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ICO Analysis: Polybius

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Polybius: “a contemporary banking institution with a progressive approach.” Do what? A banking institution and an ICO? What sorcery is this?

This is our obvious first reaction to the words “banking institution” in reference to an Initial Coin Offering. Bitcoin, which never had an ICO and whose exchanges sprouted organically, was and is very much about “being your bank,” as in, not relying on centralized entities to steward your wealth. The biggest problems Bitcoin has faced have arisen when centralized entities experienced problems – enter Mt. Gox, Bitfinex, and the Silk Road.

Nevertheless, since we brought it up, we’re obligated to take a close look at Polybius, which claims on its website to have raised over $11 million already by time of writing.

Is Modern Banking An Oxymoron?

Banking itself dates to a time when people’s currency was heavy and constantly vulnerable. Bankers were able to make money by using the funds when their owners were not using them, and for a long time this was the best civilization could do in terms of guarding assets. As the modern age has progressed, we have witnessed more and more legacy institutions fall behind the pace of technology. Our governments and banks remain vulnerable to virtual attack; our institutions are increasingly unreliable and inefficient by comparison to the technological solutions which have arisen.

Polybius, unlike nearly every other cryptocurrency initiative ever, doesn’t appear to believe the banking system is broken fundamentally. Instead, they think it can be reformed through technology, and this is what they apparently aim to do with Polybius.

Polybius Foundation, a team of financial, security, legal and technical experts is raising funds for its project Polybius Bank. Our goal is to capitalize on the broader digitalization trend […] It will have all the functions of a classical bank, but will not host any branches nor physical front-offices and will rely fully on the latest digital technologies.

Okay, so you mean like Ally Bank, ING Direct, Green Dot, or any of the myriad of other online banks that do not have any physical services? Thus far we’re not hearing much difference between those and this, other than that those did not go to the public with an ICO in order to raise funds for their businesses. What else?

It will aim to enable secure and seamless connections between life and the things we love and use every day.

Not just vague, this, but boring! Thus far, in the Polybius Prospectus, we’re not seeing anything more than you’d see in a destined-to-fail slide deck at any VC meeting. In fact, the problem that Polybius purportedly wants to solve arguably has dozens, if not hundreds, of solutions on the market, probably none of which are trying to crowdfund their bootstrap funds.

For the purpose of this article, we put forth the following notion: banking itself is archaic and therefore can only be modernized to the extent that it can ease the transition to era-native solutions like the blockchain. This being the stance of the author, the idea of creating a “modern bank” for the “digital generation” is already underwhelming, as a concept, and probably futile as en effort.

But regulatory concerns persist in the cryptocurrency space. Ripple has seen significant gains due to its regulator-friendly approach to blockchain implementation, while Bitcoin, which has few if any regulator-friendly features, has seen even greater gains. Therefore, a project which aims at compliance from the start does have some potential for growth. In theory.

More A Traditional Investment Than An ICO

The token produced in most ICOs has some later purpose like trading or using within an ecosystem, but in this case, the only purpose is to hold in order to collect profits. At the end of each year, 20% of the bank’s profits will be transferred to a designated Ethereum wallet, and from there they will be distributed to token holders. This means that the tokens can still be sold between people, but that speculation will probably not be the primary usage of PLBTs.

Therefore, this analysis is not so much about the token but about the potential profitability and performance of the bank it is underwriting.

Polybius will only operate in the European Union at the outset, due to its familiarity with the region, according to the business model. It would seem ironic if they were to remain in this mode, as they wish to serve the “digital generation,” which is essentially a borderless generation.

The business model document only plans for a fundraising of up to $6 million, but at time of writing the bank claimed to have already raised over twice that amount. At this level, in terms of products and services, they intend to offer:

  • E-commerce gateway
  • Peer-to-peer loan facilitation (on which Polybius will profit by commission)
  • Managed cryptocurrency investments
  • Debit cards/EFT services

The model does not go into specifics as to the actual meat and bones of the company at this point in the game. Presumably Bitcoin and other cryptocurrencies, as well as Euros, would be usable for an account holder. The question of profitability comes to mind. By their own forecasts, Polybius believes that by the end of 2018 they will be operating somewhere between a 35 and 40% profit level. The question is how they will achieve that, and how valuable any of the above listed services are to consumers and businesses.

