Toss into Coss? An Analysis Of A Hyped Project
There is much talk right now about (an acronym for Crypto-One-Stop-Solution) and which seems to do pretty fine post-ICO in terms of trading volume (for their current state). But let's take a view at the project first:
COSS stands for Crypto-One-Stop-Solution and represents a platform which encompasses all features of a digital economical system based on cryptocurrency. The COSS system consists of website payments, seller tools, a marketplace, financial module, e-wallets, coin facilities and a mobile platform. The platform unifies the most popular crypto and fiat currency services, e.g. exchanges, payrolls, wallets, acquisitions and transactions.
COSS decided to go a forked route and offers three services at once:
- A multi-crypto-wallet, where you can store all your cryptocurrency funds in a single location safely.
- An exchange for multiple cryptos ( currently BTC/ETH/VRS) and fiat (USD/EUR/SGD) currencies
- A payment gateway with merchant platform with the marketplace, payment modules, and other seller tools
If this whole ecosystem they are about to build is not ambitious for an ICO, we don't know what this word means. The revenue source of the COSS project obviously fees from the exchange and the payment processing fees for their gateway. Payment providers are in a quite profitable niche, therefore it is almost saturated and the competition is hard. But let's tackle each of the points separately:
The COSS wallet
The website claims it to be a one-for-all wallet, which can store all our crypto funds in a safe environment. We have been only able to find the exchange wallet whilst our research and this is far away from “all coins”. Generally, we think it is no good idea to store coins or tokens directly in an exchange – so the question is if there is an external wallet to be released? As this is just the usual “exchange wallet” like on Hitbtc, Bittrex, you name them.
The COSS Exchange
The exchange is already live in beta and can be visited here. The design and UX is not too appealing at all, and they should invest a bit to improve it. The taste of Etherdelta is on the tongue. Whilst we accept it for ED as it is decentralized as a main advantage, we don't like it for a centralized fee-based exchange. There are some advantages the COSS exchange offers though: the very high amount of very niche altcoins, which are likely rare to find on other exchanges and fast transaction processing. Furthermore, from an investors point of view, the really interesting features kick in as follows:
- All COSS traders start with a trading fee of 0.2% as default and with increasing trading volume, this can go down to 0.04%.
- A very generous amount 50% of their Exchange revenue is issued to the token holders of COSS and makes you participating with the growing success.
While it seems to be teasing to hold a dividend-paying token, go and register yourself to get an own picture for the quality of the product. Our own verdict was that we didn't like the interface very much, nor found it comfortable to trade there (by the way: inactivity logouts are not a nice feature). Interesting: COSS offers direct transfers of your fund between the wallets, the exchange, and the merchant platform all in one backend. So if you are a trading retailer that takes cryptos for payment, your life might get a bit more convenient.
The COSS Payment Gateway
As one of the SmartOptions.Io Team is into e-commerce, we can say that the niche of payment providers is paying off for the ones that are able to edge over the competition. The approach of bringing Cryptos to mainstream PoS is not new, and others, like are doing pretty well in other markets with the establishment of this goal.
Once integrated with their seller tools, the customers can pay with BTC, ETH, LTC, DASH, NEM, LSK, ARK, and their in-platform token VRS.
The gateway is used currently by 100+ stores, which is yet very low and must increase significantly over the next years.
With a Point of Sale, you can start taking crypto payments with your mobile via Android & Web App. The payment gateway can be an interesting feature in the future, however, currently, the market has not yet accepted Cryptos on a level that is significant. In terms of revenue generation, it is interesting that they take a 0.75% transaction fee with the COSS merchant platform, and even more interesting for the token holders is that they again get 50% of this revenue paid as dividend. As being said, we don't believe that is pretty much at the moment, but could if this topic starts to take of. To be fair, they are properly working on it and are about to
- develop of new features for their platforms
- create strategic fintech/blockchain partnerships
- acquire high potential startups and projects
Invest or not to invest in COSS?
The ICO was hard capped with 216,667 ETH, though they reached only a fraction of their goal (8,245.45 ETH). However, their fanbase is huge and people seem to love trading it as the volume shows. If you purchased at the ICO you would likely get it cheaper at the moment. However, it is a token with a working product, a team behind that cares for it, and (a yet small) userbase for its ecosystem. The project itself seems a bit fuzzy on their website and we think they might have overloaded themselves with the amount of work that is coming up by building so many products all at once. There is major (ground) work to do and this won't be easy. Establishing a coin exchange within the sea of the already existing requires heavy marketing efforts and constant development in terms of features – the same goes for their venture as a crypto payment provider, though this seems to be the most advanced card on their hand right now.
Right now there is much room to grow upwards for COSS and, despite the concerning factors, it has definitely some hype and a large fanbase across the community. We can see two opportunities in investing in COSS:
- Get on the board fast for the short term, monitor the growth of it, and profit from the hype.
- If you believe in the vision of COSS and see its business model succeed, stay in for long term, with a horizon of 1-2 years.
We can see that the value of COSS token might increase over the next weeks, but due to the quality of the product and the hefty work involved to get all these balls rolling it will be risky for the long term. On the other hand, the rewards with the dividend payments are attractive to hodlers and can pay off nicely once the project took off (which we doubt). Short term investors could enjoy the ride of the current hype, but should not become too greedy. We will go with a pending order at 0.000360 ETH with a small amount, sell once we have 50% of profits taken. We refrain from a long term investment due to rumors that one of the team members has been involved in pyramid schemes (not verified), as well as the products we don't believe in.
Entry Price: 0.00036 ETH
Project Website: https://coss.io/
Circulating Supply: 14,709,008 COSS
Total Supply: 80,000,000 COSS
Max Supply: 200,000,000 COSS