Connect with us

ICO

ICO Analysis: Bancor

Published

on

We have previously done a precursory article covering Bancor, but now, with the impending launch of its Initial Coin Offering, it’s time to analyze the thing in-depth.

In our previous article, we discussed the primary novelty of Bancor, its “smart token” asset contracts. A reader wrote in with concern over this aspect, and wants more in-depth information into how this can work or is safe. Clearly new concepts like this do need more explanation, so let’s see what we can understand here.

Perhaps the top-tier objection to the Bancor protocol are its roots, of course:

The Bancor protocol is named in honor of the Keynesian proposal to introduce a supranational reserve currency called Bancor to systematize international currency conversion after WWII.

The name is, of course, quite apt for the purpose of the token. Is Bancor itself Keynesian? Not exactly, but we must dutifully check over the offering here to ensure that there are not value-murdering features like centralized institutions being able to introduce inflation, or supposedly immutable smart contracts being thwarted through appeals to authority. These are the real risks that many Bitcoiners, and others, take with Keynesian economics, and so this platform requires thorough review to ensure that it is not going to introduce such risks by design.

Smart Tokens

The Bancor protocol enables built-in price discovery and a liquidity mechanism for tokens on smart contract blockchains. These “smart tokens” hold one or more other tokens in reserve, and enable any party to instantly purchase or liquidate the smart token in exchange for one of its reserve tokens, directly through the smart token’s contract, at a continuously calculated price, according to a formula which balances buy and sell volumes.

Especially in recent offerings, a number of tokens have come to the game which could find themselves without any value at all. The Bancor notion of “continuous liquidity” seems to be based on the idea of previously proven value from other assets the token offering might have access to. Thus a “smart token” can always be liquid because it always retains value from another economic source.

This is higher-level thinking, from the get-go, in terms of tokens and crypto-economics. While Ethereum and Counterparty, and others, serve a similar purpose by allowing anyone to issue their own tokens, those tokens are overwhelmingly defined by their utility, and so they can be difficult to assess. But if one can point to a metric such as “each token contains X bitcoins, X ether, X ___, and so its intrinsic value is at least equal to the value of one or all of those,” then there is a new metric that is useful in determining the likely trajectory of projects. In short, one function that smart tokens can perform is that of token issuers providing collateral.

The current exchange model for currencies/assets has a critical barrier, requiring a certain volume of trading activity to achieve market-liquidity. This inherent barrier makes it nearly impossible for small-scale currencies (such as community currencies, loyalty points or other custom tokens) to be linked (exchangeable) to other popular currencies using a market-determined exchange rate.

So, in the current world, where BTC, ETH, DASH, and LTC make up a large portion of the cryptocurrency wealth, a token creator might decide to issue a token that is contains assets around 50% Bitcoin, 25% ETH, 12.5% DASH, and 12.5% LTC.

This is sort of the same principal that mutual funds operate on: mixing various similar instruments so that when one or more of them have poor performance, the others can pick up the slack. But the token holder, through the Bancor protocol, is able to extract that given value at any time and destroy their tokens issued on the Bancor protocol. An FX mutual fund, made up of the world’s currencies, would be the closest thing to this, but instead there is no firm managing and the individual currencies can be obtained by the investor at any time, via the protocol.

This aspect could give rise to other cryptocurrencies being used in actual settlements, regardless if exchanges are offering such pairs at that time or not. The speed of value proposition would become more important than the speed of human change – ie, new currencies which come after Bancor but have exceeding merit will not need for recognition from the wider community before being used as the base currency with which others are denominated and traded. The control that exchanges as a whole have over the way we think about our coins would be lessened in such a world where this became commonplace.

The term “instant liquidity” is used a lot in the documentation and promotional materials surrounding the Bancor protocol, and they make the case in their whitepaper that liquidity for newer cryptocurrencies is a problem. However, the words “instant liquidity” are perhaps misleading. The term liquid means different things for different users. Some would consider getting to Bitcoin itself to be liquid, while others wouldn’t consider the assets liquid until they were in an account they can spend anywhere else in the world – ie, fiat. So let’s leave aside the “instant liquidity” as either a plus or a minus, and instead focus on the structure of a smart token and how it can actually be used, in practice, in concrete terms.

A smart token holds a balance of least one other reserve token, which (currently) can be a different smart token, any ERC20 standard token or Ether. Smart tokens are issued when purchased and destroyed when liquidated, therefore it is always possible to purchase a smart token with its reserve token, as well as to liquidate a smart token to its reserve token, at the current price.

Okay. How does this work?

