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ICO Analysis: Emanate

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Perhaps the most glaring use case for blockchain and smart contracts is the music industry. This new technology could easily disrupt the entire billion dollar industry. It’s no wonder numerous startups are rushing into blockchain to carve out their nitch. New ICO Emanate (MN8) believes they have an edge on the competition by building their platform on EOS instead of Ethereum.

Emanate is a music creation and collaboration platform that allows creative artists the tools to rightfully, and legally monetize their works via smart contract. Brought to us by Pedro Colaco, creator of the world’s leading cryptocurrency streaming platform, Dsound, Emanate will be one of the first apps on the EOS platform.

“With Dsound as our proof of concept on Steem, and some investigation on Muse we have settled on EOS as the best platform to commence build of our production grade platform. EOS covers decentralised storage, ultra fast processing, no transaction fees, and smart contracts. Furthermore we believe that those involved in EOS have the right vision for blockchain technology and we relate strongly to the ethos.”

MN8 is designed to reward creators, producers, distributors and influencers in the music industry ecosystem. According to the company:

“For fans and listeners, Emanate is positioned as the very best place to hear the latest new sounds, to discover the biggest new tracks first, and to earn cryptocurrency in exchange for musical influence and following.”

Emanate offers six key components for listeners and creative artists:

  1. Web App: The first feature to be released, Web App allows music producers to seal their work with “Smart Collaboration” then publish it on the platform. Music lovers will discover the original content, create playlists and follow their favorite artists. The artists and anyone else involved in creating the song will be programmed into the smart contract so they can receive their fair share of listening royalties. Tracks created on the Emanate platform will be instantly published for discovery and monetization via listener playback, collaboration with other artists and commercial licensing. Listeners can also earn MN8 tokens in exchange for playlist creation and sharing.
  2. Smart Collaborations: The blockchain smart collaboration layer will launch day one of the Alpha release. Each time two artists share some audio, an agreement is executed on the blockchain. This is the backbone of the Emanate ecosystem which is used for royalty calculations and artist payments.
  3. Mac and PC Studio Apps: Used by music producers for track management and sound discovery, studio apps may become nodes in the content network. It will allow streamlining of the music production workflow, leveraging files stored locally on your hard-drive, with IPFS-based Emanate samples.
  4. Digital Audio Workstation (DAW): Emanate will fully integrate with DAW. Sounds, samples and track packages that are shortlisted in the discovery apps will appear in the DAW file browser to be queued and auditioned for tracks. Plugins will be released which will bring Emanate sounds and collaborations directly into the DAW, removing file downloads completely. The journey from sound recording to full track release will now exist in a frictionless, Emanate based workflow.
  5. Audience Attribution: Proprietary algorithms will ascribe ownership to rightful creators and will help identify and reward unique music.
  6. MN8 audio exchange protocol: Emanate Live is built on the MN8 AEP, so new protocol releases will be realized as the platform evolves. They will launch an open source API and SDK development program, allowing the entire music industry to access the ecosystem and leverage its power and interconnected system.

A series of audio-recognition algorithms will ensure only unique, high-quality audio makes it to the platform. Another audio analysis process will look for copyright violation and Emanate will not only protect artists from fraud but will also reward and incentivize musicians for the creation of unique music.

Token

MN8 is a utility token that actually offers utility. Here are the guidelines:

  1. MN8 will need to be staked on the platform in order to run a record label.
  2. MN8 is required for artists and/or labels to publish ‘official’ releases to the platform.
  3. All accounts (listeners, artists, labels) will require a balance of MN8 in order to stay active.
  4. Listener accounts are debited micro-payments as payment for their plays.
  5. Record labels will need to hold a significant amount of MN8 as a deposit in order to receive royalties from their artists.
  6. Emanate tokens will also be used to process transactions and licensing agreements off the Emanate Live platform via the Audio Exchange Protocol.
  7. Listeners can also earn MN8 tokens in exchange for playlist creation and sharing.
  8. Each Emanate application can operate as a node on a studio computer, generating even more value for holders.

The token will be launched on the EOS platform but selling will take place via Ethereum ERC-20. The private sale consisted of 19 million MN8 tokens, which were sold at various prices. The public sale will consist of 88 million units at a price per token of $0.12.

In terms of allocation, the breakdown is as follows:

  • 10.5% marketing
  • 10.5% overhead
  • 10.5% events/PR
  • 5.3% legal
  • 63.2% platform development

Team, adviser and partner tokens are vested over 18 months with 25% unlocking at the end of the token sale and 25% every six months thereafter until 100% is reached.

