ICO Analysis: CAHrenheit

It’s always great seeing a team with a massively successful background launch an ICO.

CAHrenheit is a blockchain solution for the automotive industry brought to you by core members, including a Co-Founder, of Kuaidi, a Chinese ride-sharing behemoth that merged with rival Didi to become the largest and highest valued ride-sharing company in the world. Didi Chuxing (the merger of Didi and Kuaidi) blows competitors like Uber out of the water: it has 450m users (more than half of all Chinese mobile Internet users), 21m drivers, and books 25m rides a day. In fact, Didi Chuxing acquired Uber’s Chinese operation in 2016.

With such a team behind the helm of CAHrenheit, we couldn’t help but take a deeper look at this project.

So what does CAHrenheit aim to solve?

According to CAHrenheit, many auto-related industries suffer from information asymmetry, which leads to economic inefficiencies and many unhappy consumers. Buyers of auto-related goods and services often have less information than sellers, such as auto-related businesses and middlemen, who often take advantage of this information disparity and leave consumers dissatisfied when it comes to the price, quality, and experience of various auto-related goods and services.

CAHrenheit believes that with a decentralized, blockchain-powered platform, they can eliminate information asymmetry and enhance transparency, unlocking $45 billion in value for all automotive ecosystem participants (car owners, insurance companies, service shops, auto lenders, used car dealers, manufacturers, etc.) in the Chinese automotive aftermarket alone. The global automotive aftermarket was estimated at $760 billion in 2015, so the market CAHrenheit is going after is definitely huge.

CAHrenheit consists of several parts:

  1. CAHtrust – a decentralized search, listings, ratings, and review system for the automotive aftermarket that is based on real transactions secured and verifiable with blockchain. Using such a system results in the lowest searching and switching costs for consumers that look for aftermarket service providers and generation of significant organic traffic for SMEs. Service ratings are also quantified through token tipping on top of reviews. Listing fees are minimal and only for operational costs vs. a “take rate” model on every transaction (cut of each transaction).
  2. CAHmart – an optimized marketplace for SMEs to offer their goods and services. CAHmart allows for dynamic pricing, or offering of off-peak capacity discounts, referrals from one SME to another for token rewards or future referrals, and minimal service fees vs. taking a cut of every transaction.
  3. CAHnalytics – a data analytics hub with live, cross-referenced, and accurate datasets. Data origination happens directly from consumers and SMEs and is paid for by EDUs with tokens, eliminating middleman costs and risks. Data is paid for on an as-needed basis, lowering costs and making purchase decisions easier than those involving large datasets.
  4. CAHmine – CAHmine consists of IoT devices that can be installed on cars and at SMEs. Devices on CAHmine provide realtime data of car performance by brand as well as realtime driver behavioral data. CAHmine devices will also “mine” for CAH tokens for consumers and SME on top of collect data. The data will be analyzed using CAHnalytics to better serve all CAHrenheit ecosystem participants.
  5. CAHnode – CAHnodes are pillars of the CAH community; however, their exact role in the ecosystem is as of yet unspecified other than “helping CAH foundation and CAH ecosystem grow from the beginning”.

Ultimately, everyone benefits in the CAH ecosystem:

  • Consumers benefit from lower searching and switching costs by finding reputable SMEs using CAHtrust, lower maintenance costs by e.g. taking advantage of off-peak discounts, lower insurance costs since insurance companies can better price insurance premiums based on risk gleaned from CAHnalytics data, higher resale value since car buyers can benefit from blockchain-based records of a vehicle’s history, and token income through things like selling data to EDUs.
  • SMEs benefit from better customer acquisition and retention by establishing a trustworthy presence on CAHtrust or using CAH tokens for targeted promotional campaigns, capacity optimization by offering off-peak discounts, and token revenue by doing things like referring business to other SMEs.
  • EDUs benefit from cheaper, as-needed data vs. large datasets, improved data quality since data is unchangeable and reliable, and fraud detection thanks to data that can be validated on the blockchain.

Token

The token that will power CAHrenheit is the CAH token, which will have the following roles in the CAH ecosystem:

  • EDUs have to hold a certain amount of CAH to use custom-designed services and co-develop data products in CAHnalytics
  • IoT Channel Partners have to hold a certain amount of CAH to co-develop CAHmine products with CAHrenheit
  • Medium of value storage and transfer
  • Community members can hold CAH to become eligible for certain titles, such as ambassadors, activists, and liaisons, or node status.

Total CAH supply is 10 billion.

The CAH token sale has three parts: private sale (ended), pre-sale for VeChain Foundation X Node holders (TBA), and public sale (TBA). All three phases of the token sale will be capped at 20% of total CAH supply depending on demand.

Team

Founder and Project Leader Joe Lee – Lee is the Co-Founder of Kuaidi and Founder of 96PK, a web-based gaming platform that he sold before founding Bumblebee Taxi (acquired by Kuaidi, which led to Lee co-founding the merged company).

Operations Leader Derek Ip – Ip has a lot of experience in insurance and was previously Partner at Ernst & Young, where he was responsible for insurance consulting. Other roles he has held are Head of Business Transformation (AXA – world’s 2nd largest financial services company by revenue) and VP of Technology and Operations (AIA).

Technology Lead Frank Chen – Chen was the CTO of Kuaidi, where he led a team of more than 200 engineers that eventually built a platform that handled 5 million daily transactions.

Auto Aftermarket Leader JX Chen – JX was Operations Director of Kuaidi and grew Kuaidi’s operations across various regions of China.

Partnership Leader Benson Wu – Wu was Head of Fleet Operations at Kuaidi and managed a fleet of more than 500k vehicles across China.

Advisors

Sunny Lu, Co-Founder and Project Leader of VeChain

Frank Desvignes – Founder and CEO of AXA Lab Asia, which leads AXA’s efforts to develop partnerships with Asian companies developing innovative insurance products

Partners

VeChain – CAHrenheit is being built on VeChainThor and plans to leverage VeChain’s partnerships with auto industry names like BMW and Renault. CAHrenheit has already purchased 25m VEN tokens for consideration as a VeChain Authority Node.

Klover – Klover is the biggest InsurTech (Insurance Technology) company in China and run by Cahrenheit’s project lead, Joe Lee. Klover has already unwritten $110m in automotive loans in China alone and will bring in 1m+ consumers, 30,000+ SMEs, and 30 insurance companies into the CAHrenheit ecosystem.

Verdict

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

Risks

  • Project is in a very preliminary stage with no working product, barely defined token economy, no concrete details on token sale, etc. (-3)

Growth Potential

  • An extremely experienced team that brings a lot of relevant experience to the project (+4)
  • Strong partnerships and advisors in relevant fields (VeChain, which has ties to BMW and Renault, Klover, Axa Lab Asia, etc.) (+3)
  • Probably the biggest project to be built on VeChainThor to date – VeChain already is a huge project and also very hyped with a large and active community (+2)

Disposition

CAHrenheit is a project with a lot of potential thanks to extremely strong team, partnerships, advisors, and being one of the biggest (if not biggest) VeChainThor ICOs. However, the project is still very, very early stage with little details released about important factors like a working product, token economics and utility, and token sale. For now, CAHrenheit is definitely something to just keep an eye on. CAHrenheit receives a 6/10

Investment Details

  • Type: VeChainThor token – Utility
  • Symbol: CAH
  • Platform: VeChainThor
  • Crowdsale: TBA
  • Minimum Investment: Unspecified
  • Price: Unspecified
  • Hard Cap: Unspecified
  • Payments Accepted: Unspecified, presumably VET
  • Restricted from Participating: Unspecified

For More Information

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