GIFTCOIN – SWOT Analysis

In the previous parts of this series, I have analyzed the Giftcoin blockchain project. I covered the introduction phase, how the platform works with common problems and solutions, then I covered why I would invest in the project. If you missed the earlier parts of this series, you can read up below 
Part 1: Introduction 
Part 2: How it works 
In this part, to properly gauge my expectations of this project i will be using a business tool called SWOT analysis. With the SWOT analysis I will be gauging the internal factors against the external factors in order to gain better perspective of Giftcoin's chances for success post-ICO by taking into consideration the Strengths, Weaknesses of Giftcoin and then the Opportunities and Threats that Giftcoin faces.
Photo by Hans-Peter Gauster on Unsplash 

SWOT Analysis

Strengths

Feedback Mechanism/ Tracking system: The internal strengths of Giftcoin lie in what this project offers that the current charity organizations lack. A feedback mechanism
With the traditional charity organizations, the feedback mechanism is almost non-existent at all, there is no transparency and no way of tracking the progress of charitable causes. 
When people donate they do so out of goodwill because there is no guarantee that the money donated is going to the right destinations and the charity organizations that have thrived over the years have done that due to reputation of those involved in the charity and the visible impact they make, this gives people a sense of assurance to donate to their charity causes. 
Although there are other charity organizations who want to do great things and help but are crippled by lack of funds due to low trust from the masses and even the well reputable organizations are not immune to fraud.
With Giftcoin donors can track the progress of their donated funds every step of the way in its quest to fulfill its desired purpose.
Low Transaction fees: Giftcoin is blockchain platform with its own utility token that charges very low transaction fees. When compared to the traditional systems of donations, donors do not have to worry about paying high fees in order to donate funds to help a cause.
With Giftcoin all these stated limitations are put in check which will in turn instill more confidence in the masses and reasonably help charities in raising funds for sole aim of helping people all over the world.

Weaknesses

Blockchain Infancy: The major weakness of this platform lies in the infancy of the blockchain technology. The blockchain is still very much in its early stages of adoption with a very few already functional decentralized platforms, there is only a very low percentage of the world population who are currently in favor of blockchain projects and a large percentage whom have not even heard of Cryptocurrencies. Although it will be interesting to see how this plays out on the long term as crypto assets gain more recognition and adoption 
A Working Prototype: At the current stage of this project I believe the absence of a working prototype to be a weakness. A prototype does a lot of things it gives the developers a chance to recognize bugs in the platforms design and fix it; it gives proper foresight to the projects implementation and also helps investors and potential users to carry out test runs of the platform and know how it works. The presence of a working prototype has a huge impact on the market value of a blockchain project and its absence is a weakness.
But haven studied the whitepaper and deducing that an MVP release will come in July, I think it’s not too far away to wait.

Opportunities

The major beneficiaries of Giftcoin are the millions of people all over the world that need donations and help from charity to sustain their lives. Millions of lives are touched yearly with donations that amount to more than $500 billion yearly.
The amazing thing however is there is room for growth, there is room for an increment in the total donations gathered. 
Let's do a quick math, a platform like Gofundme collects 5% of donated fees as commission and many more platforms do the same either a little more or a little less. Let's assume we go by the 5% fee mark for donations of $500 billion = $25 billion 
That’s $25 billion that can save/change millions of lives. 
This factor added to the additional upturn in donations that will result from a well working feedback mechanism that Giftcoin will implement, the potential for increase in donations is limitless and in turn gives limitless opportunities to people all over the world.

Threats

Threats Giftcoin faces are external and are common to most crypto related projects.
Like many other Cryptocurrencies Giftcoin is subject to increase and decrease in value, and with the recent reality check that most crypto assets are facing in 2018 as an example; This shows that even the best of projects and the most stable utility tokens are susceptible to volatile price changes. 
What will be the effect this?  The volatility of crypto assets means that there is a real possibility for reduction in value of the funds donated before they are used for their assigned purpose.
Although Giftcoin’s team has taken measure to ensure the market volatility has minimal effect on the value of Giftcoins but it’ll be interesting to see in reality how it works.
The points expressed above are my personal views on a project I am bullish about. I always recommend that you do due diligence by carrying out your own research; join the telegram community https://t.me/GiftcoinCrypto visit their website https://www.giftcoin.org/, and official ANN Thread https://bitcointalk.org/index.php?topic=2828871.0 for official information about the different aspects of the project and the token sale. You can also download and read their official Whitepaper https://www.giftcoin.org/GiftCoin_Whitepaper.pdf
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