ICO review: SALPay

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SALPay – is a platform that helps companies to move payroll across the borders using the blockchain technology. Company is already functioning in Philippines, within an operational 28 billion USD dollar market.

SALPay is directly related to Salarium, a company founded in 2013 – one of the leading Fintech Companies in the Philippines with over 60 employees.

Brief information about Salarium project:
– It serves over 500 companies
– Covers over 10,000+ employees
– Its monthly payroll volume equals to ~10 million USD
One of the main thing which attracted me in this project is an existing business with impressive revenue. This projects looks for capital to increase its scale, unlike other projects that want to create a business from the scratch.

SAL — utility-token based on the smart contract ERC-20 of Ethereum network.

Total supply of tokens: 100.000.000 SAL
Token price: 0.40 USD

ICO information: 

Pre-ICO: November 22 – 26, 2017
ICO: November 27 – December 31, 2017
SoftCap: $7 Million
HardCap: $20 Million

Strong sides:
– SALPay is based on existent company with revenue, team, experience and necessary business networking;

– It offers its own debit card which can be used worldwide. Unlike TenX and Monaco, they are concentrating on specific market niche – payroll, and their main target category are people who are not familiar with cryptocurrency. Company actively works on B2B basis;

- SALPay has an EXISTING partnership with MasterCard through Mynt, which is co-owned by Globe Telecom and Ant Financial. They have signed agreement, which was viewed and approved by MasterCard;

– Project is backed by John Orrock, famous entrepreneur and investor, founder and CEO of Future Now Ventures;

– They are also going to be added to Visa payment system in the nearest time

- Already negotiating with TOP-5 and TOP-10 exchanges for being listed after finishing an ICO; 

- Doesn’t offer any PoS payments due to legal issues. In this way it’s unlikely to be considered as security (easier to get listed on the large exchange);

– Good minimum contribution: 0.1 ETH which is currently around 70 USD. Unlike many other projects that require 5-20 ETH as minimum contribution, this project offers great opportunity for a small investors;

– Company HeadQuarters are in Singapore, relatively friendly area for a large cryptocurrency business;

– Company initially started in Philippines and after regional success it went on the global level;

– Tokens have appreciation model – company is required to buy back tokens. Since the whole industry market is equal to 250 billion USD, even if the company will be able to cover 0,5% of the market volume, then we are talking about 500 million USD. Initial capitalization of the token is 40 million USD – that would create serious demand and price spike.

Weak sides:
– Company doesn’t have PoS payments like similar projects. That’s a great strategy from legal standpoint, however it takes away additional income source for investor;
– Weak marketing. This company is definitely doing well in its business area, but not as good in marketing. This ICO is not hyped enough;
– Large portion of people think that it’s just another “crypto debit card” and consider TenX and Monaco as their competitors. Company definitely could do a better job at delivering their product to the public;
– Some cryptocurrency debit/prepaid card issuers might copy this business model if SALPay will be successful;
– Project associated with Philippines only due to its mother-company Salarium. It might create a wrong feeling among investors that project is regional and not global, despite ties to Australia, Singapore and Hong-Kong;
– Project SoftCap hasn’t been filled yet. It creates additional risks for investors, but upcoming large investments from Australian investment pool and partnership with large Philippines entity.

Our verdict: I believe that this product has a future as it is based on a real-existing business model, with an actual positive net profit. As an investor, I prefer to pick the projects with an existing and proved business model. This project is not hyped, but at the same time it has a lot of potential if team will address their marketing issues correctly. Another advantage of SALPay is that Salarium can always be used to support SALPay’s expenses until it has positive net profit. Project might be a little bit slow at filling its Softcap, but some projects like Ethos (BQX) even extended their ICO to fill the cap, and now they made over x50 since ICO. I think that this problem comes from the wrong marketing strategy, but for the past week company increased its efforts to advertise their product. Another disadvantage comes from a large amount of competitors who can adopt their business model if it’s proven successful. And the last major risk comes from the operational region, as the large part of the company clients are located in Philippines, which is a geographical zone of political, social and economical risks. Hopefully, this problem will be solved as soon as the project will start operating in other regions (It’s planned for the Q1-Q2 2018).
SALPay project fits large auditory of cryptocurrency investors who can’t afford investing large amounts of capital. I also consider price per token (40 cents) is quite cheap too, as it has limited supply (100 million tokens, similar to Ethereum and Litecoin). As soon as this token will be listed on the large exchange, we can expect 200-400% returns in mid-term.

Website: ico.salpay.com
Telegram: Join Chat

Read more in our exclusive interview with the project team SALPay:

SALPay – interview with the platform creators

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