ICO Analysis: ICOVO
The legendary 2017 bull run is still not forgotten in the cryptocurrency community. Bitcoin, the most popular cryptocurrency, was $1000 at the beginning of the year, yet at the end almost $13000, meaning a return of 13x. So many cryptocurrencies with low market caps had yielded even higher ROI. Although investing in ICOs was taken to be much riskier by many, most did truly great and some up to returns of hundreds of multiples.
When something is called a risky investment in the crypto-currency market for good reason, you better believe it andbe extremely careful if people who invest in one of the world’s most volatile asset class do so. This is mostly to the fact that there was, are and will be so many scam ICOs which arguably can be attributed to the absence of regulations in many countries. Some never deliver what they promise as once they have obtained the funds since there is no incentive for them to work on the project. Only a few are easy to spot as exit scams, most overestimate their teams’ abilities and keep missing deadlines or do not deliver at all.
This is why one has every right to ask: How is their use of funds, fully or partially, justified at all if they cannot keep up the promises themselves made?
In early 2018 Vitalik Buterin has proposed an improvement on how to raise funds for blockchain projects, namely Decentralized Autonomous Initial Coin Offerings or DAICOs. A DAICO is basically a decentralized version of your old standard ICO, but now enforcing honesty on founders’ part thanks to the use of smart contracts. ICOVO is a project which follows Buterin’s vision, aiming to make ICOs more transparent, safe and accessible for investors.
ICOVO can be conceived as the marriage of three different products. The first product, DAICOVO is the ICOVO team’s implementation of Buterin’s DAICO idea. Every ICO project will be required to meet certain standards, such as the use of DAICOVO smart contracts, to be listed on ICOVO platform.
The second product, ICOVO App, is all an investor on his or her smartphone needs to invest in ICOs listed in ICOVO. It will feature everything required for a person to invest in a project such as KYC/AML procedures, whitelist registration, and whitepaper viewing. It’s coming with a wallet compatible with Ethereum and ERC-20 tokens which allows the investor to not use any other device or application to participate in sales and to store tokens. A decentralized exchange will allow users to trade their tokens, making ICOVO App a one-for-all solution.
The last product is ICOVO Web, an ICO listing website. Any project will be asked to fulfill ICOVO requirements to be listed on the site, including the utilization of DAICOVO. Possibly resulting in a website with fewer projects listed on compared to its alike, a tool called whitepaper versioning is presented as the most important feature of this product. All whitepapers will be stored by IPFS, ensuring no tampering or change without the investor’s awareness. Furthermore, in such cases platform users will have the chance to have their investments returned.
The token’s main use-case is that the use of OVO tokens to invest in ICOs yields a discount of 50%. The reader should note that it is not necessary to use OVO to participate in ICOs listed in the platform, and he or she can use ETH instead. Considering this, it might be more accurate to think that the main product is the platform, not the token.
Any person who is planning to participate in ICOVO ICO should be aware that a bonus of 40% is offered to pre-sale contributors and only half of the bonus tokens allocated to closed sale investors are locked. The price offered to investors for this stage of closed sale is not public. Together with the fact that approximately one-third of team and contributor tokens will be unlocked immediately, token metrics do not seem favorable. The second one-third will be unlocked after six months and the rest after twelve months.
The initial total supply of OVO is 200 million tokens with the following token distribution:
- 17% team members and contributors
- 23% marketing
- 30% closed sale
- 30% presale and crowd sale
The team is planning to use the token sale proceeds as follows.
- 3% working capital
- 5% development capital
- 10% advertising and publicizing
- 72% marketing capital
- 10% team members and contributors
CTO Yoshikazu Nishimura: Nishimura was a senior consultant at Oracle.
CAO Oliver Gomm: Gomm is a former relationship manager at Man Investments, an active investment management company.
Below is a breakdown of the risks and growth potential of ICOVO.
- As almost all features can be used without owning OVO tokens, there is none to only a few reasons to have them. (-1.5)
- The team seems too ambitious, planning to have a mobile wallet, a decentralized exchange and a DAICO platform in the future. Given the size of the team, it would be better if they have focused solely on the DAICO implementation. (-1)
- Any successful implementation of DAICO would be definitely huge. (+4)
- Thanks to the strict requirements to be listed on the platform, almost all projects there will be trustworthy. (+2)
Initial coin offerings are an extremely risky part of the cryptocurrency market. Although making investments in solid projects might yield high returns, the investor always should be cautious. ICOVO’s implementation of DAICOs aims to keep the project founders’ behavior under control by restricting their freedom on project tokens in an automated manner, ensuring investors’ protection. However, investing in the ICO seems questionable due to lack of real use case for OVO tokens and poor token metrics. It might be better to wait it out for the release of ICOVO’s platform, which might allow for more trustworthy ICO investment and management. ICOVO receives a 3.5/10.
- Type: ERC20 – Utility
- Symbol: OVO
- Platform: Ethereum
- Crowdsale: November 1st
- Minimum Investment: $50
- Price: $0.3
- Hard Cap: 60,360 ETH
- Payments Accepted: ETH
- Restricted from Participating: Unspecified
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