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ICO Analysis: Monetha

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Both the hype and criticism surrounding Monetha have been strong, so we must be upfront and cognizant of this as we go. That said, what Monetha believes, first and foremost, is that reputation is a problem for merchants equally as important as accessing the Ethereum blockchain. This is essentially how they open the whitepaper:

Three significant problems that merchants face: trust and reputation, payments, and an inability to reach the growing Ethereum economy.

A bold move, the establishment of this at the outset, since, one could argue that it’s not a statement of fact in any sense. Are merchants actually facing the problem of being unable to access “reach the growing Ethereum economy”? In some circles, this claim is laughable. We hope that in any circle, it’s dubious. Truly, everyone from top to bottom in the cryptosphere is aware that we’re all very early here. Things are progressing nicely, to be sure, but we’re in at the ground level. Merchants accepting Ethereum aren’t necessarily going to prosper by virtue of that, so the idea that they are facing it as a problem is intriguing but probably inaccurate.

However, the author understands that businesses can benefit from the blockchain. We like projects such as Aragon for this reason. Aragon doesn’t presuppose that businesses need the blockchain, it only stands to help those who decide to integrate it. All of this adds up to say: from the inside, this statement may seem normal, but in real terms, it’s inane. No merchants are facing the significant problem of the inability to reach the growing Ethereum economy. This can safely be rejected as a concept. Nevertheless, Monetha does elucidate on the “problem” a bit further, making another bold claim in the process:

An inability to participate in token-enabled digital asset economy potentially worth $10T by 2025.

Trust, reputation, and payments, however, we can see these as valid problems that a blockchain company can help firms with. We just have to make a departure from the standard glossing over of obvious hype.

Their solution essentially involves taking a blockchain-powered payment gateway and building atop it a decentralized reputation system that allows people to have some modicum of real information about the people they are dealing with across the world.

  • Monetha claims to offer merchants the ability to do transactions five times cheaper and 10,000 times faster.
    • These people are fond of big numbers.

From a high-level, Monetha make accurate references to the “merchants” of trust we have in eBay, Amazon, and other large scale retailers who act as gateways for smaller ones. It’s true that reputations must be built within each system in order to thrive within them. A system which subverted this might have some value, but we have to keep in mind that the trust we’re speaking of, and the merchants thereof, is at the behest of the masses, rather than the merchants.

At the basic level, what their software intends to do is add additional information to a blockchain database regarding a merchant. Accordingly:

Every time a transaction is made the blockchain will record the time of the transaction, both receiving and sending wallet addresses, warranty conditions, delivery time, and all other information that is typically needed to ensure trust. All the sensitive information will be hashed and only available to authorized users in a beautifully designed user interface. Based on that information, clients and merchants will be able to file/solve a claim, rate ach other, etc. Every time a transaction is made, claim registered, solved or unsolved (according to the purchase details saved during the purchase), review written, etc., the smart contract will automatically change the trust level for each of the parties involved.

The above is the kernel of the idea. Expanding the eBay reputation model to the rest of the web, while at the same time bringing unprecedented numbers of firms into the Ethereum fold, accepting digital currency in an almost-native fashion. Or, such is the goal. Lofty goals abound in the ICO world.

Back to Earth

We must bring them down to earth, so let’s keep it real: many, many people have found it profitable to simply do business through the trusted third-party platforms. Amazon, eBay, Alibaba, and others have access to partnerships with shipping firms that are lucrative for sellers. For these and other reasons, supposing the Monetha concept works and is five-times cheaper, it will still take some time before it actually sees wide adoption among the merchants in question. This is under the best circumstances, regardless of everything. While it will be fun to speculate on the Monetha token, and interesting to watch them progress, we cannot expect that they will actually revolutionize the commerce market, digital or in-person, without several shifts happening far outside their control.

Let’s not be unclear, though: there is plenty of room for payment rail providers. Payments is what blockchain does best, and building more robust versions of them is not a pointless pursuit by any means.

Let’s not be lost in the sauce, either: the “mobile payments” solution is far less important in actual commerce than the hype train would have us believe. Think about this from the perspective of someone who wants the whole pie, now. The real money is still happening either at the personal computer terminal or at the payment processing terminal in the retail outlet. Mobile payments are not that important, unless, of course, we’re talking about something that has extreme volume, such as a bill payment service. Monetha cites research that probably entails as much:

Monetha’s framework could, though, accommodate something of this nature, and they do appear to be nimble enough to pivot when necessary.

