Zuflo.IO ICO overview
Trading & Finance - One Platform
First Integrated Trading & Financing Platform on Blockchain / Sidechain with Financing, FX & AI features and Proof of Business Identity Sidechains
Zuflo.io aims to be a trading & financing platform for the industry 4.0 era using technologies like Blockchain & Artificial Intelligence to reduce the number of counterparties, thus lowering the cost of services and for the end consumer along with state of an art new trading & banking features. Zuflo.io will allow platform users to improve efficiency, error reduction, time savings, and straight-through processing without any intermediaries, and with AI (Artificial Intelligence) Management tools.
In addition Zuflo.io will enable/empower more control and more transparency of dealing banking and trading operations.
“Our mission is to form an easy to use integrated Blockchain / Sidechain platform for trading & financing where the needs of the user come first.”
– We will integrate USD 8 Trillion+ Global Forex and its related Assets’ Legacy Market with Crypto Assets (Cryptocurrencies)
– We intend to develop the biggest trading liquidity pool comprised of ZFL token holders, for their benefits.
– We will develop the ZFL Exchange front-end trading dashboard, wallet, the integration with blockchain back-end and the legacy system integration.
– We will intend to obtain a Banking license for our ZFL Finance option, in order to integrate it with different corporate finance sectors
– Financing / Credit / Margin using Cryptocurrency
– Fully Compliant Exchange & Finance with required securities, rules & regulations, compliance, KYC and AML by Estonia
– Finance option to the SME especially Retail sector on Proof of Business Identity on Blockchain / Sidechain and feasibility of Profit Sharing Model
BLOCKCHAIN / SIDECHAIN PLATFORM
Blockchain is an immutable, shared ledger that provides needed visibility across the business network
Blockchain allows collaboration between several parties that may not know each other, or that are located in different geographical locations. It’s like an account ledger that you insert information, similar to a database, he said, but once that information is in there, it is extremely challenging to alter it. “Blockchain allows a level of trust develop”. Specially, within the financial sector, blockchain technology has a big impact. Buyers and sellers need to have mechanisms they can know and trust to handle their financing, and blockchain is being very actively piloted in that area.
With blockchain, participants in the transaction:
- Share a single platform with secure access
· Receive a full view of the process
· Are able to drill down to see all steps in the process
· Can see exact moment when a delay or error occurs
· Remedy problems without filing a dispute
· Achieve on-boarding and quick installation without disruption
CHALLENGES WITH CURRENT TRADING SYSTEM
The ease of use/ the lack of user‐friendliness: Sending and receiving digital money is still cumbersome, because each time the user decides to spend cryptocurrency, he/she is required to visit three different websites to be able to do simple operations such as setting up a wallet, making an exchange or spending cryptocurrency. Users are also lacking confidence in the safety of their funds.
– Account Verification Processing Time is Slow
– Elevated Transaction Fees
– Lack of End-to-End Visibility
– Utilize Incompatible Systems
– Support takes long time
ZUFLO.IO AS TRADING SOLUTION
– Easing Entry to Crypto Trade
– Integration of FIAT & Crptocurrency Exchange
– Trade-on-the-Go Functionality
– Secure and Safe Wallet
– Contemporary Trading Features (Spot, Margin Futures, DEX, etc)
CHALLENGES WITH CURRENT FINANCING SYSTEM
Millions of global citizens have minimal access to banking services and are forced to take out credit lines from informal channels with annual interest as high as 4,000 percent. It’s not that conventional banks don’t want to serve more people, it’s just that it’s unprofitable for them to do so in remote and less populated areas.
Digital transformation is lagging for SME Financing big time. Getting a short-term finance can be an excruciating task, especially for the small and medium scale enterprises which do not know the strings. It is mentioned in a credible small business survey, that even with the advent of newage online lending platforms, small businesses continue to find troubles while seeking capital. The survey also revealed that 45% of the loan applications were rejected more than once, and
23% were unaware of the reasons their applications were rejected. Similarly holders of digital assets have limited liquidity options in today’s cash based digital economy.
