In this article, we will discuss about details into Civic(CVC) Project History, Past Price Peformance, and Recent Project updates, and what makes it a good investment.
Civic is a non-custodial Bitcoin wallet developed by Civic Technologies, Inc. The firm is currently in the pursuit of building identity verification services built on the blockchain. Civic Key (CVC) is the cryptocurrency that was launched to kick-start the project and provide security to the decentralized identity system by distributed consensus. It uses identity.com’s open-source ecosystem to access on-demand, secure identity verification.
Vinny Lingham, the co-founder & CEO of Civic has a decent reputation as an entrepreneur with the history of Gyft & Yola. He is also an investor in the popular start-up show, Shark Tank (South Africa).
Supply Schedule and ICO Details
The projects boast of 8 VC investors and raised $33 million from the ICO in 2017. CVC token is pre-mined and has a total supply cap of 1 billion. The initial ICO sale of 33% CVC tokens resembles the sale of securities. Nevertheless, the time when the ICO was launched was in the early periods even before guidelines by the SEC had been laid out.
The validators on the network will be trustworthy Identity Verification (IDV) providers, for example, banks, utility companies, amongst many others. The users can also benefit from the ecosystem by sharing their information and earning CVC.
Recent Developments
Recently, Civic has made a lot of strides in addressing the current world problems. Data privacy and security is one of the biggest problem facing the netizens of the world with centralized technology companies.
Moreover, even post-COVID-19 lockdown, people and authorities are apprehensive of a second wave. Social distancing has become a norm all over the world. Moreover, scientists are developing the vaccine for the virus which will be implemented on a global scale as well.
Civic is developing the technology to recognize/mark people based on certain characteristics or information based on their identity. Vaccination against coronavirus will be one of them.
COVID-19 Application
Recently, they established a partnership with Circle Medical, a well-connected affiliate of UCSF Health, a San Francisco hospital, that will let employees prove to their employers the results of their most recent Covid-19 tests, and when a vaccine is developed, whether or not they’ve received it.
It is a secure and absolute way of ensuring a safe ecosystem without compromising one’s privacy.
Vinny Lingham, founder and CEO of Civic Technologies told the media,
“You don’t have to transmit your name or anything like that, So you can walk into a stadium anonymously like you do today, but just prove that as you walk through the gates that you’d been vaccinated.” He added, “And, we’re looking forward to offering proof-of-health verification as a new, privacy-focused element of your digital identity.”
New Wallet Update
Along with the Civic Health Key, the firm also launched an updated version of their crypto wallet on 12th June 2020. The new wallet combines AI (Artificial Intelligence) and blockchain-based technology to offer seamless cryptocurrency adoption. It will come with a biometric selfie verification, replacing the old seed password. Lingham tweeted,
The new wallet is multi-sig, non-custodial and doesn’t have any clunky seed phrases or usernames and passwords for you to remember! Available in the Apple App Store and Google Play Store, today!
The adoption of the wallet is critical for the cryptocurrency’s price which relies on the utilization of their attestations from validators and data from the users to prove identities.
Insurance
The wallet users are also secured by a $1 million (up to) insurance by Lloyd’s of London underwriters. Even if Civic Technologies or wallet closes down due to business failure, catastrophic systems failure or catastrophic data loss, the users can redeem their money from their insurers. The company names the feature as CoinCover. The insurance is automatically activated for all users in the supporting countries. This list of exclusions can be obtained here.
However, the mobile application has had only 10k+ downloads till now with an average rating of 3.5. The response offered by customer service offered by Civic Technologies Inc. for the app is quick.
Price Analysis
Civic Key (CVC) like most altcoins have been a downtrend since 2018. On the USD scale, the price was looking for a bullish formation with the break of the pre-COVID high at 0.035. Nevertheless, the price seems to have reversed before making a higher high.
A golden cross between the 50 and 200-period Exponential Moving Average (MA) is under construction. In bullish case, a breakout of the $0.035 would target the major support and resistance level at $0.045.
On the oscillator front, the MACD on the daily scale has taken a bearish turn, while the CMF ratio is positive, which is bullish. The cryptocurrency has witnessed fairly higher levels of volume in June compared to the previous months. This might be due to the major announcements recently. Nevertheless, technically, it has only partially confirmed the bullish action.
On a weekly scale, the oscillators (MACD and CMF) are positive. The price is looking to break up from the 50-period EMA at $0.034, confirmation of which will be bullish.
Recently, bullish set-ups have been forming on several altcoins. However, their realization depends on the Price Action (PA) of Bitcoin as well. A wild swing in BTC price to the upside will be highly positive, but not true for the opposite side.
With respect to BTC, however, the price is still in a bearish trend. The MACD and CMF ratios are negative, with the price still in consolidation at the bottom. The 0.00000526 Satoshi level will be critical for the bulls.
If the current moment continues, the above level can become the short-term target.
CVC/BTC 1-Week Chart on Huobi (TradingView)
On-Chain Analysis
While the growth with partnerships and adoption has been positive, the reflection on-chain is yet to confirm it. The ‘transaction count’ of CVC is rising since April. However, it remains to below 1000 and has not broken from the highs of the range.
The active address account of CVC is also below 200. The total fees spent on transfer of CVC is also negligent.
The NVT ratio of the cryptocurrency has room to grow. The NVT ratio is similar to the P/E (Price to Earnings) ratio of equities. It uses Transaction Volume (On-Chain) and measures this against the market value. When the ratio is too high it reflects over-bought conditions, and vice-versa.
While the companies are looking forward to using the blockchain technology, they are reluctant to add cryptocurrency payments for their applications. Hence, the use of CVC for payments is negligible at the moment.
Final Verdict
Civic wallets have the ability to provide non-custodial wallets along with adhering regulatory compliance. However, while it might be better than other open-source crypto wallets, popular applications like Cash App provide seamless access and assurance of the safety of funds as well. Moreover, the wallet does not yet provide buy and sell feature which makes it difficult to use for a new crypto user.
Furthermore, there are still many netizens in the world who are averse to privacy protection and continue to use centralized crypto exchanges. The total market capitalization of CVC is $20 million with a rank below 180 on CoinMarketCap. This makes it less likely for adoption as a medium of payment. Hence, overall the real utility of the wallet is limited by the adoption of its’ services by enterprises and crypto wallet users.
Nevertheless, Civic is essentially looking to solve the problem of anonymity for users, and compliance for regulators and organization. The new identity system with enough adoption would provide a secure way for identity verification and funds transfers. The ease of access and insurance is likely to attract cryptocurrency users from exchanges and other open-source wallets.
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