Accounts/airdrops will be completed at some stage in future to attract new users to the platform

Team

The group of mostly Australians seem pretty solid and better than average. They have a fair amount of hype despite being so early in their marketing plan.  The Telegram and Twitter each boast 4,000 followers.

Reis Colaço (CTO/Founder) is a full stack developer with 30 years’ experience. He is the creator of Dsound, a popular music app build off steemit.

James Frew (Industry Relations Director/Founder) produced, engineered, remixed and curated for Evolution Radio, BBC 1XTRA, KIIS FM and 2DAY FM, Tommy Trash, A-Trak, The Stafford Brothers, Gryffin and Marquee Las Vegas. He has scored film placements for Magic Mike, Trophy Wife, Persons of Interest and the Bold Type.

Sean Gardner (CEO/Founder) spend a couple years as head of technology with DDB Group Australia, a rather large advertising agency.

Trent Shaw (CFO/Founder) has 15 years experience in online technology. He worked as a sales manager  for eBay and served in various roles at other top technology companies.

The team is in the process of appointing experienced professionals in the Digital Rights Management space to help us contribute positively, fairly and legally to the world of Digital Rights Management.

Emanate is assembling a team of artist ambassadors, lead by Jordy Dazz and Thomas Olsen who alone have over three million followers on their social media and music accounts.

Ten advisers, three Territory Influencers, and four partnering artists round out the team. The advisers are a mixed group of seriously well-connected people. One of whom, Michael Trainer, co-founded Global Citizen Festival which raised over $1 billion for charity over three years and hosted Coldplay, Jay Z, Rihanna and hundreds of other massive superstar acts. He is connected to a lot of people in both the tech and entertainment space and is making Emanate introductions to VCs, artists management companies, EOS Foundation, tech partners and various artists.

Learn all about them here.

Verdict

Smart contracts and music go together like peas and carrots. Manufacturing, distribution costs and unfair royalty percentages are all a thing of the past on Emanate. The music technology platform they are building places creative artists, fans and effortless collaboration at the center of its ecosystem, allowing for smart contract creation and precise royalty distribution.

 

Risks

  • Perhaps they were just waiting for EOS before making a detailed plan, but the roadmap just says “Beta Launch 2019 and Production Release 2020.” EOS gives them a chance to be front-runners, would it be nice to see a lot of goals and deadlines to motivate the team to work as quickly as possible. When asked about analytics for owners/promoters/third-parties, as well as the SKD, the mod responded, “Yes for sure, probably more towards maturity as analytics is quite complicated on a decentralized network. The API/SDK part of our project is further down the roadmap.” -1
  • Competition is fierce There are already at least five crypto related music projects. -1
  • Trying to get this out to the masses cant be cheap. They will raise about $15 million. That is going to have to stretch. -1
  • 9.6% of the supply going to bounties/account/airdrops seems too much. Perhaps it will prove to be a good marketing strategy, but for now it is a risk. -0.5

Growth Potential

  • CTO Pedro Colaco created Dsound, the No. 1 music streaming platform in crypto, which gets 134,000 visits a month without any marketing. This proves the demand for this product is here, and that the team is capable of producing. +3
  • When the Emanate platform is ready for beta launch and hosts hundreds of thousands of unique tracks, Emanate will give away 1 million free trial accounts which will be pre-loaded with an MN8 balance. This will be a key moment for Emanate taking us from the stage of early adoption to mass awareness in a matter of months. +1
  • There are many utility uses for the token. including nodes and staking. +1
  • The EOS blockchain has the potential to scale much faster than Ethereum. Since Emanate is the front-running app on  EOS, that gives it a tremendous head start vs competition.+2
  • Partnerships , and networks. They have 10 Advisors, and several talented artists and influencers on their team. The experience and connections are stronger than most startups.+2

Disposition

Out of all music related blockchain start-ups, I believe this looks the most promising. 6.5/10

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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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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4.9 stars on average, based on 17 rated posts




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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

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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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ICO Analysis: Hedera Hashgraph

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Hedera Hashgraph is another project in the blockchain space aiming to take blockchain to the next level: fast and ready to take on widespread usage by the mainstream as well as enterprises.

Currently, distributed ledger technology faces a number of challenges:

  1. Scalability
  2. Security
  3. Governance
  4. Stability
  5. Regulatory Compliance

Hedera Hashgraph’s team believes that only when these challenges are addressed and surmounted will mainstream markets trust blockchain enough to adopt it en masse.

