COTI

Digital currency built for payments

About COTI

COTI aims to develop a decentralized and scalable payments network for global commerce, characterized by a DAG structure (for speed and scalability), a trust score mechanism, and a mediation system for dispute resolution, and including currency exchange integration (for both fiat and crypto) and connectivity apps & services. COTI aims for widespread adoption by consumers and merchants, and states the following objectives: decentralisation, scalability and instantaneity, reliability, security, low-to-zero fees, trust generative, ease-of-use, and regulatory compliance. The COTI native tokens will be used for payments (with lower fees than other currencies), mediator stakes and payouts, merchants’ rolling reserves, and node rewards. ERC-20 tokens will be issued for the purpose of providing an official record of tokens sold.

Token Sale Use of Blockchain

Product

3.6
Product
Readiness

Is the product ready for use? Is there a working prototype or MVP? How long until it is operational?

2.0
N/A
2 - Proof of concept or test platform.
Appeal

How appealing is the product? How good or necessary is it? Does it have a distinct edge?

4.0
N/A
4 - Captivating.
Target User Base

Is it mass market or niche?

5.0
N/A
5 - General audience / mass market.
Competition

Are there many other similar solutions or is this one of just a few, or even one of a kind?

3.0
N/A
3 - Some normal competition.
Innovation

How innovative or inventive is the product, either conceptually or technologically?

4.0
N/A
4 - Original, specialized.

Product

COTI aims to provide a comprehensive and improved payment solution and ecosystem, characterized by a DAG structure (for speed and scalability), a trust score mechanism, and a mediation system for dispute resolution. It also includes currency exchange integration (for both fiat and crypto) and connectivity apps & services (wallet and debit card for consumers, processing solutions for merchants, and a dedicated client for mediators).
COTI aims for widespread adoption by consumers and merchants, and states the following objectives: decentralization, scalability and instantaneity, reliability, security, low-to-zero fees, trust generative, ease-of-use, and regulatory compliance.
The technical whitepaper states that “A Cluster simulator has been built and will be made available on GitHub.. It is able to simulate about 1000 transactions per second on a laptop computer and has been tested in simulations with up to 5,000,000 transactions.”
This post (from the project’s Medium site) provides an overview of COTI alongside PayPal, Bankera, Graft, Monetha, and UTRUST, and states that “What really sets COTI apart from the rest is its decentralized mediation system… COTI’s Trust Scoring engine takes it one step further”.

Product Whitepaper

Use of Blockchain

4.2
Use of Blockchain
Blockchain Development

Is blockchain technology essential? Does it make the solution significantly different and better?

5.0
N/A
5 - Novel blockchain and service.
Disruptive Blockchain Advantage

How disruptive is the introduction of blockchain technology into the product's market space?

5.0
N/A
5 - Fundamentally disruptive.
Need for a Custom Token (vs. BTC or ETH)

Is the token essential or could it be done just as well or better with fiat or Bitcoin?

4.0
N/A
4 - Token is essential to platform.
System Decentralization (besides token)

How decentralized is the system architecture other than the token (e.g., data collection, storage, access, and use, or decision making processes, etc.)?

3.0
N/A
3 - Hybrid; decentralized as far as circumstances allow.
Contribution to Blockchain Ecosystem

How compelling is the solution's contribution to the evolution of blockchain infrastructure and economy?

4.0
N/A
4 - Captivating.

Use of Blockchain

* COTI transactions are connected in a DAG based ledger using trust-score based algorithms. Each new transaction is required to validate two prior source transactions, which are chosen based on their trust scores.
* “The Trust Score servers analyse user data, user behaviour, and network payment statistics to calculate a Trust Score for each COTI network participant… COTI is introducing a bespoke DAG-based consensus algorithm that involves the use of Trust Scores to validate transactions. These Trust Scores collectively form Trust Chains, which are used for efficient transaction consensus and validation…”
* “A participant’s Trust Score is initially determined by a general questionnaire and document verification. Trust Scores update automatically according to a user’s payment history and Big Data collected by the network.”
* “Trust Scores serve as a key driver of transaction fees: high scores are associated with low-tozero fees, while low scores are associated with comparatively high fees.”
* “The Mediation Service creates a rolling reserve for each merchant to cover possible claims and a system-wide Reserve Credit Fund (RCF) to further guarantee it. Both funds are maintained in COTI’s native currency, and the required size of a merchant’s rolling reserve is calculated based on the merchant’s Trust Score.”
* The COTI coin will be used for payments (with lower fees than other currencies), mediator stakes and payouts, merchants’ rolling reserves, and node rewards.
* COTI has also developed mechanisms to monitor, detect, and defend against possible attacks.
* “To provide a decentralized ecosystem for online payments, COTI will explore various decentralized governance models.”

