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DISCLAIMER: This is not financial advice! None of the members of ICOPools.io are licensed financial advisors, hence you are urged to do your own due diligence and take your own decisions. (read more)

Arcana

Arcana

Platforms: site twitter telegram
Active Pools Min cap Bonus Commission Raised Rating Language Access Created

Активный Пул

Min cap

0.15 ETH

Bonus

40%

Commission

4%

Raised

56 / 310 ETH

1215

Rating

7

Language

EN

Access

Created

03.01.18

Last ICO deals

Min cap

0.15 ETH

Bonus

-

Commission

3.5%

Raised

45 / 311 ETH

Active

28.08.2018

Finished successfully

03.10.2018

Analytics

Category: Wallet                                                                      Country: USA  Date: October 23, 2018

 

 

INTRO

Arcana wallet is an intuitively designed all-in-one hub where user can securely invest, track and store (in distributed cold storage) his his crypoassets.

 

 

TOKENOMICS

Metrics

Round 1 (Private Sale): March 2018

Round 2 (Private Sale): ongoing

Public Sale: no

Token: ARCA

Token type: Own specification

Hard cap: $ 5M

Soft cap: $ 4M

Price: $ 0,01

Minimum investment: no  data

Bonus: up to 25%

Bounty: no

Accepting: fiat, BTC, ETH, and EOS
Сan't participate: China, US, and Singapore

 

NOTE:

  • Metrics have been changed sometime ago. In particularly are changed Hard cap and Soft cap. Also, on the site of the ICO Drops was found ICO price $ 2.04 (which is 99% discount).
  • On the Telegram, whitepaper and website sale periods named differently, and it’s misleading.
  • The soft cap is too high for the current market (optimal is 1,5-2M and keep it ⅓ or ¼ of Hard cap).
  • The sale is very time-stretched (optimal is up to 1 month).

 

Tokens distribution

Token distribution:

Crowdsale funds distribution:

NOTE:

  • Team aims to perform Token Sale every year until 2022. If for every sale should be raised 15%, then reserve should start from 2019.
  • Allocation for Team is too high (optimal is up to 10%).
  • It would be better if allocation for R&D would be separated from Operations and and remain 35%.
  • Total allocation for the sale is 80%

 

Protective measures against the tokens depreciation

Tokens for the Team will have 4 year lockup, 25% will be vested yearly.

 

Tokens for Sale will be released: 33% immediate release, 6 month total lock up 11% monthly vesting

 

NOTE:

  • It’s not clear are tokens for Angel Investors and Enterprise Investors included in 6 month lockup or not.
  • The address of the wallet of smart-contract ICO is not specified yet.
  • There is no escrow agreement, that could protect investors funds.

 

 

PRODUCT

The relevance of market problems solved by the project

Private keys can be easily lost.

 

Hardware wallets are expensive and will always be subject to human negligence of losing the device or forgetting seed phrases.

 

Despite millions of dollars being lost on compromised exchanges, traders and HODLers have no choice but to accept the risk of holding cryptoassets in vulnerable hot wallets within the exchange. Most exchanges help us claim mainnet swaps, blockchain forks, and gas. The current alternative is to go through the cumbersome, slow process of transferring assets from the secure hardware wallets to exchanges in order to claim those profits.

 

The description of key products and project technology

Arcana has engineered a secure and scalable distributed cold storage solution called Arcana Smart Vault Technology (SVT). Arcana SVT integrates physically-secured hardware with digitally-secured multi-cloud platform into a global infrastructure. Arcana’s entry product is a multicurrency wallet rooted in the SVT. Wallet will support cryptocurrencies from various blockchains. Currently supported: BTC, LTC, ETH, ERC20, NEO, NEP5. In development: EOS, ADA, XRP, Dash, ZEC, VEN

 

Some features of Arcana wallet:

