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Ravencoin—An Unbiased Analysis.

Bitcoin, Litecoin, Dash, and a host of many other cryptocurrency projects have made worldwide payments/transfers easier and accessible to all. Ravencoin wants to do the same for alternative assets.
Ravencoin is a privacy-focused blockchain built on a Bitcoin fork, and the project wants to provide holders of alternative assets with a platform to create tokens that represent their assets and trade these tokens with other users.

Let's analyse Ravencoin's Use Case


The Problem RavenCoin is Addressing

Blockchain technology heralded the arrival of cryptocurrency companies that facilitate the transfer of funds between 2 parties that are thousands of miles apart. Nearly any amount of money can be transferred, transfers only take minutes, and both parties avoid the jurisdictional and bureaucratic red tape that normally followed such transactions.

However, other asset classes cannot be transferred in the same manner. Therefore, the world needs a platform that allows people tokenize whatever asset they hold, and transfer said tokens across local and international borders. As a result, alternative assets like securities, real estate, vehicles etc. may be transferred from one party to another in the form of tokens. A platform like this will likely usher in an era of global economy where borders and jurisdictions will no longer be seen as hindrances to trade.

RavenCoin's Value Proposition

Ravencoin is an open-source platform built on the Bitcoin codebase and it is named after the mythical Westerosi ravens. In Westeros, the ravens carry messages—or truths—from one person to another. Ravencoin’s use case is similar, it will carry statements of truth about who owns what assets on the blockchain. Owners of assets can also tokenize them and transfer them to other users on the platform. According to the Ravencoin project, users will hold considerable influence and the platform will be censorship resistant.

Additionally, trading assets on Ravencoin will be much faster than using conventional sources and the need for an intermediary—be it an individual or a company—will be obviated.

The Team Behind RavenCoin

The Ravencoin whitepaper was written by Bruce Fenton and Tron Black. Tron Black is also the Lead developer of the project, and according to a post published on the project’s official Medium page, RavenCoin was developed through the contribution of over 400 Bitcoin developers.

It is curious to note that that Black and Fenton’s LinkedIn pages do not show any affiliation to RavenCoin and the project’s website does not list them—or any other people—as team members.

RavenCoin's Target Market

In 2017, Preqin released a report that claims that the global alternative assets market was worth over $7.5 trillion. There are not many blockchain-based platforms for alternative assets and this presents RavenCoin with the unique opportunity of breaking ground in a sector that is lucrative and fast-growing.

Right now, people interested in trading alternative assets have to go through complex and time-consuming processes; they have to depend on third-parties. If RavenCoin can simplify the process and give more control to the asset owners, there is room for the project to grow significantly.

RavenCoin's Competition

As mentioned above, there are not many cryptocurrency-based projects in the alternative assets market segment, and the few that exist—e.g. Open Finance—are still in the developmental phase.

RavenCoin's Business Model

Ravencoin wants to create a virtual marketplace where tangible, as well as intangible assets can be represented as tokens and traded privately. Their cryptocurrency token, RVN, will be used to pay for fees on the platform.

RavenCoin's Token Performance

Ravencoin’s token, RVN, started trading on Coinmarketcap.com on the 10th of March 2018 and as at the 5th of May 2018, the token had seen a growth of ~90%. This is encouraging for original as well as prospective investors.

RavenCoin's Project Transparency

The project is open-source and Ravencoin’s code is available on GitHub. They also have a Twitter account, a Telegram channel, and other social media pages. As mentioned above, however, there is no sign of a management team or any team member apart from Bruce Fenton and Tron Black.

Likelihood of Critical Mass

Ravencoin is built on a Bitcoin fork and as well-known as the world’s foremost cryptocurrency is, it has not attained self-sustainable growth. Given Ravencoin’s business model and assuming the project can deliver on their promises, the closer Bitcoin gets to critical mass, the better for the burgeoning platform. However, with the information available as of when this post was published, critical mass is not in Ravencoin’s foreseeable future.

In conclusion, while Ravencoin’s use case is interesting, there are some red flags. One, there is no mention of a management team on the project’s website or in their whitepaper. Two, they do not seem to have any advisors. Three, their whitepaper does not show evidence that they have a handle on the technical aspect of the platform. Prospective investors looking to take advantage of this RVN’s growth must be wary of the red flags above and stay alert for any developments, good or bad, concerning this project.


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Disclaimer: The information contained herein is not intended to be a source of advice and the information and/or documents contained in this website do not constitute investment advice.

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