With regards to the aforementioned challenges, Hedera Hashgraph aims to address them in the following ways:

  1. Performance – Hedera is built on the hashgraph distributed consensus algorithm (“hashgraph” also is used to refer to Hedera’s blockchain), invented by Hedera’s CTO and Chief Scientist Dr. Leemon Baird, who worked as a Professor of Computer Science at the US Air Force Academy and has multiple patents and publications in peer-reviewed journals. According to the Hedera Hashgraph whitepaper, the platform can handle hundreds of thousands of transactions per second in just one shard (let alone the entire network). Confirmations also happen in seconds and not minutes, hours, or days.
  2. Security – Hedera Hashgraph is secure through asynchronous Byzantine Fault Tolerance (aBFT). While other platforms are susceptible to Distributed Denial of Service (DDoS) attacks, the hashgraph platform isn’t. Moreover, aBFT provides both fair access and fair ordering for transactions on the platform. Appendix 3 of the whitepaper gives a full definition of the hashgraph algorithm and its fairness properties as well as proofs of aBFT.
  3. Governance – Hedera’s governance consists of Council Governance (management of council concerns) and Consensus Model (determining transaction consensus order).
    • Council Governance is done by an elected Governing Board that deals with council membership policy, network token regulation, and platform codebase changes. The Governing Board will consist of up to 39 leading organizations in their respective fields, bringing expertise previously lacking in past blockchain platforms.
    • Consensus Model deals with how nodes reach consensus on the platform’s order of transactions. In the Consensus Model, nodes cast one vote for each Hedera token that they own and since many nodes are expected to join the network and be compensated for maintaining the hashgraph ledger, it’s expected that Consensus Model voting privileges will be distributed amongst thousands of nodes.
  4. Stability – Hedera Hashgraph’s stability will be ensured with both technical and legal controls.
    • Technical – Hedera Hashgraph has Swirlds technology, which has the effect of protecting users of the platform from unofficial forks of the platform as well as ensuring that only software clients running the latest version are able to modify the hashgraph.
    • Legal – The Hedera Hashgraph codebase will not be open-source but be available for public review so that anyone can read the source code, recompile it, and verify its legitimacy. No licenses will be required to use the platform, write software that uses the platform, or build smart contracts on the platform. Thus, Hedera will provide a transparent codebase open to innovation so that the market can use it for its own purposes.
  5. Regulatory Compliance – Hedera has an opt-in escrow identity mechanism that gives users the choice to attach verified identities to their otherwise anonymous cryptocurrency accounts. Therefore, on the one hand, anonymous users can maintain their anonymity, and on the other, users that need to be verified for official purposes can do so without having to worry about regulatory backlash.

Token

By replacing proof-of-work consensus mechanisms with virtual voting (nodes cast one vote for each Hedera token that they own), high throughput, low fees, and micropayments are all made possible.

DApp developers on the network will use Hedera tokens to pay for network services like processing transactions, executing smart contracts, and storing files.

As mentioned earlier in the analysis, anyone running a node will earn Hedera tokens for doing so. The amount they earn is proportional to the amount of Hedera tokens they stake in one or more accounts for which they have the private keys. (This stake is also used to weight their votes in the Consensus Model). However, users are still able to spend their stake at any time – though of course spending some of the stake means receiving less rewards for running a node.

Users who don’t want to run a node (e.g. not wanting to invest in computing resources and/or the maintenance of them) can “proxy stake” Hedera to someone else’s node. This means that the user with no node gives a node “credit” for their stake and splits ledger maintenance awards with the node that they credit with their stake. (The ratio of the split is negotiated between the two parties). Proxy stake funds are in control of the proxy staker, who can spend the stake at any time, turn off the stake, or even redirect the proxy stake to another node.

As mentioned, fees are low, but they do exist. There are node fees, service fees, and transaction fees:

  • Node fees – a platform user can use platform services (e.g. transferring crypto from one account to another) by contacting a node, which submits the user’s transactions. The platform user pays a fee, negotiated between the user and the node, to the node for its service.
  • Service fees – users that use platform services (e.g. storing a file in the hashgraph) without going through a node pay a service fee.
  • Transaction fees – transactions handled by the network incur a fee to cover the associated costs of nodes exchanging data about the transactions, temporarily storing them in memory, and calculating consensus on the events containing them.

Token distribution is “expected” (taken from the Hedera Hashgraph crowdsale FAQ – “What is the token distribution?” section) to be as follows.