A given “smart token” will base its operations on what Bancor refers to as a “constant reserve ratio.” All figures within the smart token will be in relation to the smart token’s market capitalization as a whole, which is its supply multiplied by its price. Instead of Bancor token authors creating tokens at the beginning of an ICO offering or what have you, they are issued as they are purchased, and destroyed as they are liquidated.

A Bancor token must be funded by one of its reserve currencies. If the CRR of a given token is 100% of a given other currency, then a traditional increase in the price of the token will take place. However, if a token’s CRR has a variety of reserve tokens, then the price increase due to the purchase will be mitigated. This is what they mean when they say they are creating a new method of price discovery: a variety of markets are held within each token, potentially, creating more interesting and even accurate price definitions at market. And while a token may be issued on the Bancor protocol and consist of multiple traded cryptocurrencies making up its Constant Reserve Ratio, it, itself, can be traded elsewhere. People purchasing these tokens on other markets would not be able to simply say something had lost all value because its Bitcoin value had significantly dropped, for example, if its corresponding values in other pairs also represented in the token have not dropped likewise. Similarly, traders would have to watch themselves when pricing sales of such tokens, because saying “this token is worth .01BTC” does not mean much if any of its other reserve currencies are not trading at a similar level. (This is why Bancor can make the claim that there is “no spread” for individual Bancor tokens, because while there actually is a spread, the settlement of any token issued by the Bancor protocol will wind up with its holder gaining the reserve currencies within it.)

From a traditional financial perspective, this all sounds an awful like the type of instruments which got us into the bubbles and crashes of the early 2000s. Traders were packaging millions of low-value, low-performance loans and other financial instruments together and selling them as packages of “diversified assets” and then speculating on their performance from there, in some cases even managing to bet against them and profit being the only ones with the real information as regards their likely performance. The complexity of these instruments was part of the reason the whole musical chairs act went on so long.

Yet, while there is potential that bad actors will use the technology to scam others into investing into nothing at all, there is still a lot to be said for innovating in the market strategies of a tokenized future.

How People Will Use It

The Bancor team themselves list a number of use-cases that will be immediately obvious. Rewards programs, decentralized asset baskets similar to those being developed by ShapeShift’s Prism platform, and federations of similar tokens. Lower-volatility tokens can be created in-house by trading groups, and such products can be offered for sale on the market. Cryptocurrency mutual funds become much easier to envision, despite the volatility of the various markets. This part of finance will eventually become much more important in the Cryptocurrency space as things mature and more and more legacy institutions integrate with cryptocurrency payment, receipt, and trading rails.

The Bancor token itself will be the most prominent for the Bancor Protocol, as it will be the one that funds all future advancement and development. Its actual cap is not published until 80% of that cap has been reached, but 100 tokens will be issued per 1 ETH spent. BNT tokens will have a 20% Constant Reserve Ration of ETH. BNT itself will be based on the value of the Bancor Network and its reserve currency, ETH, although the Bancor Foundation can issue more tokens later.

Bancor tokens themselves will hold value for as long as the Bancor Foundation and Ethereum do, and users will have the option to liquidate them at any time. This would mean, essentially, a 20% Ethereum redemption is possible. In assessing this ICO, you must be aware that some people are going to do exactly that.

Bancor Team

The Bancor foundation itself is not going to be doing the creation of the Bancor Protocol, but instead directing it. It is composed of financially-focused executives including Eyal Hertzog, who is the primary spearhead behind all of it. Hertzog’s success has been in IPO technology companies, such as the first major Israeli video sharing site, MetaCafe.

Chief Monetary Architect Dr. Bernard Lietaer was involved in the creation of the Euro, and so it is no surprise that much of the thrust of Bancor is in trying to unite and stabilize disparate cryptocurrency assets.

As far as development goes, they are currently contracting LocalCoin, Ltd, which, like many similar ICOs we have seen, seems to have been created specifically for the purpose of Bancor. The model seems to work like this:

  • Have a new idea related to cryptocurrency.
  • Flesh out that idea.
  • Create a firm to develop the idea, to be funded by sales of the new token.
  • In some cases, profit on both sides of this.

This is why we we will review the token distribution before getting to the verdict on Bancor, but let’s see who is working for LocalCoin.

At the helm they have Yehuda Levi, who formerly worked on AppCoin, one of the earlier cryptocurrency plays to get traditional VC backing. They list a litany of other competent, established developers, all based in Israel, working on the development of Bancor Protocol smart contracts.