We like Monetha’s business model – a 1.5% flat fee for merchants only. This fee is competitive as compared to the rates offered by most payment processors. Finding a way to communicate directly with bank accounts would ultimately be the last mile here, but we don’t see much talk or focus on it. However, we have to comment on the usage of the proceeds from said business model.

Monetha intends that 1/3rd of this 1.5% (or 0.5% of all activity on the Monetha network) should be earmarked for a Voucher Smart Contract, from which they will dole out rewards to token holders in the form of discounts at Monetha merchants. Apparently from the other 2/3rds of their revenue they intend to incentivize clients of Monetha merchants with 0.2% in tokens.

The system comes off as gimmicky, but it could work with some strong early players. When we say strong, we mean people who will have the ability to either force the issue or simply have such scale that by virtue of adding Monetha, Monetha grows.

At the beginning of the article, we noted that some criticism has been lodged against Monetha. While we have a more analytical complaint, we wanted to relay this succinct message from Reddit user bestteamever171:

Monetha will charge a 1.5% transaction fee from merchants. Of that, 0.5% will go to a “Voucher Smart Contract” in a for of MTH for Monetha token holders for an ability to use that in the Monetha’s ecosystem and other 1% will go to the company as revenues. (Coinbase also enables merchant to receive payments with a working API, they charge 0 fees to use their services)

On top of that only 50% of the tokens issued in the ico go to investors, this also means if Monetha were to sell all of their tokens, they would still pocket 66% of all future revenues. At this current model, investors are really only getting 16.5% (33% x 50%) of the revenues generated from Monetha. This is not even considering the massive competition they have in this space from Omise, Tenx and Metal. There is really no point in having an ICO if the project is this centralised and unfair, this project sounds more like a cash grab. Also removing any criticism of their ICO on their reddit? What kind of ‘decentralised’ project would silence critics?

Now having enough of an understanding of how the thing will work, we can proceed to decide if this is how we want to invest money or not.

Monetha Team

We see a lot of confidence building in the team behind Monetha. We see a strong presentation on their website and in their communications. Let’s see if there’s anything to worry about.

In co-founder Andrej Ruckij, we get “a gigantic experience as Vice President of Development at “Adform”: global digital advertising company. He is an engineering star who led a 300+ team of engineers to create the scalable Adform technology that is now used globally.”

According to some tertiary research, Adform are a big and legitimate outfit who’ve raised in the neighborhood of $30 million in the past few years. In January, they had some layoffs. Interestingly, according to Ruckij’s LinkedIn profile, this is also when he left the company. “Redundancies” were cited for the mass of the layoffs, but it does bear noting that Ruckij and two others left Adform to found Monetha. They had previously sold their venture Wowtto, an outdoor advertising start-up, to Adform.

The author came by this information from another member of the Monetha team, Laurynas Jokubaitis, who also left Adform as soon as he was able to help found Monetha. Prior to Wowwtto, Jokubaitis had an internship with Swedbank.

The last member of the trifecta is Justas Pikelis, who has spent much of the blockchain revolution as an entrepreneur. Prior to his efforts at Wowwtto and other independent efforts, he worked as a marketing executive for a company called Peek & Cloppenburg, and before that, in some form of entertainment. His specialties seem to lie in marketing, and he was probably a useful addition to the Wowwtto team.

An array of advisors exist on the page as well, as well as competent staff members. In analyzing Monetha, there are concerns besides whether or not the idea of providing mobile payment applications and easing trust, reputation, and blockchain integration for merchants is a big one or not. And in these three primary founding members we have a question, as well: with an established history of developing and then cashing out, how much future does the platform actually have?

Legally speaking, we have nothing preventing the exit via acquisition strategy, and being a token holder doesn’t earn you any control over such. The token is not a consensus mechanism, after all. Legally speaking, you’re powerless at your very best, as seen here:

Monetha GmbH is not a financial intermediary according to Swiss law and is not required to obtain any authorization for Anti Money Laundering purposes. Acquiring Monetha tokens shall not grant any right or influence over Monetha GmbH’s organization and governance to the Purchasers.

