Rivetz (RVT) is a good example of a cryptocurrency designed to solve a very specific problem.
The problem is the huge security hole in the Internet of Things (IoT) that web of internet and cloud-connected devices upon which we increasingly depend. The IoT is extremely vulnerable to cyberattack because many of the devices connected to it have no security or very outdated security.
These vulnerabilities hit home in October 2016, when the Mirai botnet launched a distributed denial of service (DDOS) attack that shut down much of the internet’s key infrastructure. Symtec ascertained that Mirai launched its attack through IoT connected CCTV cameras.
The Mirai targeted CCTV cameras because they have no security protections. Most IoT devices have no security, very-outdated security, or limited security.
Rivetz to the Rescue
Rivetz aims to plug the IoT security hole through its Developer Toolkit that allows anybody to build security features including passwords, pin numbers and 64-character private keys into IoT apps.
Anybody is supposed to be able to add security and keep track of devices with the Rivetz Toolkit. The RVT token is used to access the Rivetz Authenticator app that creates a trusted execution environment on a device. The Authenticator App uses blockchain to store two-factor codes for security.
The hope is that blockchain will provide enough added security to keep two-factor IDs safe in the app. The other hope is that by adding two or three additional layers of security to a device the bad guys can be kept out.
When it launches the Authenticator App is supposed to provide a safer and more secure storage alternative to email and SMS solutions like WhatsApp. The problem is that the Authenticator App is not available yet, Rivetz’s website admits it has been built yet.
The technology is under construction and does not seem to have been tested yet. That brings up the question, what exactly are people who purchase the Rivetz token buying?
Rivetz is Just a Business Plan
Those who bought the Rivetz Token for the 33¢ Coin Price on May 7, 2018, were purchasing a business plan. There is no working technology, just a plan to create new technology based on an idea.
Rivetz (RVT) is sort of the equivalent of venture capital with one very interesting difference. Investors simply get the token, which has no value in itself, and no ownership in the company.
Rivetz (RVT) is an ERC20 protocol (Ethereum-based) token that is compatible with Bancor (BNT) and part of the Bancor Network or liquidity. That gives it a little value as a cryptocurrency; it had a Coin Price of 0.00044 in Ethereum (ETH) on May 7, 2018, but no value as an investment.
The technology is unproven and the marketplace for security services, Rivetz is trying to create does not exist yet. Although, enough people did buy Rivetz to give it a Market Capitalization of $8.739 million (11,568 ETH) on May 7, 2018, and a Market Volume of $17,282 (22.88 ETH) on the same day.
Rivetz is a Terrible Investment
My advice is that serious investors should stay far away from Rivetz until the authenticator app comes on the market and is widely used. Rivetz is a good idea for solving a real problem but is not a good cryptocurrency and a horrible investment right now.
Altcoins like Rivetz should serve as a cautionary tale to initial cryptocurrency offering (ICO) and cryptocurrency investors. Many of these coins are really efforts to get you to give money to a startup business that cannot attract funds through regular venture capital.
Average people should avoid cryptocurrencies like Rivetz (RVTZ) like the plague; because the organizations behind them may have no product, or even a coherent business plan. Instead, they are nothing but ideas, ideas that might grow into billion dollar businesses or disappear in a few months.
Leave such risky investment for those who can afford it, namely movie stars, Silicon Valley tycoons, and other rich people that can afford to lose the money. Instead, confine your cryptocurrency investments to widely traded coins for which there is a proven market.