Use of Blockchain Roadmap

Whitepaper

4.4
Whitepaper
Comprehensiveness

Does it cover the full scope of the problem and solution?

5.0
N/A
5 - All issues addressed coherently.
Readability

Is it easy enough to understand?

4.0
N/A
4 - Easy to read and understand.
Transparency

Does it candidly describe and disclose where the project now stands, how much exists and how much still needs to be done, etc.?

4.0
N/A
4 - Informative disclosure.
Business Plan Presentation

Does it contain a viable, comprehensive business plan?

4.0
N/A
4 - Clear, well thought out, realistic.
Technology Presentation

Does it present a well thought out technological architecture? Does it address implementational challenges?

5.0
N/A
5 - Thorough, viable, convincing, promising.

Whitepaper

Three documents are provided on COTI’s website: a technical whitepaper (25 pages), a business overview (40 pages), and a token sale summary (6 pages).
The technical whitepaper is highly informative with regard to the platform’s trust-score dependent consensus mechanism, network components, participants (roles) and operation, algorithms and performance analysis (including graphs, mathematical formulae, code snippets, and simulation results). It also contains a detailed assessment of possible attacks.
The business overview provides detailed descriptions of COTI’s objectives and architecture (including the scoring mechanism and mediation system, the COTI token and currency exchange, and applications & services), as well as the project’s development roadmap and regulatory approach (exemplified by a professional, detailed yet concise, notice of risk factors and legal disclaimers, with jurisdiction-specific items). While plans for actively driving adoption are not discussed, the token economy is clearly defined. Decentralized governance is only shortly mentioned for future consideration.
The token sale summary clearly lays out the token supply and allocation as well as use of proceeds.
The project’s Medium page is active and informative, and includes a ‘COTI Overview Document’ similar to the business overview.
The project’s Github contains only the whitepaper for now, but it is stated that the project’s Cluster simulator is to be made available.

Whitepaper Compliance

Roadmap

3.6
Roadmap
Concreteness

Is there a concrete and practical development plan (vs. just a conceptual vision)?

4.0
N/A
4 - Down to earth.
Feasibility

Is the development plan realistic? Is it based on reasonable goals and timelines?

3.0
N/A
3 - Optimistic.
Vision

Is there a larger, long-term vision?

5.0
N/A
5 - Paving the way for the future.
Dependencies (services or capabilities)

How available, operational, or trusted are the other systems or capabilities on which the project relies?

4.0
N/A
4 - Available and trusted.
Current Position

Where is the project now, relative to its vision and plans?

2.0
N/A
2 - Critical obstacles ahead.

Roadmap

“Since its formation in early 2017, the COTI team has focused primarily on researching and developing the best purpose built solution for a digital payments network. The base layer protocol, modeled off of the DAG data structure, and the API for merchants are both in progress. COTI has also been working on developing its exchange infrastructure and consumer wallet offering and on defining the mechanics of its Trust Scoring Mechanism and Mediation System. The exchange and the consumer wallet are approaching completion and will be put to work this year.”

Phase 1 Milestones — Q4 2018
— Testnet launch with prototypes of the consumer wallet, full node, DSP nodes, history node, and trust score server.
Phase 2 Milestones — Q2 2019
— Launch of the consumer wallet (iOS, Android and web applications with initial support for USD, EUR, GBP, BTC, ETH and COTI), full/history/DSP nodes, trust score servers, and mainnet as well as release of decentralized mediation prototype.
Phase 3 Milestones — Q4 2019
— Launch of the decentralized mediation system and application, the KYC/AML server, payment processing tools (API, iFrame), and exchange.
Phase 4 Milestones — 2020
— Launch of the debit card, hedging service, and recurring billing (subscriptions).
Phase 5 Milestones — 2021
— Expansion of merchant services, launch of the mediation SDK and the COTI fund.

“the COTI team is committed to working with the COTI community to expand or otherwise adjust the characterisation and prioritisation of the key milestones where necessary.”

