What Is Chintai Crypto (CHEX) and Should You Invest?

Published: 6th June, 2024 | Last Updated: 5th June, 2024

Markos Koemtzopoulos

Markos Koemtzopoulos is the founder and main writer of ElementalCrypto. He has been a lecturer at the University of Nicosia on cryptocurrencies and DeFi and has taught two courses on crypto and blockchain technology.

In this review, I will explain what Chintai crypto is and how it works. I will then help you decide whether CHEX is a good investment by looking at the team, product, tokenomics, and momentum. Chintai received the highest score out of more than 20 coins that I have researched using this framework.

What is Chintai crypto?

Chintai is a blockchain platform that facilitates tokenizing real-world assets such as bonds, real estate, stocks, carbon credits, and other asset classes from the traditional finance world.

They do this in two ways.

You can either get them to issue the tokens on their platform or you can use their white label solution to build your marketplace.

They aim to help institutions tokenize anything and create liquid secondary markets where these tokens will trade. Their solution features a robust automated compliance engine called Sentinel. 

Their product suite consists of two solutions that are siloed off from each other

1 . Chintai Nexus from the British Virgin Islands

  • Carbon Credits
  • Utility tokens
  • Alternative assets

2. Chintai Singapore, which helps issue tokens for

  • Equity
  • Real estate
  • Bonds
  • Commodities
  • Asset management funds

The blockchain

The Chintai platform uses its blockchain which is built using EOSIO. The native nexus utility token is called CHEX. They also have a bridge that allows for inter-blockchain connectivity. CHEX is on some of the major networks such as Solana, BSc, Ethereum, and EOS.

Is Chintai a good investment? 

A screenshot showing the chart of Chintai (CHEX) on Coinmarketcap.

To answer this, I scored Chintai and its $CHEX token across four dimensions. 

  • Team
  • Product
  • Tokenomics
  • Momentum

Team        

1. Are the founders legit with related experience?     ✔️    
20 people, all with relevant or useful backgrounds. Chintai CEO David Packham worked for 20 years for large investment banks. The CTO is a super geek with many years in software.

Ryan Bethem, their COO, has worked for a bunch of blockchain startups, and before that, he was a shrink. 

Chintai founder and CEO David Packham

2. Have they built Web 3 projects before?    ✔️    
Yes (WORBLI, Credify)

3. Did they make an exit?    ✔️    
Yes

4. Can you find legit profiles on LinkedIn?    ✔️    
Yes

5. Did they raise funds?    ✔️    
Yes, they raised $10mn in total from the likes of Block.one, Cryptology Asset Group, Collective Capital, PEER Venture Partners, and Chimera Wealth

6. How long have they been around?    ✔️    
Chintai was founded in 2018

7. Public appearances through Interviews/podcasts    ✔️    
Yes, you can easily find interviews and podcasts. Most recently, Raoul Pal from Real Vision interviewed their CEO.

Overall team score        100%

Product        

1. Is it easy to understand what they do?     ❌   
You can figure it out. As with most crypto projects, the site is less helpful for this. But Trenton Scott has a great piece on Medium. They should just take that and place it on their site.  

2. What is it?    –     
A platform for tokenizing stuff. It can tokenize stuff for you or it can give you the tools to tokenize stuff yourself

3. Is there a demand for their product?     ✔️    
Yes, companies want to tokenize stuff. Whether they in turn will find customers to buy their tokens remains to be seen

4. Is there a use case?    ✔️    
Yes reduce bureaucracy and make it easier to access financial assets such as real estate, private equity, and more. 

5. How big is the market?    ✔️    
It’s big.

6. Is it being used?     ✔️    
In March 2024 they issued $3.5Mn in carbon credits. They claim to have signed NDAs with various partners for tokenizing real estate and securities funds and forecast a total deal value of $2Bn. Here is a list of institutional partners they have lined up projects with:

They also have a partnership with Ernst & Young to market to their clients plus they claim they will shortly announce partnering with Coinbase on a product. 