  • Free, instant P2P sending within Arcana network (assumably ARCA <--> ARCA) because all user activity is handled off-chain (excludes US users).
  • Masternode pooling. Arcana allows users to be included in a pool for master node staking for various Proof-of-Stake coins. According to team’s statement, this is a major passive income generating option for our users when Ethereum switches from Proof-of-Work to Proof-of-Stake consensus with Casper. Details are not provided.
  • Arcana allows users to subscribe to pre-selected, high performing trading algorithms directly from their portal interface instead of self-managing dormant assets in a hardware wallet.
  • Lending.
  • Multi-sig.
  • Automatic claiming of forks.
  • For our users’ convenience, ERC20 tokens stored in Arcana are automatically swapped to Mainnet for supported blockchains.
  • Trade can be performed right in the wallet.
  • Enterprise investors will have customizable solutions.
  • Use of micro-segmentation and containers to address compartmentalized API’s.
  • Funds of enterprise investors will be insured (and amount of insurance will increase from $ 10k to $ 100k on Q2 2019).

 

The backbone of Arcana SVT is a network of net-gapped machines (computers with no direct access to any network). Arcana’s net-gapped machines (NGM) are stored in an undisclosed number of fortified, nuclear-proof underground locations around the world. According to team’s statement, while they cannot disclose the specific sites of their data centers, each center is enterprise-grade and is entrusted with securing the most sensitive data of Fortune 500 companies. Standard security measures include 24/7 surveillance and armed guards.

 

According to team’s statement their approach to security is to discourage attackers through an 3 layer architecture (one, two, three) that makes the cost of any attack at any point far greater than the reward.

 

Users can use ARCA to pay for all transactional fees for all features on our platform. User will receive a 50% discount when using ARCA to pay for network transaction fees.

 

Arcana charges a fee for withdrawals and for various trades and transactions.

 

NOTE:

  • It’s not clear in what hardware structure project is integrating.
  • It’s not clear on what money project aims to rent mentioned security resources. Also, there are not many places around the world with such security measures - so it’s a step to a centralization.
  • ISO / IEC 27001 certificate doesn’t guarantee that code of the blockchain implementation doesn’t have exploits.  
  • It’s not clear hardware wallets of what vendors Arcana aims to use.
  • It’s not clear what project means by excluding US users in P2P sending.
  • Tech specs of ARCA blockchain are not disclosed.

 

The stage progress and milestones of the project development (Roadmap)

The Roadmap provides lite technical overview on the platform development. According to the Roadmap the public launch should be done on Q2 2018, but as of 24 October 2018 project in a beta and it’s not clear when will be final release. Also, email with access to the beta wasn’t received (granted to subscribers). So there is only demo video available.

 

Github is not provided.

 

NOTE:

  • The codebase of the project is not provided.
  • Audit of the codebase by third-party is not provided.
  • Access to MVP is not provided.
  • Roadmap doesn’t provide deep technological overview on the project development.

 

The importance of blockchain in the project

ARCA blockchain will be used to perform activities with ARCA token, which will be used to lower withdrawal fees. It’s not clear how this will be performed.

 

 

TEAM AND PARTNERS

Experience and the team achievements

The team consists of 10 employees.

 

David Zhu, CEO - Entrepreneur In Residence at Rokk3r (10 mths) / Co-Founder of Enplug (3 yrs 4 mths).

 

Craig Kuang, CFO & Co-Founder - Limited Partner at 500 Startups (3 yrs 7 mths) / Managing Director at Eversource Capital (3 yrs 7 mths).

 

Benjamin Tse, CTO - CTO at Travelmate (2 yrs 2 mths). His previously had mainly design and branding experience. He has no confirmed experience in Blockchain Development.

 

Jason Rudder, VP of Engineering - CTO at Griddy (2 yrs 3 mths) / CTO at Trucoin (2 yrs) - service to buy Bitcoins (as of 24.10.2018 website is offline, last tweet dated 2015) / Senoir Infrastructure Engineer at BT (1 yr). His  participation in the project is not confirmed.

 

Albert Chen, Head of Blockchain - Lead Developer at Chrysalis Blockchain Consulting (10 mths). His previously had mainly design and branding experience. He has no confirmed experience in Blockchain Development.

