ICO Analysis: Bonafi
Reports by OECD and PriceWaterhouseCoopers state that approximately 2.5% of global imports are made up of counterfeit goods and that the value of counterfeit goods grew from 500 billion Euros in the 2000s to more than 1.5 trillion Euros in the 2010s.
In addition to the financial costs of lawsuits filed against counterfeiters as well as removing counterfeit goods from circulation, people have encountered health problems or even death in severe cases due to the use of inferior materials in producing counterfeit goods.
In order to minimize counterfeit goods’ damage on society and to be able to tell whether a good is genuine or not, several blockchain supply chain management projects have been launched. Bonafi is one among many, aiming to stand out with its trademarked Crypto-Tag product. Bonafi’s Crypto-Tag enables consumers to ensure the product’s authenticity by scanning it with an NFC enabled mobile device in return for BONA tokens. The team is working to make these tags tamper-proof so that peeling off and tampering with them will invalidate them, which completely removes or at least decreases the possibility of tampered tags.
The use of blockchain is a truly good fit for supply chain management projects because when data is being recorded through every single stage of the product’s journey it is almost sufficient to conclude that the product is not a counterfeit and is genuine. As it is not possible to change the data recorded on a public blockchain due to its permanent and immutable nature as well as duplicate the tag, the consumer has no reason to worry about the product as long as the data checks out. The whole platform consists of an application, BONA tokens, blockchain, and the Crypto-Tag, all helping to fight the counterfeiting industry.
BONA tokens will be used to gain access to the system in order to check products’ authenticity. In the ongoing pre-sale, BONA tokens are sold for $0.08 and in the public sale planned to start on November 5th, they will be sold for $0.10. As the number of tokens allocated for the private sale is more than twice the amount allocated for the public sale, we can say that these metrics do not favor the ICO investor.
The initial total supply of BONA is 1,000,000,000 tokens with the following token distribution:
- 15% public
- 25% founder
- 6% angel
- 8% team member
- 5% advisor
- 3% ICO launch services
- 38% private
The team is planning to use the token sale proceeds as follows.
- 25% research and development
- 25% advertisement and marketing
- 25% human resources
- 5% operations
- 5% legal
- 5% miscellaneous
- 10% overhead
CTO Byongmin Lee: Lee was the founder at Tinnos, Inc., a Korean company producing automobile parts for 12 years and a senior member of research staff at Electronics and Telecommunications Research Institute.
JungSik Lee: Lee is the manager of HW engineering at Tinnos, Inc.
Rachael McCrary: McCrary was a senior designer at Skechers and Delta Galil.
Below is a breakdown of the risks and growth potential of Bonafi.
- Many blockchain supply chain management projects already exist and are further developed. (-1)
- The absence of team members working for world-class companies might make it hard to establish partnerships with huge companies. (-2)
- More information on the platform and the Crypto-Tag security would be better. (-1)
- Permanent immutable nature of public blockchains is a perfect fit for supply chain management. (+2.5)
- The team has obtained enormous experience working in automobile part companies, an industry where counterfeit goods are a huge problem. (+4)
- Combined with a blockchain, the trademarked main product, the Crypto-Tag, ensures that the product is genuine. (+2)
The existence of counterfeit products is a huge problem for everyone. The use of low-quality materials in production causes consumer health problems and even death in extreme cases such as in 2008 Chinese Baby Milk Scandal. To solve this crucial issue, many blockchain supply chain management projects have been launched. Most of these projects aim to create an immutable permanent transparent ledger of the product’s life from the very beginning of its production to the time the consumer obtains it so that any platform user can access to check the product’s authenticity. Bonafi is one among many, standing out with it’s the Crypto-tag product. Although the project seems promising, compared to similar projects, there are not many team members who have worked for Fortune 500 companies and this might make it hard for the project to establish connections and partnerships with such companies. This is a crucial element for any blockchain supply management project, because if there is no such partnership, then there is no chain of data to validate authenticity. Yet the team is highly experienced in the automobile parts industry in which counterfeit goods is a huge problem. More information on the platform and product security would be better to evaluate the project’s worth and estimate any return on investment as any security vulnerability would be costly. Bonafi receives a 4.5/10.
- Type: ERC20 – Security
- Symbol: BONA
- Platform: Ethereum
- Crowdsale: November 5th
- Minimum Investment: $100
- Price: $0.1
- Hard Cap: $15,000,000
- Payments Accepted: Unspecified
- Restricted from Participating: Unspecified
Featured image courtesy of Shutterstock.