Roadmap Company and Team

Compliance

3.6
Compliance
Token Utility (value through usage)

How much use is there for the token itself (regardless of its value as an investment vehicle)?

5.0
N/A
5 - Foundational or varied use cases.
Token as Security (tradable instrument)

How valuable is the token as an investment vehicle or financial instrument?

2.0
N/A
2 - Primarily, with few additional rights.
Token/Smart-Contract Readiness

Is the blockchain infrastructure of the project ready for use? Is there a working prototype or MVP? How long until it is operational?

2.0
N/A
2 - Proof of concept or test platform.
Attention to Compliance Issues

How much attention is given to compliance (via token and ecosystem design, token sale participation, etc.)? Is this issue addressed directly and coherently?

5.0
N/A
5 - Professional, audited.
Legal Review/Risk Assessment

What kind of legal documentation (reviews or agreements) and risk assessment are provided?

4.0
N/A
4 - Professional.

Compliance

* The COTI currency will be used for payments (with lower transaction fees), mediator stakes and payouts, merchant rolling reserves, and as rewards for node operators. Tokens sold in the sale, however, will not be the native tokens (as the platform is not yet operational): “ERC-20 tokens will be issued for the purpose of providing an official record of tokens sold. Following the launch of the COTI main net, the ERC-20 tokens will be converted into coins issued on the COTI network’s transaction ledger with or without prior notice, at COTI’s sole discretion. The ERC-20 tokens will be issued post-listing on at least one major exchange (no later than the end of September 2018). To further fund the development of the network, COTI may occasionally initiate additional token sales from the reserve.”
* The project emphasizes regulatory compliance, and discussion of its regulatory approach is included in the documentation. The business overview includes a professional, detailed yet concise, notice of risk factors and legal disclaimers, with jurisdiction-specific items. There is also a professional Token Purchase Agreement at coti.io/purchase.html.
* “COTI is currently laying down the licensing foundations that will enable it to comply with existing regulations, both as a payments network and a currency exchange. COTI is in the process of applying for a distributed ledger technology (DLT) license in Gibraltar and has initiated dialogues with regulators globally to help shape its legal framework. In the interim, COTI is adopting banking industry compliance standards to ensure that its digital currency-related activities do not serve as a conduit for money laundering or other illicit activity.”
* “The COTI network is adopting appropriate AML and KYC procedures to ensure that its network cannot be used to facilitate money laundering or other illicit activity. COTI is inherently not conducive to money-laundering, as any user of COTI’s wallet, exchange or processing solutions must undergo strict onboarding procedures. Notwithstanding its commitment to AML and KYC, COTI is similarly committed to protecting user privacy and has appropriate consumer data protection mechanisms in place.”

Compliance Token Sale

Company and Team

3.6
Company and Team
Company Stage and Foundation

Is the company already established? Has it raised funds before? Is it mature?

3.0
N/A
3 - Company structure in place.
Background of Lead Team Members

Do we know who they are? Do they have LinkedIn profiles? Do they have solid, relevant backgrounds?

4.0
N/A
4 - Verifiable relevant experience.
Team Assembly and Commitment

Is a solid, fully committed core team in place? Do they have online (e.g. LinkedIn) profiles showing sufficient relevant experience? Is their participation transparent?

3.0
N/A
3 - Mostly assembled and committed.
Team Skill Set Relevance

Does the amount of talent and skill in each area seem to fit the project requirements?

4.0
N/A
4 - Well suited to project requirements.
Team Skill Set Balance

Is the team well-rounded (biz/tech/blockchain)? Is there sufficient talent and skill in all areas of required development?

4.0
N/A
4 - Good, sufficient for each aspect.

Company and Team

COTI’s website lists 19 team members and 14 backers and advisors, with pictures and short bios. LinkedIn profile links are provided for all but one of the team members, though not for the backers and advisors. Most team members list the project on their profiles, but some appear to be involved in other enterprises as well, and some profiles provide relatively little information.
While the company, founded in 2017, is based in Gibraltar, the team members appear to be based in Israel.
Developers on the team include: a researcher & software engineer (with recent experience developing custom CRM solutions for fintech companies), a blockchain research engineer (who is also a blockchain academic researcher at IDC Herzliya), three full stack developers, and a cryptographer (with R&D experience at IBM, Intel, Yahoo! and Gigya). The team also has a data science advisor and a legal expert.
COTI’s CEO has experience co-founding three companies, albeit in another sector (digital media advertising and marketing). COTI’s co-founder and business development lead was previously Chief Internal Auditor at the Israeli business unit of HSBC. The project’s CFO is also the founder of a financial management company.