7. Github activity    –    n/a

8. Has the product launched?    ✔️    
They have launched the carbon credit pilot project. Q2 2024 is when they hope to be announcing new launches

9. Does it have a strategic moat?     ✔️   
It’s got a license from the Monetary Authority of Singapore (MAS) and one from the British Virgin Isles. This means that non-US citizens and institutions can buy their RWA tokens. It does not limit them to Southeast Asia. Getting a license is not easy which gives Chintai a competitive advantage. 

10. Is it focused?    ✔️    
Yes, it’s not trying to throw AI, NFTs, or a metaverse into the mix. They are pretty focused on this one thing.

11. Is the website easy to understand for non-crypto visitors?    ✔️    
Not really but the main audience for their website is institutions that want to tokenize RWAs

12. Do they have a proof of concept?    ✔️    
Yeah, the carbon credit thing. 

13. Is the UX good?     ✔️    
I don’t know.

14. Is it already being done?     –    
Yes, there are many examples of successful RWA platforms. The most direct competitor is Everest ID

15. At what stage is the product?     –    
Live

16. How does it create value?     –    
It cuts through the bureaucracy of tradfi to tokenize stuff.

17. How does the project generate revenue?    –    
Those who want to tokenize assets need to pay an issuance fee and ongoing issuer usage. Those who buy the RWA tokens pay trading fees

Overall product score        95%

Tokenomics        

1. Why is the coin valuable?    ✔️    
You need it to pay for gas fees on the blockchain

2. Did they do a pre-mine?    –    
No

3. Is supply fixed or inflationary?    –    
Fixed at just under $1Bn

4. Was it a fair launch?    –    
Yes 60% was distributed in a Dutch auction, 20% for the team, and 20% for liquidity and project

5. Circulating/total supply    ✔️    
100%

6. Token release schedule    ✔️    
Everything has vested and is circulating

7. Are there incentives to reduce or lock supply?    ✔️    
You can stake or lock in a liquidity pool to earn 10% of fees

8. How many tokens?   ✔️    
only CHEX

9. How much upside is left: market capitalization vs industry size?    ✔️    
$236Mn vs Billions

10. Is it listed on major exchanges?    –    
Not on tier 1 yet. You can find it on decentralized exchanges and the MEXC cryptocurrency exchange

Overall tokenomics score        100%

Momentum        

1. Is it trending on social media?    ✔️    
Yes, and social dominance is high.

2. Is the market cap low compared to similar projects?    ✔️    
Yes, ONDO which is the largest RWA and only issues a governance token, is 5.5 times larger. Read my explanation of ONDO here.

3. What is the crypto market like?     ✔️    
In the middle of a bull run.

4. What is the sentiment for the sector this crypto focuses on?    ✔️    
The RWA market is hot.

5. Are they marketing heavily?    –    Yes.

Overall momentum score        100%

Overall verdict: Chintai looks like a great investment at the time of writing and is one of the most innovative companies for RWA tokenization. The caliber of the team, the projects they have lined up, the tokenomics, and the price momentum are all solid.

The team claims that many of these projects will materialize this quarter. If they do, it will surely boost the price of their CHEX token.

My main concern is whether retail investors are allowed to gain access and whether there are regulatory restrictions that prevent US institutional investors from participating. 

Criticisms

I should point out that after I posted this analysis on Twitter critics highlighted that

  • They believe that Chintai is full of promises but doubt that these partnerships will materialize. 
  • The CEO regularly speculates on the price of CHEX, which is a bit of a no-no from a regulatory compliance perspective. 

Most of the criticism stems from the Everest ID community which is another RWA platform that is trending on social media. You can find out more about What is Everest ID and whether it is a good investment here.

References

Markos Koemtzopoulos is the founder and main writer of ElementalCrypto. He has been a lecturer at the University of Nicosia on cryptocurrencies and DeFi and has taught two courses on crypto and blockchain technology.

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