Distribution of the Token

As we can see here, the token distribution is confusing on first glance. Let’s think about this. We know that 10% are going to the “team,” in the form of BNT tokens. Then we know that 40% of the 50% of tokens (20% of the total supply) are also going to fund development. That means somewhere in the neighborhood of just over 20% are going to be awarded to LocalCoin in the form of paid software development and initial awards. 20% are also held back by the foundation for later conversion and usage. The foundation is free to offer later crowdsales to continue work on the platform.

But, this ICO is also different than most. The tokens’ only enduring value is in the enduring value of the Bancor Protocol, which means there is little or no incentive for the coins withheld to be liquidated right away, but instead to create value for the protocol and liquidate them at a later time.

The proceeds of the crowdsale and future tokens issued by the Bancor Foundation will continue to develop the distributed marketplace that is Bancor’s primary function. BNT themselves will have speculative values related to the value of the protocol itself, it seems. The problem of team coins is mitigated by their vesting structure, which only allows them mature up to a sixth of withheld coins every six months.

The Verdict

There’s a lot to like about the Bancor Protocol, but one can totally forego this crowdsale and still benefit from it. So let’s talk about the value of the BNT token, and whether or not you’re going to be able to profit by purchasing it. The odds are definitely on you profiting in the short term, although long-term it’s easy to see bigger entities, like the Ethereum DAO themselves, offering alternative ways of conducting the same type of business.

BNT gets an immediate boost in safety rating since you are able to liquidate it for 20% of the Eth that was put into it in the first place at any time. That is to say, it’s impossible to lose your entire investment, in terms of actual Ethereum, so that must be accounted for.

The level of confusion Bancor-created instruments have the potential to create must also be accounted. We have to deduct a full two points for that, as there will probably be some hiccups in the beginning, and these could even be catastrophic and unrecoverable. The nature of mixing assets may be looked down upon parts of the community it looks to serve, so another .25 points should be taken for that. Because this entire concept is nascent in an excessively nascent industry, another full point must be deducted to account for the potential that overshadowing plays are going to be made in the near future.

This leaves a score of 6.75 on a scale of 0 to 10 in terms of safety, and that feels about right. This means the author is betting in favor of the idea that within 7 days after the purchase of tokens, you will be able to divest them at a rate of about .01 Eth each or more. It does not mean the author is not betting. It simply takes into account all of the factors, most of which are based on his past experience watching similar things launch. While every project is different, the tendencies of this market are analytically-assessable.

Investment Details

You’re able to make an investment into the Bancor Protocol at a rate of .01 ETH per Bancor Network Token in less than 7 hours. The minimum time this sale will run is one hour, and they had to develop a special method to ensure this would be the case. There is a hidden cap on how much ETH will be raised, but no one will know that figure until 80% have been raised – this is to prevent early investors from being able to accurately dominate the token pool.

Investments are subject to terms and conditions. The address which will be handling the investments is 0xBbc79794599b19274850492394004087cBf89710. Transactions already sent to this address at launch time fall under their one-hour-minimum policy, which dictates that if more than 100 million Ether are raised in the first hour, additional funds will be allocated specially. This post goes into a lot more detail about the funds and the minimum time period. No funds should be sent from a wallet which you do not have direct control over.

The longest the crowdsale will run is until June 26th at 14:00GMT.

Do your own due diligence, investments are at your own risk. Do not invest more than you can lose.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...

5 stars on average, based on 2 rated postsP. H. Madore has covered the cryptocurrency beat over the course of hundreds of articles for Hacked's sister site, CryptoCoinsNews, as well as some of her competitors. He is a major contributing developer to the Woodcoin project, and has made technical contributions on a number of other cryptocurrency projects. In spare time, he recently began a more personalized, weekly newsletter at http://ico.phm.link




Feedback or Requests?

2 Comments

2 Comments

  1. demetrist

    June 12, 2017 at 9:51 am

    Thank you for the great analysis! I am confused about 1 aspect, if you can help. Bancor team has announced that 80% of ETH collected that is above the hidden cap will be locked into a smart contract for 2 years or until it’s fully spent, which will automatically buy BNT if the price = 0.01 ETH (the ICO price). I m quite confident that the ICO will go over it’s hidden cap by a lot. Doesn’t that guarantee that we are not losing on the investment for quite a while, and that we could get out of the project at any time at at least the price we bought in (and meanwhile if ETH prices goes up, profiting from that respect) ?

  2. paracetomol

    June 12, 2017 at 11:13 am

    Is it safe to send ETH to the address shown in the article a few hours before the opening of the crowdfund?

You must be logged in to post a comment Login

Leave a Reply

ICO

ICO Analysis: Fieldcoin

Published

on

Fieldcoin is an agribusiness crowdfunding platform that enables anyone to buy, sell, rent, and manage farmland from anywhere in the world. Using IoT, smart contracts, and other agribusiness technology, token holders will form a DAC (Decentralised Autonomous Community) and vote on every aspect of their chosen agribusiness from seed to table.