Inefficiency of Current Trading Platforms
Without blockchain, SME lenders cannot:
- Launch business quickly and provide new value propositions
· Improve spreads and margins
· Reduce operational risk and costs
· Comply with regulations across regions
· Perform real-time accounting
· Gain a 360 degree view of each customer
· Mine data and provide real-time customer dashboards and reporting
ZUFLO.IO AS TRADING SOLUTION – PROOF OF BUSINESS IDENTITY
The Financing industry is in dire need of new innovations to ensure an easy, transparent and accessible financing ecosystem for the SMEs. And that is where Zuflo.IO with its blockchain and smart contracts technology based platform comes in. Zuflo.IO is an ecology over which we can lend money to applicants against existing assets or without assets via Ethereums’s smart contracts technology. It is lending and borrowing network that allows users to leverage their blockchain assets to secure cash loans.
Access to Financing
On-boarding the missing population to the benefits of the global financial system is key in order to provide a sustainable solution for their future economic outlook.
Our blockchain based platform allows for easier auditability and more operational efficiencies that ultimately translate to a lower cost of lending than traditional service providers using centralized databases are able to offer.
Zuflo would empower applicant with blockchain-based digital identities which will allow borrowers to build their own economic histories and credit profiles, even if they are invisible to the legacy banking system. So unique advantage in this setting is the ability to use existing affinity networks to help build and verify borrower identities. We’re not just providing financial services, we’re providing an identity that is linked to everything that a person is doing and would act as “economic passport” for them.
Powered with Ethereum Smart Contract
The critical feature of Ethereums’s smart contract technology based platform means that it will be possible for one to check the health status of the issued loans. At the same time, the privacy of users’ crucial data will be maintained. Having the borrowers’ loan portfolios on a hack-proof ledger could serve the purpose for a transparent credit scoring system.
Transparency for Regulations
Initially Zuflo would publish the whole history of issued loans, including currently active, paidup and defaulted loans on the Ethereum blockchain. In next phase Zuflo intends to publish the whole history of currently active loan’s performance and transactions in blockchain. This will make Zuflo fully transparent to the government agencies, borrowers community, partners, current shareholders and potential investors. Our transparency policy will help the borrowers, funds, current and potential investors in many ways, including predictability and accountability of the investments. Furthermore, to protect the lending investment & lender’s interest, all loans will be insured.
Platform for Conventional & Digital Assets
Besides, option of conventional assets Zuflo also enables the members of the its lending platform to leverage the value of certain digital assets, thereby giving them access to cash, offsetting tax events, avoiding exchange fees and maintaining their long position in the asset they hold. Zuflo is a lending platform designed keeping in mind of blockchain assets. Unlike traditional forms of collateral, such as real estate and automobiles, blockchain assets are divisible, fungible, and in many cases instantly transferrable. We seek to enable a new way of monetizing an everexpanding universe of blockchain assets.
Deposits & Investments
Zuflo.io will provide conventional banking’s feature of depositing digital assets to allow its clients to get mark ups on their holdings or to borrow at a preferable rate. Investments will comprise of low-cost venture items, for example, Exchange Traded Funds (ETFs), Crypto-funds (a portfolio of various cryptocurrencies and crypto tokens), progressive ICOs, as well as advisory solutions for wealth management. In next phase, Zuflo will offer investment banking services including financing corporate strategies of our business clients.
Zuflo ICO Review – Trading and Financing on one platform
Zuflo wants to be a next generation trading and financing platform for both fiat and crypto currencies. The platform will use technologies like the blockchain and AI to remove intermediaries from transactions and transfers, creating a P2P trading model with lower fees and transaction times than usual.
