This is an update video that discusses the recent hack on Enigma Catalyst and the 50% increase in its hard cap. Please see our previous video on Enigma Catalyst (posted Aug 15, 2017) for more info: https://youtu.be/7Bu7QAz6YNc.
Full report by Crush Crypto: https://crushcrypto.com/analysis-of-enigma-catalyst/
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Note: This is not a paid review. We do not offer promotional or advertising services. Our content is based on our own research, analysis and personal opinion.
What does the company/project do?
Enigma Catalyst is an investment platform that enables developers to build, test, and execute micro crypto-funds. Through Catalyst, developers can access Enigma’s decentralized data marketplace protocol and consume valuable crypto-data that can be used in their strategies.
Catalyst allows developers, quants, and experienced traders to easily build, simulate, back-test, and eventually live trade cryptocurrencies using sophisticated programmatic strategies. Regular investors can then invest directly in winning strategies through Catalyst’s system.
However, in order to perform algorithmic trading on crypto-assets, reliable and up-to-date data is needed. Catalyst plans to curate the initial data sets, but in the future, it is expected that most data will be generated by the community in return for incentives (i.e. ECAP subscription fees).
By creating a decentralized data marketplace, investors can subscribe and consume the data while paying a fee to the contributors who provide such data.
What are the tokens used for and how can token holders make money?
ECAP tokens are used to reward creation by and for the community (e.g. trading strategies, data sources) and are consumed when community members access premium services on the platform. Right now there are two main token dynamics:
Primary: ENG is used to access data sources on the decentralized Enigma Catalyst Data Marketplace. Payment is on subscription level.
Secondary: ENG tokens are used for incentives to grow and ensure stability of the network. ENG tokens are used to create demand in the data marketplace: Reward tokens are provided to quants with winning strategies. This incentivizes more quants to come on the platform and consume data to refine their strategies and gain an edge.
Cryptocurrency investment is gaining recognition rapidly. Demand for financial analytics in the crypto space is surging – especially when institutional money start coming in. Most of the paying customers of Bloomberg / Thomson Reuters are hedge funds, mutual funds, and investment banks.
Catalyst has connections to the traditional asset management quant field – the team has interviewed around 40 quants from top quant funds like Citadel and Two Sigma.
As the project is focusing on quantitative analysis and data, the MIT background for the team is fitting.
Multiple venture capital firms have invested in Enigma, meaning that the company has already passed due diligence of those institutional investors.
The project is two years in the making and has an alpha released.
The project is open source so anyone can check its progress.
Since this is a lucrative space, there are a number of other projects working on similar things and compete with them to some degree: Santiment, CoinDash, iconomi, Melonport, and Prism.
Catalyst is targeting professional traders and funds, so if cryptocurrency cannot emerge as a legitimate investment asset class, there will be limited demand for Catalyst’s products.
The team experienced a major hack 3 weeks before the ICO with the company's website, Slack channel, mailing list all being compromised. This doesn't bode well for a company that is supposed to be tech savvy and speaks volume to .
The team increased the hard cap by 50% less than a week before the crowdsale. With the new hard cap being $45 million, the potential is much less than before. It also shows the team's greediness and how they want to attract as much money as possible.
The information in this video is for educational purposes only and is not investment advice. Please do your own research before making any investment decisions. Cryptocurrency investments are volatile and high risk in nature. Don't invest more than what you can afford to lose. Crush Crypto makes no representations, warranties, or assurances as to the accuracy, currency or completeness of the content contained in this video or any sites linked to or from this video.