“Fieldcoin’s mission is to bring the blockchain technology to land property transactions and agricultural crowdfunding projects while creating a stable transaction instrument easing the process of land and agribusiness acquisition.”

Fieldcoin will offer access to LANDS Management Services. Investors will be able to buy/sell/manage physical land of different sizes and budgets at an attractive price compared to the market value.

The company claims to:

  • Brings liquidity to the agricultural industry
  • The token is backed by land.
  • Decentralize the highly centralized agriculture market
  • Track the origin of food products.
  • Manage the way the food is grown (pesticides or organic)

Along with the above highlights, Fieldcoin’s “trade-back token” guarantees an 80% ratio on the value of your token to the assets in the ecosystem and the possibility of claiming your assets in physical property at a certain rate under the market price.

In the Fieldcoin ecosystem, there are 2 levels of ownership: “Off-chain,” which is to comply with national regulations and “On-chain,” which is recorded and transacted on the blockchain.

  • Off-chain: Fieldcoin Ltd or a third party company DAO (decentralized autonomous organization) owns the property titles recorded in the national land registry. The token holder owns a share of the company representing the specific land acquired on the platform.
  • On-chain: Fieldcoin Ltd creates a unique token with a unique number representing a specific property called LANDS (ERC721). The LANDS token represents the ownership of the property and can be exchanged on the Fieldcoin platform using the Blockchain.

The FCO will start April 2nd, 2019.

FCO means Field Coin Offering. It’s like any ICO, users buy (FLC) ERC20 Utility tokens which are used to acquire non-fungible tokens (ERC721), which represent a particular agricultural property. “The acquisition of NFT tokens during the ICO makes the Field Coin Offering unique and offers a strong advantage to investors that are able to test the platform and own tangible assets during the Coin Offering.”

Token

FLC is an ERC20-based utility token distributed during the FCO. The token is used as a currency to buy land, services and crowdfund agricultural projects on the platform.

LANDS is an ERC721-based token received after buying a specific land property through our platform, representing land ownership and storing the data of your property. LANDS are also available for purchase during the FCO.

According to the company, trade-back token is “Token holders will buy land on Fieldcoin’s platform and pay the full market price displayed on the website. They will be credited with a coupon to buy land for later purchases. The value of the voucher corresponds to the difference between the price drop of the token under the 80% threshold and the actual value of assets in Fieldcoin’s Ecosystem. The coupon can be applied to available properties sold by Fieldcoin Ltd on the platform.”

Distribution:

  • Private Sale 2%
  • FCO 60%
  • Token Bonuses 17%
  • Reserves 10%
  • Team 9%
  • Bounty 2%

Allocation of funds:

  • 60% Purchase of Physical Land
  • 15% Agribusiness Development
  • 10% IT
  • 7% Legal
  • 6% Marketing
  • 1% Reserve Fund
  • 1% Social and Rural Development

Ecosystem asset reallocation:

  • 85% Land Recapitalization
  • 9% Business Operations
  • 5% IT Development
  • 1% Participation in Communities

Team

The Fieldcoin project is governed and supervised by Fieldcoin Ltd, registered in London. The team members are from France, Canada, USA, India, Belgium, Italy, the UK, Pakistan and China. There are over 25 team members including the advisors.

Marc Couzic is the  Founder/CEO.  He is a freelance commodities and crypto trader since 2013 and has been a “Contributor” to 3 blockchain projects this past year; Experty.io, Kart Block, and Magna Numeris.

Alexandre Palubniak is a Web Project Manager from France. He has spent 7 years as a freelance “Director Artistique”.

Jeremie Joncas is a COO from Canada but there is not much info on him. He owned a business for 4 years called J2 Entretien (but can’t find any info in it). He’s traded crypto for the last 1.5 years.

The rest of the team is similar to the above – very little experience in agriculture or blockchain.

There are also 10 Contributors/Advisors. They are average.

Verdict

When describing the benefits of Fieldcoin in Telegram, CEO Marc Couzic had this to say, among other things.

“Yes, it is a share profit system where 40% of net profits on production goes to the externalized land management company or farmer (choosen by Fieldcoin) exploiting the land and 60% to the owner. The holder of LANDS tokens won’t need to do a thing besides participating in decision concerning the type of crops and agricultural method used on its land. The idea is to levy the burden of execution for the investor and move towards agricultural automation processes. Additionally, the price of land grow on average 2-3% worldwide”

The idea of Fieldcoin is to have Decentralized Autonomous Communities that will decide on the agriculture products and management of their lands. They will vote on things like the amount of pesticides used, or if they want pure organic or reasonable agriculture.

