Hide your kids, hide your wife – startups these days are increasingly turning to alternative forms of funding like initial coin offerings (ICOs) and taking everyone’s money (or at least ours).
Civic, a blockchain-based identity verification (IDV) company, is one such startup that sold $33 million in Civic tokens (CVC) back in June. 33 percent of the 1 billion total Civic tokens were sold in the ICO.
Another 33 percent will be awarded to companies and users to accelerate the growth of the Civic network and yet another 33 percent will be sold after 3 years. The remaining 1 percent covered tokensale costs.
Due to Civic’s use case (facilitating low-cost, on-demand, and safe identity verification) as well as team (Vinny Lingham being a respected name in cryptocurrency circles), interest in the Civic project has taken off, with around $1.2 million worth of CVC being traded each day and the price of CVC trading around 2 times its initial price on exchanges as of September 21, 2017, 12 P.M. EST.
Started by CEO Vinny Lingham, who some refer to as the “Bitcoin Oracle” for his prophetic bitcoin price predictions, and CTO Jonathan Smith, Civic aims to connect companies and consumers by facilitating identity verification while simultaneously keeping personal data secure.
As an example, using Civic’s Secure Identity Platform, travelers will be able to use their phone, which has personal, identifying information like name and passport number, to identify themselves at the airport check-in counter, security checkpoint, hotel, and so on instead of worrying about carrying several documents and identifying themselves from square one every time.
The traveler’s fingerprint would be used to prove that the traveler is the owner of the data. On the other hand, organizations can validate the traveler’s data on the blockchain, where it is decentralized, secure and unchangeable.
Features and Uses
Secure Identity Platform (SIP)
Using blockchain technology, user identities will be verifiable, decentralized, and secure. Civic’s SIP uses verified identities for multi-factor authentication without needing usernames or passwords but instead using biometrics, such as fingerprints.
Various IDV Use Cases
On Civic’s site, Civic states that users can use their IDV services for a variety of cases, such as financial, e-commerce, cryptocurrency, medical, e-signature, and social identity verification.
Secure Private Sign-up & Login
Similar to Facebook Login, users can use Civic’s Secure Private Login (SPL) to create new accounts on websites and apps without the need for a username or password. However, unlike Facebook Login, Civic’s Secure Private Sign-up (SPS) will ensure that accounts of new users will be legitimate.
Identity Theft Protection
Civic also provides protection from identity theft through monitoring identity theft threats, issuing potential identity theft alerts, offering fraud support, and offering up to $1 million in identity theft insurance.
Rewards for Providing and Validating Identity
CVC will be used to transact IDV services. CVC paid in transactions will be given to both identity validator (e.g. service provider, such as a company) and identity prover (user) as a reward for mutually sharing information.
History of Civic Altcoin
CEO Vinny Langham, who previously founded Gyft, a digital gift card platform, which was acquired by First Data Corporation in 2014, realized after a decade in e-commerce that there was no single solution for consumer identity fraud. This realization led to him deciding to found Civic.
As stated, Civic had a large ICO, with $33 million in token sales. During Civic’s ICO, investors had to create Civic accounts and confirm their identities to ensure a fair distribution of tokens (up to $25,000’s worth per investor), which had proved to be an issue in ICOs like Brave’s ICO, where a few investors bought the majority of the tokens.
Civic has already released its identity verification project and won the Best New Startup award at K(NO)W Identity Conference 2017.
As of September 21, 2017, Civic’s current partners include wikiHow, TokenMarket, BitGo, Lykke, RSK, StockTwits, ShapeShift, and doc.ai.
Total Supply and Circulating Amount
CVC’s total supply is 1,000,000,000, and its total circulating amount is 340,100,000. At a price of $0.336 per CVC, that brings CVC’s total market capitalization to about $114,273,600 (September 21, 2017, 12 P.M. EST).
Conclusion: Is CVC Worth a Buy?
While Civic’s premise is legitimate and would dramatically decreases costs, danger, and time in the field of identity verification, there are several other companies doing the same thing with blockchain.
Personally, we believe like most cryptocurrency-related investments, CVC is a risky investment and wouldn’t recommend allocating significant amounts of one’s portfolio to CVC. CVC faces a few challenges:
- Growing the Civic network may prove difficult as users may feel uncomfortable sharing sensitive, personal data with a yet-to-be proven startup.
- Another challenge in growing the user base would be the fact that not everyone has a mobile device capable of biometric identity verification, such as through the use of fingerprint scanners.
- CVC supply is also higher relative to cryptocurrencies like bitcoin so we don’t see price shooting up to astronomical levels.
- CVC has yet to boast any mainstream, large corporate partners that would see the platform getting a lot of usage (at least for those of us in America).
If anything, we would buy CVC to actually use the platform for quick, easy, and secure IDV services – that is, if the platform proves to be useful and is adopted by many companies we do business with.
Thanks for reading!
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