ICO Analysis: Helix Orange
ICOs are an important part of the cryptocurrency market. Participants are rewarded by tokens in return for their early investments in projects. If you have invested in any ICO at any point, you already know it is a bit troublesome to deal with whitelisting and KYC/AML procedures. Almost every time you have to hand the required document again and again, wait until they are approved and if everything goes right at the end, you are allowed to participate in the ICO.
But Helix Orange, a platform aiming to be a hub for legal procedures regarding ICO investments, says no more. It aims to gather ICOs under its platform to run their KYC/AML (Know Your Customer/Anti-Money Laundering) procedures so going through this phase is easier and less troublesome for both sides, namely ICO investors and ICO teams. It is thanks to their digital identity product, Helix ID, investors will be able to use the same documents for ICOs with the identical requirements.
But that is not all. Helix Orange will cover some of the legal work to some extent as well, checking and conducting researches on countries’ legal regulations regarding cryptocurrencies and ICOs, meaning they will be able to provide a better and more legally accurate service.
Investors will have certain benefits using the platform as well. Among many, getting better financial terms and exclusive bonuses for ICOs listed on Helix Orange is the most striking one. We can say that HIX holders are like VIP investors. But whether this is a good reason to hold a significant amount of HIX tokens is debatable, especially for speculative traders who do not take place in ICOs.
HIX tokens act as fuel for any action takes place on Helix Orange platform. The primary use-case for ICO teams is that Helix Orange takes care of legal procedures such as KYC/AML, not spending ICO teams’ time and resources. On the other hand, the platform incentivizes ICO investors to hold their tokens by offering extra bonuses for ICOs listed on their platform and allowing them to use the same KYC/AML documents if no additional legal document is required.
The initial total supply of HIX is 5 billion tokens with the following token distribution:
- 10% community
- 10% team
- 5% bounty
- 5% legal, tax & advice
- 10% pre-sale
- 60% main sale
It is worthy to note that private pre-sale investors were offered a bonus of 50% and public pre-sale contributors of 30%. No lock-up period for team tokens are made public so far, but at least some minimal period should be expected.
The team is planning to use the token sale proceeds as follows.
- 30% tech
- 20% legal
- 10% business development
- 10% operations
- 30% marketing
Felix Scheffka: Scheffka was a senior consultant at Endava, a technology company based in London.
Mark H. van den Arend: Van den Arend is a former employee of Deutsche Bank where he has worked over twenty years.
Sooyong Park: Park is the director of Blockchain Research Center at Sogang University.
Below is a breakdown of the risks and growth potential of Helix Orange.
- It is not clear that a blockchain implementation for KYC/AML procedures is needed in the space. Other similar projects such as CoinList seem to do quite well without minting their own tokens. A hard-cap of 35 million USD for a project that does not necessitate the use of blockchain seems way too much. (-2)
- There is very little incentive to buy HIX tokens unless you are not running or planning to run your own ICO. ICO investors could do well buying HIX tokens only when they are necessitated to do so. Furthermore, speculative crypto-traders who do not plan to participate in ICOs have no reason to hold any. (-1.5)
- Platforms such as Helix Orange is much needed in the space as ICOs are getting more and more interest and the legal landscape is changing all the time. (+2)
- Helix Orange’s s exclusive focus on countries’ legal regulations on cryptocurrencies and ICOs is definitely worth noting. (+1.5)
- Many team members and advisors have prior experience in ICO management. (+1)
Helix Orange is trying to fix an important point in the cryptocurrency market. Making KYC/AML procedures easier for ICO investors and ICO teams would make both sides’ work much easier. Yet it is certainly debatable that a token is needed to fulfill this need as projects such as CoinList do well without using any. Helix Orange receives a 1/10.
- Type: ERC20 – Utility
- Symbol: HIX
- Platform: Ethereum
- Crowdsale: September 13th
- Minimum Investment: €500
- Price: €0.01
- Hard Cap: €35,000,000
- Payments Accepted: ETH, BTC, LTC, XRP, EUR, USD
- Restricted from Participating: United States
Featured image courtesy of Shutterstock.