Monetha Token

Token Function

The entire purpose of the Monetha system is to ensure integrity in transactions, for the benefit of both merchants and clients. In the below illustration, they show how a claim of a problem might be resolved through the Monetha system:

They elucidate a bit further:

The client and merchant resolve the claim resolution “offline” or on Monetha’s off-chain messaging system. After both parties agree on resolution terms, the merchant enters those terms (e.g. money back, shipping out new product, etc.) into the merchant’s user interface. Resolution terms are saved on the blockchain. The merchant then waits for client’s confirmation.

All of this sounds great and maybe even attractive for merchants who are having trouble establishing trust in the world. But the thing of it is, it also sounds like a lot of extra work for the merchant, for what gain? A transportable reputation? Okay, we can see some value in that. Some.

Token Alleged Inherent Value

Apropos of everything aforementioned, let’s establish that this token will only carry value if the network itself is quickly picked up and adopted. We can see that the team would be dedicated to get to at least that stage, so let’s suppose this happens. Then the value of the token is reliant on a few things, chief among them being its supply. What is happening with the supply of MTH tokens, anyway?

(2000 ⋅ 67000) + (28000 ⋅ 2400) = 200,120,000,000 tokens. 201,200,000 tokens will be retained by Monetha, as mentioned by the Redditor near the beginning, and demonstrated in the above image. This is extreme. This makes high valuations hard to picture, makes the risk of exit even more painful to imagine. But let’s keep it in perspective, as short term we can probably see real profit taking here.

Verdict

Look directly above at that distribution again. Be sure you’re comfortable with that. If you are, and you believe this is a valid product worth pursuing, then it’s probably worth the effort.

Risk

  • We note the founders have exited one company already. We gather there’s a risk they could do it again here. So we dispose of 2 of their team points.
  • We believe there is massive overconfidence at every level of this ICO, from founder to investor. The product may not meet expectations, roundly speaking. -2
  • Such high inflation means that high token values are out the window. You will have to tread carefully trying to play this field, if you want to speculate. Merchants will probably enjoy it, if they benefit from it, which we guest. -1.5

Growth Potential

  • Very professional delivery, and good advisory selections. +1
  • Team knows what they’re doing. +2
  • Product could see some adoption, and therefore growth. Growth of its usage means growth of the value of the token, which will be depressed by a massive distribution. +2.5
  • Token will be immediately made available to you for trading, which is a plus for understanding early on how the market will take to the token. We really credit them for this boldness – +2.75 – which we will use to later judge their performance on said markets.

Disposition

Numerically, we lean in favor of this, at 5.25, especially in the short term, as there will be quick trading following the ICO. At a price of 2000 MTH per Eth, we expect to see a tertiary market emerge quickly, with pressure on the source (which has no maximum contribution per investor) exhausting initial supply quickly.

Investment Details

On August 31st, details of the Eth address to invest in are scheduled to appear at https://www.monetha.io/en/crowdsale. However, the author advises extreme caution before sending any funds. Please Google “Monetha + scam” before sending money anywhere. A clever hacker can manage to silence most of their channels which might warn people that they were sending Eth to the wrong address. Scams are getting old in ICOs, so please do not fall victim to anything, and ensure you have the right address when you send funds. As per usual, they ban US investors. Please make sure you follow all instructions, get the correct address, and invest wisely.

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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5 stars on average, based on 2 rated postsP. H. Madore has covered the cryptocurrency beat over the course of hundreds of articles for Hacked's sister site, CryptoCoinsNews, as well as some of her competitors. He is a major contributing developer to the Woodcoin project, and has made technical contributions on a number of other cryptocurrency projects. In spare time, he recently began a more personalized, weekly newsletter at http://ico.phm.link




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  1. HITBTC

    August 31, 2017 at 8:26 pm

    Monetha is a big scam well done. Read a whitepaper is simple

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ICO Analysis: BitTorrent Token

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Blockchain company TRON made waves back in June 2018, when it was announced that TRON was acquiring BitTorrent, the company responsible for the development of the immensely popular file-sharing protocol BitTorrent, for $140m.

The BitTorrent protocol is a pioneer in the decentralized networks space and allows for the downloading and uploading of files from/to various hosts rather than a single server.

