ICO Analysis: Havven
Cryptocurrency market volatility is nothing new to crypto investors. There have been several projects creating asset-backed coins including those secured with diamonds, real estate, and USD to provide investors a sense of stability. Havven looks to add a layer of stability to their project through a dual token system they say will include a crypto asset-backed currency.
Havven describes itself as “a decentralized payment network designed to enable everyday cryptocurrency purchases.”
The company goes on to add:
“The network utilizes a dual token system to reduce price volatility. The fees from transactions within the system are used to collateralize the network. The collateral is secured by the blockchain enabling the creation of a new asset-backed stablecoin, Nomin tokens. Each transaction will generate fees that are paid to havven token holders. As transaction volume grows, the value of the platform increases and active participants are rewarded with increased transaction fees. This permissionless, low-fee and stable payment network will enable anyone anywhere to transact with anyone else.”
The Havven token (HAVVEN) will be issued on Ethereum as an ERC-20 token. However, the ecosystem is built with two tokens, Havvens and Nomins. Havvens act as the collateralization mechanism for Nomins which are used for transactions in the ecosystem. The token sale will establish the value of the Havven pool. Once determined, this value dictates the maximum supply of circulating Nomins. Fees are generated every time Nomins move between wallets. These fees are paid to all Havven token holders who have issued Nomins and are collateralized; the company states that fees in the network will be about 20 basis points. To establish the initial network parameter, the organization will seed the system with ether backed Nomins from the proceeds of the crowd sale. The ETH-Nomins will be directly redeemable for ether.
A total of 60% of the tokens will be emitted in the token sale. The primary use of funds listed is for network development and to incentivize market adoption of the payment network. The organization is requiring a two-year lockup of team member tokens and 12 months on advisErs.
The company has a fundraising goal of $30 million with the each Havven equal to $0.05 USD. The token sale will begin on February 28 and the whitelist is open starting February 21.
The core team boast strong development experiences and well as deploying systems for cryptocurrency purchases in Australia. CEO Kain Warwick is also Co-Founder and CEO of blueshyft, an organization that allows customers to load funds into digital wallets or purchase digital goods through an iPad based retail location. I wonder which company he will be CEO of post-ICO? Not everyone can be Jack Dorsey and run two organizations at once yet so many try and fail by spreading themselves to thin. CTO Justin Moses also serves a Director of Engineering at MongoDB, a distributed database organization to help organizations be flexible and scalable. The rest of the company’s team is a mix of developers, marketing, and project managers. However, hold jobs at other companies just like the company’s top founders.
Havven represents a speculative opportunity for investors. The network is boasting a stablecoin with crypto backend assets, but those assets will be generated from the token sale. The team lacks full commitment to the project currently, and we are not sure if that will change post-ICO. There is no mention of how the marketplace will adopt this network, there is no revenue roadmap or financials listed for the organization. A positive is a lock-up period for the core team and advisers protecting the company pool from a pump and dump scenario, but there is still a lot of uncertainty for any market demand for the product or any target customer segment listed.
- The use of funds section listed in the token sale paper is very vague, and doesn’t provide how much will be allocated to development, R&D, marketing, etc . -2
- Successful startups make it through barriers and hurdles when the founders are “all in,” meaning they bootstrap to hit milestones and funding simply helps them along the way. It is a red flag that the team is not solely tied to the success of this organization. Additionally, 20% of total token distribution towards the team is relatively high since they are not solely committed. -1.5
- There is no mention of marketing activities for program adoption; there is no mention if financial targets or listing of any company financials. -1.5
- Market volatility is a major concern of sideline investors in the crypto space. If the play for Havven is to promote itself as a stablecoin alternative to existing market volatility it could move some retail investors off of the sidelines who invest in more traditional markets. +3.5
- The organization boasts a deep bench of advisers coming from both the crypto and traditional business space; how those relationships will be leveraged post-ICO is not listed but the strength of the team provides partnership opportunities. +4
- The traditional payments market is in the trillions and the crypto market cap as we know has seen major increases over the last year. It is unclear if Havven is looking to implement in only one or both of these markets but the market is large enough to carve out a niche. +2.5
Because of the lack of business milestones listed or mentioned on the website and whitepaper it is still unclear how Havven will be adopted. The company has a platform launch date for March 2018 but it is unclear who will use the platform outside of those who participate in the ICO. Although Havven seems to be still figuring out their target market, if they can actually produce s stablecoin ecosystem this can have positive effects across the broader market.
We believe that a score of 5 out of 10 is warranted.
- Type: Utility
- Symbol: HAVVEN
- Whitelist: Feb. 21, 2018
- Public Sale: Feb. 28, 2018
- Price: 1 HAVVEN = $0.50 U.S.
- Hard Cap: $30 million
- Jurisdictions Barred from Participating: China
- Payments Accepted: ETH, BTC
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