The basic premise sounds good. There is a demand for cryptocurrencies to be easier to use. Removing intermediaries and third parties from transactions would allow for greater cost efficiency, which is something a Peer to Peer system on the blockchain could accomplish. The financing platform would allow SMEs to attain funding through crypto loans. This kind of service could have a lot of demand in certain markets.
There are several issues that we discovered in our review. Acquisition of the banking license is required for Zuflos services and getting this license is not easy. Furthermore, one license would not be enough if the team wants to make Zuflo global. Securing enough funding is similarly critical.
Communication with the team proved to be difficult. The project PR and media presence focuses solely on bounties, pre-sales etc. rather than the product itself. We do not see this as a good sign.
Finally, the projects website suggests that the Zuflo team will in fact own 60% of all tokens, which we find worrying.
Token: ZFL (0.36 USD)
Maximum amount of tokens: 500 000 000 ZFL
Distribution: 10% to development, 20% for Operations, 40% liquidity pool, 15% license registration, 15% for Local Offices
ICO: May 1 – May 30 2018
Soft Cap: 11M ZFL
Hard Cap: 200M ZFL
Total supply max: 500M ZFL
Minimum & Maximum investment: None
Bonus program: 1
Round: 50 %, 2
Round: 30 %
Round: Feb 22 – April 15 2018
Round: April 16, 2017 – April 30, 2018
Description & Vision
The Zuflo ICO project aims to be a next generation 4.0 trading and financing platform for both fiat and crypto currencies. The platform will utilize emerging technologies like the blockchain and AI to remove intermediaries from transactions and transfers, creating a P2P trading model and lowering costs and time spent for the end user. The blockchain also allows for greater transparency and control in banking/trading operations.
According to Zuflo, sending and receiving digital currencies is still too cumbersome for most people, since users have to use at least 3 different sites to go through simple transactions and manage their currencies. Additionally, these sites usually lack transparency and utilize mutually incompatible systems. Zuflo wants to offer the tools to make crypto assets approachable to everyone and allow easier and safer trading between fiat and crypto currencies.
In addition to the trading platform, Zuflo will also facilitate financing to SMEs through its lending platform. Getting funding/can be difficult for small-to-medium sized enterprises, especially in markets with less established banking/smaller populations. Zuflo wants to bring crypto-based financing to these markets with its platform, where an SME can leverage cryptocurrencies to secure cash loans.
The basic premise of Zuflo is sound. It’s true that there is a need for more ease-of-use for cryptocurrencies, from transferring and holding to trading and paying. Being able to manage all your digital assets in one reliable, safe system would be welcomed by many investors. Furthermore, removing intermediaries and third parties from all transfers would allow for greater cost efficiency and less risks. A Peer to Peer system on the blockchain could certainly accomplish this and if successful, could potentially become hugely successful by bypassing several issues that a conventional platform would run into (regulations, KYC).
As for the Financing platform, allowing SMEs to more easily attain funding through digital loans is certainly interesting. This kind of service could have a lot of demand in certain markets (less established banking). Gaining a competitive position in established markets (e.g. EU) will be a tremendous challenge, however.
Aside from development challenges, funding will be an important challenge for the project. The hard cap of 200M USD is quite large for an ICO. Various parts of the project will demand a certain amount of assets to realistically go through and at the time of writing thus review, the ICO is nowhere near it’s hard cap. The soft cap of 11M USD has been crossed however.
Products & Services Detail
fiat and cryptocurrencies
P2P system allows secure and transparent transactions
trading fee 0.1% per transaction (0.05% with ZFL tokens)
mobile app/desktop platform
spot trading, margin trading, futures, anonymous instant exchange
Lending to businesses through blockchain and smart contracts
loans with/without assets, for fiat and crypto currencies
blockchain allows easier auditability and operational efficiencies
digital identities; allow borrowers to build economic histories and credit profiles
check health of issues loans, user loan portfolios without privacy concerns
Fully transparent to agencies, regulators, partners, investors
All loans will be insured
Deposits and investments
Zuflo’s trading platform includes all the essential features for a multi-asset trading, allowing efficient trading between fiat and crypto currencies. These features together with the security and directness of a P2P system and low trading fees amount to a service that is sorely needed and that would be very useful to anyone looking to getting into the crypto scene.