Perhaps the most popular or well-known use of the protocol is torrenting, which is often used to share copyrighted content like movies and music illegally.

Regardless of how the protocol is used, one can’t deny the popularity of the protocol.

According to BitTorrent (the company), the protocol is used by more than 170 million people every month and is responsible for as much as 40% of the world’s daily Internet traffic.

However, while BitTorrent is immensely popular, the company behind the protocol has struggled to generate revenue.

Thus, the acquisition comes as a break for the struggling company and might prove to be very strategic for TRON, as they gain access to a very large user base and more importantly (in the author’s view), a team of developers that is top of its class when it comes to developing decentralized networks.

Under the new leadership, BitTorrent is launching a token (BTT) to tokenize what is perhaps the world’s biggest, decentralized file sharing protocol.

Token

According to the BTT whitepaper, BTT will incentivize users to offer infrastructure services, such as seeding or hosting files, in return for BTT.

To validate this concept, BitTorrent is launching something called BitTorrent Speed (release date set for Q2 2019), which will enable faster downloads for users who choose to pay file seeders in BTT.

Thus, downloaders (“leechers”) will benefit from faster downloads via prioritized resource allocation, while seeders or hosters will benefit from payment in exchange for providing bandwidth services to the network.

It’s hoped that this will incentivize downloaders (who become seeders when they start to download a file) to keep seeding, even after their download is finished, a problem that has been present since the inception of the BitTorrent protocol.

While BitTorrent Speed is the first initial experiment when it comes to tokenizing the BitTorrent protocol, the team behind BTT envisions more generalized applications of this tokenization model (with potentially more to come):

  1. General decentralized mass distribution of content that might be subject to attack like censorships. With the decentralized and large network effects of the BitTorrent Protocol, not only do content creators not have to worry about hosting their content on one provider, but performance issues will also be of less worry, as the BitTorrent protocol has been proven to be able to handle large amounts of download requests, with organizations like Facebook and Twitter even using the technology to distribute updates to their servers.
  2. Decentralized storage services, where users pay for storage over time
  3. Decentralized proxying services, where users pay to retrieve content by URL (use cases may include content that might be subject to IP-based controls, highly mobile applications, and users with intermittent Internet connectivity, such as mobile users on WiFi, requesting content in chunks vs. in a complete form)

BTT-based transactions will be confirmed via blockchain technology to prevent fraud.

The total supply of BTT will be 990,000,000,000 (990 billion) BTT.

The tokens will be allocated as follows.

  • TRON Foundation (20%)
  • BitTorrent Ecosystem (19.9%)
  • Team (19%)
  • TRON Airdrop, or allocation for holders of Tron’s cryptocurrency (TRX) (10.1%)
  • BitTorrent Airdrop, or allocation for BitTorrent client users for client install and onboarding (10%)
  • Seed investors (9%)
  • Public sale (6%)
  • Partnerships (4%)
  • Private sale (2%)

The public token sale, which starts at 15:00 UTC, January 28th, 2019 is structured as follows.

  • $7.2m USD hard cap (sale finishes when hard cap is reached or at 15:00 UTC, February 3rd, 2019)
  • Individual cap of $20k USD
  • 59.4 billion BTT for sale (6% of total token supply)
  • No vesting or lockup
  • 40% of tokens for sale in BNB, 60% for sale in TRX
  • Tokens distributed within 15 days of token sale conclusion

Team

The team behind BTT is the team behind BitTorrent, which as explained, is a massively popular decentralized file sharing protocol, and the team behind Tron, a highly popular blockchain-based project, whose cryptocurrency TRX, is ranked #9 by market capitalization as of writing (Coinmarketcap).

Verdict

Below is a breakdown of the risks and growth potential of BitTorrent Token (BTT).