Company and Team Product

Token Sale

2.8
Token Sale
Raise Amount Max

Is there a clear cap? Is the maximum raise amount modestly sufficient (as opposed to either greedy or insufficient)?

3.0
N/A
3 - Justifiable.
Raise Amount Min

Is the minimum raise reasonable considering the development plan? Are there raise-amount dependent milestones?

1.0
N/A
1 - None or nonsensical.
Fund Allocation

Is fund distribution and allocation reasonable and justified?

3.0
N/A
3 - Rough estimates, but sensible.
Token Allocation

Is the ratio of tokens sold to those kept reasonable? Does it prevent the company from having too much control?

3.0
N/A
3 - Sufficient company/community interest balance.
Media Presence and Following

Is the sale being talked about in Reddit, Bitcointalk, Social Media, Medium, etc.? Is information available and accessible? Is there interest?

4.0
N/A
4 - Solid exposure and interest, good impression.

Token Sale

Total supply during the formative stages will be limited to 2,000,000,000 COTI.
Supply for sale: Up to 600,000,000. Unsold tokens will be allocated to the reserve.
Hard cap: 30,000,000 USD (soft cap N/A)
Token price: 0.1 USD per COTI

There are differences between the whitepaper and the website with regard to token allocation and use of proceeds. According to the website:
Token Allocation: 42% Token sale, 10% Founders/Team/Early Backers/Advisors, 6% Partners network, 7% Validators incentives, 11% Token liquidity for market making, 9% Opening balance for the Reserve Credit Fund, 12.5% Incentive programs for Merchants and Users, 2.5% Community grants and partnerships.
Use of proceeds: 25% R&D, 16% Marketing, 12% Merchant services, 10% Legal and compliance, 10% Reserve, 10% Market Maker, 10% COTI fund, 7% Operational expenses.

“ERC-20 tokens will be issued for the purpose of providing an official record of tokens sold. Following the launch of the COTI main net, the ERC-20 tokens will be converted into coins issued on the COTI network’s transaction ledger with or without prior notice, at COTI’s sole discretion. The ERC-20 tokens will be issued post-listing on at least one major exchange (no later than the end of September 2018). To further fund the development of the network, COTI may occasionally initiate additional token sales from the reserve.”

Product

COTI aims to provide a comprehensive and improved payment solution and ecosystem, characterized by a DAG structure (for speed and scalability), a trust score mechanism, and a mediation system for dispute resolution. It also includes currency exchange integration (for both fiat and crypto) and connectivity apps & services (wallet and debit card for consumers, processing solutions for merchants, and a dedicated client for mediators).
COTI aims for widespread adoption by consumers and merchants, and states the following objectives: decentralization, scalability and instantaneity, reliability, security, low-to-zero fees, trust generative, ease-of-use, and regulatory compliance.
The technical whitepaper states that “A Cluster simulator has been built and will be made available on GitHub.. It is able to simulate about 1000 transactions per second on a laptop computer and has been tested in simulations with up to 5,000,000 transactions.”
This post (from the project’s Medium site) provides an overview of COTI alongside PayPal, Bankera, Graft, Monetha, and UTRUST, and states that “What really sets COTI apart from the rest is its decentralized mediation system… COTI’s Trust Scoring engine takes it one step further”.

Category Breakdown
Readiness

Is the product ready for use? Is there a working prototype or MVP? How long until it is operational?

2.0
N/A
2 - Proof of concept or test platform.
Appeal

How appealing is the product? How good or necessary is it? Does it have a distinct edge?

4.0
N/A
4 - Captivating.
Target User Base

Is it mass market or niche?

5.0
N/A
5 - General audience / mass market.
Competition

Are there many other similar solutions or is this one of just a few, or even one of a kind?

3.0
N/A
3 - Some normal competition.
Innovation

How innovative or inventive is the product, either conceptually or technologically?

