If you bought into the Civic ICO in 2017, you would not be too happy with your return on investment.
Civic co-founder and CEO Vinny Lingham is a South African entrepreneur, known for featuring on the local version of the business show Shark Tank.
In July 2017, Lingham held an initial coin offering (ICO) for his Civic cryptocurrency startup, allowing the public to buy into his project in exchange for digital tokens transacted on the Ethereum blockchain.
This was during the height of the global cryptocurrency craze, and the Civic ICO ended up raising its maximum figure of $33,000,000 from the offering.
This is equivalent to around R621 million based on the exchange rate at the time of writing.
But while Civic benefitted greatly from this initial funding round, what have the token buyers gained from their investments?
If you are a Civic (CVC) token holder and you bought your tokens during the ICO, you would currently only have 7.5% of your initial investment.
According to CoinMarketCap, the value of CVC tokens was $0.20 when they first launched. They were worth $0.015 at the time of writing.
Things are even worse if you bought CVC during the height of the cryptocurrency craze at the end of 2017. If you spent R1,000 on Civic tokens in December 2019, your investment would be worth R12 today.
While these figures show that Civic has not proven a good investment for cryptocurrency fans, it is also indicative of the overall movement of the cryptocurrency market, which has declined significantly since its all-time highs in 2017.
The Civic tokens, however, are also supposed to offer a utility value to users. The problem is, the applications of Civic tokens in the real world are far from widespread today.
Tokens and Ethereum
Civic’s token was created to facilitate the movement of identity data on the Civic platform in the following ways:
- Validators receive CVCs when other participants utilize their attestations to prove identities.
- Users receive CVCs for providing their data more securely and privately through the ecosystem.
- All categories of participants can utilize CVCs for identity-related products and services provided by Civic and third parties through the ecosystem.
These tokens are limited in quantity, which means they follow the standard ICO formula of becoming more valuable as their application becomes more popular.
It is also important to note that the Civic token is an ERC-20 token, which means it runs as a digital token on the Ethereum blockchain and has no blockchain of its own.
Instead, decentralised code which runs on Ethereum nodes is used to facilitate the transaction and functioning of these tokens.
There are currently very few consumer-facing applications for the Civic token, although the company’s blog is still being updated with progress reports on its projects.
The most recent Civic-related news was a partnership with BitGo to develop and launch a new wallet by the end of 2019.
This wallet will be able to host both cryptocurrency and identity data, and will be compatible with Bitcoin and Ethereum.
The wallet has not launched yet, and the website states that when it does launch, it will allow users to buy and store cryptocurrency.
It will also be able to send and receive cryptocurrency by scanning a QR code or entering a username.
While the widespread adoption of a mobile cryptocurrency wallet may drive the adoption of the Ethereum-based token, it is unclear when investors will see the promised return on their investment.
Lingham, however, recently launched a new venture capital fund through Newtown Partners – which he co-founded with Llew Claasen – in partnership with Imperial.
The fund will have an initial capitalisation of R320 million and will invest in startups in the logistics industry, working to identify disruptive technology with high growth potential.
MyBroadband asked Newtown Partners and Civic about the progress made on the Civic platform since its ICO in 2017 and its plans going forward, but the companies did not respond.