 Hey guys, it's MJ and in this video, we're looking at everything wrong with the rivets ICO This is quite a big ICO and they've got hot status on quite a lot of these ICO websites So it's going to be a lot of fun to tackle a big fish But please go check out my ICO disclaimer video, which I have got on my channel before moving on with this one But yeah, this rivets it's it's interesting. They've got quite a nice Twitter following They've got a very strong team. They they seem legit. I mean the whole ethereum thing on their website looks pretty cool The white paper it explains the technology What exactly are they? They are a decentralized and mobile Cyber security token and you read the white paper and the best way to describe their thing is by reading this It's a decentralized mobile cyber security token. So it looks great But I did find a few a few red flags The first one is that this is a gonna be a mobile app It's gonna be mobile security and they admit on their frequently asked questions that it's not gonna work on Apple And I've tried to release a like a crypto app on Apple and they do reject it They're very strict and I don't see this app getting on the app store anytime soon. So that's the first red flag if we look at their their crowd sale a Pet hate of mine is the fact that there are these 20 percent bonuses for people who come early to give a 20% bonus on an investment is Outrageous and it's a clear indication that they are overvaluing their token Their token kind of works out at $1 for each of their their rivets tokens But it does fluctuate depending on the Ethereum price and I'd hate to know what the discount was for the pre-sale Because they're not even showing it which means it might be 50% it might be huge But that is a big red flag for for me What also felt was a little bit strange was that the average person had invested 11 Ethereum tokens on to this thing which which does seem quite high Does make me feel a little bit suspicious. So it makes me uncomfortable. So I am gonna give it a bit of a red flag Reading through their their terms and conditions I saw that they have a maximum purchase quantity during the crowd sale and I respect I see as they do that They'd say we want as many people to invest in this I see as possible to benefit from the network effect So we're gonna put in a limit on the amount of coins that you can purchase It's also a great way to make sure that no one invests all their money in that you're protecting them. It's responsible What I didn't like was that this maximum purchase was a hundred thousand Tokens which at a dollar each is a hundred thousand dollars. That is huge Also, what I love is that they say the company in a sole discretion may waive the maximum purchase limit Completely defeating the whole purpose. I don't even know why they bother putting this in It's almost like someone's saying, hey, I've got a lot of money. Will you take it and they're saying? Yeah, sure. We're not gonna say no to free money, which I do feel is irresponsible If we look at their total supply, they have two hundred million tokens Which means they what they value in this company at two hundred million dollars, which is huge Okay, so that's a red flag that it is so so large Next is that like 30% of it is going to be set aside for promotional tokens, you know for for marketing and incentive purposes I understand bounty programs. They're a great way to get people, you know to talk about and spread the word but 60 million dollars For promotional tokens. That is also outrageous. That is another red flag And it you can see it on on reddit people were also upset that the token size was so much And that they were asking for or so much money This guy sums it up quite nicely. They request a lot of money, but they're still keeping a lot of the tokens I did stumble across a reddit comment which does raise another red flag And what he's basically saying he's saying this product worked for two years two years ago It was working without any tokens, but now they've kind of added the tokens He's read through the white paper and doesn't see how the tokens actually fits in this whole ecosystem And he feels as if they're only using the token to generate money and get on this whole ICO hype train And for me that is a big red flag Another red flag was that they talk about this beta. They show this the beta working on youtube But there's no way for me to download it and test it myself. So I'm going to give a red flag I don't want to invest in something that I can't touch even just a little demo a little mvp Just to show me. Okay. Look, there is some sort of code that I can work with. So that's another red flag Then this is where things got interesting. I do respect that they're very transparent I respect the fact that they say that this is a risky investment. So Full marks for that. What I don't like is that they're saying this tucked away In this massive terms and conditions document, which is like over 30 pages long and They've like hidden it in it's not like when you come to purchase the token a little pop-up says, you know Hey, this is a risky investment. Are you sure you understand the risks to move forward? I'd be very happy with that the fact that they're they're putting it in but they're not highlighting it It's a bit of a red flag for me But what are these assumed risks or something that they're talking about? You know, is it the fact that the token price could come down? What what are they? Well, on their their paper, they actually do discuss these risks There's the risk of losing access to tokens due to loss of private keys custodial error or purchase the error That that sounds heavy Risk associated with the ethereum protocol risk associated with the trusted execution So we we're seeing a lot of counterparty risk We're seeing risk of mining attacks risk of hacking and security weakness I thought this thing was a security cyber protection thing in that they've created the technology that can't be broken But risk number five is that they get hacked risk number six is associated with the market for the tokens Risk of unassured losses risk associated with uncertain regulations and enforcement actions What are they doing is something that is potentially illegal Then there's a risks arising from taxation risk of competing ecosystems They talk about how anyone can actually do the same thing that they're doing and that this could hurt their value Risk of insufficient interest in the ecosystem or distributed applications risk associated with development and maintenance of the ecosystem Risk of unfavorable fluctuations of the ethereum value risk of dissolution of the company or ecosystem They talk about if the ethereum price goes down too low They're going to dissolve this company and then what happens to the rest of the money? Do they just pocket it for themselves? They refund it? Well, we don't know risk arising from lack of governance risk Risk arising from cyber security market operational risk. They talk about how they're a young Company and that they don't know if they can really grow that quickly So if you can't grow that quickly why are you asking or valuing your company at 200 million us dollars rather grow organically? Risks of changes in technology Then there's technology risks then they even have unanticipated risks. So despite all these 20 risks There are still other risks that they're completely blind to and I'm sorry But we are going to throw down a whole bunch of red flags for this because yes It's great that they're highlighting their risks But the fact that they have not stated at all how they're going to handle these risks How they're going to mitigate these risks and how severe these risks are going to be and how they've got you know Action plans or crisis management things It is it is sad for a company that is valuing itself at 200 million dollars And they're just identifying their risks and they don't have any sort of mitigation or risk strategy That is huge, but I think the final cherry on the cake and the reason why I'll be passing on this token is because They even say they're not going to be listening on an exchange. They're like that's not part of the game plan Which means you're buying these tokens Only to use the security thing which means if you have an apple device I don't know why you would even touch this thing um I mean and trying to sell these coins the the liquidity the extra strategy really makes it awkward For an investor and for these amount of risks and for the value that they've raised their company at I don't think the risk in return is is going to be worth it Anyway, I am going to stop the video there because we are going over time If you do want to see some more questions or other things that you should look at when Valuing an ICO go check out my book which is published on amazon link will be in the description below And talking about the description below in the comment section Please feel free to to give me your opinion. You might be a big fan of this ICO you may have invested in it and Use this platform to say why I'm wrong. Why are you right? Let's have a discussion. Let's let's continue Exploring and figuring out these ICOs and I'll see you guys next time for another video Also, feel free to let me know which ICO you want me to do next. Thanks guys so much for watching and cheers