4.0
N/A
4 - Original, specialized.
Product Score:
3.6

Use of Blockchain

* COTI transactions are connected in a DAG based ledger using trust-score based algorithms. Each new transaction is required to validate two prior source transactions, which are chosen based on their trust scores.
* “The Trust Score servers analyse user data, user behaviour, and network payment statistics to calculate a Trust Score for each COTI network participant… COTI is introducing a bespoke DAG-based consensus algorithm that involves the use of Trust Scores to validate transactions. These Trust Scores collectively form Trust Chains, which are used for efficient transaction consensus and validation…”
* “A participant’s Trust Score is initially determined by a general questionnaire and document verification. Trust Scores update automatically according to a user’s payment history and Big Data collected by the network.”
* “Trust Scores serve as a key driver of transaction fees: high scores are associated with low-tozero fees, while low scores are associated with comparatively high fees.”
* “The Mediation Service creates a rolling reserve for each merchant to cover possible claims and a system-wide Reserve Credit Fund (RCF) to further guarantee it. Both funds are maintained in COTI’s native currency, and the required size of a merchant’s rolling reserve is calculated based on the merchant’s Trust Score.”
* The COTI coin will be used for payments (with lower fees than other currencies), mediator stakes and payouts, merchants’ rolling reserves, and node rewards.
* COTI has also developed mechanisms to monitor, detect, and defend against possible attacks.
* “To provide a decentralized ecosystem for online payments, COTI will explore various decentralized governance models.”

Category Breakdown
Blockchain Development

Is blockchain technology essential? Does it make the solution significantly different and better?

5.0
N/A
5 - Novel blockchain and service.
Disruptive Blockchain Advantage

How disruptive is the introduction of blockchain technology into the product's market space?

5.0
N/A
5 - Fundamentally disruptive.
Need for a Custom Token (vs. BTC or ETH)

Is the token essential or could it be done just as well or better with fiat or Bitcoin?

4.0
N/A
4 - Token is essential to platform.
System Decentralization (besides token)

How decentralized is the system architecture other than the token (e.g., data collection, storage, access, and use, or decision making processes, etc.)?

3.0
N/A
3 - Hybrid; decentralized as far as circumstances allow.
Contribution to Blockchain Ecosystem

How compelling is the solution's contribution to the evolution of blockchain infrastructure and economy?

4.0
N/A
4 - Captivating.
Use of Blockchain Score:
4.2

Whitepaper

Three documents are provided on COTI’s website: a technical whitepaper (25 pages), a business overview (40 pages), and a token sale summary (6 pages).
The technical whitepaper is highly informative with regard to the platform’s trust-score dependent consensus mechanism, network components, participants (roles) and operation, algorithms and performance analysis (including graphs, mathematical formulae, code snippets, and simulation results). It also contains a detailed assessment of possible attacks.
The business overview provides detailed descriptions of COTI’s objectives and architecture (including the scoring mechanism and mediation system, the COTI token and currency exchange, and applications & services), as well as the project’s development roadmap and regulatory approach (exemplified by a professional, detailed yet concise, notice of risk factors and legal disclaimers, with jurisdiction-specific items). While plans for actively driving adoption are not discussed, the token economy is clearly defined. Decentralized governance is only shortly mentioned for future consideration.
The token sale summary clearly lays out the token supply and allocation as well as use of proceeds.
The project’s Medium page is active and informative, and includes a ‘COTI Overview Document’ similar to the business overview.
The project’s Github contains only the whitepaper for now, but it is stated that the project’s Cluster simulator is to be made available.

Category Breakdown
Comprehensiveness

Does it cover the full scope of the problem and solution?

5.0
N/A
5 - All issues addressed coherently.
Readability

Is it easy enough to understand?

4.0
N/A
4 - Easy to read and understand.
Transparency

Does it candidly describe and disclose where the project now stands, how much exists and how much still needs to be done, etc.?

4.0
N/A
4 - Informative disclosure.
Business Plan Presentation

Does it contain a viable, comprehensive business plan?

4.0
N/A
4 - Clear, well thought out, realistic.
Technology Presentation

Does it present a well thought out technological architecture? Does it address implementational challenges?

5.0
N/A
5 - Thorough, viable, convincing, promising.
Whitepaper Score:
4.4

Roadmap

“Since its formation in early 2017, the COTI team has focused primarily on researching and developing the best purpose built solution for a digital payments network. The base layer protocol, modeled off of the DAG data structure, and the API for merchants are both in progress. COTI has also been working on developing its exchange infrastructure and consumer wallet offering and on defining the mechanics of its Trust Scoring Mechanism and Mediation System. The exchange and the consumer wallet are approaching completion and will be put to work this year.”

