Crederoom is a financial fintech company supplying small loans within the EU to consumers. Its current focus however is on developing technology. Crederoom not only wants to become a platform for managing financial assets and marketing actions, it also wants to create technology in an open-source way that can help compute the rate of marketing success, evaluate credit scores, access third party registers for consumer identification and anti-identity theft, credit history, marketing tools for bad debt recovery and more. The full scale of solutions will be published on a later date as stated in the whitepaper.
Crederoom wants to digitalize the lending industry with a priority focus on security. Some security features include: Unique link email verification, unique SMS code phone number verification through IMSI supplied by third parties, Proof of Address which is compared to open and closed registries and proof of ID. In case of risk, a face-to-face call is made or an office meeting will be planned. After the processing of information and verifying the legitimacy customers can then easily apply for loans and receive them fast in their bank accounts. Crederoom as a fintech company seeks to optimize customer data in order to maximize profit. Since the lending market is admittedly risky, Crederoom tries to ensure to its investors that profitability will exceed the potential risks.
Based on their whitepaper and documentation, Crederoom seems to have done its research providing plenty of background and insights on similar businesses and technologies. In the whitepaper they state that they are not new to the market and have a main company which operates in Zug, Zwitserland. The main company which remains undisclosed is also involved in Crederoom’s project to ensure investor return.
But what does it use blockchain technology for? As stated in their whitepaper, they are looking at blockchain as a solution for the high amounts of sensitive data they will be working with, allowing them to safely secure sensitive data whilst giving clearance to every day workers for the fintech company, such as the staff and partners, to access the data in order to do day-to-day business. They will adopt technology from Emercoin to make this possible which allows for multi-level access and is IMSI (International Mobile Subscriber Identity) attack resistant. Furthermore, it ensures stability of the service and a tamper-proof solution for customer credit score history, storage of documents and other data.
Crederoom’s whitepaper is ultimately more oriented towards marketing the product and the ICO than discussing the technological/legal aspects of their platform.
The CDRT Token is a smart contract token and compatible with the ERC20 wallets. It is sold within the Crederoom ICO at a value of €1,- per CDRT Token. The token will eventually be traded on exchanges that accept to list CDRT. As to the date of writing this article there aren’t any, at least publicly announced.
CDRT Tokens are dividend tokens and give access to a revenue pool. Crederoom states that 20% of last years revenue will be used to acquire Ethereum tokens and share this to current token holders by means of a snapshot, the actual date of the revenue share pay-out will happen on 10 October each year. Furthermore on the 15th of October another 10% of the last years revenue will be used to acquire Ethereum tokens and buyback tokens from holders on the market at the current market price. The acquired tokens will be destroyed increasing the price of existing CDRT tokens and increasing profitability from the revenue pool. 93% of the tokens will be sold during the ICO campaign, 5% is reserved for team members and 2% of the total released with a minimum of 60,000 is reserved for bounties.
A click on the pictures and names provided of the team on their website lead directly towards their facebook page where you can see them casually drinking a beer or in a romantic photo with their girlfriend or spouse. However no LinkedIn profiles are provided and their main channels are Facebook, Telegram and Twitter. A google search for the LinkedIn pages for the founders result in nothing and therefore it is hard to tell if they are as experienced as they claim or to find out what potential company in Zug, Zwitserland is backing the ICO and buybacks of CDRT tokens. The head office of Crederoom is stationed in Edinburgh, Scotland. Their team appears to have enough members to realize the project but since there’s no background available it is hard to tell if they are also qualified. For a project that claims to have several EU banks interested and ready to invest and a company already experienced in the market they want to get in on this seems rather peculiar that no LinkedIn profiles can be found. The team is also not mentioned in the whitepaper even though they claim a lot of experience and several partnerships with EU banks.
Whether it is fortunate for a company that wants to provide lending services to EU countries and mentions in the whitepaper that a poor business environment resulting from Brexit in the U.K. can lead to exclusion of the U.K. as one of the markets targeted, is stationed in Scotland can be argued with.
Crederoom has divided Europe into several zones depending on a number of factors such as income.
Crederoom will start in zone A which includes countries such as Bulgaria, Croatia, Slovakia, Slovenia, Lithuania, Latvia and Estonia. The first licensing applications will start in the second quarter of 2018 and operations should commence within the very same quarter of that year. In 2022 Crederoom should be operating Union wide in all countries according to their roadmap.
Crederoom started developing in April, 2017. As claimed in their whitepaper, the on the date that it was written they had finished modelling fraud detection, credit risk and credit score evaluation. Whether this is true can’t be verified. They also state that constant development remains in progress even during the ICO. An incorporation of the main company in Switzerland will happen in November, 2017. Whether the team is on track regarding their roadmap can’t be said for now as most of it is unverifiable publicly.