The problem is DACs are complicated. Billion-dollar projects like Ethereum and EOS are still developing the tools to perfect them. Does Team Fieldcoin even have the ability to execute this massive project? It seems iffy, as they are fast approaching on the pre-sale and do not have an MVP. They only have this picture of one.

Risks

  • Small soft cap of just $3 million USD. According to the company: “the Proof of Concept can only be implemented once the FCO has reached $5 million USD. In the event of the cap not being reached, the Proof of Concept will be postponed.” This is sketchy. -1
  • The team is not very impressive at all. -2
  • Their business plan requires the minting of new Fieldcoin tokens to buy more land. They explain the process in detail here. -1
  • Only 13% of the funds raised will go to legal and marketing. -1
  • DACs are complicated. Many top projects are delaying launch until they figure out governance. -2

Growth Potential

  • First mover advantage. +2
  • They say they’ve already purchased land, have buying promises and about 35 offers to be displayed. +2
  • 85% of the Ecosystem asset reallocation is reserved for new land acquisitions further expanding the Ecosystem.+2
  • “Fieldcoin plans to target low-risk and average potential markets first, such as the countries within the European Union, and will then move slowly to countries with more venture capital and with much higher expected returns for Fieldcoin’s Ecosystem.”+1.5
  • 1% of the Fieldcoin tokens will be allocated to the Fieldcoin Foundation, which aims to develop community infrastructure. This project includes plans to build schools, water wells, irrigation systems, and roads.+2
  • “The Fieldcoin token is supported by “Trade-Back Protocol”, offering token holders the possibility to claim LANDS at a reduced price in case of market dips. Thanks to our upward trend capitalization mechanism, new physical lands will be acquired by Fieldcoin Ltd. increasing the guarantee of the Trade Back Protocol.”+2
  • Although we don’t score Fieldcoin well, these “respected” ICO sites have them ranked rather high. +0.5

Disposition

The tools required to build a proper DAC voting system are only now being built. Although something similar to this DAC agribusiness will someday soon be a reality, this project is too early and too ambitious, especially with such an inexperienced team. 5/10

Investment Details

  • Symbol: FLC (ERC20)  LANDS (ERC721)
  • Platform: Ethereum
  • Total Supply: 1 billion
  • Presale: Feb 4 – Feb 12, 2019 (100% bonus, 1 million USD worth of tokens available)
  • Price: 1 FLC = $0.05
  • FCO (Field Coin Offering) Start date: April 2nd 2019.
  • Hard Cap: $31 million
  • Soft Cap: $3 million
  • Telegramhttps://t.me/fieldcoin
  • Websitehttps://www.fieldcoin.io/
  • Barred Jurisdictions: USA and China

All unsold tokens will be burned.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
2 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 5 (2 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.2 stars on average, based on 27 rated postsJoshua Larson is also known as the "Bullshit Man" for his ability to spot it a mile away. Avid ICO researcher and contributor. Former professional poker player/backer. Spent 10 years analyzing hand history, stats, and player data. Discovered blockchain in late 2016, and never looked back. He now uses his analysis skills to investigate ICOs full time. What a perfect match, because in today's crazy world of ICOs, information, passion, and diligence = dollar bills!




Feedback or Requests?

Continue Reading

ICO

ICO Analysis: ECOMI

Published

on

ECOMI Collect is a delivery cross-platform (mobile, desktop, web) application and marketplace for buying, selling and swapping premium licensed digital collectibles and digital artwork. The authenticity and scarcity of digital collectibles is created using Distributed Ledger Technology (DLT). ECOMI Collect is operated and supported by ORBIS Blockchain Technology Limited, a registered company in New Zealand, with offices in New York, Auckland, Taipei and Shanghai. ORBIS is comprised of 17 staff plus 14 board members and advisors.

ECOMI has a vision of being the #1 platform for buying, selling, and trading premium digital collectibles and virtual goods using Distributed Ledger Technology. ECOMI plans to revolutionize the 200 billion USD collectibles market by building its own ecosystem (ECOMI Collect) on Blockchain technology and a Secure Storage Wallet. ECOMI already has major brands on board that will give them instant worldwide attention and credibility. They also have a team that is unparalleled in this industry including their Head of Global Licensing, Alfred Kahn, who is responsible for bringing Pokemon to the world as well as “go to market” strategies for iconic brands such as Cabbage Patch Kids, Pokemon Go, Teenage Mutant Ninja Turtles, Yu-Gi-Oh and many more.

