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Diary of a made man

Enigma Catalyst ICO Investor Memo

by Ian Balina

A year ago


NOTE: This is not investment advice. I am not a financial advisor. Invest at your risk and do your due diligence.

ICO Details

Enigma Catalyst – https://www.enigma.co
September 11th, 2017

The Idea – 3/3 points

How big are the idea and vision, and what is the possible, likely return on investment (1x, 10x or 1,000x).
“At Enigma, we enable anyone to build their own crypto-hedge fund. We are building Catalyst, an algorithmic trading tool and an investment platform for crypto-assets. Our short-term goal is to enable developers to build, test and master winning technologies. Over time we want to empower retail investors to invest in winning crypto-strategies through our platform.” – Enigma
Enigma is building a decentralized algorithmic trading platform and data marketplace. Simply put, its vision is to bring Wall Street level quantitative trading software and data capabilities to the crypto investment market.
I think this is a big idea because of the following reasons:
  • Michael Bloomberg became a billionaire, simply by doing the same thing with Bloomberg Terminals

  • Hedge funds make billions of dollars leverage algorithmic trading and financial data.
    • Enigma will let data scientists, quants and developers program crypt hedge funds
    • Enigma will create a market place of this data

Product – 3/3 points

Is there a working product or prototype?
Yes, Enigma has an alpha version available at:

All-Star Team  – Grade – 2/2 points

Does the team consist of all-star team members with proven track records at well-known companies (Fortune 500), domain expertise or other forms of social proof from their past work history? Note this is relative to other ICO projects. Ideally, 1/3 of the team members will be all-stars, for the entire team to be considered an all-star team in my subjective opinion.
The Enigma core team consists of five people.
Of those five, the following I would consider “all-stars” that I believe can execute and come with proven success and social proof.

Guy Zyskind (CEO)

Can Kisagun (Co-founder)

  • Worked two years at McKinsey as a business analyst
  • Graduate of Northwestern and MIT

Tor Bair (Head of Growth and Marketing)

  • One year at Snapchat as a Data Scientist
  • Intern at Spotify
  • Intern at Hubspot
  • Graduate of Brown and MIT

All-Star Advisors  – Grade – 1/1 points

Does the team consist of all-star advisors with proven track records at well-known companies (Fortune 500), domain expertise or other forms of social proof from their past work history? Note this is relative to other ICO projects. Ideally, 1/3 of the advisors will be all-stars, for the entire team to be considered an all-star team in my subjective opinion.

Alex Pentland – Director at MIT Media Lab

Jacob Gibson – Co-founder & COO of Nerdwallet

  • Four years co-founder and COO Nerdwallet
  • One year VP of Trading, JP Morgan Chase
  • Five years as Trading Associate at JP Morgan Chase
  • Graduate of MIT

Justin Lent – Former Director of Hedge Fund Development at Quantopian

  • Business Development Manager / Quantitative Analyst (Palantir Technologies)
  • One year as Market Risk Analyst (Blackrock)
    • BlackRock is the world’s largest asset manager with $5.7 trillion in assets under management as of July 2017.
  • Five years as Product Manager and Sales Engineer at Harmonic (NASDAQ: HLIT)

Joshua Lim – Director at UBS

  • Director at UBS
  • Three years as VP of Treasury and Trading Operations at Circle
  • Five years as Trading Associate at Goldman Sachs
  • Graduate of MIT

Kevin Zhou – Former Head of Trading at Kraken

  • Two years as Head of Trading at Kraken Digital Asset Exchange

Token Metrics (6 points)

How well structured is the token sale for investors to make a substantial return on investment?

ICO Price – 1/1 points

How much is the price per token compared to the top 16 best performing ICOs of all-time, based on return on investment (ROI)?
Enigma Catalyst tokens (ECAT) will cost $0.60 per token, which is reasonable, as the highest price per token from an ICO in the top 16 best ICOs of all time list is Veritaseum (VERI), which cost $1.56 per token.

Number of ICO Tokens – 1/1 points

How many tokens available for sale during the ICO?
A total of 50 million tokens are available for sale during the ICO. The token sale supply numbers are great since the highest number of ICO tokens from an ICO in the top 16 best ICOs of all time list is Golem (GNT). Golem sold 820 million tokens and to date has done a 30x despite that.

Total Number of Tokens – 1/1 points

The total number of tokens being created by the project, including tokens not being sold during the ICO.
Enigma is creating a total of 100 million tokens. This is a safe amount of tokens. The highest number of ICO tokens from an ICO in the top 16 best ICOs of all time list is Golem (GNT). Golem created 1 billion tokens and to date has done a 30x despite that.

Percentage of Total Supply Being Sold During the ICO – 1/1 points

The percentage of tokens being sold during the ICO compared to the total number of tokens.
Enigma will be selling 50% of the total supply of tokens during the ICO. This is a safe percentage. The highest and lowest percentages of total supply being sold by an ICO in the top 16 best ICOs of all time list are Spectrecoin (XSPEC) with 93% and Metal Pay (MTL) with 24%. Spectrecoin and Metal Pay to date have done a 175x and 63x.

ICO Market Cap (1 point) – 1/1 points

How much money is being raised from the ICO?
Enigma Catalyst has a market cap of $30 million. This falls within my current safe zone of $147 million. Adjusting the ICO market caps from the top 16 best performing ICOs of all-time for current crypto market cap inflation, Augur (REP) had the highest market cap, at $147 million and to date has had a 37x return.

ICO Market Cap Percentage Vs. Overall Cryptocurrency Market Cap – 1/1 points

The percentage of the money being raised from the ICO versus the entire market cap of all cryptocurrencies and assets.
Enigma Catalyst’s market cap will only make up 0.02% of the entire crypto market cap, which to date is valued at $130 billion according to Coinmarketcap.com. This is within the safe zone, established by Augur (REP), which raised 0.11% of the entire crypto market cap during its ICO. Augur to date has done a 37x return.

Overall Grade – 15/15 points (100%)

Overall Enigma Catalyst scores a perfect score, receiving 15 out of 15 points based on my ICO evaluation criteria.
I am very bullish on Enigma as a result.
I can see Enigma doing a 10x within one year. It simply has to go from a $30 million market cap to $300 million market cap. This would put them in the same market cap range as the following companies to-date:
  • Veritaseum ($267M)
  • Iconomi ($288M)
  • BitShares ($485M)
NOTE: This is not investment advice. I am not a financial advisor. Invest at your risk and do your own due diligence.

2 comments


  • damnit ian!! killing it!! thanks much for this!!

    Kyle

  • This is good and helpful. Can you also please add the requirements to participate in the the pre-sale and crowdsale of the ICO along with when and where and the step by step process to buy the ICO. Can you also please add the projected profit and the profit timeline. Thank you.

    Robert

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