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ICO Analysis: Bloom

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Credit scoring serves an integral function in the lending process. Yet, in 2015, U.S. Congress declared credit scoring to be a monopoly controlled by one organization: FICO. The data analytics company is responsible for scoring more than 90% of top U.S. lenders, leaving some 26 million Americans unable to obtain credit.

A similar monopoly exists globally. More than one-third (38%) of the world’s population does not have a bank account, and 3 billion people are unable to qualify for a credit card. Although creditors would love to serve this untapped market, traditional credit bureaus cannot score prospective borrowers unless they’ve already taken on debt.

Against this backdrop, Bloom has emerged as a global, decentralized credit protocol that addresses existing limitations in lending by applying blockchain technology to credit scoring and risk assessment.

Bloom is a protocol for assessing credit risk through federated attestation-based identity verification and the creation of a network of peer-to-peer and organizational creditworthiness vouching (“credit staking”). – Bloom Whitepaper (2017).

Through the Bloom protocol, lenders will be able to issue complaint loans on the blockchain at affordable rates. In doing so, the Bloom protocol seeks to address five overlapping issues:

  1. Cross-border credit scoring: Credit histories in one jurisdiction do not apply to other jurisdictions, forcing borrowers to re-establish their credit score when they relocate.
  2. Backward-looking credit assessment: Borrowers with no credit history are at a significant disadvantage when it comes to obtaining a loan or credit card.
  3. Lenders are limited in terms of global reach: Lenders are usually unable to serve borrowers in underdeveloped markets because they lack identity and scoring information to base their decisions.
  4. Risk of identity theft: When applying for a loan, borrowers must bear all their personal information, giving potential hackers more information to commit fraud.
  5. Lack of competition: The credit scoring industry is heavily concentrated, resulting in an uncompetitive market.

The Bloom protocol is based on three components. Together, the seek to overcome the five challenges posed above.

  1. BloomID: Identity attestation allows borrowers to obtain a global secure identity, making it easier for creditors to assess them.
  2. BloomIQ: A credit registry that tracks current and historical debt obligations tied to a borrower’s BloomID.
  3. Bloom Score: The credit score measuring consumers’ creditworthiness.

While certainly making a strong case for a decentralized credit scoring platform, Bloom doesn’t specifically address how the system will solve the five problems highlighted above. Instead, it seems to show that BloomID, BloomIQ and Bloom Score will address the problems by creating a globally portable credit profile that will: (1) apply across borders; (2) enable a backward-looking credit assessment regardless of jurisdiction; (3) safeguard consumer information through a secure system as well as globally-recognized identity attestation; and (4) create a global market place for creditors to access borrowers who have fallen outside the purview of traditional finance.

Although the author’s conjecture may be sound, the whitepaper does not provide specific details on how this system will work, let alone explain the regulatory challenges standing in the way of this vision. This is discussed in greater detail in the Verdict section.

The company has laid out how this protocol will improve on the current system of credit evaluation:

The Bloom protocol improves the current credit ecosystem by creating a globally portable and inclusive credit profile, reducing the need for traditional banking infrastructure and opaque, proprietary credit scores. This means both traditional fiat lenders and digital asset lenders will be able to also securely serve the 3 billion people who currently cannot obtain a bank account or credit score.

Bloom Token

The Bloom token (BLT) is powered by the Ethereum blockchain, and will serve both as a currency and governance mechanism on the network. In other words, BLT will allow organizations to evaluate user identity and credit worthiness. The companies using the Bloom network will pay for identity verification and risk assessment using BLT.

As such, the BLT token can be used in three ways:

  1. Scoring Proposals: The BLT token essentially serves as the governance mechanism for the network. Through token-based voting, bad actors are held to account.
  2. Security: BLT allows the Bloom network to implement fees for invitations. By imposing small costs on each transactions, attacks are not economically viable.
  3. Payment: The token serves as the primary currency on the Bloom network.

The Team

The Bloom team consists of four core members: Jesse Leimgruber, Ryan Faber, Alain Meier and John Backus. The founding team members have backgrounds in computer science, digital marketing and blockchain. John Backus’ resume strikes our attention given his role as research scientist at the Stanford Bitcoin Group.

In addition to the founding team, Bloom has three advisers on board, including Meg Nakumura, CEO of Shift Payments. Joseph Urgo has also been recruited from District0x, an Ethereum dApp. David Raphael of Infinity Media also brings with him experience in conversion rate optimism. Overall, the brains behind Bloom appear to be well qualified and highly focused.