ECOMI Collect will give users real ownership of premium licensed digital collectibles and virtual goods while providing counterfeit protection and the ability for peer to peer transactions. ECOMI Collect intends to dominate this market by capturing six main categories: movies, television series, evergreen characters, animation, gaming, and digital art. Every user will have their own personal showroom which they can customize by using different layouts, backgrounds, and props. Users can make their showrooms private or public, and even share across multiple social media platforms. The vision is to revolutionize the collectibles industry by creating the world’s best platform giving users the freedom to interact and control their digital collectibles worldwide.

The ECOMI Secure Wallet is the world’s first wireless, credit card sized, cryptocurrency hardware wallet. It is a true cold wallet that never connects directly to the internet that employs (CC EAL 5+ Security) government level encryption and security. It also uses an encrypted secure Bluetooth connection to the host device (iOS or Android smartphone) removing the need for a wireless connection. The Secure Wallet has an E-paper display on the card to view balances and pairs with the ECOMI app to view manage balances online. The ECOMI Secure Wallet can bend, waterproof, and has a fully rechargeable battery. There are no extra fees or contracts and it currently supports Bitcoin, Ethereum, Ripple, Litecoin, and Bitcoin Cash.

Token

The ECOMI token is needed for the sale and purchase of digital collectibles and secondly, access to extra features and benefits within the app. The digital collectibles offered through ECOMI Collect are Non-Fungible Tokens (NFTs). In order to facilitate the purchase and trade of digital collectibles, ECOMI Collect utilizes the OMI token. The OMI tokens will be GO20 standard whereas the digital collectibles are GO721 (NFTs). When a purchase of a collectible is made, the OMI tokens will be exchanged for the NFT. The NFT will be sent to the users Ecomi Collect app and become rightfully theirs, whilst the OMI tokens used for the purchase are discarded to a locked address.

Use of funds:

  • Licensing Acquisition -55%
  • Product Development -22.5%
  • Marketing Expenses-15%
  • Business Operation -5%
  • Legal Expenses -2.5%

Token allocation:

  • ICO (Private & Public Sale) 20% | 150,000,000,000 OMI
  • In App Purchases 40% | 300,000,000,000 OMI
  • Business Development 20% | 150,000,000,000 OMI
  • Team, Advisors, Board Members 20% | 150,000,000,000 OMI (ECOMI Team / Board / Advisors 12 month cliff, ECOMI Founders 24 month cliff, then vested at 25% quarterly)

1 token is equal to 1 satoshi and is only planned to be listed as BTC pairing on exchanges to minimise any potential downside to the token price.

Team

Below is a breakdown of the key team members.

David Yu (Co-Founder & CEO)

  • Founder – Games R Us
  • Founder – Retail Management Group
  • Trustee – Touchable Earth Foundation
  • 2016 Young Entrepreneur of the Year Award – Australia New Zealand Chamber of Commerce Taipei
  • 21 Years Experience in Collectibles and Branding

Alfred Kahn (Head of Global Licensing)

  • Chairman & CEO of CraneKahn LLC
  • Chairman of the Board of Toon Goggles Inc.
  • Chairman & CEO of 4Kids Entertainment Licensing
  • Responsible for the biggest hits in licensing such as Pokemon, Cabbage Patch Kids, Teenage Mutant Ninja Turtles, and Yu-Gi-Oh!
  • Credited for the marketing of brands such as Nintendo, Mario Bros, Donkey Kong, Zelda, James Bond, WWF, WFW, and Xbox to name a few.

MB Technology

  • Co-Founder of the Interoperability Alliance
  • Benn has lead ICO strategy for projects such as Wanchain, Quarkchain, Aion, Icon, GoChain, Origo, Fantom and many more. Benn has brought multiple top-tier projects to the cryptocurrency market and is definitely considered an industry leading advisor.

Daniel Crothers (Co-Founder & COO)

  • Co-Founder ABC Stars
  • Co-Founder Digitalus
  • Co-Founder HERB

Joseph Janik (Co-Founder & CIO)

  • Co-Founder of Movement Food
  • Territory Business Manager of TechnoGym
  • Account Executive of Rivkin

Verdict

The virtual goods market is currently at $80 Billion USD and expected to grow to $100 Billion USD within the next three years. The collectibles industry already generates $200 Billion USD annually, and ECOMI has strategic plans to capitalize on this growing trend in both markets. With this team’s credibility, ECOMI can easily become a major player in this field from their launch.

