In this Ethos Coin SWOT Review, we are going to take a detailed look into the Ethos cryptocurrency, its history, its development, and its token economics.
The SWOT acronym stands for 4 specific points of analysis: Strengths, Weaknesses, Opportunities, and Threats. But before we begin our Ethos SWOT analysis, let’s start with a brief overview of the project to get some background.
What is Ethos?
Ethos is a blockchain project that aims to be an all-in-one wallet, exchange, financial management tool and social platform for the future of cryptocurrencies. The plan is to contain all of this within one application. In a nutshell, the team describes the project as a dynamic, multi-sided investment platform and global ecosystem.
If you’re not in the mood for reading, watch the SWOT review video;
The Ethos project originated in early 2017 led by Shingo Lavine. Mr. Lavine is a young entrepreneur who had previously co-founded ‘Jobs University’, an online school with over 20,000 students. Ethos first had the name, Bitquence, and went seriously under the radar having only raised $1.6 million USD during their ICO ending on 16th July 2017.
When the project was Bitquence, its key value proposition was to build an application that would include:
- A universal crypto wallet
- A back-end liquidity network for fast settlements
- Options for diversification into baskets of crypto assets
- Community consensus profiles
The Bitquence mission was to make the crypto market accessible to everybody, helping to accelerate adoption of blockchain technology and ownership of cryptocurrencies.
The switch from Bitquence to Ethos
In November 2017, Bitquence announced it was rebranding to Ethos. They refined their mission to build a financial ecosystem that is open, safe and fair for everybody. The rebrand was significant and included new websites (overall design and layout) and new team members. The transformation significantly changed the perception of what was once a small-scale startup to that of a serious contender against the likes of CoinBase.
Now that we’ve introduced the Ethos project and summarized its history, let’s dive right into the Ethos coin SWOT review.
Ethos coin SWOT review
- Ethos is solving multiple real-world problems. 1) The lack of a universal wallet solution 2) A single application to access multiple cryptocurrencies.
- They now have their flagship product, the Ethos Universal Wallet, shipped and operational with >100k downloads.
- They’ve implemented a clever strategy of partnering with other platforms for airdrops. This has brought in additional exposure and marketing opportunities. Ethos has now partnered with over 7 different platforms such as BitDegree and SmartCash.
- The team has grown from around 7 people to now 26 strong, across multiple countries. They currently are advertising over 16 additional roles.
- The team itself has a wealth of experience across finance, mobile applications, cryptography, UI/UX, product design, legal, government and regulation, portfolio management and global regulation.
- The project has included additional value-adding propositions to the platform such as Bedrock, which is a processing and development platform for running financial applications, and the Ethos API, which will allow financial institutions to connect to the Ethos platform.
- Ethos has strong brand recognition.
- They’ve built a strong brand, team, product, and vision after raising a comparatively small amount when compared to other ICO’s.
- High token utility is apparent with these features:
- Token reduces costs for consumers
- Lowered cost of applications for developers
- Acts as a scalable micropayment transfer mechanism for platform services
- Enables funds to flow through the Ethos platform
- Incredible communication with articles published on token classifications, wealth management and the future of finance with cryptocurrencies. The team also has provided product demos and are even hosting their own conference called the Ethos East Coast Summit.
- A very strong community is evident with 25K followers on Telegram, 4.6K on Reddit, and 54.3K on Twitter.
- Although one could interpret this as subjective, the overall graphic design and layout of the website is very high quality and attractive.
- Plans are set for after the initial wallet release, when they’ll integrate a fiat gateway into the application, allowing debit and credit cards purchases, checking and investment accounts, and other wireless payment solutions. This alone makes the project a major competitor against the likes of Coinbase, Abra and other popular exchanges.
- The project has conducted business professionally by waiting to have the source code audited and penetration tested before launching the product.
If you’re interested in learning more about Ethos source code, see their code audit here.
- Future plans for a cold wallet and verified wallet domain are in the works. Essentially, this will allow users to create a unique handle which can be used as an address for sending and receiving funds within the platform.
- Formed partnership with TaxFyle, an On-Demand Tax Prep Company.
- Designed the wallet so one private key, which they call a ‘Smart Key’, will be used as the backup for all wallets. Also, its design is such that Ethos never has possession of the key.
- The application and universal wallet are free to use. However, a premium version will be available to enable brands and individuals to register address names to increase payment ease of use and reduce errors.
- Built-in KYC and AML verification for users of the application wishing to use fiat or purchase crypto assets.
- Built-in gain/loss report for EOFY tax reporting.
- Targeting the global market of Ethos cryptocurrency investors and users.
- Embraces regulation, compliance, and consumer protections.
- Although this may seem like nitpicking, Ethos has failed to deliver on the application release – they had scheduled it for Q1 2018. But they did clearly communicate the reasons behind this delay.
- The token is only listed on 11 markets across 5 exchanges, with 96% of all trading volume occurring on Binance. So as of yet, the token has real liquidity problems.
- Ethos has the opportunity to be the first all-in-one cryptocurrency financial management system powered by a crypto token.
- They have the opportunity to take away market share from major cryptocurrency exchanges such as Coinbase, CoinSpot, Binance, and Bittrex.
- Ethos Cryptocurrency could take away market share from crypto exchange applications such as Abra.
- They could also take away market share from portfolio management applications such as Blockfolio and Delta.
- Ethos could be the first fully functional and working universal wallet with a mobile application.
- Ethos has the opportunity to be the killer application that bridges the gap between the traditional finance world and cryptocurrencies.
- They could prove that token utility can be optimised and maximised within a decentralised financial application.
- CoinBase could reduce Ethos’s value proposition after recently announcing future support for Ethereum ECR20-based tokens. Although they have not voiced support for any one token.
- Binance could reduce Ethos’s value proposition after rumours emerged it is working on integrating a US fiat gateway to the platform.
- Applications like Abra will increase their coin offerings and thus reduce Ethos’s value proposition.
- The fiat gateway, which is a significant feature, may be delayed or undelivered due to various rules and regulations across different global regions.
- The project may run out of funding due to the small amount received during the ICO.
- There’s the threat that a hack or scam may compromise the application or smart contracts.
Ethos is a project that is unbelievably ambitious. This is almost insanely so because they are building an application that not only solves multiple problems around wallet security and usability, but also one that takes on the likes of CoinBase and other major exchanges.
Seeing Shingo and the team take what was initially Bitquence, an early-stage and somewhat awkward start-up, and turn it into the Ethos project we see today is truly remarkable. The fact that they did so while raising less than $2 million in the ICO reinforces the resiliency and long-term outlook of this team.
There are real threats facing Ethos with the likes of well-funded platforms such as Coinbase and Abra. But if the team keeps going on this trajectory and delivers on all their promises, this could place Ethos as a tier-one crypto platform in the not too distant future.
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Disclaimer: The author of this Ethos Coin Swot Review blog post and video holds Ethos tokens and invested in the ICO.
Beau is the Founder & Chief Editor at Cryptocurrency Australia Media, an educational platform designed to help anyone learn about cryptocurrency investment and blockchain technology. Beau is also the Founder & Principal Consultant of Blockchain Management Solutions, a specialist technical and project management consultancy, is an advisor with Masternode Ventures, a blockchain incubator, and is an advisor with THORChain, a new decentralized exchange protocol.