Verdict

Very few ICOs are as highly regarded as Bloom. This massive undertaking has the potential to become a highly lucrative enterprise. Bloom’s expansion into credit card services is also commendable. To speed up adoption, the company will launch the BloomCard, a blockchain credit card intended to serve as the model for all future credit providers.

On the flip side, significant challenges remain. Unless they are addressed, the company may struggle winning over institutional adoption. Providing a clearer implementation timetable is also needed to win over investors. The author believes that an updated whitepaper is warranted as Bloom moves forward with its raise.

Risks

  • The credit scoring industry is mired in regulations that become even more complex when the moment we cross borders. Bloom has not outlined how it intends to navigate these issues. -3
  • Although the team has outlined a roadmap for implementation, no dates are provided. How fast will they be able to scale? Is the existing team sufficient in reshaping the global credit scoring industry (i.e., overtaking FICO)? -2
  • There’s probably a good reason why many people struggle to get credit. Is Bloom’s business model inherently risky? And will creditors be willing to take a gamble on borrowers with bad or no credit? -2

Growth Potential

  • Bloom is presented with an undeniably lucrative opportunity to link creditors with unbanked populations. More than one-third of the world’s population does not have a bank account and many more do not have access to credit. +4
  • The credit industry has been under the microscope following Equifax’s massive data breach, which exposed the private information of 143 million users. The combination of BloomID and security for invitations makes Bloom a much more secure platform. +4
  • Unlike other ICOs, Bloom’s multi-purpose token adds real value to the business. +2
  • The Bloom platform is likely to benefit from positive publicity tied to its admirable business objective of expanding credit options to all. +2

Disposition

Factoring all the above, we give Bloom a generous score of 5 out of 10. It should be noted that the ICO launch date has yet to be announced, which means our rating may be revised once details of the pre-sale surface.

Bloom is a highly ambitious project that, if realized, will benefit society in many ways. But there are glaring concerns related to regulation, credit risk and implementation that still need to be addressed. Combined, these factors could adversely impact institutional adoption.

The Bloom protocol will be developed in six major phases, culminating in the democratized autonomous credit infrastructure. The pace and timing of that roll out has yet to be determined, a clear sign that Bloom is still in its early concept stage.

Another review of Bloom is likely warranted once the company provides more explanation regarding its technical features, and how it plans to tackle the five problems discussed in its whitepaper.

Investment Details

No ICO pre-sale information has been provided yet. Users are encouraged to follow Bloom’s website or subscribe to their newsletter for the latest 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.

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4.6 stars on average, based on 548 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




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  1. jagrmeister

    October 17, 2017 at 3:26 am

    I work in alternative credit; the issues relating to credit scoring are significant, to be sure. If you look at the peer-to-peer lending space, or alternative lenders, there is use of a range of new technology to address these shortcomings, including addressing the unbanked problem. I am interested in Bloom for these reasons. But from your review, I have no idea what they’re doing uniquely to address these issues; I realize they’re “putting it on the blockchain” but that doesn’t even address the issues identified in the review. You list:

    1. Cross-border credit scoring
    2. Backward-looking credit assessment
    3. Lenders are limited in terms of global reach
    4. Risk of identity theft
    5. Lack of competition

    Interestingly the article starts off talking about the problems of the unbanked but none of these 5 issues have to do with the core problem of today’s credit system that omits them.

    The write-up doesn’t address any of the five areas enumerated, or show why Bloom would solve them. For #1- cross-border credit, this is one of the most problematic issues. The reason cross-border credit isn’t done is because the laws range widely in terms of what data you can collect to construct the score. How does putting the credit score on the blockchain change that? Backward-looking credit assessment? It depends what you mean by this; the scores are meant to be predictive. Which is why recent events matter more; a failure to pay 10 years ago may not show up on your current score. Further, to the degree, you can reassess the core data in a way to be more ‘future-oriented’ it’s unclear what blockchain has to do with it.

    For # 3 “Lenders are limited in terms of global reach”, see my response to #1. There’s a reason they’re limited and it was to do with limitations on collecting and applying data to scoring across borders. Beyond scoring, if lenders want to lend across borders, they then have to worry about differences in law as far as collections. So even if there’s a cross-border score, they may not be able to practically use it.

