Since it’s ICO high season, we looked into it to for some profit potential.
Plutus platform aims to overcome slow adoption of bitcoins by retail merchants. To do so they propose to integrate credit card network, Bitcoin blockchain, Ethereum blockchain and their own exchange into one seamless process. Of course a new token, Pluton, will be integrated into the system.
Plutons are Ethereum tokens. There will be a total supply of twenty millions Plutons to be minted during the whole life of the platform and just 850.000 Plutons will be available for ICO.
At first glance it seems a slam-dunk case for buying. But it’s not.
From an investment viewpoint Plutus is really awful.
First thing. Bitcoin, Ethereum, credit card and exchange integration? This will take years in developing, and maybe will never see the light of day.
The basic concept at the core of Plutus looks something like that: you can deposit Bitcoins into your Pluton account, then, when you want to spend fiat currency at a merchant shop, the Pluton centralized system will sell your bitcoins on the Pluton exchange, matching the best bid offers of the traders. You’ll have to pay a fee up to 4% to convert Bitcoins to fiat money. On any purchase you’ll get a rebate in Plutons. Then the fiat money price of the sale will be credited to your virtual credit card to spend at the shop.
This idea seems pretty lousy to me. Since traders are there to make profit I don’t think they will offer great deals to sellers. Above all taking into account that the seller doesn’t know the rate he is selling at. Ok, maybe they will outbid each other, but just up to a certain point. Anyway, especially at the beginning, I don’t think the number of traders will be high enough to guarantee a proper bid competition between them. To cut it short. You most likely will get a bad deal spending your bitcoins with Pluton app.
Something else is out of place here. Knowing bitcoiners from all walks of life I don’t think there will be much demand for a service like that. The only things bitcoiners spend bitcoins on are: 1) something that can get them MORE bitcoins; 2) services they want to purchase anonymously. Ok, they also sell bitcoins at a premium over spot price (which is just another iteration of 1).
The only people I see that could possibly consider selling under spot price are drug dealers and cybercriminals. And these will never undergo the strict KYC policy Plutus claims they’re willing to enforce.
Therefore, from a business standpoint Plutus doesn’t hold water.
That doesn’t mean that you can’t make a profit from this ICO.
Plutons will be created and released to ICO participants as scheduled, since Ethereum token creation is a cakewalk.
Our basic plan here will be, jump on the ICO wagon, expect the price pump and then sell the tokens for profit. Risky but still feasible, due to the ICO mania now under way.
But there’s a catch. Let me quote from their website:
Note: Plutons obtained during the crowd token sale will be limited to in app use only. You can send them to a friend’s account or redeem them within the app to convert to a virtual debit card and spend at any NFC-enabled point-of-sale terminal.
So, no exchange whatsoever for selling your precious Plutons to the next fool.
There’s no profit to milk from this one.
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