International Auto Club (IAC) ICO Review: Is it Legit?

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There are two ways through which a product can reach a consumer. Either he/she purchases the product directly from the manufacturer or he/she gets it from a middle man, the retail trader. If he goes the first route, then there are chances that the household might save a buck or two for obvious reasons. Fact is there are many economic benefits when the objectives of the consumer-who always intend to save-and those of a business always wanting to turn in a profit while reducing expenditure converge.

There have been attempts before to converge these divergent interests not only because it will show the good will of businesses but it also means there is an opportunity, a gap that needs to be filled through trade by volumes. Unfortunately, this has been the business model through which many businesses base their ideals of. Preference for higher cost per unit rather than bulk pricing which several studies show is way profitable.

Problem Statement

Of course, we need new solutions to meet increasing demands and calls for cost slashing. Amongst the many problems that ought to be addressed are these clashing objectives between the buyers and sellers/businesses in this case.

Yes, some temporary solutions have been devised to attract and or maintain customers like cash back and joint purchase services but all of them are temporary props. Besides modern technology fails to be an effective solution when consistent cash backs, discounts and leads conversions (from businesses side) is needed. Mind you, the global cashback market hit $80B in 2015 and is expected to expand if statistics are considered.

Talking of cash backs, do you notice that market leaders lack such services? And when available they are only restricted to online stores and businesses meaning those users shopping on offline stores are excluded. This not only means households don’t have an avenue to save but will also miss opportunities to earn from referrals. Let’s also not forget that most of these cash back services don’t have the consumer needs in mind.

Besides cash back services, partnership programs could be potential saving avenues for households. Unfortunately most of them are connected to network and multi-level marketing businesses whose reputation and marketing styles remain too aggressive and intrusive for ordinary users.

That is apart from some of MLM successful promotion and marketing methods being dismissed. This therefore means potential customers miss out on otherwise attractive offers and possible referral and partnership programs.

Recent studies have also shown that discount systems and or cash back services are an inconvenience to users. What they need is a model that combines an effective discount and cash back system with cryptocurrency payment options and if possible, a window for earning passive income from these services.

From these, it is obvious that there is a disconnection and a break down in technological implementation needed for efficiency.  Technology needs to be channel through and if possible the number of intermediaries involved in a transaction slashed and/or eliminated if the cost per unit of quality product is to be affordable for ordinary consumers.

This is where International Auto Club, IAC steps in.

IAC Solution

IAC is a Russian working payment platform that was formed 4 years ago and has more than 70,000 partners and 600,000 users offering discounts and offers for IAC users. The developers of this platform had the end user in mind and are in a fore front making it possible for families to purchase quality services and products at fair wholesale prices.

IAC main objective is to unite and help people save and cut down on family budgets and in the process improve the quality of their lives. The platform founders aim to incorporate the automation, transparency and security courtesy of blockchain to further improve efficiency and effectiveness of the platform. Blockchain will also allow creation of their cryptocurrency, AutoUnit which in turn allows the coin to be listed on an exchange.

At its core, IAC is simply a payment platform that merges the benefits of cash back, referral and partnership programs for its users irrespective of the store type. Both offline and online stores benefit from new customer exposure and referral /partnership programs through its 9 tier recommendation system.

So far, IAC is the only platform with its own payment system and a cash back service available at more than 12,000 offline stores spread in Russia and CIS countries. IAC payment system has its own wallet making it possible for participants to settle all goods or services within the platform.

On top of this, participants will be rewarded when they participate in status upgrades, projects or partnership programs. They also have an affiliate program where participants earn with every referral and even receive a percentage from all their purchase.

From this it is evident that the consumer has a platform that they can make cheap purchases and earn from their generous referral program. Consumers can even upgrade and increase their earning since the amount of fund allocation increases.

On the other hand, businesses don’t have to advertise as they have access to customers all over the world and can even make free placement of offers and products directly on IAC site. If they want to transact while on the go, they can simply download IAC app, place free offers straight from their app and if a business opportunity present itself, they can easily process large wholesale orders. Without forgetting, IAC have developed their internal management and motivation system for businesses’ employees.

IAC Team

Valery Schelkonogov is the president of IAC and an established businessman, Evgeny Schelkonogov is the chairman and brings with more than 18 years’ experience in business, startups and investment while Nikita Nikitin is the co-chairman with 8 years of management experience.

Others include Anastasia Khranilova, Maxim Nazin, Sergey Zaycev and 6 others core members. IAC will be advised by Denis Erofeev and Richard Dilendorf.

IAC ICO Details

IAC will make use of two tokens. One, the Ethereum based AutoToken is ERC 20 complaint and is what shows on the user’s balance. AutoToken is not meant for exchange trading. Instead it will be constantly charging AutoUnit before being destroyed.

AutoUnit (AU) will be the cryptocurrency used within IAC platform and each AutoUnit is divided into 105 subunits, can be traded on an exchange and built on top of a separate blockchain system, Bitshares 2.0 or Graphene using secp256k1 for signature generation. The result is a community acknowledged “technological democrat “ and fork resistant Delegated Proof of Stake (DPoS) system adopted from Graphene that guarantees high speed in block generation, data synchronization and transaction settlements.

IAC plans to raise money from a 5 stage ICO process where 70% of 85,982,639 generated AutoTokens available for early adopters.  10% will be reserved for the team, 15% for bounty-only eligible for IAC partners with AutoTokens worth more than $1000- and 5% for project advisors. The Pre-sale begun on January 25, 2018 and ends on March 18, 2018. Pre-sale investors get a 20% discount and can only pay in ETH with a minimum investment of $22-expressed in ETH. The crowd sale will official end on July 22, 2018 if the soft cap is met.

Each AutoToken will cost $1 to be exchange at 10 Aus at the end of the ICO. On top of this, there will be an additional 3M Aus. For liquidity, AU will be listed on different exchanges and since IAC is not a start up, it will guarantee AU.

$50M is the ultimate goal and 58% of the funds collected will go towards development of IAC payment system, 32% towards marketing while 10% will meet expenses related to operations, recruitment, technological development and platform support.

Conclusion

The global cashback market struck $85B in 2015 and while future projections look grand, it will need an experienced team to pull off such a feat especially if they need want to go global.

Investors can have a soft spot for this company given the metrics that they have provided and the fact that is already a working company actively involved in cashback business. Now, the idea of rapidly expanding and absorbing up to 1.2M suppliers, increasing user base from 0.6M to 60M, expanding their global presence by opening 1500 offices and creating their own bank all within 4 years is crazy and over ambitious.

That’s my only caution and unless otherwise, investors should tread with caution. A company that over promise and under delivers shatters and ruins their reputation.

Thanks for reading!

 

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The information provided on iCoin Blog is for informational purposes only. It should not be considered legal or financial advice. You should consult with an attorney or other professional to determine what may be best for your individual needs. iCoin Blog does not make any guarantee or other promise as to any results that may be obtained from using our content. No one should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence. iCoin Blog also may contain affiliate links and the owner of iCoin Blog may receive a commission.

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