$327 312 991
$63 476 742
$52 740 000
$36 150 000
$1 650 000
Project strong sides: interesting and useful idea; detailed financial projections; well-analyzed market and marketing strategy; proved advisors. Project weak sides: suspicious founders’ LinkedIn profiles. So our position is positive.
1) One of the main risks is that the platform might fail to obtain a global market share, thus making successful development impossible.
We think that the platform’s success will depend on whether it is adopted by a “critical number” of participants. All of the platform’s obvious advantages, such as verified listings, a tracking system, blockchain transparency etc. will matter only if the solution is used by a large number of participants. That is why it is of paramount importance that the number of users grows exponentially over the first period of the platform’s operation. Once the Vanig system has proven effective and convenient, more and more sellers and buyers will start using it. In the event there are not many participants and VANIG tokens are not used, investors will want to sell VANIG. The platform offers some really beneficial e-commerce services; however, it will manage to grow and become successful only if the team does its best to attract partners and runs an effective marketing campaign.
2) The second risk is associated with token volatility and the use of tokens for payment.
When new participants start using the platform, token demand and price are likely to grow. When the tokens are sold by various participants, they could drop abruptly. These fluctuations could enable investors to make money from price movement; however, high volatility or even rapid price growth in the short- and medium-term perspective might frighten platform users. The risks associated with rapid price fluctuations will impede token usage, as platform participants may prefer other payment methods. Moreover, once they have completed transactions, many users will want to convert tokens into fiat, thus avoiding the risks associated with price changes. This will prevent the token from becoming a proper payment means. It will remain just one of the components in a “fiat-token-fiat” transaction chain, which will decrease its value as a payment method and impede any increase in demand.
High volatility might be profitable for investors, but might have a negative effect on internal token use on the platform. Lower volatility will be better for the project’s development and scalability, but the price growth will probably not be sufficient for investors/token holders.
3) Highly competitive environment. There are many major market players who have proven that “traditional” e-commerce is stable and effective. Statistically, 44 cents of each dollar spent on e-commerce in the USA belong to Amazon. We think that introduction of “revolutionary solutions” in this segment might be problematic despite all the advantages of blockchain. It might be difficult to convince sellers that Vanig is better than the services they are using at the moment. Moreover, token accounting might be problematic for legal entities, which could negatively affect the platform’s adoption and its application in the “traditional” e-commerce economy. All of these factors might have a negative effect on the platform’s popularity, scalability and future success.
4) Delays in product development and failure to meet the roadmap time frame.
The project envisages quite a complex technical solution, which bears high risks. At the moment, despite an operating MVP, the product is hardly ready. It is of utmost importance that the project attracts partners and provides updates and feedback to the community. This will enable assessing the progress of development, ensure more transparent token pricing and gaining a clearer idea about the platform’s future.
5) Legal and regulatory risks. The project has a legal entity registered in the Federation of Saint Kitts and Nevis. This fact will affect relationships with users, contractual arrangements and the project’s reputation as incorporation in this region may alert both users and investors. Moreover, listing on large exchanges might be impeded by buyback and other programs intended for token price support. Regulators in different countries have negative attitudes towards such measures.
6) Low volatility and pricing risks.
The project is associated with a large number of risks regarding the token price because of possible sales in the short- and medium-term perspective. Buyback activities might result in the accumulation of a large number of tokens on the platform. This poses additional liquidity and heightened volatility risks that may alert investors and cause them to be more cautious.