    #4 really isn’t an issue. Prospective borrowers don’t shy away from loan apps because of concern of identify theft.

    #5- possibly. Transunion, Experian, and Equifax are responsible for collecting their own data regarding the borrower’s history; they simply use FICO to do the mathematical scoring. Whether one needs someone else to do with FICO does already remains to be seen. Again, if one does, it’s unclear why a blockchain solution is needed.

    The way this article reads is “There’s a problem of the unbanked…now here are 5 problems Bloom identified which have little to do with the unbanked….and we have no explanation for what Bloom is actually doing to even address these five issues”

    Hacked has been on a tear in terms of covering a volume of ICOs. But perhaps this is quantity over depth analysis. I don’t want to read an incomplete summary of the whitepaper- in that it contains some of the bullet points, but none of the explanation. If the whitepaper also didn’t have explanation- then the review should point that out. The alternative lending world is full of companies optimistic they could reinvent credit scoring and ended up in ‘no mans land’ and never found a market.

    What I’d have preferred to see is examination of whether Bloom’s proposed solution actually addresses any of its stated objectives; why should we believe they can solve the problems they claim to tackle.

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ICO Analysis: Bgogo

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Bgogo is a crypto asset exchange project with the unique feature of having supernodes that decide on which crypto assets get listed. This is opposed to other exchanges where listing decisions are up to the exchange and not the community.

Supernodes on Bgogo are selected on a quarterly basis based on the top 21 holders of BGG tokens (also subject to vetting by the Bgogo team). During their quarterly tenure, supernodes (after the first group of supernodes) cannot touch their BGG stake.

Supernodes get 1 vote that can be used to list 1 digital asset as well as 20% commission per trade for their listing.

The list of current supernodes is impressive and boasts some big names in the blockchain space, including Pantera Capital, ICODrops, DHVC (Danhua Capital), Arrington XRP Capital, Hashed, Signum Capital, and more.

The project also has $10m in investor funding (Pre-A and A round) from VCs, such as Sky9 Capital, Node Capital, Hike Capital, and Goopal Digital.

Token

The BGG token acts as a proof of stake for the platform (e.g. hold enough and become a supernode), and active traders are rewarded in BGG for their activity.

The total supply of BGG is 10 billion with the following token distribution:

  1. 50% mining rewards
  2. 20% founding team
  3. 20% ecosystem development and operation
  4. 10% first supernodes and strategic investors

Users of Bgogo “mine” Bgogo’s token (BBG) whenever they trade on the exchange. Users get BGG equal to 105% of their cumulative trading fees (in effect, negative trading fees) every 30 minutes as a reward. Bgogo platform fees can be viewed here. Mining rewards may be adjusted as the platform grows but according to the Bgogo whitepaper, a minimum trading fee rebate of 100% will be retained.

Bgogo also performs daily buybacks of BGG. Every 24 hours, 100% of the trading fees (BTC, ETH, and fees for other Bgogo-traded assets) collected by Bgogo is used to repurchase BGG. Repurchased tokens are then burned by sending them to a publicly known burn address.

BGG can also be bought and sold.

The total amount of daily mineable tokens is capped and unlocked at the same rate as ecosystem development and operation tokens. Team tokens are vested over 4 years, with 25% of tokens released at the end of each year.

The 10% of BGG that was sold to initial supernodes as well as strategic investors and partners during the private sale was sold for a total of 15,000 ETH (10,500 ETH for supernodes and 4,500 ETH for strategic investors and partners). The private sale price was 1 ETH = 66,666 BGG, and each supernode was allocated 500 ETH or 33,333,000 BGG.

On the first day of the token’s listing, 50% of private sale tokens are initially unlocked to provide baseline liquidity for BGG. The rest is vested over 5 months in 10% installments. In addition, from the first day of BGG listing, token holdings of all supernodes will be made available on the Bgogo site. In other words, top BGG holders and their positions will be made public and changes in supernode positions can be seen in real-time.

The “public sale” for BGG is actually a genesis mining (beginning of mining, or earning, BGG through trading) event.

The event starts 24 hours prior to the beginning of mining being open to the public. The value of BGG will be pegged to ETH at the same price of the private sale. However, given that “miners” receive 105% trading fee rebates in the form of BGG, “public sale” or genesis mining participants are in effect, getting a 5% bonus on top of the private sale price. In other words, public sale participants are getting BGG cheaper than private sale participants, with NO lockup. Though the catch is that the maximum mining allocation is 10 ETH vs. supernodes who were allocated 500 ETH of BGG each.

