What is TokenClub? The Monthly Box of the Hottest ICOs

Recently, I stumbled upon TokenClub. It caught my attention because it handles everything about buying into ICOs for you – including KYC processes. Just set your monthly spend (minimum $10), pay your bill, and get a bundle of ICOs direct to your Ethereum address every month.

Andrew Redden (TokenClub CTO) was kind enough to answer some of my questions on Telegram. This post is a summary of our little chat and everything else I could find out about TokenClub.

Remember: I’m not a financial advisor and this isn’t investment advice. Check out my full disclaimer here.

 

What is TokenClub?

 

 

 

TokenClub is a subscription service which sends subscribers a curated selection of 8-10 ICO tokens every month – straight to your Ethereum wallet. You can only subscribe with a cryptocurrency payment right now, but it looks like you’ll be able to pay via credit card in the near future. The minimum subscription is $10 per month, with no stated upper limit. You subscribe on a month-to-month basis, so there’s no ongoing commitment if you’re not satisfied.

Recent News

Reopened Subscriptions

On the 29th January 2018, they reopened subscriptions which had were suspended due to overwhelming demand in December. Although they wouldn’t disclose the number of active subscribers (or monthly volume), they are “growing every day”.

Joined Techstars Anywhere 2018 Class

The TokenClub project has recently made the cut for the Techstars Anywhere 2018 class, which is “one of the top tech accelerators and famously boasts a notoriously competitive application process, with less than 1% of applicants making the cut”. Find details of the other teams that were accepted into the Techstars Anywhere 2018 class here.

Team

TokenClub hasn’t been around long – only since 22nd September 2017. The team consists of just three members at the moment:

 

 

 

 

 

 

Scott and Andrew are “very technical”, have a “deep understanding of the blockchain”, and have been working with the technology for some time. In particular, Andrew has been employed (a lot) as a consultant for companies leveraging the Ethereum blockchain. By leveraging their “extensive network”, they’re able to fill in the gaps when they need more information about projects they’re interested in.

Token Selection

TokenClub takes advantage of all opportunities available, such as private pre-sales (not open to individuals), public sales, and other public offerings. As they’re buying a larger chunk of tokens at one time, this means they’re likely to get better deals than if you were to take part in an ICO by yourself. Any bonuses they receive are also passed onto subscribers.

Andrew emphasised that TokenClub is NOT a financial services company which is selecting the best investment opportunities (for value appreciation) on your behalf. Instead, they look at themselves as a “Token Acquisition Service” which buys tokens to enable access to the best, most-promising, and transformative blockchain projects – NOT the ones which will net you the best returns.

Token Allocation in November 2017.

 

 

 

 

 

 

 

 

 

 

 

You can find details of the tokens they selected (and why) in previous months on their blog. For the last 3 months, check out these posts:

The eye-catching projects included in previous months include:

  • Polkadot: Building an interoperable network that connects blockchains together to enable cross chain communication.
  • Rocket Pool: Enable more people to participate in staking their Ethereum in the Casper update.
  • Zen Protocol: Smart contract layer for Bitcoin that will enable new types of financial applications.

 

Summary

Pros

  • Stupid Easy: Sit back and let them research, select, and purchase “brand new, top-tier” tokens every month on your behalf.
  • Simplified KYC: Hand over your details ONCE to TokenClub and they handle the rest. Your details are NOT passed on to any other companies.
  • Worldwide: Currently servicing most countries.
  • Exposure: Get a diverse range of tokens which give you access to the best, most-promising, and transformative blockchain projects out there.

Cons

  • High Fees: These are the fees:
    • Up to $1000 per month = 8.45%.
    • Up to $2500 per month = 6.45%
    • More than $2500 per month = 4.45%
  • Uncertainty: You might not be overly enthused about some of their picks each month. You don’t know what you’re buying into ahead of time – you have to trust the judgement of their team.

Conclusion

 

 

 

So what do I think? I do like the idea behind TokenClub: getting tokens which enable access to the best, most-promising, and transformative blockchain projects into the hands of more people. Right now, it is pretty much impossible for the average Joe Schmo who has a full-time job to read about all the great projects which are popping up – as it includes digging through too much crap. I can see how TokenClub appeals to that (large) segment, as it makes it stupid-easy to get your hands on tokens for great projects.

I’m not a fan of the fees charged (8.45% if you subscribe with less than $1000 per month). However, chances are that they’re buying these tokens in bulk at prices you wouldn’t be able to get as an individual buyer. So whatever fees they’re charging are probably balanced out by their access to better token prices.

I’ve signed up with a nominal amount and I’ll see how it goes. I think they’ve selected some excellent projects in the past, so I’m optimistic about what will get selected in the coming months. If you want to give them a try, apply the coupon code “REF2PNEP1NQW9” at checkout and you’ll get $10 off in your first month if you subscribe for $100 or more. You pay on a month-to-month basis, so there’s no commitment to stay if you’re not happy with their service.

If anyone has any experience with TokenClub, please share it with others by commenting below.

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