 

Additional members in DevTeam: Ryan Flynn (Head of DevOps), Justin Anderson (Sr Frontend Engineer), Graham Haley (Software Engineer), Aaron Gooch (Senior Software Engineer). They have worked at various companies Trustify, Linkedin, DB Schenker, EnerNOC, etc. But confirmation to their experience in Blockchain Development is not found in open sources.

 

NOTE:

  • Experience of developers in blockchain development is not confirmed.
  • Participation in the project of some team members is not confirmed.
  • Some team members on engineering posts have mainly experience in design and branding.

 

Advisory board

Advisory board consists of 4 people.

 

Ryan David Williams, Legal Advisor - Advisor at Constellation Labs (1 yr 3 mths) / Founder of Experience Legal (2 yrs 1 mth). His participation in the project is not confirmed.

 

Jesse Ratner, Branding & Marketing - Founder of The Blockchain Agency (5 mths) / Co-Founder of LMNO STUDIOS, Managing Partner (1 yrs 1 mth) / Freelance Creative Director / Writer (20 yrs 10 mths). His participation in the project is not confirmed.

 

David Atkinson, Finance & Legal Advisor - Executive at Holo.Host (1 yrs 3 mths) / Co-Founder of Fetch (1 yrs 4 mths). His participation in the project is not confirmed.

 

Navdeep Reddy, CIO/Advisor - CIO at Enplug (7 yrs 10 mths) / Tech Advisor at Drink Pass (1 yr). His participation in the project is not confirmed.

 

NOTE:

  • Participation in the project of all advisors is not confirmed.

 

Strategic partners

Not confirmed: BPM - is a compliance, IT and Systems Audit. Arcana has engaged with BPM and its related parties to perform regular audits on project's infrastructure.

Not confirmed: Republic - crowdfunding platform.

Not confirmed: Cryptolend - online margin lending.

Not confirmed: IdentityMind Global - provides a SaaS platform that builds, maintains, and analyzes digital identities worldwide.

Not confirmed: Native Ads - is the Leading Native Ad Exchange for Content Publishers, Brands and Agencies.

Not confirmed: Experience Legal - is a Silicon Valley-based law firm helping entrepreneurs turn concepts into companies.

Not confirmed: Cointaxes - a tax preparation tool for consumers and tax professionals.

Not confirmed: Compound - is an open-source protocol for algorithmic, efficient Money Markets on the Ethereum blockchain.

Not confirmed: Bitfinex - one of the biggest cryptocurrency exchanges.

Not confirmed: BitMex - one of the biggest cryptocurrency exchanges.

Not confirmed: Poloniex - one of the biggest cryptocurrency exchanges.

 

NOTE:

  • Claimed strategic partnerships are not confirmed.

 

Large investors and investment funds

No data

 

NOTE:

  • There is no information about investments from large investors.

 

 

MARKET

Competitive environment

Dan Morehead, Founder, and CEO of cryptocurrency hedge fund Pantera Capital said on CNN that he believes the cryptocurrency market cap could one day be worth $40 trillion. Similar predictions give billionaire investor Mike Novogratz.

 

With that said, it’s clear that investors will have to keep an eye on the security of their funds. So different wallets that are providing services to store funds will be in demand.

 

Direct competitor of Arcana Wallet is Vault12 (raised $ 32M during the ICO, m.c. is unavailable).

 

Most close competitors can be found in the segment of cold wallets.

 

Wallet provider Ledger was founded in 2014 and released their most successful product  The Nano S in June 2016 with price €69.60 before taxes (some time after that price were changed to the current €94.80, which includes shipping costs). Since then company recorded revenue of $56 million in 2017, according to Bloomberg (paywall), and around $734,000 in 2016 according to filings in France. In january 2018 company announced, that there were sold more than 1 mln of wallets, providing the company $116 million revenue. With offices in Paris and San Francisco, Ledger targets selling 3 to 6 million of its hardware wallets this year. Ledger wants to increase revenue by growing the software portion of its business, aimed at customers like hedge funds, banks and corporates, which doesn’t rely on the physical dongle but instead on a more complex server-based structure. For this purposes they are building Ledger Vault.