Risks

  • Only 20% of tokens are available during the ico sale which is considered to be on the low side. However, ico’s with similar token metrics, such as QuarkChain, have performed quite well. -1.5
  • Although they may not have team members as well known as the ECOMI team, there are competitors that have the advantage of already being in the space. -1

Growth Potential

  • Compared to other ICOs with all-star teams, the hard cap is rather low which allows for greater opportunity for growth among initial investors. +1.5
  • The team brings years of expertise and experience in the necessary areas for ECOMI to succeed in what they’ve set out to achieve and is definitely the star of this ico with major credibility and recognition. +3
  • Strategic partnerships are key to helping ico’s succeed. ECOMI has partnered with CraneKahn® which is an international PR and licensing company powered by the visionary Alfred Kahn. Alfred brought to the world iconic brands, licensing programs and caused the viral adoption of major brands such as Pokémon/Pokémon Go, Cabbage Patch Kids, Teenage Mutant Ninja Turtles, Yu-Gi-Oh!, Super Mario Brothers and many more, earning him membership in the Licensing Hall of Fame and KidscreenHall of Fame. ECOMI has also signed, or is at the final deal memo stage or MOU, with many top global brands. +3
  • Real world application is instrumental for the success of any blockchain project. An instore retail program will be introduced to support consumers with retail products being distributed throughout 4,000+ retail channels established through existing relationships. +2

Disposition

With ico’s on the decline and recently shown in a negative light in the media, ECOMI could be exactly what investors are looking for: a project with a stellar and highly respected team, an achievable roadmap, and entering the virtual goods market which is estimated to reach $100B over the next five years. ECOMI receives a 7 out 10 rating.

Investment Details

1 token is equal to 1 satoshi and is only planned to be listed as BTC pairing on exchanges to minimise any potential downside to the token price.

  • Symbol: OMI
  • Token Type: GO20/721
  • Total Circulating Supply: 750,000,000,000 OMI
  • Tokens Available for Sale: 450,000,000,000 OMI
  • Price: 0.00000001 BTC (1 Satoshi)
  • Hardcap: 1,500 BTC
  • Accepted Currencies: BTC

Learn More:
Website:  ECOMI.com
Pitch Deck:  ECOMI Pitch Deck
Telegram:  t.me/ecomi
Medium:  medium.com/ecomi
Twitter:  twitter.com/ecomi_
Facebook:  twitter.com/ecomi_
YouTube:  www.facebook.com/ecomi.ecosystem

Disclosure: Analyst does not own ECOMI tokens. 

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
1 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 5 (1 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.6 stars on average, based on 54 rated postsKent Hamilton - Co-Founder of CryptoDayTrader.io, where we are building Pro Crypto Tools




Feedback or Requests?

Continue Reading

ICO

ICO Analysis: Dispatch

Published

on

Although it has the highest market cap and is the most popular cryptocurrency, Bitcoin is able to proceed on average only seven transactions per second. This means that when twenty people try to send their BTC at the same time, more than ten of these people have to wait until their transaction is confirmed and for the receiver to get their BTC.

It is the same with Ethereum as well, due to its average fifteen transactions per second. Cryptocurrencies face a problem of scalability and if they are to reach the holy grail of main-stream adoption at some point in the future, this issue must be solved.

But that is not all. When there is a network congestion and you need to send your tokens immediately, you might have to pay high transaction fees as well. Consider the following scenario: You are at a coffee shop, getting your morning coffee. They accept cryptocurrencies and you want to pay with your ETH. Unfortunately, there is a network congestion so that in order to pay ETH worth of $3 immediately, you have to pay a transaction fee in ETH worth of $5.

Dispatch is a project proposing solutions to these issues. Its protocol enables fast, scalable, secure DApps without any transaction fees. It handles governance on-chain and data off-chain, making high transaction throughput a possibility as the network works more efficiently this way. Although Ethereum is deemed to be the main platform for DApps, the protocol is backward compatible, meaning that almost every decentralized application built on Ethereum can be moved to and work on Dispatch.

Three key components of the Dispatch Protocol are as follows.

  • The Dispatch Ledger: Just like with Bitcoin and Ethereum, the Dispatch Ledger keeps the record of transactions.
  • The Dispatch Artifact Network: A network of data farmer holds data that cannot fit in the ledger.
  • The Dispatch Virtual Machine: DVM connects these two main components.

Dispatch’s own Delegated Asynchronous Proof-of-Stake (DAPoS) consensus algorithm enables a fast and eco-friendly environment for decentralized applications by incentivizing collaboration among validators, instead of competition as in other blockchain projects. It’s main difference from its competitors is its dependence on individual transactions’ gossips rather than the sequential distribution of blocks.

Token

The Dispatch token will be used to conduct transactions, for community building and as a bridge to other components of the Dispatch ecosystem.

