Confideal – Useless Token & Bad Mechanics Kills Good Idea

October 2017
By Sam
Posted: Updated:
3 Comments

A good idea can take an ICO only so far. To be truly great, a well thought out token model and structure is needed to actually be able to implement the idea. A good example of what not to do with your token structure is Confideal, a visual smart contract builder with added arbitration capabilities. It’s an interesting idea that could have large applications for international trade, where smart contracts can be programmed to take into account all contractual requirements.

Without getting too much into the mechanics of their smart contract builder, it allows for easy contractual creation for individuals, businesses and other enterprises. The system is already live and you can build your own contract right now.

The problem though is that their token is useless, it has nothing to do with the actual smart contracting system and they even allow you to use other currencies in light of their own. Really, they have built a software platform which should be licensed for use or be redesigned to take into account the realities of having a token.

First up, and probably the biggest red flag, is that the token isn’t even necessary to use their smart contract system. Any ERC20 token can be used. The only “benefit” to using their token is a 1% fee reduction, a very unimpressive number. Even when dealing with millions of dollars you are only looking at a difference of a few tens of thousands. These fees would be higher if the contract was handled by an actual bank. Escrow services charge significant amounts which pale in comparison to what Confideal is charging.

This right here is enough to stop me from investing into the token. Why would anyone buy a token which doesn’t even have to be used and the penalties for doing so are negligible? Furthermore, it says a lot about the company who designed the token mechanics that they don’t understand the ICO space and are simply using the token to raise capital.

Thankfully, they have made it very easy to see the uselessness of their token.

The only benefit to the token is that it allows users to purchase the tokens taken by the transaction fees for a 50% discount. That’s it. Nothing else.

I hope you can see now how little time they actually put into thinking about the actual mechanics of the token and how it would be used.

This is why you need to do your own DD and ensure that every token you buy has a sound business plan and is appealing.

Hopefully they correct this glaring issue about their token. If not, stay away from this misguided project.

 

UPDATE: I’ve added screenshots of my conversation with Confideal.io to show that my views haven’t changed since they contacted me to write the article. They declined to take my advice, so I just published my concerns. Now their employees are lashing out in the comments below and it just shows the character of the company.

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3 Comments
 
  1. Vakhtanh / October 2, 2017 at 12:47 pm /Reply

    Thanks for your opinion, but it is only your point of view, by the way, I recommend you to read Whitepaper in greater detail because you will see more features of our product. Our token against is very required and useful because it allows not only to perform deals even on million dollars but create a clear and transparent rating of arbitrators and also CDL could be used for redemption tokens from commission fund with 50% discount. Additional demand for tokens will form hundreds of services all over the world, which integrates Confideal inner and pay White Label fees.

  2. Reuben Godfrey / October 2, 2017 at 2:15 pm /Reply

    Sounds like you’re butthurt because they turned-down your kind offer of joining the advisory panel.. you sound like a jilted prom date.. sad

    • Sam / October 3, 2017 at 4:18 pm /Reply

      Hi Rueben, I posted my chat logs above so everyone can see that my views never changed. Thanks for commenting.

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