Risks

  • Would people actually pay for faster torrent downloads (initial use case for BTT, which will serve as a way to validate or invalidate the notion of tokenizing the BitTorrent protocol)? Torrents are known for enabling free downloading of content like movies and music. If users really wanted to pay for torrents, it’s possible that they would have already migrated to services like streaming via Netflix and Spotify. Moreover, BitTorrent users are not mandated to participate in BitTorrent Speed. (-0.5)
  • There is a lot of legal controversy surrounding the use of BitTorrent – the protocol itself is legal; however, as mentioned, there are many illicit uses of it, such as the sharing of copyrighted content. While it’s unlikely that the team behind BTT would get into any sort of trouble, it’s possible that users might be turned off by negative press or attention about illicit use and resulting legal disputes. (-0.5)
  • The team is highly experienced at building and maintaining decentralized network infrastructure (BitTorrent) and building popular blockchain-based solutions (TRON). However, competitors like Upfiring have already launched beta products, with decent feedback on places like Reddit. (-0.5)
  • Although the BitTorrent and TRON teams have built large-scale decentralized network infrastructure, it will be difficult to build a blockchain that can handle the massive throughput of the BitTorrent network. (-0.5)
  • Initial circulating supply is only 9% but will near 80% within 3.5 years, which means that the BTT token will face incredible inflationary pressure (-2)
  • Seed and private investors got BTT at a ~68% bonus (relative to public sale price) and don’t have a lockup (though tokens are vested over a year). (-0.5)
  • No details on lockups and/or vesting for team tokens. (-0.5)

Growth Potential

  • BitTorrent is about as legitimate as they come for proven examples of successful decentralized networks. (+2)
  • The tokenization of BitTorrent’s protocol could prove to be very interesting, and it’s possible that content creators and other individuals and groups that wish to distribute files could migrate to the protocol in order to circumvent the various problems associated with going through more centralized alternatives, such as app stores, music distribution platforms, and more. (+2)
  • If tokenization via BTT takes off due to the combination of the already large network effects of BitTorrent and the validation of the BTT tokenization model, it’s very possible that BTT might be covered in mainstream media outlets, as an example of a cryptocurrency project that has “mainstream adoption”. (+1)
  • The sale will be taking place on Binance’s Launchpad platform for ICOs, which provides BTT with a ready base of potential investors who can invest easily from Binance’s platform. (+1)
  • Although competitors like Upfiring are up and running, the team, as mentioned, has a great track record in building decentralized networks (BitTorrent and TRON). (+2)
  • Say what you want about Justin Sun and TRON, but no one can deny that Justin Sun and TRON are marketing wizards, who are highly capable of building investor interest in blockchain projects. During the bull run of late 2017~early 2018, TRX multiplied in price by over 100 times (as measured in USD), and the TRON community continues to be vibrant. (+2)

Disposition

BitTorrent Token will prove to be an interesting experiment for the future of decentralized technology. The team is combining an already large decentralized network (the BitTorrent protocol) with the idea of tokenization and crypto-economics. However, in terms of investing in the token sale, competitors, current blockchain technology limitations, inflationary pressure, more favorable terms for early investors, opacity regarding team tokens, and general lack of interest in ICOs amidst a bear market make BTT ICO participation a questionable proposition. Nevertheless, the sheer potential of leveraging BitTorrent’s network in a cryptocurrency project as well as the team’s experience in building decentralized networks and marketing make BTT a token to keep an eye on. BitTorrent Token receives a 5/10.

Investment Details

  • Type: TRC10 – Utility
  • Symbol: BTT
  • Platform: TRON
  • Crowdsale: January 28th, 2019 at 15:00 UTC
  • Minimum Investment: Unspecified
  • Price: 1 BTT = .00012 USD (prices in BNB and TRX set on day of token sale)
  • Hard Cap: $7.2m
  • Payments Accepted: TRX, BNB
  • Restricted from Participating: China, USA, Afghanistan, Albania, Belarus, Bosnia & Herzegovina, Burundi, Central African Republic, Cote d’Ivoire, Cuba, Democratic Republic of the Congo, Ethiopia, Guinea, Guinea-Bissau, Iran, Iraq, Lebanon, Liberia, Libya, Myanmar, North Korea, Republic of Macedonia (FYROM), Serbia, Somalia, South Sudan, Sri Lanka, Sudan, Syria, Thailand, Trinidad & Tobago, Tunisia, Uganda, Ukraine, Venezuela, Yemen, and Zimbabwe

For More Information

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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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ICO Analysis: Devv

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One of the major issues with blockchain technology is that the underlying platforms are unable to adequately service high amounts of usage without compromising on speed and transaction costs (“the scalability problem”).

In fact, many see this as one of the foremost obstacles for blockchain to overcome in order to achieve widespread adoption and become the basis for a new and decentralized Internet.

