Daily ICO Review – FIC Network, Bonds on the Blockchain

After reviewing 47 token announcements, we’re picking FIC Network as our ICO of the Day. FIC is aiming to put bonds and other fixed income securities on the blockchain.

Premise

The global debt and fixed income asset market is extremely large, estimated at $230 trillion. These markets consists of bonds, CDs, loans, and their derivatives.

Companies, organizations and governments use fixed income to raise funds, but today it’s expensive and difficult to securitize loans, and there is little transparency, especially in secondary markets.  Rather than being able to see the origin of a loan in an Asset-Backed Security(ABS), investors have to rely on credit agencies, which can be unreliable, as proven by the financial crisis.

FIC aims to provide a blockchain platform for the fixed income market, allowing companies to raise funds in fiat or crypto. Lenders could package and resell their loan portfolios, and investors could invest in them. Derivatives such as ABS,  There would be top down transparency, allowing investors to see exactly what they’re investing in and reduce their counterparty risk.

The platform will support loans, bonds, Collaterlized Loan Obligations(CLOs), Asset-Backed Securities(ABS), syndicated loans, Credit Default Swaps,(CDS), and futures. The target market is not individuals, but financial institutions, including investment banks, lending companies, hedge funds, and corporations.

For crypto markets, outside of exchange-based lending, there is no significant fixed income market yet, so this would be revolutionary. For traditional markets, FIC would provide an easier, and cheaper way to raise and securitize loans, and an easier and more transparent way to invest in them.

Team

The FIC Network team is quite strong, with strong professional experience in finance, fixed income assets, and legal industries. Advisors include the co-founder of Bee Token as well as Jed McCaleb – founder of Stellar Lumens.

The team behind FIC Network is Factury, which has an existing business based on some of the basic ideas of FIC, including using a distributed ledger for credit markets.

Token

The FIC token is used to pay transaction fees on the network.

50% of the tokens will be sold, with a hard cap of $16 million.

Risks

The credit and fixed income market is a large, incumbent industry which will be slow to accept change.

FIC Network has a fairly strong team, and we especially like that they have talent hailing from both fixed income and legal industries, as fiat to crypto bridges are notoriously difficult for crypto companies, and will present legal and regulatory challenges.

We would like to see them have more industry partnerships to help them build a base from which to tackle the fixed income sector. However the fact that they are also targeting crypto assets will help offset the challenges they will face in the traditional fixed income market.

Summary

FIC Network is not just changing an existing industry – fixed income, but creating a new one – crypto fixed income assets and derviatives. Their team is strong, with not only good talent, but an existing business in the industry, as well as an MVP.

Despite the challenges involved in tackling a huge incumbent industry, the fixed income market is big enough that even handling a fraction of transactions would make FIC Network extremely successful. In addition, by taking on crypo fixed income, they are opening a new market that didn’t previous exist.

We feel FIC Network is a very strong ICO and are happy to pick it as ICO of the Day.

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