ICO Analysis: Dentacoin
Dentacoin is offering a solution to improve global dental care and make it affordable through crowd power via a blockchain based tool.
Dentacoin aims to accomplish this by incentivizing dental patients to leave reviews after they finish with their appointments, and the token can also be used to pay for dental treatments.
The listed benefits of Dentacoin include:
- Transparent reviews
- Once on the blockchain, reviews cannot be modified or manipulated
- Permanent data storage
- Market research value
- Patients will have access to the rating and reviews of each dentist and can base their decision of which dentist to go to on the provided information
- Patients will have the option to speak out and present their opinions
- Dentacoin (DCN) will be diversely distributed
- Every single review is rewarded from the foundation subject to the foundation having stock of DCNs.
- The creation of closed economic system
The basic concept is to use Ethereum-based smart contracts to create a decentralized review platform. This platform would be used to reward users who submit high quality patient reviews and market research surveys.
Dentacoin also plans to have two types of reviews, standard and “trusted”. The standard reviews can be written by anyone, and trusted reviews can only be written by actual patients. This is kind of confusing to me, since if the platform allows for people who haven’t used the services of a specific dentist to leave reveals it kind of defeats the purpose of an honest review.
Dentacoin also aims to help patients create contracts with their dentists to “align the interest of both parties to maintain healthy teeth and overall oral hygiene” Under these smart contracts, both the patients and dentist have obligations to fulfil, and if they are able to complete it, will receive whatever benefit is stated in the smart contract.
Something to note is that Dentacoin purchased an actual real life dental clinic, the Dentaprime International Plc. London in July 2017. According to the Whitepaper, the purchase price (paid entirely in DCN) was calculated to be $90 million USD. The purchase of a physical business is something that stands out about Dentacoin, and the Dentacoin Foundation aims to continue purchasing clinics in the future.
Their market goals are as follows:
The Dentacoin team has 20 members with backgrounds in blockchain and app development backgrounds, dentists with experience in the dental industry at large, business development, and other specialties. This team appears to be extremely rooted in the dental industry, and look like they can handle at least challenge of providing a functioning and useful product for both consumers and dentists.
Whether or not they can scale to their goals, however, is contingent on how the market receives their product, how much they raise during ICO, and whether they have the marketing muscle to get there.
Tokens and Distribution
There are to be (get ready for a lot of 0s) 8,000,000,000,000 coins. Each one of 8 trillion coins are referred to as a “DCN”, and the value is derived from the exchange with Ether. The symbol ٨ was chosen to represent DCN.
The July 1 2017 public pre-sale was hard capped at 80 000 000 000 DCN (1% of the total supply) at a price of 1 ETH = 8 000 000 DCN, or $.01 USD for 284 DCN .The majority of the funds raised went to developing their Trusted Review Platform.
The October 1 2017 ICO is offering 240 000 000 000 DCN (3% of the total supply) at a price of $.01 USD for 85.3 DCN. The funds from the ICO will go towards:
1) Creating a team of insurance specialists, dentists and programmers to develop the
Dental Insurance Model.
2) Launching the Trusted Review Platform Mainnet.
3) Initial Global Communication Campaign for acquiring partners and multipliers.
The second token sale will be on October 1, 2018 without a specified amount or value. The funds will go towards:
1) Coding and configuring the Blockchain Insurance and the Health database.
2) Developing the Market Research Platform.
3) Second Global Communication Campaign for acquiring partners and multipliers.
The Dentacoin Foundation aims to buy back DCN with 50% of all profits gained through the last financial year, including interest from assets, any profits from the clinics bought by the Foundation, or any other return on investments.
Up to the upcoming ICO, the Dentacoin team has released the token, formed the Dentacoin Foundation, released dentacoin.com v.01, and purchased the Dentaprime International Plc. London.
I do have my hesitations regarding the necessity of blockchain for this particular use, but I am very interested to see a blockchain implementation of a sort of Yelp-like review system for any niche industry.
From an ICO analysis standpoint, there are a few notable things to look it. While my gut reaction is that this just looks like another company trying to take advantage of ICO hype to raise money, the business doesn’t seem like a bad idea. They’ve already purchased a physical location for an estimated $90 million (keep in mind it’s estimated in their own DCN token, so take that with a large grain of salt) and have plans to purchase more.
- It’s hard to look past the fact that Dentacoin will be facing an army of highly competitive review sites, and I’m not sure that their value proposition offers much of an incentive for patients. -2
- When I look at these ICOs, I try to put myself in the position of the end user as well as the investor. As the end-user, someone who goes to the dentist maybe once or twice a year and spends about $300, I don’t really see myself using this. Unless the Dentacoin team can make using their platform very appealing for users, they’ll have a tough time getting enough people on it. -3
- The ICO is for only 3% of the total supply of DCN. -2
- Although I think the review system might be useful on the front-end for dentists to see collections of reviews, the true value comes from the data Dentacoin can get from its users. This can be monetized in a variety of ways, and although not outlined in their whitepaper, it could be a path taken in the future. +2
- The whitepaper states that Dentacoin plans to buy back tokens with 50% of its profits (including interest from assets, any profits from the clinics bought by the Foundation, or any other return on investments). While this is just an intention, it does look promising if Dentacoin is able to turn a profit in the long-term future. Keep in mind that they’re only putting out 3% of their total tokens in this ICO. +4
- The Dentacoin Foundation may continue buying dental businesses. This means real revenue tied to a real product. +3
- While it is incredibly niche, the Dentacoin project is the first and only project of its kind on market. Just because the blockchain use-case here isn’t anything to lose your breath over, it doesn’t mean it could potentially create an end-result or product better than at least some of its competition. +1
We arrive at a +3 out of 10 for Dentacoin. It seems that Dentacoin aims to attach itself to at least some form of generating real revenue (purchasing dental practices), and that differentiates itself from the majority of ICOs today. It also plans to buy back its tokens with a hefty 50% of annual income. Dentacoin seems like a business looking to use the ICO frenzy to raise money, but they are also offering something that has some value.
To see more details on the October 1st ICO, go to https://www.dentacoin.com/ico/