To get whitelisted for the BGG genesis mining event, users have to take part in the BGG Proof of Care contest and are placed into tiers based on their performance. For full details, see the BGG Genesis Mining Event page.

Team

CEO Maximilian Wang – Wang is a former Facebook software engineer and founded Facebook’s crypto syndicate. Wang also advised popular blockchain project Quarkchain, which had a successful ICO.

CTO Nicolas Chen – Chen worked at Facebook’s US headquarters and was responsible for maintaining network security for Facebook’s greater than 2 billion users across its Facebook, Whatsapp, and Instagram properties. He also won the ACM International Collegiate Programming Contest (ICPC).

COO Oscar Song – Song has experience working at large exchanges, as he was former operations chief at Huobi, one of the world’s biggest digital asset exchanges.

CSO Ciara Sun – Sun worked at Boston Consulting Group, Deloitte, provided asset and portfolio management for billion scale hedge funds and private equity funds, and won the 2018 Blockchain Consensys without Borders Summit Project.

Other core team members have backgrounds working around the world in locations like Silicon Valley, Hong Kong, and Singapore for renowned companies like Facebook, Microsoft, Alibaba, Twitter, and more.

Verdict

Below is a breakdown of the risks and growth potential of Bgogo.

Risks

  • Private sale vesting could be done over a longer period (-0.5)
  • Public sale (genesis mining) allocations could be bigger (-0.5)

Growth Potential

  • Impressive team (+3)
  • Impressive list of supernodes shows big players’ belief in and support for the project (+2)
  • Lots of hype, e.g. large Telegram (+2)
  • Great idea for traders (+1)

Disposition

Though private sale vesting is over a somewhat short period and public sale allocations pale in comparison to private ones, the team, list of supernodes, hype, and idea make Bgogo an extremely attractive project. Who knows – maybe getting some BGG early could be like getting some Binance tokens (BNB) before Binance took off. Bgogo receives a 7/10.

Investment Details

  • Type: Unspecified – Utility
  • Symbol: BGG
  • Platform: Unspecified
  • Crowdsale: TBA
  • Minimum Investment: Unspecified
  • Price: 1 ETH = 66,666 BGG (private sale), 1 ETH = 69,999.3 BGG (public sale aka genesis mining event)
  • Hard Cap: 15,000 ETH (~$6.3m)
  • Payments Accepted: Unspecified
  • 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.

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ICO Analysis: Solana

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Scalability, scalability, scalability.

Scaling blockchain for the next level of (mass) adoption is the name of the game these days.

Solana is yet another contender to jump into the fray to become the most scalable blockchain and boasts the capability to handle 710,000 transactions per second with normal, off-the-shelf hardware and no features like sharding (a popular scaling proposal which proposes splitting a blockchain into shards or pieces that can process transactions simultaneously instead of having one, overloaded blockchain).

Here’s how.

Proof of History

The staple of Solana that will allow for unparalleled speed is Proof of History. Proof of History timestamps transactions in the blockchain so that nodes can verify the time and order of transactions without witnessing them firsthand.

This has the end result of optimizing Solana’s processes drastically by greatly reducing messaging between nodes and making the processing of transactions separate from consensus.

Here are some other features of Solana:

Sub-Second Confirmations

Older projects like Bitcoin not only have lower transaction rates but also have slow finality or confirmation of transactions as transactions have to be confirmed multiple times before becoming finalized.

Similar to project Perlin, Solana uses the Avalanche consensus protocol, which will allow for transactions to be fully confirmed within seconds, if not less. No more waiting minutes, hours, or days to pay for that coffee using crypto.

Proof of Replication

As of writing, the Bitcoin blockchain is nearly 180 gigabytes. Not everyone has that amount of storage capacity. Solana’s solution for ledger storage is Proof of Replication, which makes it so that not every node has to storage a full copy of the blockchain. Instead, each bit of Solana’s data is replicated to a dedicated storage node.

This means that the network can prove that a node you don’t trust is using its resources to store part of the Solana ledger. The end result is that the network is like a torrent, with no one node holding a full copy of the ledger yet a copy of the ledger is always available.

