CREDITS

CREDITS is a decentralized financial system platform for direct interaction between participants on a peer to peer (P2P) basis. It allows for the delivery of financial services via a distributed ledger, self-executing smart contract and credit crypto currency.

PROS:

• High execution speed: The platform is able to handle  a huge number of  truncations simultaneously at a lower cost of each transaction
• Security: The common ledger block (CB) in the platform enables the storage of all the users information and all data related to the ledgers which can be easily retrieved
• All the information received as the platform builds consensus are collected in a block hence eliminates fraudulent management
• Transaction processing : The platform  employs system Kernels where data handlers  perform specific tasks  regardless of the availability and operations of the system components  and each Kernel has a response code
• The use of transaction ledger  in the Credit system enables the entry of hash code to be added to the list of candidates in addition to the ledger hence increasing the transaction speed
• The credit value team enables the comparison  of the  different units and building consensus  when executing or accepting  the contract by the users involved
• The team involved has a good experience led by the CEO, Igor Chugunov having successfully  pioneered  different projects in banks, affiliate marketing  and with good IT skills

CONS:

• The Credits are exchanged at affixed rate hence eliminating market growth
• The use of Merkle trees reduces  the  processing speed
• The project lacks a easily accessible mobile application

SUGGESTIONS:

• The credit exchange rate should be varied from region to region depending on the prevailing situations
• The project team should create an easily accessible mobile application supported by android

10-May. That one, I passed on. I mean so my perspective is anybody can have an idea, it takes a great team to execute. I don't think the team's gonna execute long-term right that could execute short term in the long term I don't like to get in. But I do know that you like the project, well?

There are already several successful platforms with large customer base, such as Ethereum, Lisk, Waves, and Stratis; that is why it might be hard for CREDITS to expand its network and attract new customers due to network effect.

Though some functionality can be already tested, the product is still at a very early stage and the release is only planned for June 2018 and this date is subject to change. The roadmap is only given for 1H 2018 and is split by the product development stages. It gives only the highlights of development. In general, the roadmap could be more detailed.

CREDIT does not explain how the exact fee level will be calculated. Therefore, the commercial viability of the platform is not clear. Mining of new tokens will not be available on the platform. That is why, it might be hard to attract new users on the platform.

The Hard Cap of CREDITS is $20M, the Soft Cap is $15M. The Minimum Cap of $1.5M has already been reached. The Soft Cap is well above the median size of the investment round of companies at the same stage. (US software startups, seed stage, Pitchbook). As CREDITS will sell 60% of tokens during pre-ICO and ICO, the company valuation will be around $25M in Soft Cap scenario and $33M in Hard Cap scenario. These figures are 3X and 4X times higher than the median US software seed stage post-money valuations respectively. CREDITS will reserve 15% of tokens for the core team. The team bonus then will be around $3.75M and $5M in Soft Cap and Hard Cap scenarios respectively. Now, the team bonus is not bundled to any KPI and does not have vesting scheme. CREDITS does not provide any financial forecasts or assumptions for their growth. The given expenditures’ structure is too broad and is not detailed.

The CEO of CREDITS – Igor Chugunov – has previous executive experience. However, this experience was in the area of marketing and advertising, not in tech. He previously worked at IT-finance company but again focused on marketing. Business Development & Marketing specialists of CREDITS do not have enough relevant experience prior to joining the company. What is more, the whole team is spread around the globe according to Linkedin. That is why robust development of the project might be at risk.

Positives
Prototype Available: Unlike its competitors, Credits has an open beta version of its project. This allows users to test its network while appreciating its proof of concept.
Micropayment Friendly: Due to its fast transaction processing speed and high amount of transactions made per minute, you can create micropayments due to the low fees and network speed.
100% New: Credits is run on a completely new platform and doesn’t have any forks like Bitcoin. Nor does it have any projects existing on its network like Ethereum.

Negatives
Competition: Credits is in direct competition with Bitcoin, Ripple, and Ethereum. This means that it could take some time for users to get interested in its network.

This is not the first project on the market that involves the use of peer-to-peer principle for the provision of financial services on a decentralized basis.

The main risks in the case of decentralized provision of financial services are in full insecurity of the party of the transaction for example in the case of non-repayment of the loan.

At the moment, there are no business planning and program of promotion of the service in the project description. Perhaps closer to the ICO date the authors of the project will expand and supplement the description of their project in the part that is most likely to attract the potential investor.

At the moment, the project seems to be not too promising in terms of safe and prospective investment.