks – do your own research before investing.