The ugly truth of Substratum’s second ICO

in #substratum3 years ago

Substratum was one of our early-picked projects that can disrupt the industry of centralized and controlled Internet. However, there are things that are alarming, disconcerting and even make us think of abandoning the project. Here is our honest take on the latest news.

What is Substratum?

According to their website, Substratum is an open-source network that allows anyone to allocate spare computing resources to make the internet a free and fair place for the entire world.

How does it work?

Here is their network:

https://cdn-images-1.medium.com/max/1600/0*HBSPJ8PSZba4fXEh

Substratum’s network consists of three components: a substratum host, a substratum node and a web user. Unlike other centralised cloud computing, Substratum network pays per click not for their online time. The Substratum nodes act like a forwarder of the network delivering the information.

Due to the AI implementation of the network, Substratum nodes can combine their nodes together to find the most efficient method to deliver the data. Hosting Substratum node will reward the host with their token every time they deliver the data. Because the SUB network is decentralised, web user will not be censored when they access websites that are hosted by the SUB network. Additionally, because of the lightweight design of Substratum, mobile users can even enjoy the open internet, as Substratum doesn’t discriminate between platforms or devices.

First ICO

On August 14th 2017, Substratum opened their first ICO with the hardcap of $45 million. However, they only raised $14 million after finishing their crowdfunding. Each token price was worth $0.07 during the ICO phase. According to their whitepaper, almost 226 million tokens were issued. Because of the volatility of crypto market, Substratum proposed a unique fund allocation model to ensure the capital for each phase of the project. They divided 25% of their fund into four equal parts using different currencies: ETH , BTC, USDT and USD.

Substratum progression

On August 28th, they announced the release of Substratum node 0.4.0 version. This version is still in its beta phase and people who want to run the node have to sign up for their slot. On their blog site, most of the updates were done through Youtube video instead of articles/posts/repositories. For example, on their github, they have only 1 repository and the latest commit was submitted a few days ago.

Second ICO

In one of the recent Justin’s video, he represented a third product called Amplify decentralised exchange.

https://cdn-images-1.medium.com/max/1600/0*CvUUQRjp4SM1umxn

What is Amplify? Amplify is a distributed and decentralised cryptocurrency exchange. Amplify is tightly integrated with Sub node and CryptoPay (one of their project). By integrating with CryptoPay, the exchange also allows you to use fiat to buy crypto. You can earn exchange token by hosting node to verify transactions.

Current status of Amplify

According to their video, Amplify have been privately funded in R&D round for $1 million. They also said that the exchange is working with several large banking institutions to provide a backstop for trading.

https://cdn-images-1.medium.com/max/2000/0*ATSsTbzwneU04KkA

How to participate in Amplify ICO?
Amplify ICO will be held on October 1st, 2018. They accept both BTC and ETH in their funding phase. According to Justin, Amplify (AMPX) is an erc-20 token which will be moved to their mainnet using a POS consensus algorithm. Additionally, the hardcap for this ICO have not been released yet. Justin said the additional info will be updated in the next 30 days.

Question for Substratum second ICO, Amplify

What is the point of creating another ICO when the first product hasn’t been completed? The Sub node 0.4.0 just released few days ago and it’s still in beta phase which may have bugs and issues. Justin also said the Substratum nodes project will not be abandoned (we will see) because it’s a core project for the entire Sub ecosystem. Substratum did an ICO one year ago already and did they think of making the second ICO this year? What happened to all those $14 millions? Where did they go? Why did they not allocate those $14 million for this 3rd product? Why they did not include the 3rd product in their original ICO? Is there something wrong or shady here?

And why don’t you accept your SUB tokens for that ICO?

Please, Substratum. Let us, the investors know the reasons. Be transparent!

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Coins mentioned in post:

CoinPrice (USD)📈 24h📉 7d
BTCBitcoin6409.938$1.68%-0.62%
ETHEthereum188.698$7.37%-16.91%
SUBSubstratum0.099$6.33%-12.22%
USDTTether1.002$-0.19%-0.0%

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