Phase 1 Milestones — Q4 2018
— Testnet launch with prototypes of the consumer wallet, full node, DSP nodes, history node, and trust score server.
Phase 2 Milestones — Q2 2019
— Launch of the consumer wallet (iOS, Android and web applications with initial support for USD, EUR, GBP, BTC, ETH and COTI), full/history/DSP nodes, trust score servers, and mainnet as well as release of decentralized mediation prototype.
Phase 3 Milestones — Q4 2019
— Launch of the decentralized mediation system and application, the KYC/AML server, payment processing tools (API, iFrame), and exchange.
Phase 4 Milestones — 2020
— Launch of the debit card, hedging service, and recurring billing (subscriptions).
Phase 5 Milestones — 2021
— Expansion of merchant services, launch of the mediation SDK and the COTI fund.

“the COTI team is committed to working with the COTI community to expand or otherwise adjust the characterisation and prioritisation of the key milestones where necessary.”

Category Breakdown
Concreteness

Is there a concrete and practical development plan (vs. just a conceptual vision)?

4.0
N/A
4 - Down to earth.
Feasibility

Is the development plan realistic? Is it based on reasonable goals and timelines?

3.0
N/A
3 - Optimistic.
Vision

Is there a larger, long-term vision?

5.0
N/A
5 - Paving the way for the future.
Dependencies (services or capabilities)

How available, operational, or trusted are the other systems or capabilities on which the project relies?

4.0
N/A
4 - Available and trusted.
Current Position

Where is the project now, relative to its vision and plans?

2.0
N/A
2 - Critical obstacles ahead.
Roadmap Score:
3.6

Compliance

* The COTI currency will be used for payments (with lower transaction fees), mediator stakes and payouts, merchant rolling reserves, and as rewards for node operators. Tokens sold in the sale, however, will not be the native tokens (as the platform is not yet operational): “ERC-20 tokens will be issued for the purpose of providing an official record of tokens sold. Following the launch of the COTI main net, the ERC-20 tokens will be converted into coins issued on the COTI network’s transaction ledger with or without prior notice, at COTI’s sole discretion. The ERC-20 tokens will be issued post-listing on at least one major exchange (no later than the end of September 2018). To further fund the development of the network, COTI may occasionally initiate additional token sales from the reserve.”
* The project emphasizes regulatory compliance, and discussion of its regulatory approach is included in the documentation. The business overview includes a professional, detailed yet concise, notice of risk factors and legal disclaimers, with jurisdiction-specific items. There is also a professional Token Purchase Agreement at coti.io/purchase.html.
* “COTI is currently laying down the licensing foundations that will enable it to comply with existing regulations, both as a payments network and a currency exchange. COTI is in the process of applying for a distributed ledger technology (DLT) license in Gibraltar and has initiated dialogues with regulators globally to help shape its legal framework. In the interim, COTI is adopting banking industry compliance standards to ensure that its digital currency-related activities do not serve as a conduit for money laundering or other illicit activity.”
* “The COTI network is adopting appropriate AML and KYC procedures to ensure that its network cannot be used to facilitate money laundering or other illicit activity. COTI is inherently not conducive to money-laundering, as any user of COTI’s wallet, exchange or processing solutions must undergo strict onboarding procedures. Notwithstanding its commitment to AML and KYC, COTI is similarly committed to protecting user privacy and has appropriate consumer data protection mechanisms in place.”

Category Breakdown
Token Utility (value through usage)

How much use is there for the token itself (regardless of its value as an investment vehicle)?

5.0
N/A
5 - Foundational or varied use cases.
Token as Security (tradable instrument)

How valuable is the token as an investment vehicle or financial instrument?

2.0
N/A
2 - Primarily, with few additional rights.
Token/Smart-Contract Readiness

Is the blockchain infrastructure of the project ready for use? Is there a working prototype or MVP? How long until it is operational?

2.0
N/A
2 - Proof of concept or test platform.
Attention to Compliance Issues

How much attention is given to compliance (via token and ecosystem design, token sale participation, etc.)? Is this issue addressed directly and coherently?

