In this review we have a look at the Student Coin (STC), which is a cryptocurrency allegedly designed for universities and students.
Before we dive into our review, you have to know that it contains only personal opinions. Although based on a substantial experience with cryptocurrencies, this review is not legal advice nor investment advice.
What is Student Coin
Student Coin is a platform that aims to popularize blockchain technologies and cryptocurrencies among students at universities throughout the world. The main function of the platform is to allow students to launch their own cryptocurrency tokens.
The platform also has an educational section and there also is supposed to be an exchange that will facilitate trading of all the tokens.
Student Coin has its own cryptocurrency STC that is currently being sold to the public via an initial coin offering (ICO). The price of STC is in the current phase 0.0114 USD.
If you purchase the STC coin, you allegedly will earn dividends, you will get your share of fees that are earned by the exchange that has not been launched yet. You will also own parts of every token ever created through the Student Coin platform.
Student Coin problems
When researching about Student Coin, we came across several important problems that we will explain in this review. In our eyes they are far too important to be ignored. Every potential investor into STC should know about them.
One of the biggest problems of the Student Coin is the way it is sold. Because it is sold to the public and the official website literally says that the coin will earn you dividends and that it represents shares of other tokens. Again, we are not lawyers, but in our opinion this makes the Student Coin (STC) a security.
When you sell something that represents a share in anything valuable and will earn you dividends thanks to managerial efforts of others, it is a security in every major jurisdiction (EU, USA, Canada, Australia, Japan, etc.) we can think of.
And securities offerings are heavily regulated, you need authorizations from financial regulators in every country you want to sell your security in.
But Student Coin has not been registered anywhere in the world as a security, so we believe it’s ICO is an unauthorized security offering. There is a great danger that regulators will come after it and shut it down.
We are aware that Student Coin is saying that their cryptocurrency is not a security, they base their claim on a legal opinion from a lawyer. But when you study that document carefully, the disclaimer says that the lawyer has not looked at any materials about STC, he has not studied it himself, he just answered questions based on facts stated by Student Coin.
And, as you can see in our picture, Student Coin provided the lawyer with statements that are factually wrong, because they said STC is just a utility coin. Which it is not, because on their website they say it will earn you dividends and it will represent a share in other tokens.
Since the lawyer was provided with wrong facts, his conclusion has no weight at all. In reality, STC has all the hallmarks of a security.
If you are considering investing in Student Coin, we strongly recommend contacting your national financial regulator and consult this project with them.
Student Coin claims that it is supporting more than 500 universities in 36 countries. But what does it mean? Does it mean that more than 500 universities are using Student Coin? Certainly not.
In fact, we searched for the connections between a few universities from their list and Student Coin, and we found none. We did not find a single university in the world declaring any kind of relationship with Student Coin.
So Student Coin is perhaps supporting 500 universities, but this looks like a declaration that is not based on any factual relationship. We only found a few students from different universities that claim to be supporting Student Coin, but this does not represent any connection to their universities.
It is like if an employee of Apple would say that he is supporting our website and we would say we are supporting Apple, that would absolutely not mean that we have any kind of relationship with Apple.
For obvious reasons we could not go through all of the 500 universities and make a deep search about their potential cooperation with Student Coin. So if you know about any real cooperation, please let us know in the comments.
We encountered the same weirdness when searching about partnerships that Student Coin claims to have with these entities: Tamid Group, Harvard Polish Society, Polish Business Society, Investment Club at Kozminski University and Blockchain Capital Group.
First example – Tamid Group. Student Coin declared a partnership with Tamid Group on their Twitter account. But we did not find a single mention from Tamid Group about a partnership with Student Coin. We looked at their website and their social media accounts, there is exactly zero words about Student Coin.
Second example – Blockchain Capital Group. We did not even find what Blockchain Capital Group is, it does not even have a website. Only the LinkedIn profile of the COO of Student Coin says he is a major shareholder in Blockchain Capital Group, but what it is?
Logos of the Student Coin’s partners on its official website are clickable, they should contain links that would prove the partnerships, but they are empty. This really does not raise any credibility for this project.
How Student Coin really works?
This really is an open-ended question, because we can only speculate about the real intents of people who run Student Coin.
One staggering thing that they started the project more than 3 years ago and it still is not fully functional.
In fact, the only thing they did is to create their STC token, which is an ERC20 token in Ethereum. Anybody can launch their own ERC20 token in Ethereum in a matter of seconds and for free, see for example here.
It seems that their achievements are a website with some educational texts in beta version and a token that anybody can create in 20 seconds. And they are selling this token with promise of future earnings (dividends) and shares in other tokens.
It is obvious that Student Coin is raising capital for its project through its initial coin offering. But why would anybody invest? For the dividends? That makes it an unauthorized security that can be shut down any time. The platform does not need a token that will be sold to the public, if it is really meant for universities.
To us, it does not seem like a project that we would invest our money in. We see no real value, no real use cases. We did not find a single university saying that they have plans to deploy Student Coin.
Student Coin review – The Conclusion
Student Coin is promising returns on investment in their token STC, you will allegedly receive dividends and have shares in other tokens. To us it looks like an unauthorized security offering. If you are thinking about buying STC, we strongly encourage you to consult your decision with your national financial regulator.
If you want to trade cryptocurrencies, do it with established coins and preferably with a regulated company.
As always, if you decide to invest real money, please make sure you understand the risks and have good plan.