Broad Smart Contract Language Support

Instead of limiting developers to a single smart contract language, Solana will support any language supported by LLVM, starting with Javascript and Solidity.

Usage by the Next Generation of DApps

Thanks to Solana’s high transaction throughput, Solana could become the platform for the next generation of DApps that process tons of transactions like decentralized exchanges, payment platforms, decentralized cloud storage and web services, decentralized ad exchanges, and prediction markets.

Token

Details on Solana’s token and its token sale are sparse.

For the token itself, since Solana is aiming to be a platform like Ethereum or EOS, it’s assumed that Solana’s token usage will be similar to that of the aforementioned projects.

As for the token sale, interested investors can submit their interest in contributing via Solana’s presale interest form.

Team

CEO Anatoly Yakovenko – Yakovenko created Solana and has deep tech experience, having led operating system development at Qualcomm, compression at Dropbox, and distributed systems at Mesophere. Other achievements include being a core kernel developer for BREW (powered every CDMA flip phone – 100m+ devices), holding 2 patents for high performance operating systems, and leading development that made Protect Tango (VR/AR) possible on Qualcomm phones.

CTO Greg Fitzgerald – Fitzgerald is Solana’s principal architect and also worked at Qualcomm at the Office of the Chief Scientist.

Head of Growth Hsin-Ju Chuang – Chuang leads Solana’s community and growth efforts. Her track record is pretty solid, having been the former Head of Growth at Stellar, a top blockchain project.

Partnerships, Biz Dev Alan Yu – Yu is in charge of Solana’s business relationships and comes from Google, where he spent 10 years in sales and marketing and won various awards for his performance.

Partners

Solana’s partners include the following:

  • globaliD – globaliD is an identity provider, which has venture support from the likes of 500 Startups.
  • Hard Yaka – Hard Yaka is an investment fund with investments in companies like Coinbase, Ripple, Filecoin, ShapeShift, AngelList, twilio and exits from companies like Square (IPO), Twitter (IPO), Authy (twilio acquisition), and more.
  • Helium is the world’s first decentralized, blockchain-powered machine network with investment from the likes of GV (Google Ventures) and Marc Benioff, founder, chairman, and CEO of Salesforce.

Verdict

Below is a breakdown of the risks and growth potential of Solana.

Risks

  • Bold claims re: scalability and throughput. The team has claimed to have achieved hundreds of thousands of transactions per second on their testnet but the testnet isn’t public (-1)
  • Details on token and token sale not released yet (-0.5)

Growth Potential

  • Strong team and partnerships (+3)
  • Github work impressive (+2)
  • Solid hype and social presence (+2)

Disposition

  • Solana is a project with a lot of potential. Though tons of blockchain projects claim that they’re going to fix blockchain’s scalability woes, Solana might just have the actual team and partners to make that vision a reality. For now, we recommend keeping an eye out for further developments.
  • Solana receives a 5.5/10

Investment Details

  • Type: Unspecified – presumably utility
  • Symbol: Unspecified
  • Platform: Unspecified – presumably Native
  • Crowdsale: TBA
  • Minimum Investment: Unspecified
  • Price: Unspecified
  • Hard Cap: Unspecified
  • Payments Accepted: Unspecified
  • 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.

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ICO Analysis: BitSong

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The music industry is ever-evolving alongside new technologies. Smart contracts and blockchain are currently changing it again. Over the past year, numerous music blockchain projects have come onto the scene as ambitious entrepreneurs try to get in on the action.

BitSong, is an Ethereum based project that wants to put the entire process on one platform. Music creators will stream their songs or videos, manage their fanbase and work out advertising deals all on the BitSong Platform.

According to the whitepaper:

“The BitSong Platform will be a holistic one -stop shop approach, choice is given to the user, to watch videos, stream music and have the ability to use whichever device they own to partake in Bitsong. This also permits the artist to manage their social media fanbase from one source, their Bitsong channel, thereby retaining their fans on one single decentralized music platform”

The platform allows users to do the following;

  • Upload new songs/videos and create your own music channel.
  • Sell your songs, listen to them and get donations.
  • Earn BTSG token during your plays.
  • Support the artist by making a donation through the BTSG token.
  • Listen to your songs on any TV, Smartphone or PC.
  • Sponsor your business or your songs in full autonomy.