The e-commerce gateway model is dominated by Coinbase, Bitpay, Bitgo, and a few others. A new addition, despite the rise of cryptocurrencies, does not exactly raise eyebrows in terms of prospects.

Peer-to-peer loan facilitation, however, conducted by a regulated and state-certified entity, via cryptocurrency, could be a big hit. BTCJam, a Bitcoin-only version of Kickstarter, has faced regulatory issues everywhere it has operated, and last year halted operations in the United States as a result. Firms which can deftly navigate the micro-loan and peer-to-peer loan market are potentially embarking on huge returns.

Managed cryptocurrency portfolios might be interesting, but these funds will have to prove themselves before they will actually reach a real profit for the company via commissions and fees.

Debit cards are a dime a dozen anymore. It would seem obvious that if they’re going to be a traditional bank then debit cards would be a requirement. The ceiling on fees for these is pretty low, as well, given the level of competition.

Overall, this 40% figure can only derive from the fact that the actual costs of launching these initiatives is relatively low, not from the bombast of the offerings.

The Polybius Foundation

Like many of the Ethereum ICOs, the heavy lifting for this project has largely been done or can be contracted, so most of their team is focused on business operations.

The project is mostly being spearheaded by HashCoins, an Estonian company which focuses on blockchain technology. They don’t list a lot of credits on their site, but testimonials are present from CryptoPay, AdVendor, and EmerCoin, none of which are massive names. This is not a drawback, necessarily, but what we’re saying here is that the company doesn’t have some huge track record of giant profits.

At the helm of HashCoins is Ivan Turygin. Turygin has not made a lot of public statements during his professional life. His LinkedIn profile lists HashCoins and Burfa Capital as his two primary positions for the past four years, and before that he worked as a CEO for a company called Delirium. According to the Internet,

Dilerium Ou is a relatively mature organization in the lumber and other building material companies industry located in Tallinn, Estonia.

Turygin’s experience at Burfa Capital might be helpful to his current venture. Unfortunately, the English-speaking Internet doesn’t know much about projects which Burfa Capital has backed, so a good track record can’t really be garnered that way.

Moving over to the co-founder, Sergei Potapenko, it becomes more evident that both Burfa Capital and Burfa Media are projects the two started together. From what we can gather, they made their money in the Siberian timber trade and are looking to put their money into more financial instruments through HashCoins and Polybius, among others potentially in the future.

Potapenko has no other work history besides his entrepreneurial endeavors, post-college.

They have a handful of other people working with them at HashCoins, and then an equivalent number of advisors, none of whom are overly notable from this perspective, but some of whom have important offerings, like Ugo Bechis, a financial advisor and economist with a long career.

The team itself doesn’t appear to be lacking in the abilities required, nonetheless, although, as previously stated, much of the technical work has either been done or can be contracted, which could be the intention, although HashCoins of course has developers on staff. The lead developer for the Polybius project is Renna Reemet, who has numerous employment credentials since leaving college, including as a PHP Developer for something called Creditstar Group.

The Verdict

There are some angles in this project that can be worked into a profitable mode, but the likelihood of failure is pretty high from this writer’s perspective, given that there are no truly revolutionary offerings here. Their managed trading portfolio offering will probably be overshadowed by ShapeShift’s Prism, their Debit card, as noted, is anything but special, and their other services are likely to take a long time to really gain traction.

But the approach is there, and there is potential due to their regulator-focused approach.

Therefore we will give Polybius a 4.9 out of 10 in terms of likelihood of recouping funds invested. A bit higher (5.1) if you intend to recoup them by trading, shorting, or otherwise messing with the token itself, but on simple profitability of holding the token itself, we’ll say your odds are a little less than half in this case.

