ICO Analysis: Elementh

Elementh has generated considerable buzz in the investment community as it embarks on an ambitious project of re-shaping the global e-commerce market. The company is using blockchain technology to develop an e-commerce platform that registers product ownership across thousands of categories.

According to the company’s official website, Elementh provides the e-commerce market “with real-time and historical data on stock inventory and price,” while also providing centralized and decentralized applications on the blockchain. Basically, the platform uses machine learning to classify products across the e-commerce market. In doing so, it products the infrastructure for delivering features like product ownership and product tracking. The decentralized nature of the blockchain allows customers to find the best deals and sellers to conduct business far more efficiently than ever before.

Interestingly, Elementh traces its history all the way back to 2012 when Russian founders Sergey Ryabov and Dmitriy Bereznitskiy set up a company called Miiix. Over the next three years, the founders would develop a massive database that included tens of millions of stock keeping units (SKU) for some 30,000 products. It was only then that they decided to transition to open-source blockchain by founding Elementh.

Under the banner of blockchain, Elementh intends to create a simpler, more efficient e-commerce market. The founders spelled out their vision in their whitepaper:

“[Elementh seeks] to create a standard system, available for use by the entire e-commerce market in both B2C and B2B sectors. To combine all prices for all goods in one place. To create the unified product classification standard and a platform allowing for quick setup and scaling of e-commerce projects.”


The Elementh blockchain will develop an ERC-20 token that will be utilized across the entire network. The token, which will trade under the symbol EEE, is currently available through a pre-fund program that will run through Mar. 31. The pre-fund bonus for EEE is 30% at a price per coin of 0.0002 ETH.

Elementh will launch its public crowdsale on Apr. 1 at a price per coin of 0.0002 ETH (the whitepaper indicates that purchases are also available through bitcoin). The 30% bonus will apply to day one of the ICO, followed by a 15% bonus on day two. The ICO serves as the initial token distribution for the project.

Users of EEE tokens are as diverse as the e-commerce ecosystem itself. The whitepaper identifies the following participants as the main drivers of the e-commerce market: online marketplaces and stores, suppliers, market research companies, customers, manufacturers, distributors and payment services. According to the whitepaper, more than 70% of tokens will belong to network participants.


Elementh has retained a core team of 17 employees with backgrounds in e-commerce, software development and data science. In addition to Ryabov and Bereznitskiy, who serve as CEO and CTO respectively, the company’s third co-founder is Vitaliy Mengeshev. Like his colleagues, Mengeshev comes from the Miiix project. The three leaders have a combined 47 years of experience in business and e-commerce.

The whitepaper also lists four advisers with expertise in business and information technology.

When it comes to e-commerce and data solutions, Elementh is top notch. However, there appears to be considerably less blockchain expertise on hand. This makes sense given that Elementh emerged from the Miiix project. Based on the whitepaper, the only blockchain domain expert on the project is Sergey Morozov.


Very few ICOs have generated as much excitement and positive feedback as Elementh. Most people familiar with the project are extremely excited about its potential. Its Telegram community recently crossed 27,000 members.

Investors looking for a powerful business concept in ICO form have a lot to be enthusiastic about when it comes to Elementh. This isn’t just some company cashing in on the crypto craze; it has spent years developing its database and product and is now ready to flex its muscles.


  • The Elementh team is rock solid, but we have to take away one point for the lack of blockchain expertise at the top or in the advisory group. We are only removing one point because the team is transferring its business model (where it is a domain expert) to the blockchain. In other words, Elementh is not just a crypto startup company beginning from scratch. -1
  • Elementh isn’t the only blockchain project focused on e-commerce. There are several competing projects that offer e-commerce platforms on a global scale or to targeted niche markets. The company has identified several of these potential competitors, including VeChain, INS and Connectius. Other e-commerce ICOs include Omnitude, Teky and BitBoost. The project faces competitive risks from outside the blockchain industry as well. For example, e-commerce giant Amazon is already investing in blockchain through its partner ecosystem. Suffice it to say, Amazon has a huge competitive advantage in this space. -3
  • Although the whitepaper has identified a roadmap, the content lacks financials and provides only a high level overview of the company’s income-generating activities. At present, we are looking at a fairly lengthy technology development life cycle through March 2019, when the master nodes will be implemented. -2

Growth Potential

  • The e-commerce market has been thriving for more than two decades. While traditionally focused on business-to-consumer transactions, the business-to-business segment has grown significantly. Combined, B2B and B2C business is a $10 trillion market. Given that the vast majority of buyers perform some form of online research before purchase, Elementh can fill an important function by providing greater transparency and more efficiency in searching and comparing products. As the company states in the whitepaper, the entire e-commerce industry is potentially its target market. This means huge opportunities for growth. +4
  • Unlike other ICOs, this project has moved far beyond the concept phase and is now in product development and testing. Case in point: Elementh has already released its MVP, which includes a database with over 1 million goods. +5
  • Elementh is a great example of a project using blockchain to solve real-world problems. The backstory behind Miiix and how it led to the current project strengthens the value proposition even more. We should also point out that each co-founder had a hand in building Miiix, so there are strong synergies at the top, as well as a shared understanding of the challenges facing e-commerce. +2
  • The technology behind Elementh allows for a unified e-commerce platform that provides financial applications as well as consumer/buyer protections such as identifying counterfeit goods. The platform is literally being built to provide end-to-end e-commerce services; everything from decentralized market places to geo-location services and up to bank storing. +2


When it comes to e-commerce projects, Elementh is near the top of the list in terms of product development, use cases and team dynamics. That being said, it is entering into a highly competitive environment filled with established e-commerce businesses and burgeoning startups. Against this backdrop, we’ve assigned a final score of 7 out of 10.

Investment Details

  • Type: Utility
  • Symbol: EEE
  • Platform: Ethereum
    Presale: Complete
    Public Crowdraise: Apr. 1 – May 1, 2018
  • Hard Cap: 30,000 ETH
  • Bonus: ~30%
  • Price: 1 EEE = 0.0002 ETH
  • Total Token Supply: 303 million
  • Tokens Available for Sale: 217.5 million
  • Jurisdictions Barred from Participating: None specified.

Featured image courtesy of Shutterstock.

Chief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi