ICO Reviews

STK Token Review & Analysis

STK is a mobile finance solution platform for the twenty first century. With a platform focused on accessibility, STK is looking to be the hub for where you can make instant payments at point of sale locations all around the globe.

STK Token Review & Analysis March 2, 2018Leave a comment

Summary:

STK is a mobile finance solution platform for the twenty first century. With a platform focused on accessibility, STK is looking to be the hub for where you can make instant payments at point of sale locations all around the globe.

Having a STK digital wallet or STK card will allow for seamless integration of cryptocurrency in everyday transactions. Building on top of the public Ethereum blockchain, STK has a digital wallet in private beta as well as a traditional card solution that will be available in the near future.

What is Stack Token?

STACK, the company behind the STK Token ideally wants to be a full service personal finance solution. Along with a cryptocurrency wallet in which STK token will be used, they want to build a strong relationship between users and their money.
STACK will offer members fee free digital money services including real time conversation from fiat to crypto, tips tools and tailored advise to reach their financial goals, and the ability to withdraw cash from any ATM.

Each Stack account will come with a prepaid card, which is a part of the digital wallet. By utilizing its current payment facilities and network over 200 countries accept today, they believe that long term merchant partnerships are within their grasp.

Their goals are to have crypto to fiat exchange in real time, anywhere in the world credit cards are accepted right through your phone. Hailing from Crypt haven Canada, STACK is the first financial technology company in North America to offer members a mobile tap to pay option attached to a digital money account. The STACK Wallet is a working product that is currently in private beta with over 20,000 people.

Problem & Solution

STK will enable real time point of sale transactions directly from user’s private cryptocurrency wallets. By solving this problem, the STK token will be vital to two important areas for blockchain adaption.

The first is that there is very limited merchant acceptance of cryptocurrency. STACK will allow the cryptocurrency wallet to be used 39 million merchant locations with its POS friendly application. The other key problem is the transaction much occur in real time. Due to the inefficiencies of writing each payment transaction to the blockchain, STACK will create State channels similar to the Lightning Network of Bitcoin or uRaiden for Ethereum.

All customer transactions will go through the STK state channels which is backed up by an active liquidity pool to make the point of sale instant. Here is where the token comes into play, the STK solution will be integration into the Stack digital wallet. The only way to have access to the STK channels is to pay with the STK token which will pay for the operating cost of setting up and closing a STK channel.

Differentiating itself with other crypto solution, the STACK wallet has a user-friendly platform with active partnerships based on an actual working product. Tap to Pay functionality to key to cryptocurrency adoption and the STK token will power that adoption.

 

Token Economics:

  • Token Names: STK Tokens
  • Tokens Available: ~309,085,400 Tokens
  • Max Funds Received: $17M for 55% of total token supply pegged at ETH = $689 / Community Airdrop is 1.25 million STK tokens (0.25% total supply) 
  • ERC20 token: Yes
  • Crowdsale date: ~Feb 2018 – Public Crowdsale Cancelled

Team

Miro Pavletic

CEO of Stack

Agile Execution Leader with demonstrated leadership skills and a proven track record with premier brands including VIRGIN, MASTERCARD, TD Bank, CIBC, BELL MOBILITY, CIBC MELLON GLOBAL SECURITIES. Provides sound strategic direction and execution across mobile payments, online & eCommerce, marketing, campaign management, I/T, sales, operations, and finance disciplines in large, complex businesses to innovative Start-Ups.

Nicolas Dinh

COO of Stack

A dynamic digital commerce and fintech business leader who specializes in product strategy, product development and go-to-market execution of mobile/e-commerce payments solutions. Has a proven track record of leading the mobile product management efforts by creating and executing mobile/information technology platform and infrastructure strategies.

Chad Leger

CFO of Stack

A strategic finance and operations leader with 20 years of experience in the technology sector leading teams to drive shareholder value for businesses ranging from startups to Fortune 100 companies. Experience with raising debt and equity, as well as M&A.