5.0
N/A
5 - Professional, audited.
Legal Review/Risk Assessment

What kind of legal documentation (reviews or agreements) and risk assessment are provided?

4.0
N/A
4 - Professional.
Compliance Score:
3.6

Company and Team

COTI’s website lists 19 team members and 14 backers and advisors, with pictures and short bios. LinkedIn profile links are provided for all but one of the team members, though not for the backers and advisors. Most team members list the project on their profiles, but some appear to be involved in other enterprises as well, and some profiles provide relatively little information.
While the company, founded in 2017, is based in Gibraltar, the team members appear to be based in Israel.
Developers on the team include: a researcher & software engineer (with recent experience developing custom CRM solutions for fintech companies), a blockchain research engineer (who is also a blockchain academic researcher at IDC Herzliya), three full stack developers, and a cryptographer (with R&D experience at IBM, Intel, Yahoo! and Gigya). The team also has a data science advisor and a legal expert.
COTI’s CEO has experience co-founding three companies, albeit in another sector (digital media advertising and marketing). COTI’s co-founder and business development lead was previously Chief Internal Auditor at the Israeli business unit of HSBC. The project’s CFO is also the founder of a financial management company.

Category Breakdown
Company Stage and Foundation

Is the company already established? Has it raised funds before? Is it mature?

3.0
N/A
3 - Company structure in place.
Background of Lead Team Members

Do we know who they are? Do they have LinkedIn profiles? Do they have solid, relevant backgrounds?

4.0
N/A
4 - Verifiable relevant experience.
Team Assembly and Commitment

Is a solid, fully committed core team in place? Do they have online (e.g. LinkedIn) profiles showing sufficient relevant experience? Is their participation transparent?

3.0
N/A
3 - Mostly assembled and committed.
Team Skill Set Relevance

Does the amount of talent and skill in each area seem to fit the project requirements?

4.0
N/A
4 - Well suited to project requirements.
Team Skill Set Balance

Is the team well-rounded (biz/tech/blockchain)? Is there sufficient talent and skill in all areas of required development?

4.0
N/A
4 - Good, sufficient for each aspect.
Company and Team Score:
3.6

Token Sale

Total supply during the formative stages will be limited to 2,000,000,000 COTI.
Supply for sale: Up to 600,000,000. Unsold tokens will be allocated to the reserve.
Hard cap: 30,000,000 USD (soft cap N/A)
Token price: 0.1 USD per COTI

There are differences between the whitepaper and the website with regard to token allocation and use of proceeds. According to the website:
Token Allocation: 42% Token sale, 10% Founders/Team/Early Backers/Advisors, 6% Partners network, 7% Validators incentives, 11% Token liquidity for market making, 9% Opening balance for the Reserve Credit Fund, 12.5% Incentive programs for Merchants and Users, 2.5% Community grants and partnerships.
Use of proceeds: 25% R&D, 16% Marketing, 12% Merchant services, 10% Legal and compliance, 10% Reserve, 10% Market Maker, 10% COTI fund, 7% Operational expenses.

“ERC-20 tokens will be issued for the purpose of providing an official record of tokens sold. Following the launch of the COTI main net, the ERC-20 tokens will be converted into coins issued on the COTI network’s transaction ledger with or without prior notice, at COTI’s sole discretion. The ERC-20 tokens will be issued post-listing on at least one major exchange (no later than the end of September 2018). To further fund the development of the network, COTI may occasionally initiate additional token sales from the reserve.”

Category Breakdown
Raise Amount Max

Is there a clear cap? Is the maximum raise amount modestly sufficient (as opposed to either greedy or insufficient)?

3.0
N/A
3 - Justifiable.
Raise Amount Min

Is the minimum raise reasonable considering the development plan? Are there raise-amount dependent milestones?

1.0
N/A
1 - None or nonsensical.
Fund Allocation

Is fund distribution and allocation reasonable and justified?

3.0
N/A
3 - Rough estimates, but sensible.
Token Allocation

Is the ratio of tokens sold to those kept reasonable? Does it prevent the company from having too much control?

3.0
N/A
3 - Sufficient company/community interest balance.
Media Presence and Following

Is the sale being talked about in Reddit, Bitcointalk, Social Media, Medium, etc.? Is information available and accessible? Is there interest?

4.0
N/A
4 - Solid exposure and interest, good impression.
Token Sale Score:
2.8

Use this code to share the ratings on your website