Perhaps the coolest feature of BitSong will be how they incorporate advertisements into the platform. The user will be paid for their “User Attention,” the producer will receive earnings in real time and the advertiser will be able to optimize the campaign after viewing the reports.

Token

The BTSG token will be essential for: sponsorship, making a donation, purchasing a song, voting, buying tickets and purchasing merchandising.

Use of funds:

  • 50% Business Development and Expansion
  • 15% Technology and Logistics
  • 15% Research and Development
  • 20% Marketing and PR

Two percent the tokens were sold at a 40% discount during the pre-sale in late May.

Team

This is a rather large and spread out team. Lots of different countries involved and most of the team are former DJs/producers.

Angelo Recca: Co-Founder/CEO from Italy. LinkedIn says he has been CEO of this cloud storage company SpazioRC since 2012. Spazio has only one employee listed on LinkedIn and the twitter only has 340 followers and hasn’t been active since Novemebr 2017.

Rino Ticli: Co-Founder. The only work history listed is “DeeJay” since 2002. He doesn’t seem to be a very popular DJ/producer, either. He’s had Twitter since 2012 yet only has 800 followers that give him zero love or retweets.

Julian Anghelin: EMEA Manager. Despite typing a long and vague description of his skills, the only work history he has listed is as a publications guy for Royal Caribbean Cruises for ten months in 2016.

Giovanni Melfi: CTO and Blockchain Developer. Out of the 12 team members, he is the only developer. And it looks like he has no work history to brag about. He did describe himself on LinkedIn as follows:” Passionate about cryptocurrencies and blockchain, 2 languages speaker. Coming from an experience in software engineering and a passion for software development with some programming languages such as PHP. I participated in some group work on the robotic system, on linux programming and on StartUp Manager, and I think these experiences are the most important for professional growth.”

The website goes on to list 19 international DJs/producers that are supposed to be a part of BitSong. However, after checking all of them, only a couple ever mention BitSong. No mentions of the token sale.

The most popular is a guy named Tadeo, who gained almost 300,000 Twitter followers for being on an MTV reality show. He does not mention the BitSong crowdsale on his twitter.

Nicola Fasano is a DJ with 16,000 followers on Twitter.

Mossel is a DJ with 10,000 followers but doesn’t mention Bitsong ICO

Verdict

We usually don’t do analysis on projects that already had their pre-sale. However, after seeing these ratings, it seemed like our opinion was needed. These high scores are out of line. The only explanation is that the reviews were done a few months ago, before the bad news bears arrived to spoil everyone’s shill fest.

Nobody here expects YouTube, Spotify and record companies to just step aside while smart contract/blockchain projects move in. Said blockchain projects needs to be extra special with an extra special team in order to even stand a chance of competing.

Based on team inexperience and lack of MVP alone, this gets an unfavorable rating.

Risks

  • The team is not experienced at all in business or blockchain. -1
  • It doesn’t look like they will come close at all to reaching the hard cap. They have a large team and payroll. It’s going to take a long time for both BitSong and Ethereum to work properly. There’s a strong chance they run out of money by then -1
  • No MVP, only one blockchain developer listed on their team, plus many other small things that lead us to believe they might not be really trying to build this thing. -1
  • GitHub is not active at all. This supports the above theory. -1
  • Competition. The author has reviewed 4 different blockchain music ICOsin the last year. He ranks this one 3/4. -1

Growth Potential

  • Ambitious roadmap on page 15 of the whitepaper. +1
  • One of these blockchain music projects is going to be popular. BitSong has an outsiders chance. +1
  • The crowdsale will run for three months, ending in November. Perhaps the market will be bullish by then. +2
  • They make a really bold claim on their site about having 177,404 users. When asked who these users are, the reply was, “177,404 users interacted with our bot and registered in our wallet.” This is kinda hard to believe, but if true those type numbers will definitely help them scale. +3

“Together with our community (about 180,000 users) we want to create a special environment, a new way to hear, see and enjoy music,where every artist can be his own distributor, sponsoring it on world music channels, where clarity and transparency rule and users can be rewarded for listening and viewing advertising.”

Disposition

It’s just way too good to be true. The silver lining is that we’ve seen several projects succeed in the past with this same strategy. A brilliant whitepaper idea with no MVP, and an untested team. However, in today’s paranoid market, most investors are now needing evidence of work, not just a whitepaper and a dream. +2/10

Investment Details

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.

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4.1 stars on average, based on 23 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!




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