 

In case of the Trezor (founded 2012) information about the revenue of the company is not found in the public sources. Wallet provider selling two products for its customers: Trezor One for €89 and since the end of the 2017 Trezor Model T for €149.

 

But all modern cold storage competitors are centralized - that means they can be be destroyed, lost or stolen. While Arcana Wallet brings decentralized solution for critical data storage.

 

Other competitors highlighted by the team:

  • Bitgo (strong team, well-developed infrastructure, lots of tools).
  • Xapo (custodial service, strong team, well-developed infrastructure, lots of tools)
  • Wallets on CEXs.
  • Exodus (convenient, number of coins is updating all the time, new software update each 2 weeks, not hacked yet).
  • Ethos (10,000+ installations on GooglePlay).
  • Ledger (already mentioned above).

 

Technological advantages

The team has provided comparison table of project’s competitors, but there is a misleading information (for example, Vault12 is a geographically distributed storage, while in the table stated an opposite).

 

  • ARCA transactions will be free and instant.
  • ARCA token can be used to reduce withdrawal fees (It’s not clear how this will be performed).
  • Masternode pooling (details are not provided).
  • Arcana allows users to subscribe to pre-selected, high performing trading algorithms directly from their portal interface instead of self-managing dormant assets in a hardware wallet.
  • Lending (partners are not confirmed).
  • Multi-sig.
  • Automatic claiming of forks.
  • Automatic swap of ERC20 tokens on Mainnet of supported blockchains.
  • Trade can be performed right in the wallet (partner is not confirmed).
  • Enterprise investors will have customizable solutions.
  • Use of micro-segmentation and containers to address compartmentalized API’s.
  • Funds of enterprise investors will be insured (and amount of insurance will increase from $ 10k to $ 100k on Q2 2019).

 

NOTE:

  • Some information about advantages is misleading (for example, Vault12 is a geographically distributed storage, while in the table stated an opposite).

 

 

SOCIAL ACTIVITY

The project popularity in the social networks and discussion forums

The project is detected on the radar of the influencer ICO Pantera, but rated low.

 

Twitter – 264 followers, an average number of likes per post is 3, and 1 repost per post on average, with 0 comments on average. The audience’s activity is low.

 

Telegram – 3,3k members. The audience’s activity is medium.

 

Reddit - empty.


Medium – 73 followers, a number of likes per post vary from 0 to 151, with 0 comments on average. The audience’s activity is low.

 

 

RISK ASSESSMENT

Pros:

  • Market problem is actual;
  • Decentralized storage for digital assets;
  • Atomatic deposit of coins on case of forks and mainnet releases of ERC20 derivatives;
  • Insurance for 100k (or higher) deposits;
  • Possibility to traderight in the wallet (additionally can be used algorithmic trading).

Cons:

  • Most of team members have no experience in blockchain development;
  • Advisors are not confirmed;
  • Strategic partners are not confirmed and many of project functions are depending on those partnerships;
  • There is no investments from large investors;
  • The need in blockchain in the project is low;
  • Some of the project advantages are already implemented by competitors.
  •  

CONCLUSION: Arcana Wallet is a decentralized multicurrency wallet with insurance of 100k investments (or higher) and automatic deposits in case of forks and mainnet releases of ERC20 derivatives. Claimed functional is promising, but it mostly depends on the integration of services of partners (which are not confirmed). Advisors are not confirmed too. Most of the team members doesn't have confirmed experience in blockchain development. Information of investments from large investors is not found in open sources. Model of annual ICO doesn't look financially attractive and justified enough.

 

 

Fraud risk - medium. Community interest - low.

Product - 5.9
Team and partners - 5.1
Market - 7
Average score - 6

DISCLAIMER: This is not financial advice! None of the members of ICOPools.io are licensed financial advisors, hence you are urged to do your own due diligence and take your own decisions. (read more)