Cryptocurrency and death could become a huge industry in years to come.
By the end of this article you’ll learn more about a key player – Safe Haven (SHA) – and their solution to digital inheritance, in addition to key details about the Safe Haven ICO.
What happens to your crypto if you die?
None of us really want to talk about or think about death. It’s a taboo subject and many of us haven’t planned for it, especially if you’re a millennial.
So what happens if someone unexpectedly dies and they have a significant crypto portfolio?
This could be a huge amount of money if you’ve been holding Bitcoin, Ethereum or XRP for a long time. Never mind the fact that the cryptocurrency market cap is currently greater than $300bn; with a high over $800bn in January 2018.
The community is obsessed with security; and rightly so given the number of scams and failures. This has been a key learning process to highlight the importance of keeping our crypto safe and out of reach to any unwelcome visitors (basically malicious hackers and criminals.)But have we been so focused on keeping our crypto hidden and secure that we could be forgetting about the inevitable? Many investors have multiple crypto wallets – from hardware, paper, desktop and mobile – with multiple private keys which secure different amounts of cryptocurrency depending on investment activity…
A range of wallets is great and something that is recommended, but in the case of death, does it makes things unnecessarily complicated? How easy would it be for someone else to access your assets? They might have some idea of where to look if you’ve spoken to them about it, but otherwise it’s near on impossible.
Crypto wallets and security is a complex subject to anyone who doesn’t have a good understanding of it, such as knowing about different wallet types, private and public keys and wallet backups. If this is you – check out our crypto wallets guide before moving on.
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Currently, you need to tell your loved ones about your crypto portfolio and how to access it if something goes wrong. You trust them, however there is still a risk attached; what happens if you have a terrible break-up from your significant other and they spontaneously decide to use your private key or hand it over to an unscrupulous individual?
Yes you can’t control this and you don’t ever want this thought to cross your mind. Trust is important and right now you don’t have many other options…
But is there a solution that will remove this problem altogether and put the issue firmly to the back of our thoughts?
What is Safe Haven?
The simple idea behind the SafeHaven ICO is that they want to create a solution where your family and loved ones can get hold of your crypto if you die – without having to figure out how to locate and access your crypto wallets. Its focus is cryptocurrency inheritance and creating a digital will.
Their platform proposes to find the balance between dividing assets in a flexible manner whilst simultaneously keeping your assets secure. This video explains it pretty well.
Once you’re set up on their platform, the idea is that you can choose “Validators” – effectively your trusted friends and family or a legal entity acting on your behalf – to ensure that the right people have access for the most important matters.
Having joined the Safe Haven Telegram group (normally a very good way to gauge interest in a token / coin and to get a feel for the team’s interaction with the community) I found this insight interesting:
Effectively this means your keys are split and encoded in the blockchain. The number of times it is split depends on your personal case, but ultimately the goal is to create a foolproof system to secure the safe passage of your digital assets.
You will need to use the Safe Haven Token – (SHA) – to initiate, pay for and lock smart contracts on the platform.
Can it succeed?
There are two key considerations when it comes to the success of this project; 1. Does the technology and process actually work and 2. Will the legal community get on board.
I don’t want to discuss the technology too much, and it’s still in beta, but I would recommend that you read the Safe Haven Whitepaper here.
One key aspect of the Safe Haven platform is their Trust Alliance Network (TAN for short.) This is effectively a communication hub for blockchain related legal matters, with the intention of connecting lawyers and notaries with cryptocurrency investors. Lawyers will be able to offer their services and chat with prospective clients.
To achieve this, Safe Haven needs the legal community to get on board with TAN and trust the process behind it. So far, Safe Haven has a couple of strategic partnerships in place, with one recently announced on Twitter:
Partnerships like this with other platforms that have access to a pool of legal professionals are vital to the success of the project.
Ultimately if Safe Haven gets the technology and process working securely, along with mass (or even partial) adoption within the legal community, there’s no doubt that they can be successful. It solves a huge problem that cryptocurrency currently has and aims to be the all encompassing solution to this.
Safe Haven Competitors
Like most things, Safe Haven does have its competitors.