The lending platform seems to mainly be meant for SMEs in markets with less established banking scenes and places where loan interests are quite high. This is certainly an intriguing idea and could prove to be useful for entrepreneurs in those markets, especially those wanting to utilize crypto currencies (ICOs). However, some areas have or are looking to ban ICOs and regulate cryptos to some extent, which would hurt the project.
The challenge for Zuflo will be developing a truly intuitive platform that fulfills its promises of ease-of-use and low fees. Additionally, a banking license will be necessary for Zuflo to launch its banking services and lagging in this process will delay major features of project. Finally, funding will be a major component of the projects success and the current hard cap is somewhat high.
Token uses & benefits
ZFL is an Ethereum-based ERC-20 standard token. No github link available.
Distribution: Crowdfunded 200M ZFL – 10% to development, 20% for Operations, 40% liquidity pool, 15% license registration and 15% for Local Offices. Remaining 300M held by the company.
ZFL can be traded on exchanges and gives holders certain benefits on the platform:
Lower fees when using ZFL in transactions
ZFL gives discounts for other ICO’s on the platform
Financing (loans) will be done in ZFL, instantly tradeable on the exchange.
Weekly/monthly payouts to liquidity pool participators
ZFL likely to gain value if platform is successful in attracting users
The benefits for holding ZFL tokens are straightforward and make sense; using ZFL on the exchange allows smaller fees and discounts for other features. ZFL will be necessary for getting bonuses from the sharer liquidity pool. If the service becomes successful and interest in ZFL increases, it will also greatly increase in value.
There is one fairly large concern though. Apparently the ICO token distribution will max out on 200M ZFL but the total market supply will be 500M ZFL. This suggests that the team will hold 300M ZFL or 60% of all tokens. There is no information provided about lockups or token burning, so the fact that the company will seemingly hold a major portion of total supply for themselves raises questions about the coins future value.
Zuflo will add a trading fee of 0.1% per transaction, or 0.05% with ZFL tokens, to all trades on the platform. On the lending side, no interest will be issued to loans but instead these will work based on a profit sharing model. This means, that the borrower will pay a certain agreed-upon percentage of their profits to the lender. This translates to fairly long repayment periods based on the borrower company’s success.
The funds received from the 200M ZFL crowd sale will be distributed as follows; 10% to development, 20% for Operations, 40% liquidity pool, 15% license registration and 15% for Local Offices. No further explanation of costs are provided in the project documentation.
The exchange fees presented are quite low, which would definitely make Zuflo a competitive trading platform. The profit sharing model for loans seems interesting and could prove useful for their target market of SMEs in developing markets. This model both enables and incentives these companies to start making profit.
It is somewhat disconcerting that no more details have been provided about the costs involved in maintaining the platform.
Zuflo’s team includes people with experience in blockchain development, software engineering and IT, crypto trading and some fintech expertise.
The team has commendable expertise in blockhain and IT side of things. All the team members have legitimate Linkedin profiles and verifiable histories. Many of the team members have been working on their respective fields for years now.
Since the project is targeting the financial/banking scene, the team should include financial/legal experts with knowledge of those fields. There doesn’t seem to be a dedicated team member for these. One of the advisors of the group, however, is the Kaukapital group, which is a consultancy company with some financial and legal know-how. Kaukapital was founded by Zuflo CEO Jeremy Bel.
Roadmap & History
Key phases of the project are shown in the above image. The project will go through the ICO phase in May and ZFL will become tradeable in exchanges some time after. Zuflo’s own exchange will go live and the Liquidity Pool will be established in the latter half of Q2 2018. The company will apply for a banking license soon after the ICO phase and by their estimate will have it in Q3 2018. Once this happens, Zuflo will be able to provide its financing services. The last phases described involve integrating major banking services to the Zuflo platform.