Roadmap (Business & Technical)

NOVEMBER 2016
Alpha and Host Card Emulation (tap-to-pay functionality at POS)

JULY 2017
Token design leveraging State Channels finalized with Ledger Labs

AUGUST 2017
STACK Beta announcement and launch with global POS support and social sharing

OCTOBER 2017
Token Generation Event (Pre-sale Oct. 11, 2017)

Q4 2017
Commercial Launch with Fiat

Q3 2018
Commercial Launch with Crypto

Strengths

  • A Real Working Platform
    With a product in active beta and over 20,000 participants, the STACK team has shown they have the ability to build a real software-based product with working point of sale integration. Other platforms may have rushed to build their product before its sale and some don’t even have a product at all.These 20,000 STACK app holders are currently able to tap to pay for multi currencies, using their app or the chip card. Even more, they can celebrate moments on the STACK world stream and get tips and tailored advice within the application based on their financial goals.
  • Partnership with Mastercard
    Not only does STACK have a working product with users on the platform, they have very active partnerships in the business community include a partnership with Mastercard. Although focused on Canada only at the moment, users on the platform will be able to have a Mastercard prepaid card inside of the STACK app. This Mastercard integration will allow for access whenever and online and in store shopping.This partnership with a giant payment provider such as Mastercard shows that the STACK platform is already active and ready to be integrated with merchants across the world.
  • Closed Public Sale
    With a plan to have a public sale in December of 2017, the STK team decided to cancel the public sale portion of the token generating event. Not only is this a great sign, it shows just how much demand for the STK token there is. Not all ICO’s have an oversubscribe count on their presale and public sale.Even better, all STK community members in their Telegram, Medium, Discord and Twitter will be eligible to receive a token air drop of STK. Overall the STACK team decided to give back to the community by handing out 1,250,000 STK tokens. This airdrop should promote more awareness and traction for the STK ecosystem.

Weaknesses

  • Does this really need its own coin?
    When you think about the STK token, and what STACK is trying to do. The solution makes complete sense. Cryptocurrency has limited upside if there is no adaption and there are plenty of benefits if it can be integrated with point of sale solutions. But why does STK need its own token? It would cheaper and involve less friction if they just built through Raiden or even on top of Bitcoin and the Ethereum Network via the Lightning Network.Even more so, what is stopping larger payment providers with bigger networks and deeper pockets from building the very same product, effectively making the STK Token useless? Those answers remain to be seen.
  • One Central State Channel Provider
    Regardless of which merchant you are trying to pay with, in the STK ecosystem you will be opening up a stake channel with STK. Because STK has access to the liquidity pool for transactions, this can be a good or bad thing. The benefit is higher liquidity for large transactions but it makes the transaction in nature very centralized.  Things likeWhat if there is an issue with the network? What if the governance of the STK token is in question?  This lack of clarity and ultimately lack of decentralization may inhibit STK token adoption as many early adopters believe in the focus of decentralization as much as they believe in access to multiple cryptocurrencies.
  • Unpredictable State Channel Costs
    With a focus on state channels to facilitate transactions in the STK ecosystem, one would anticipate that any spike in state channel closing or opening costs could hurt the platform including prevent merchants from wanting to use the STK token and limiting its value.If scaling efforts aren’t solved by the team at Ethereum or STACK, then there will be limited merchants on the platform prohibiting liquidity in the liquidity pools. If there are too many merchants, and the costs of opening and close the state channel isn’t monitored and gamed correctly, there will be limited chance at mainstream adoption.

Our Verdict:

STACK, the team behind the STK token ICO are in a great position to be a leader in the race to be the digital asset to point of sale purchase provider of the future. With so much hype and interest that they had to terminate their public sale, many are excited about their working beta product and the future it holds.

That is not to say there aren’t questions about the platform. With only 20,000 users based in one region (Canada), one must wonder if they will be able to scale and scale in a way that the cost of opening / closing state channels prevents mass adoption. Without a good number of merchants on the platform, there will be limited liquidity which will prevent the platform to work as provided.

Regardless, the team behind the STK token are solving a gigantic problem in the blockchain industry. How can a digital wallet be integrated to make digital wallet transactions in a point of sale manner. If that happens you will see mass adoption of cryptocurrencies and other digital asset solutions. Once that happens the sky is the limited for STACK and holders of the STK token.

Our Score:

  • Team/Leadership – 5
  • Customer/Customer Problem – 5
  • Solution/Unique Value Proposition – 4
  • Market – 5
  • Community – 3
  • Marketing – 3
  • Roadmap – 5
  • Valuation and ICO dynamics – 4

Block Discover Rating: 

8.5 out of 10 Star Rating

White Paper: https://stktoken.com/STK_whitepaper_en.pdf

Official Website: https://stktoken.com/
Twitterhttps://twitter.com/stktoken
Telegram: https://t.me/stktoken

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