The blockchain ecosystem has seen many innovative and unique platforms launch interesting and successful initial coin offerings lately. While there have been many less reputable initial coin offerings that have launched coins that never made it to market, just as many go on to create operational, popular platforms or services.
For this reason, performing research on an initial coin offering and assessing it from a critical perspective is important. When assessing an initial coin offering, it’s important to develop a firm understanding of how the potential platform it aims to launch plans to work and how it will generate profits for investors.
In this article, we’ll be taking a look at Steneum, which is a new initial coin offering that is aiming to bring a new digital asset to the blockchain ecosystem. While this in itself is nothing unique- there are already thousands of different tokens that deliver basic cryptocurrency functionality- Steneum is a particularly promising proposition, as it’s tied to the Bitsten exchange project.
We’ll take a look at the Steneum project and find out what it plans to achieve and how it aims to provide investors with a ROI, as well as break down the specifics of the upcoming Steneum ICO to help you determine whether it’s worth investing in.
What Is Steneum?
Steneum is self-admittedly virtually identical to the Bitcoin network, as it is based on the Bitcoin platform. The company behind the Steneum project is based in West Java, and is driven by an experienced team of developers and programmers with extensive blockchain experience.
The Steneum platform is designed to function as a fully decentralized peer to peer cryptocurrency that can be used as a means of value exchange and transfer without reliance on a centralized server. Like most Bitcoin-based cryptocurrencies, the Steneum platform allows users to quickly and easily transfer value to one another anywhere in the world.
The Steneum project, however, takes an interesting approach to transfer fees. Users are able to set transfer fees to $0, but have the option of increasing the transaction fee in order to speed up transaction times. All transactions made on the Steneum blockchain are anonymous, but are recorded and displayed publicly in the blockchain and can be monitored via the Steneum blockchain explorer.
The Steneum blockchain uses Script algorithm in its proof of work consensus method, which is currently used by cryptocurrencies such as Litecoin and Dogecoin. This makes it possible to perform Steneum mining with a simple GPU, and doesn’t require specialized hardware such as in the case of Bitcoin.
How Steneum Works
The most interesting aspect of the Steneum project is the Steneum lending program. Steneum have created a lending platform that allows passive investors to generate ROI with little effort. Unlike other lending programs, however, Steneum does not use USD.
If users lend 1,000 STN- the Steneum token- they will receive 1,000 STN in return, not USD. Profits are generated in the form of daily commission, which comes from Bitsten market income. Lending 1,000 STN in a contract period in which the value of STN is $1 USD, for example, and ending the contract in a period in which 1 STN is worth $5 USD, would deliver significant profits.
At the conclusio of lending contracts, users are able to withdraw STN or renew their contract as they see fit. All coins committed to the Steneum lending platform are stored in the Bitsen market and are not traded, which diminishes the amount of circulating STN. According to the Steneum white paper, this will ultimately raise the price of STN in the market due to scarcity.
Interestingly, there is no minimum or maximum amount of Steneum for lending. Contracts can last 30, 45, 60, or 90 days, depending on the amount of Steneum that is lent. During this contract period, it’s not possible to withdraw lent Steneum.
Commission on Steneum lending is distributed in BTC, and can be withdrawn on a daily basis. At the conclusion of the contract, the same amount of Steneum that was lent will be returned to the lender.
The Steneum ICO
The Steneum platform will launch their initial coin offering on the 1st of December 2017, which will run until the 1st of January 2018. Just 20 million Steneum will be generated during the ICO, of which only 5 million will be available for investor purchase.
14 million STEM will be reserved for mining, with a block reward of 25 STN and a 300 second time between reward. Lastly, 1 million STN will be reserved for bounties. During the ICO, Steneum will offer a scaling price for individual STN, as follows:
- 0-1 million STN: $0.15
- 1-2 million STN: $0.20
- 2-3 million STN: $0.30
- 3-4 million STN: $0.40
- 4-5 million STN: $0.50
Steneum ICO Review Summary
The Steneum project is ultimately a lending platform, which means you’re trusting the profitability of the Bitsten project, which in turn relies on the trading decisions made by the Bitsten team. Ultimately, entrusting any third party with your funds and allowing them to invest for you is inherently risky, but in many cases can be profitable.
If you’re willing to absorb the risk associated with high yield investment programs and are seeking a lending platform that delivers daily commissions, then the Steneum ICO could be worth consideration.