ICO Analysis: FarmaTrust
Around one million people die every year from counterfeit drugs and other supply chain related mishaps. Blockchain and smart contracts have the ability to completely eliminate this stat.
FarmaTrust is a blockchain based global tracking system that utilizes AI and big data analysis to provide the pharmaceutical industry a more transparent and efficient supply chain.
Secure, safe, encrypted and immutable, the FarmaTrust system tracks pharmaceutical drugs from the point of manufacture to consumption, by working with smart Rifid labeling or similar tags. Its main duty is to ensure pharmaceutical companies, consumers, and governments that counterfeit drugs do not enter the supply chain.
According to the company:
“The mission of FarmaTrust is to become the provenance system of choice for the pharmaceutical supply chain, by providing an effective and global data verification and coordination layer which enables greater transparency, efficiency, and immutability for the recording of all activities across the supply chain – from the point of manufacture to the end consumer.”
FarmaTrust wants to scale globally, so they designed the platform to work with legacy systems and other blockchains, making it as simple as possible for pharmaceutical companies to adopt. In certain countries where technology solutions aren’t yet available, FarmaTrust provides smartphone apps to collect data from pharmacies, hospitals, logistics providers and customs authorities.
FarmaTrust does the following;
- Contributes to the saving of lives by eliminating counterfeit drugs (hundreds of thousands a year die).
- Eliminates wasted drugs through expiry dates or environmental condition.
- Prevents price spikes by distributing drugs evenly across the globe.
- Scales globally works in parallel with existing systems, blockchain platform neutral.
- Machine learning to find greater efficiencies in SCM and routes to market.
- Stop thievery and corruption by making sure drugs go where they are meant to.
- Predictive AI to make sure drugs get delivered properly.
- Smart contracts for automatic audit, automatic tax payments, and auto payments
- Data dashboards for Ministry of Health regulators, and pharmaceutical companies.
The token distribution is as follows:
- 60% Crowd sale
- 10% Team (vested over 1 year)
- 10% Advisers
- 10% Partnership pool (to acquire new companies on the platform)
- 10% Operations pool
The use of funds are broken down as follows:
- 40% Tech and ecosystem dev
- 20% Security auditing and compliance
- 20% Marketing and business development
- 20% Legal
FTT is an ERC-20 token and will be traded on the exchanges. However, FarmaTrust will use their own blockchain, and will use a different token to operate it called ZOI. The details are as follows:
- FTT tokens must be staked to receive ZOI.
- 500 ZOI tokens are generated every 7 days when 100 FTT tokens are staked.
- ZOI tokens allow account holders, pharmaceutical companies, supply chain companies, government, NGOs and law enforcement entities, as well as end users to access information of products generated on the Zoi platform.
- ZOI tokens are only available to use on the ZOI platform and can be bought and sold on the FarmaTrust ZOI Exchange.
- ZOI tokens are burnt when used on the platform.
A third token, called Compliance Tracking Token, is used to track and trace regulatory requirements. Pharmaceutical companies must stake 100 FTT to generate a batch of Compliance Tokens. The details:
- Each Compliance token digitally tracks an individual product packet that has been assigned a unique Serialized Product Key through the supply chain and product lifecycle.
- Compliance tokens are burnt when the packets are sold or have been returned and destroyed.
- Compliance Tracking Token data is archived on the system.
- Once all Compliance Tracking tokens from one batch are burnt, the Smart Bond releases the 100 FTT tokens originally staked.
Once all Compliance Tracking tokens from one batch are burnt, the Compliance Tracking Token Smart Bond releases the 100 FTT tokens originally staked, allowing the tokens to be re-used to track a new batch of packets.
NOTE: A Compliance Tracking token is not a cryptocurrency, but a digital reference of a Serialized Product Key on its own blockchain.
Coming from Londonn U.K., the team is legit.
Raja Sharif: Founder and CEO. He was manager at Al Jazeera Media Network for four years until 2017. He was executive board member in a number of US/European companies. He has 28 well thought out recommendations from important people on LinkedIn.
Lord Anthony St John: Board Chairman. A very well connected lawyer. He worked for Shell and Meryl Lynch. He served as Chairman of Strand Hanson and Integrated Diagnostic Holdings. Since 1998 he has served as Extra Lord in Waiting to HM The Queen and is a Trustee of six charities, mostly focused on education and wildlife conservation.
Eszter Bohus: Head of Global Brand and Marketing Communications. He worked in business development for Al Jazeera Media Network.
The team also has the support of 11 advisers, all with real valuable credentials.
Anders Larsson: he has worked at Ericsoon Group, Mobile Broadband and AllcoinWiki and has been voted to Top 5 Blockchain Advisor in the world
Joakim Holmer: Managed 500 team members and delivered to AT&T in California as well as for Ericsson Group.
Stephen Cole: A well known television news anchor for Sky News, CNN International, BBC World and Al Jazeera International.
Najib Rehman: He spent 16.5 years at Pfizer in increasingly senior roles.
Counterfeiting drugs is a problem pharmaceutical companies have always been trying to solve. While the EU and U.S. do already have in-depth tracking and compliance measures in place, other countries do not. The problems occur when the drugs move from one jurisdiction to the other. If each jurisdiction has their own way of tracking things and their own rules and regulations, dysfunction is often the result.
FarmaTrust attempts to end all of this by integrating each jurisdiction onto the same blockchain without changing their existing system. The Farma system uses AI and other new school tracking and tracing tools to make counterfeiting and other crimes impossible.
- Their community is not very big yet. Twitter page has 2,500 followers, but their tweets are only getting 10 likes and 5 retweets on average. -2
- The three token system is kind of funky and confusing. -0.5
- 40% of their tokens have already been sold in the private sale at a 40% discount, which could create a little sell pressure out the gate. This is only a minor concern though, -0.5
- Perhaps this long roadmap which doesn’t deliver the full product until Q1 2020 could be viewed as a problem. Or it can be viewed as realistic and well planned. –0.5
- According to this report up to 30% of all drugs in circulation are fake, leading to up to a million deaths annually. This project will literally save lives. +4
- This video demo of their front end MVP is impressive. It’s very rare to see a project so advanced this early. +1
- They already signed an MOU with the Mongolian government to pilot a one-year project aimed at preventing the creation and distribution of counterfeit medications. They also partnered with Goco Pharmaceuticals, one of the leading generics manufacturing companies.+2
- Other supply chain management projects with similar credentials to FarmaTrust have done incredibly well in terms of cap growth and partnerships. Origin Trail, a similar project, has a $62 million cap. Farma is collecting just $20 million, which leaves room for multiple multiples of growth. +2
- The token staking system they are putting in place will incentivize holders, creating a large demand for the token. +2
Supply chain management is one of the hottest and most practical use cases for blockchain. WaltonChain, VEN, Origin Trail and others are absolutely thriving. FarmaTrust is the only one so far dealing specifically with pharmaceuticals. Their system/blockchain will plug leaks, cut costs, catch criminals and save lives. 7.5/10
- Symbol: FTT
- Total Supply: 1,000,000,000 (1billion)
- Token Sale: 600,000,000 (600m)
- Hard cap: $20.25 m
- Private Sale: raised $7.8m. investors received up to 40% bonus
- Presale: June 1-15th, (20% bonus( https://farmatrust.io/
- Public Sale: (no bonus) June 15th- onward
- Price: $0.05
- Whitelist: https://farmatrust.io
- Whitepaper: https://farmatrust.io/sites/default/files/farmatrust_whitepaper_v2.0_0.pdf
- Telegram: farmatrust
Featured image courtesy of Shutterstock.