Unicrypt [UNCX] Research by ZBS Capital

Unicrypt [UNCX] Research by ZBS Capital

KEY POINTS

  • UNCX – a deflationary governance token, token buybacks & burn from profits;
  • Unicrypt & UNCX are live on Ethereum, Binance Smart Chain, xDai chain & Polygon networks;
  • A low Fully Diluted Market Capitalization of $14.7m USD (based on the UNCX price of $302 USD), with ~78% of tokens in circulation;
  • The suits of useful products are already developed and live. Uniswap, PancakeSwap, JulSwap, Honeyswap, SushiSwap & QuickSwap AMMs are deployed;
  • Over $180m USD locked in over 3000 Uniswap pairs;
  • Positive traction since the launch of UNC till now & expected beyond!

    PROJECT OVERVIEW

    Unicrypt is a decentralized services provider, mainly used by DeFi projects. Unicrypt was born in June 2020, with a simple and original concept: identifying ways to protect investors and newcomers to the DeFi space. Unicrypt started its journey on the Ethereum network and has expanded to Binance Smart Chain, xDai Chain & Polygon Networks.

    Unicrypt has already developed a bunch of products & services allowing users to get into the DeFi space and protect themselves from frauds: 

    • Liquidity Lockers – these are smart contracts that enable teams to publicly lock liquidity on Uniswap or other AMMs for a predetermined period. Essentially, it’s a guarantee to investors that the project developers can’t drain the pool of all the funds.
    • Decentralized Launchpada decentralized and automated presale platform that is connected to the liquidity lockers. Once the presale ends a portion of the raised funds (between 30% to 100%) will create the DEX pair on a supported AMM and the liquidity will be locked.
    • Farms-as-a-serviceThis is a yield farming-as-a-service protocol that enables the creation of a farm for any token. Launch a farm in a couple of clicks using the UI, all automatic with no coding necessary.

    Moreover, Unicrypt helps DeFi projects to simplify their token sale via Initial Liquidity Offering (ILO), lock liquidity via a Liquidity Locker, deploy farming features, and provide connections to Audit & KYC firms.

    Every smart contract deployed by Unicrypt is audited by their partners from ChainSulting, who has previously worked with 1inch, Maker, MetalPay by Fetch.ai, and other well-known blockchain projects.

    UNICRYPT TOKEN

    • Ticker: UNCX
    • Current Price: $302 USD
    • Circulating Supply: 38,263 UNCX (link)
    • Total Supply: 48,650 UNCX (1,350 UNCX already burned)
    • Market Capitalization: $11,555,426 USD
    • Fully Diluted Valuation: $14,692,300 USD
    • Fundings: No fundraising, a self-funded project

    UNCX is the deflationary governance token of the Unicrypt platform. UNCX can/to be used for:

    • Presale participation – Holding 4 UNCX is required to participate in Round 1 of the sales taking place on the launchpad
    • Community involvement – Holding 4 UNCX is required to sign in to the Unicrypt browser and create watchlists, along with upcoming social and notification features.
    • UNCX burning – random UNCX burns occur from the collected fees. UNCX burns decrease total token supply forever and have a positive impact on the token price.
    • Voting – Unicrypt allows the community to govern the features the platform releases for other tokens. For instance, the community decided to keep Unicrypt as a brand name once a rebrand was proposed.
    • Passive income (to be deployed) – Top 100 UNCX holders on xDai Blockchain will be distributed token fees coming from the presales Unicrypt hosts.

    Unicrypt decided to conduct a token swap from UNC (an old Unicrypt token) to UNCX in October 2020. The purpose of this step was to massively reduce the supply of the token and respectively decrease a fully diluted market cap. The token swap remains live till the 15th of April 2021 based on the conversion ratio of 4000 UNC: 1 UNCX.

    On April 15th Unicrypt will use the UNC reserves to swap out the remaining UNCX in the swap contract and burn that portion of UNCX, lowering the market cap and destroying those tokens forever. It will no longer be possible to swap UNC to UNCX after April 15th via the swap contract.

    Note: Unicrypt has also a UNCL token. UNCL is the liquidity provider reward token of the Unicrypt platform. UNCL token is an inflationary one and the maximum inflation rate per year decreased every year by twice. Despite the fact that UNCL token utilities are quite similar to UNCX utilities, we do not recommend investing in UNCL because of its inflation mechanism.

    TEAM

    As a decentralized project, Unicrypt has an anonymous team. This point may cause distrust in the project, however, they have proved their professionalism by releasing a range of products and maintaining the ecosystem. Moreover, we can point that the team has positive traction with the communication with the community & investors via social channels & chat.