Various projects have sprung up and are in the works with the focus of tackling the scalability issue.

Devvio is yet another contender to step into the arena for scalable platforms and has developed a blockchain protocol called Devv that claims to address blockchain’s major issues including scalability as well as fraud, loss, theft, privacy and stability.

While seasoned ICO investors might have heard this pitch one too many times, Devv has processed over 1 million transactions per second (tps) on-chain and is currently benchmarking at over 8 million tps on-chain, the results of which can be seen here. Those would like to delve further into Devv’s technology can check out the Devv whitepaper and Devv Github.

By solving the aforementioned issues of scalability, fraud, loss, theft, privacy and stability, Devvio believes that their cryptocurrency has the potential to really grow into the preferred way for instant value exchange worldwide.

Moreover, similar to platforms, such as Ethereum and EOS, developers can build Dapps on Devv but not be limited by high fees, low transaction throughput, and sub-par security at scale.

Some use cases the Devvio team foresees for Devv include the following:

Financial Services

Using Devv to manage exchange, hedging, payments, and repatriation of funds.

Data

Using Devv to manage sensitive data in a highly secure environment.

Logistics

Track and manage goods as well as reduce traditional insurance and logistics costs.

Token

Devv’s token will be used to enable value and asset exchange similar to other cryptocurrencies and tokens.

Devvio will initially issue ERC-20 tokens to investors before ERC-20 tokens are swapped for native Devv tokens at a 1:1 ratio.

Devv tokens (total supply 500m tokens) will be allocated as follows.

  • 30% token sale (150m tokens)
  • 30% company reserve (150m tokens)
  • 20% partners and acquisitions (100m tokens)
  • 15% founders and partners (75m tokens)
  • 4% advisors (20m tokens)
  • 1% bounties and community (5m tokens)

According to the Devv whitepaper, token sale proceeds will be used in the following manner (assuming the hard cap of $18m is met):

  • 15% technical development
  • 12% Devvio operations
  • 12% business development
  • 18% Intellectual property development, licensing, and enforcement
  • 20% marketing
  • 8% supporting technologies
  • 15% token sale fees

The amount of Devv tokens issued to investors will vary depending on how much is raised during the token offering. For instance, if the hard cap of $18m is met, token purchasers will receive 150m tokens as mentioned.

2% of Founder, Partner, and Advisor tokens will be available upon the Token Generation Event (TGE) and 98% will be vested with a cliff of 1 year at a rate of 1/8th each quarter for 2 years (after the initial 1 year lockup period).

Team

Devvio team members include the following:

CEO Tom Anderson – Anderson was the founder of Novint Technologies, a robotics company which made the first 3d touch device for consumers. Anderson is considered a pioneer in haptic technology (integrating the sense of touch into computers and virtual reality). Novint raised over $30m, licensed game development worth tens of millions of dollars, and more before its patents were sold to Facebook.

Advisors

Tokenmarket – well-known token sale organizer that has helped ICO clients, such as Civic, Storj, and Dent.

More team members and advisors are listed on Devvio’s team page.

Verdict

Below is a breakdown of the risks and growth potential of Devv.

Risks

  • Like many projects – not fully released. First stable release of Devv blockchain is set for Q1/Q2 2019.
  • For a highly ambitious blockchain platform (“solving” scalability, fraud, loss, theft, privacy and stability at the same time), no one on the team has standout experience working on similar projects.
  • Token allocation for token sale could be higher.
  • Though the token sale date hasn’t been specified, interest on social platforms thus far seems relatively low for a project of its scope (e.g. ~2.8k Telegram channel members and ~1k Twitter followers as of writing).

Growth Potential

  • Testnet available and not a complete whitepaper/vaporware project like many ICOs.
  • Team has had business success in other endeavors (e.g. Novint).
  • According to the Devv FAQ (“Do you have any patents”), the team has patented their ideas to build somewhat of a protective moat.
  • Instead of accepting that thefts occur in the blockchain/cryptocurrency space like most other projects, Devv has an optional transaction method (similar to credit card chargebacks) called DevvProtect. Optional DevvProtect wallets guard against common issues like stolen private keys and lack of asset transferal upon events, such as a token holder’s death. These are definitely interesting features that would probably be of interest to businesses, Devv’s intended audience.