The roadmap seems quite straightforward, in that it doesn’t have many parts to it. Once the ICO ends, the platform should go live soon after. More detail on individual service rollout could be provided, to better clarify what services will be available once the platform goes live.
The most obvious possible roadblock is obtaining the banking license. The license will be required for Zuflo to provide any banking/financing services legally and safely. The team has seemingly only reserved around 3 months for acquiring the license; a very tight timeframe. The only way the team will be able to get the license in such a short time is if all of their legal work and documentation is in perfect order upon submission. Any delays here will set back a major portion of the platforms services.
Social & Marketing
Zuflo has profiles on several major medias:
Bitcointalk, Linkedin, Facebook, Twitter, Telegram
Zuflo also has some material on their YouTube and Vimeo accounts. Zuflo hasn’t posted anything to GitHub yet.
Transparency and visibility are important for ICOs and it’s good that Zuflo has profiles on most major social media platforms. Their Facebook and Twitter profiles have been especially active since they were setup. Some criticism could be levied, however, for the content of some of their posts. All their latest posts have been exclusively about Pre-ICO token sale discounts and not, for example, about the development of project, advisor announcements etc. We hope we’ll see more content focusing on the project itself, rather than token sales/bounty programs.
Zuflo is a very interesting project with some potential, offering innovative funding alternatives to SMEs through their blockchain based lending platform. This service is something that many entrepreneurs in developing markets would surely welcome. Additionally, Zuflo’s multi-asset trading platform would be extremely useful to anyone dealing with, or people looking to get into cryptocurrencies. Lowering barriers of entry and making digital currencies more practical investment tools is something desperately needed in the market.
There are several issues that need to be taken into consideration. Acquisition of the banking license is required for Zuflo to launch its financing services and this license is not easy to get. If the acquisition is delayed, the rest of the roadmap goals can’t be achieved in the given timeframe. Securing enough funding is similarly critical, since certain steps of the development process will require capital. If the ICO doesn’t reach it’s hard cap goal, it is uncertain how the project will proceed.
Initially the team was easy to reach, but afterwards all communication essentially stopped. We had several clarifying questions for them about the project, but they never answered. This is not ideal, especially since those questions were quite important for determining a verdict.
Their website and documentation could use some work; several key details (like the trading fees on the platform) could not be found. The information provided seems to suggest that the Zuflo team will in fact own 60% of all tokens. This is a major red flag and could massively impact the future value of their coin.
Generally speaking, a project of this scope should aim to disclose as much information as possible. We hope the team will update their website and papers with more detail in the future. We also hope they will upload some of their code to GitHub as well.
Hold your horses
Zuflo definitely has an interesting idea in their lending platform for SMEs and their trading platform, if it has all the functionalities described, would help with making cryptocurrencies more accessible to the general audience.
Unfortunately, there are certain red flags that have us worried, chiefly the teams lack of communication, the challenges related to acquiring licenses and the fact that the team will in fact own a majority of all ZFL. Furthermore, all of Zuflo’s media presence revolves around bounties and pre-sales, rather than development of the project or true community.
-Team will own majority of coins
-Lack of communication
-No sensible PR, media presence
-Lots of challenges due to legal issues, banking licenses etc.
For more information about the ICO, please visit the following links:
The views expressed in this document are the personal assessments of ICO Drip, based on information from the ICOs website, documentation and communication with the team.
We hope the review will provide insight and transparency to the field of ICOs and be a small step in combatting dishonest practices.
Any feedback or criticism to make this review and others even better are greatly appreciated.
|Platform||Raiden, Ethereum & LISK|
|Token Price||1 ZFL = 0.36 USD|
|Soft cap||2M USD|
|Hard cap||50M USD|