  • 65% Hedera Council Treasury
  • 17% management and employees
  • 13% SAFT purchasers and developers
  • 5% Swirlds

Hedera has already raised $100m in funding from institutional and high net worth investors and is currently conducting an accredited investor crowdsale ($20m target).

Accredited investor verification (whitelisting) will stop when $20m in funding is reached or August 15th, whichever comes first.

Token price and token release schedule for both first round and accredited investor round are the same:

  • Option A: $0.12 per token. 20% of tokens issued six months after network launch, with the rest vested in 10% installments over 8 months.
  • Option B: $0.096 per token. 20% of tokens issued six months after network launch, with the rest vested in 20% installments over the subsequent 4 years.

The majority of founder tokens are vested in 4 to 6 years.

If all funding goals are met, the project will start with a $360m market capitalization (based on expected circulating supply on day of token release).

Total token supply is fifty billion.

The offering is a Simple Agreement for Future Tokens (SAFT) in accordance with SEC regulations and there will be no ICO.

Minimum contribution is $1,000, and maximum contribution per person is $250,000. However, investors who want to invest >$250,000 can email saft@hashgraph.com (?), according to the Hedera Hashgraph crowdsale FAQ, which is confusing.

All raised funds will be used to grow the platform (engineering, sales, marketing, developer advocacy, community development, legal, etc).

Team

Co-Founder, CTO, and Chief Scientist Leemon Baird – Baird invented the hashgraph consensus algorithm, has worked as a Professor of Computer Science at the US Air Force Academy, has a PhD in Computer Science from Carnegie Mellon University, and has many patents and publications in peer-reviewed journals and conferences in the fields of computer security, mathematics, and machine learning.

Co-Founder and CEO Mance Harmon – Harmon also has an Air Force background as former Course Director for Cybersecurity. He was also Program Manager of a large-scale software program for the US Department of Defense’s Missile Defense Agency and senior executive for product security of an unnamed $1.7b revenue organization.

President Tom Trowbridge – Trowbridge is President of the Hedera Hashgraph Council and has a strong finance background, having started and ran the New York Office of UK-based Odey Asset Management. He also has held positions at Goldman Sachs, Lombard Odier, Atticus Capital, Bear, Stearns & Co., and telecom and media private equity firm Alta Communications, where he was responsible for 10 deals.

Verdict

Below is a breakdown of the risks and growth potential of Hedera Hashgraph.

Risks

  • Very bold claims but no working product (-1)
  • High hard cap and initial valuation but other projects that have done well have had the same (though uncommon) (-0.5)
  • Similar to EOS – bold claims, no working product, lots of hype – except the EOS team probably had a more relevant background (CTO Dan Larimer was behind popular and proven projects like Bitshares and Steemit) (-0.5)

Growth Potential

  • A lot of hype (e.g. large Meetup community) (+4)
  • Some DApps have already committed to the platform, and many developers are interested in the platform (e.g. their developer – not general public – Discord channel has nearly 5,000 members as of writing) (+4)

Disposition

  • Hedera Hashgraph promises to pack quite the punch similar to projects like EOS. The hype is definitely there, but can the team deliver?
  • Hedera Hashgraph receives a 6/10.

Investment Details

  • Type: Native – Utility
  • Symbol: Unspecified
  • Platform: Native
  • Crowdsale: Ongoing
  • Minimum Investment: $1,000
  • Price: $0.096 or $0.12
  • Hard Cap: $120m (institutional round and accredited investor round combined)
  • Payments Accepted: BTC and USD (via wire transfer) – can’t mix BTC/USD to pay for one SAFT (but can purchase two SAFTs separately using BTC for one and USD for the other)
  • Restricted from Participating: The SAFT is being offered to accredited investors in 63 countries. (Anyone from a country NOT on the following list is restricted from participating). The countries are: Andorra, Argentina, Australia, Austria, Belgium, Bermuda, Brazil, Virgin Islands (British), Bulgaria, Canada, Cayman Islands, Croatia, Cyprus, Czech Republic, Denmark, El Salvador, Estonia, Finland, France, Germany, Gibraltar, Greece, Guatemala, Honduras, Hong Kong, Iceland, India, Republic of Ireland, Isle of Man, Israel, Italy, Jamaica, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Mexico, Moldova, Netherlands, New Zealand, Nicaragua, Nigeria, Norway, Panama, Poland, Portugal, Puerto Rico, Romania, Saudi Arabia, Singapore, Slovakia, Slovenia, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, United Arab Emirates, United Kingdom, United States.

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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