The total supply of DAN is 25,000,000,000 tokens. 42% of the total supply will be allocated for the token sale. No other information on the token distribution and how the team is planning to use the token sale proceeds are made public yet.

Team

CEO Matt McGraw: McGraw was the vice president of culture, client and staff experience at Synoptek and the manager of consulting services at All Covered.

Patrik Wijkstrom: Wijkstrom has worked as the director of advisory services at PwC, as the senior manager of user experience at Juniper Networks and as the content and attribution tools manager at Nortel Networks.

Zachary Fallon: Fallon worked as senior counsel for eight years at the U.S. Securities and Exchange Commission and as an associate for about 3 years at Latham & Watkins.

Darin Kotalik: Kotalik was a marketing operation strategist at Cisco and a senior product manager at Adobe Systems.

Colin Lowenberg: Lowenberg has worked as a solution architect at Cisco Meraki, as a chief wireless architect at Accenture and as a wireless field applications engineer at Broadcom.

Denis Molchanenko: Molchanenko was a lead automation engineer at Hitachi Data Systems, a performance engineer at IBM and at Charles Schwab.

Dmitri Molchanenko: Molchanenko has worked as an automation engineer at Intuit and as a staff QA engineer at VMware.

Advisors

Nicole DeMeo: DeMeo has provided her marketing consultancy services to Babbel, Peak Games, Trendyol, Hewlett-Packard and Organic.

Gil Penchina: Penchina has held respectable positions at eBay, Bain & Company and General Electric.

Tim Siwula: Siwula was a software engineer at ConsenSys.

Andrew Segal: Segal is an assistant professor of computer science at the University of San Francisco.

Paul Lambert: Lambert has worked at Marvell Semiconductor, Oracle and Motorola.

Jordan Burton: Burton was a case team leader at Bain & Company and the director of business development at EzGov.

Investors

Fenbushi Digital: Fenbushi Digital is an Asian leading firm investing in and promoting blockchain projects.

Verdict

Below is a breakdown of the risks and growth potential of Dispatch Labs.

Risks

  • The main problem which transaction fee-free blockchain projects usually face is that either the network is highly centralized or successful attacks on the network are not costly. It is not clear that how the Dispatch Protocol can operate without facing these two issues. (-1)
  • Very limited information on token metrics and token distribution is made public so far. (-1)

Growth Potential

  • Great team and advisors. (+2)
  • The token sale will be conducted after the main-net is launched, which is something we do not see very often. The team seems to do things right and this should provide trust in the project for the ICO investor. (+4)

Disposition

Top cryptocurrencies such as Bitcoin and Ethereum are known to have problems of scalability and occasional high transaction fees. Although most decentralized applications are built on Ethereum, the low transaction throughput makes it inconvenient to use them as well. Dispatch provides a fast, secure and transaction fee-free network to solve these issues. By dealing with governance on the chain and data off the chain, it is able to provide high transaction speed and its own consensus protocol Delegated Asynchronous Proof-of-Stake provides an eco-friendly mining solution by incentivizing collaboration instead of competition among validators. Thanks to its backward compatibility with Ethereum, any decentralized application working on Ethereum can work on Dispatch as well. There is very limited information on token metrics and token distribution as of the time of writing and this makes it hard to evaluate the project’s financials and estimate any potential return on investment.

The usual problem that blockchain projects without transaction fees are that either they are highly centralized, or they do not have strong defense mechanisms to evade attacks. It is not clear that how the Dispatch Protocol can operate without facing these two issues. On the bright side, the project has a great team and is backed by an all-star advisory board. The token sale is planned to be conducted after the main-net is launched and this is something we rarely see nowadays.

Dispatch Protocol receives a 4/10.

Investment Details

  • Type: ERC20 – Utility
  • Symbol: DIS
  • Platform: Ethereum
  • Crowdsale: Unspecified
  • Minimum Investment: Unspecified
  • Price: $0.005
  • Hard Cap: $39,500,000
  • Restricted from Participating: Unspecified

For More Information

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
1 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 5 (1 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.8 stars on average, based on 35 rated posts




Feedback or Requests?

Continue Reading

Recent Posts

A part of CCN

Hacked.com is Neutral and Unbiased

Hacked.com and its team members have pledged to reject any form of advertisement or sponsorships from 3rd parties. We will always be neutral and we strive towards a fully unbiased view on all topics. Whenever an author has a conflicting interest, that should be clearly stated in the post itself with a disclaimer. If you suspect that one of our team members are biased, please notify me immediately at jonas.borchgrevink(at)hacked.com.

Trending