Disposition

Although jaded ICO investors are probably tired of hearing about platforms that will solve scalability among other blockchain technology obstacles, Devvio’s Devv blockchain does show promise with its benchmarking of 8 million tps and testnet available for use. This in addition to the team’s business experience, focus on patents, and innovative features like optional transactions make the project one to keep an eye on as long as they can deliver technically and garner adequate community interest once the ICO date is announced. Devv receives a 7/10.

Investment Details

  • Type: ERC20 – Utility then Native
  • Symbol: DEVV
  • Platform: Ethereum then Native
  • Crowdsale: TBA
  • Minimum Investment: Unspecified
  • Price: Unspecified
  • Hard Cap: $18m
  • Payments Accepted: Unspecified, presumably ETH
  • Restricted from Participating: Unspecified

For More Information

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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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ICO Analysis: Fieldcoin

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Fieldcoin is an agribusiness crowdfunding platform that enables anyone to buy, sell, rent, and manage farmland from anywhere in the world. Using IoT, smart contracts, and other agribusiness technology, token holders will form a DAC (Decentralised Autonomous Community) and vote on every aspect of their chosen agribusiness from seed to table.

“Fieldcoin’s mission is to bring the blockchain technology to land property transactions and agricultural crowdfunding projects while creating a stable transaction instrument easing the process of land and agribusiness acquisition.”

Fieldcoin will offer access to LANDS Management Services. Investors will be able to buy/sell/manage physical land of different sizes and budgets at an attractive price compared to the market value.

The company claims to:

  • Brings liquidity to the agricultural industry
  • The token is backed by land.
  • Decentralize the highly centralized agriculture market
  • Track the origin of food products.
  • Manage the way the food is grown (pesticides or organic)

Along with the above highlights, Fieldcoin’s “trade-back token” guarantees an 80% ratio on the value of your token to the assets in the ecosystem and the possibility of claiming your assets in physical property at a certain rate under the market price.

In the Fieldcoin ecosystem, there are 2 levels of ownership: “Off-chain,” which is to comply with national regulations and “On-chain,” which is recorded and transacted on the blockchain.

  • Off-chain: Fieldcoin Ltd or a third party company DAO (decentralized autonomous organization) owns the property titles recorded in the national land registry. The token holder owns a share of the company representing the specific land acquired on the platform.
  • On-chain: Fieldcoin Ltd creates a unique token with a unique number representing a specific property called LANDS (ERC721). The LANDS token represents the ownership of the property and can be exchanged on the Fieldcoin platform using the Blockchain.

The FCO will start April 2nd, 2019.

FCO means Field Coin Offering. It’s like any ICO, users buy (FLC) ERC20 Utility tokens which are used to acquire non-fungible tokens (ERC721), which represent a particular agricultural property. “The acquisition of NFT tokens during the ICO makes the Field Coin Offering unique and offers a strong advantage to investors that are able to test the platform and own tangible assets during the Coin Offering.”

Token

FLC is an ERC20-based utility token distributed during the FCO. The token is used as a currency to buy land, services and crowdfund agricultural projects on the platform.

LANDS is an ERC721-based token received after buying a specific land property through our platform, representing land ownership and storing the data of your property. LANDS are also available for purchase during the FCO.

According to the company, trade-back token is “Token holders will buy land on Fieldcoin’s platform and pay the full market price displayed on the website. They will be credited with a coupon to buy land for later purchases. The value of the voucher corresponds to the difference between the price drop of the token under the 80% threshold and the actual value of assets in Fieldcoin’s Ecosystem. The coupon can be applied to available properties sold by Fieldcoin Ltd on the platform.”

Distribution:

  • Private Sale 2%
  • FCO 60%
  • Token Bonuses 17%
  • Reserves 10%
  • Team 9%
  • Bounty 2%

Allocation of funds:

  • 60% Purchase of Physical Land
  • 15% Agribusiness Development
  • 10% IT
  • 7% Legal
  • 6% Marketing
  • 1% Reserve Fund
  • 1% Social and Rural Development

Ecosystem asset reallocation:

  • 85% Land Recapitalization
  • 9% Business Operations
  • 5% IT Development
  • 1% Participation in Communities

Team

The Fieldcoin project is governed and supervised by Fieldcoin Ltd, registered in London. The team members are from France, Canada, USA, India, Belgium, Italy, the UK, Pakistan and China. There are over 25 team members including the advisors.