    Note: “Fully anonymous team – this may be subject to change.” from the Unicrypt Team

    PARTNERS

    Everyone can use Unicrypt services based on their decentralized nature. So obviously we can name some well-known names that have been using Unicrypt till now (link): DexTools, Kira Network, MahaDAO, OctoFi, Oraichain, Poolz, Playcent, Ramp DeFi, Zenfuse, PolkaCover, DePay, Launchpool YF-DAI, Finxflo, & more!

    Unicrypt has partnered with DexTools (link). This partnership entails API integration between DEXT and Unicrypt, projects are collaborating on enhanced trust scores and making these scores visible on both platforms.

    Unicrypt has a strategic partnership with Pinpoint Capital (link), an investment fund & marketing company. The partnership is focused on Initial Liquidity Offering launches & KYC for start-ups

    Unicrypt has partnered with GraphLinq Protocol (link), an ILO project that raised funds via Unicrypt. The partnership is focused on API Tools integration (Lockers, ILOs, and more to come) & a Dashboard for analytics. 

    Unicrypt has a solid list of partnering Auditor Firms (link) including ChainSulting, Hacken, Quill Audits, CTD Sec, Solidity Finance, WARONRUGS, Solid Finance & Rug Detectives.

    LISTINGS

    UNCX is currently listed on Uniswap, Bilaxy, Gate, Honeyswap, PancakeSwap, 1inch. The average 24h trading volume during the last 30 days is  ~$1,500,000 USD. We can expect more exchange listings to come in the future with the awareness increase around the project & implementation of governance/fee distribution features.

    COMPETITORS

    If we consider UNCX as a launchpad token, we can observe a huge potential for growth from the chart mentioned below.

    Considering Unicrypt’s Liquidity Lockers the direct competitor of Unicrypt is TrustSwap with a Market Capitalization of $277m & FDV of $428m. The total liquidity locked through TrustSwap is ~$715m USD comparing with the ~$180m total liquidity locked through Unicrypt via 6 AMMs. The obvious fact is that the liquidity locked via Unicrypt (~3,000 pairs) is more diversified than via TrustSwap (~517 pairs). 

    ON-CHAIN ANALYTICS (AS OF MAR 29 2021)

    The UNCX foundation wallets are used to fund development and grow the Unicrypt project, this includes marketing bounties, floating initial liquidity on additional exchanges, payment to developers and core team members, and any additional ways of increasing exposure and growing the project.

    We can observe that already 10 burns occurred with 1350 UNCX tokens burned (link). 90 ETH (~$160k USD value) and $250k value in different tokens are located on the Fee & Reserve Wallet

    UNC – UNCX swap token contract contains unclaimed 4,325 UNCX (8.89% of total supply) that can be swapped till the 15th of April 2021 or burned afterward.

    Uniswap Liquidity Contracts

    xDai token bridge contract contains ERC-20 UNCX tokens that are out of Ethereum circulation and are minted on Binance Smart Chain / Polygon / xDai blockchains. The total token supply is common for the 4 blockchains (no minting, only burning)

    We can observe that the rest of the tokens, roughly ~58% (28,029 UNCX) are distributed through ~2,500 UNCX holders. The token distribution looks healthy, with no major whales, according to the chart from Bloxy Info (link): 

    According to the chart mentioned above, the amount of Token holders increases every time ILO takes place. The circulation supply decreases over time when burns occur.

    VERDICT

    Unicrypt (UNCX) is a promising project with already developed working products. The token utility is clear and we are looking forward to the implementation of fee-sharing for top 100 holders. The team is anonymous but has proven itself through the year of development. 

    The competitor analysis shows that Unicrypt has a space to grow, as it’s still a low-cap project with all tokens released in Circulation Supply. Token burns positively affect the UNCX price. 

    Unicrypt has already expanded its services to Binance Smart Chain, xDai chain & Polygon networks. 6 AMMs already live: Uniswap, SushiSwap, PancakeSwap, Honeyswap, JulSwap & QuickSwap. We can expect more to come in the future.

    We are looking forward to the 15th of April when the token swap from UNC to UNCX to be over & the unswapped amount to be burned. All tokens, except the ones from Foundation wallets, will be into circulation and will form a true market price of the UNCX token.

    Overall, with positive market sentiment, gaining popularity & providing more services to other projects we can expect UNCX price rise in the mid-long term prospective. 

    We are glad to reveal that ZBS CAPITAL has acquired 1% of the total token supply from the market – 486.5 UNCX (worth ~$140,000 USD) through Uniswap, Gate & PancakeSwap, with an average purchasing price of 1 UNCX = $284 USD.
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    Disclaimer: The author(s) of this report is/are invested in the following coins mentioned in the report: UNCX.