One of these appears to be MyWish – a platform which allows anyone to create smart contracts and customise it to their own needs. This includes an inheritance contract amongst others as shown below.
Despite this, MyWish isn’t specifically built for inheritance transfers.
The below graphic was created by Safe Haven and although they don’t name the competitors (they just call them number 1 and 2), an educated guess suggests one of them is MyWish.
Looking at the above, the main difference between Safe Haven and identified competitors is that it’s built solely around the idea of a full inheritance dedicated service. It also requires 3rd party verification before triggering an action (for example a lawyer acting on your behalf) which enables an added layer of security.
The Safe Haven token (SHA) is an ERC20 token on the Ethereum Blockchain. The circulating supply when the token comes out of ICO will be between 51,000,000 and 59,500,000 tokens (60% or 70%). Advisors and bounty tokens make up 10% but it is unknown when these will be distributed and if they come with terms. The final 30% is assigned for founders and the Company which are locked up for 1 year.
Using this information, we can calculate capital raised as follows:
Private sale = 2000 ETH raised
Presale = 13,000 ETH raised
ICO = 13333.33 ETH raised
Total raised = 28333.33 ETH for 60% of tokens.
The current ETH price = $686.45, therefore if we assume the token sale sold out at this price, $19.4m would be raised for 60% of SHA tokens ($686.45 x 28,333 ETH).
We can value the top end of the market cap at the last sale price (ICO rate) – but remember that private sale, presale and ICO sale all get different token exchange rates.
For illustration purposes, and assuming the ETH price remained the same, we calculate a value of 0.458 cents per token at the ICO rate ((13333.33 ETH * $686.45) / 20M SHA)).
The highest circulating supply is 70% before the token hits an exchange so at a high level: 59,500,000 SHA * 0.458 cents = $27.2m is the highest market cap range. If we bought tokens at the ICO rate (1500 SHA = 1 ETH), then we would make a profit on any market cap greater than $27.2m when the token hits an exchange. To clarify again, this is purely for illustration purposes to give you an idea of the potential market cap of the project.
As the overall cryptocurrency market cap grows, this should stimulate increased demand for a solution like Safe Haven. It does solve a real problem that is not well served right now and it certainly belongs on the blockchain.
The project has first mover advantage (MyWish is not currently well adopted) and when they roll out their platform it is unlikely anyone using it will switch to a competitor in the near future, unless a better alternative becomes readily available.
The Safe Haven telegram group has just over 8,000 people. This isn’t massive but we are still in Pre-ICO phase. The community behind a project is hugely important for any new token, as the people who miss out on the ICO will be most likely to buy when the token hits an exchange.
The Safe Haven founder – Jurgen Schouppe – has worked at the European Parliament as an ICT Security Engineer for 14 years. His credentials are solid but it’s difficult to make an informed analysis on the experience and expertise of the rest of the team. It does not appear they have been involved in other crypto related projects.
The ICO date is to be announced soon, you can Whitelist here.
There are various events in the roadmap in 2018 that could result in price movements and increasing adoption of the SHA token such as:
- Expansion of alliance partnerships – can they get more estate and inheritance planners on board?
- Beta launch in Q2 2018 – is the platform fit for purpose?
- Exchanges they are able to get listed on – trading liquidity is key!
Safe Haven wants to create a consolidated third party platform that will be used by traditional estate & inheritance planners, lawyers and financial advisors to execute their services.
However there is a danger that traditional businesses will eventually build their own systems to manage crypto inheritance and not adopt Safe Haven long term. In such an industry, they may view dependency on a 3rd party platform as high risk and look to implement their own platform.
Like many new tokens, there is also inherent uncertainty in regards to the team’s ability to implement the vision and create a working product that meets the needs of consumers and service providers alike.
Ultimately Safe Haven aims to solve an important issue which will become increasingly debated as the industry grows and more and more people invest in cryptocurrency. Inheritance isn’t glamorous but it’s quite clear that someone has to provide this service, with Safe Haven (SHA) being a well placed contender. This is why investment could suit a long-term hold strategy.
I’d bet my house that very few cryptocurrency investors plan for death and Safe Haven could offer a simple and paperless solution.