Marc Couzic is the  Founder/CEO.  He is a freelance commodities and crypto trader since 2013 and has been a “Contributor” to 3 blockchain projects this past year; Experty.io, Kart Block, and Magna Numeris.

Alexandre Palubniak is a Web Project Manager from France. He has spent 7 years as a freelance “Director Artistique”.

Jeremie Joncas is a COO from Canada but there is not much info on him. He owned a business for 4 years called J2 Entretien (but can’t find any info in it). He’s traded crypto for the last 1.5 years.

The rest of the team is similar to the above – very little experience in agriculture or blockchain.

There are also 10 Contributors/Advisors. They are average.

Verdict

When describing the benefits of Fieldcoin in Telegram, CEO Marc Couzic had this to say, among other things.

“Yes, it is a share profit system where 40% of net profits on production goes to the externalized land management company or farmer (choosen by Fieldcoin) exploiting the land and 60% to the owner. The holder of LANDS tokens won’t need to do a thing besides participating in decision concerning the type of crops and agricultural method used on its land. The idea is to levy the burden of execution for the investor and move towards agricultural automation processes. Additionally, the price of land grow on average 2-3% worldwide”

The idea of Fieldcoin is to have Decentralized Autonomous Communities that will decide on the agriculture products and management of their lands. They will vote on things like the amount of pesticides used, or if they want pure organic or reasonable agriculture.

The problem is DACs are complicated. Billion-dollar projects like Ethereum and EOS are still developing the tools to perfect them. Does Team Fieldcoin even have the ability to execute this massive project? It seems iffy, as they are fast approaching on the pre-sale and do not have an MVP. They only have this picture of one.

Risks

  • Small soft cap of just $3 million USD. According to the company: “the Proof of Concept can only be implemented once the FCO has reached $5 million USD. In the event of the cap not being reached, the Proof of Concept will be postponed.” This is sketchy. -1
  • The team is not very impressive at all. -2
  • Their business plan requires the minting of new Fieldcoin tokens to buy more land. They explain the process in detail here. -1
  • Only 13% of the funds raised will go to legal and marketing. -1
  • DACs are complicated. Many top projects are delaying launch until they figure out governance. -2

Growth Potential

  • First mover advantage. +2
  • They say they’ve already purchased land, have buying promises and about 35 offers to be displayed. +2
  • 85% of the Ecosystem asset reallocation is reserved for new land acquisitions further expanding the Ecosystem.+2
  • “Fieldcoin plans to target low-risk and average potential markets first, such as the countries within the European Union, and will then move slowly to countries with more venture capital and with much higher expected returns for Fieldcoin’s Ecosystem.”+1.5
  • 1% of the Fieldcoin tokens will be allocated to the Fieldcoin Foundation, which aims to develop community infrastructure. This project includes plans to build schools, water wells, irrigation systems, and roads.+2
  • “The Fieldcoin token is supported by “Trade-Back Protocol”, offering token holders the possibility to claim LANDS at a reduced price in case of market dips. Thanks to our upward trend capitalization mechanism, new physical lands will be acquired by Fieldcoin Ltd. increasing the guarantee of the Trade Back Protocol.”+2
  • Although we don’t score Fieldcoin well, these “respected” ICO sites have them ranked rather high. +0.5

Disposition

The tools required to build a proper DAC voting system are only now being built. Although something similar to this DAC agribusiness will someday soon be a reality, this project is too early and too ambitious, especially with such an inexperienced team. 5/10

Investment Details

  • Symbol: FLC (ERC20)  LANDS (ERC721)
  • Platform: Ethereum
  • Total Supply: 1 billion
  • Presale: Feb 4 – Feb 12, 2019 (100% bonus, 1 million USD worth of tokens available)
  • Price: 1 FLC = $0.05
  • FCO (Field Coin Offering) Start date: April 2nd 2019.
  • Hard Cap: $31 million
  • Soft Cap: $3 million
  • Telegramhttps://t.me/fieldcoin
  • Websitehttps://www.fieldcoin.io/
  • Barred Jurisdictions: USA and China

All unsold tokens will be burned.

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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4.2 stars on average, based on 27 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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