Investment Details

There will be no fixed supply of PLBT tokens, but the price is fixed at $10. An unlimited number of tokens can be created and purchased during the crowdsale. The tokens primary function is for redemption of stake in the bank itself, not trading, although they are of course tradable, and secondary markets are likely if the growth of the ICO continues. So far, at $10 per token with a declining (by week) discount, they have raised over 12 million dollars. This means they’ve minted at least 1.2m PLBT tokens so far. According to their FAQ, you can make purchases in multiple ways:

  • Wire transfer in USD and EUR (Minimum purchase amount 10 PLBT)
  • BTC, ETH, USDT direct transfer (Minimum purchase amount 1 PLBT)
  • Multiple cryptocurrencies supported by ShapeShift.io (Minimum purchase amount 1 PLBT)
  • Emercoin (EMC) direct transfer (Minimum purchase amount 100 PLBT)
  • Debit/Credit card payment (Visa/Mastercard) (Minimum purchase amount 1 PLBT)

It should be noted that the project is in no way stating that there is some kind of $10 floor on the PLBT token. To guesstimate a floor based on the initial price, you have to rely on the rationality of the initial purchasers, most of whom, it would seem, are investing with an eye toward reaping rewards at the end of the business year.

You can invest today, if you wish, by going to ico.polybius.io.

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. AzziGeo

    June 10, 2017 at 10:03 am

    Thank you for your detailed analysis , it gave a very clear idea about this new project that i have been reading about. i do think that it is more like a traditional bank disguised in the revolutionary blockchain idea.

    Would it be possible to have your idea about NVO.io too?

    thanks

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ICO Analysis: Virtual Rehab

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According to recent studies, in the USA alone, over $35 billion a year is spent on addiction treatment services, and about $80 billion is spent on incarceration. Despite this spending, 77% of released offenders recidivate within 5 years. Luckily, with the recognition of the United Nations, The team at Virtual Rehab is coming out with new technology to fight this epidemic.

Virtual Rehab leverages virtual reality, artificial intelligence, and blockchain technology for the prevention of substance use disorders. It also provides correctional services training and rehabilitation to officers and offenders.

“Virtual Rehab believes that putting a kid in the corner does not teach them how to be a better person but rather teaches them not to get caught. Therefore, we are in it for the social good and to help address the needs of the most vulnerable populations out there.”

Four key components make up Virtual Rehab’s platform.

  • Virtual Reality: Real-life scenarios using cognitive behavior and exposure therapy to train users how to respond appropriately in the face of triggers.
  • Artificial Intelligence: Collects data from the VR environment and physiological data, and applies machine learning to identify areas of risk, make treatment recommendations, and predict post-therapy behavior.
  • Blockchain: A secure network to ensure privacy and decentralization of all data and all information relevant to vulnerable populations.
  • VRH Token: Used to purchase different services/programs. Also used to reward users who seek help through Virtual Rehab’s online portal.

Virtual Rehab’s services extend to hospitals, rehab centers, correctional officers, inmates and other verticals. Rehab for sex offenses, family violence, alcoholism, and many other offenses will also be supported. It can also be used to treat mental illness, emotional disorders, intermittent explosive disorder, and many others.

Virtual Rehab can overcome distance barriers, allowing rehab services to anyone, anywhere, because the technology can be implemented in a telemedicine context.

Here’s an example of what it might look like when a user is immersed in Virtual Rehab.

“And indeed, we capture the actions and reactions, decision making, and capture the biometrics (heart rate, blood pressure, and biodermal activity) along with keeping track of the eye movement using eye-tracking.”

The AI solution will aim to do three things:

  1. Identify areas of risk
  2. Make treatment recommendation along with existing medication prescribed
  3. Predict the behavior post-therapy

The HMD can include sensors that measure the physiological responses of a user as they interact in VR, such as heart rate or eye movement. This information is inputted in a sort of machine learning metadatabase to be used to assess whether the user’s selected responses are inconsistent with their physical activity. This helps determine if the user is attempting to deceive the system.

Token

VRH is a utility token built on Ethereum. It will be used to place an order and to download several different therapy programs (pain management, addiction prevention, cognitive behavior, etc). It will also be used to receive further analysis of the executed programs conducted through Virtual Rehab’s AI solution.

In addition, VRH will be an incentive to reward users for seeking help/counseling. Certain conditions will apply along with proof that users have sought therapy and counseling. Rewards will be claimable using the Virtual Rehab Portal.

Distribution:

  • 60% token sale
  • 15% Founders and Advisors
  • 10% Future Development Fund
  • 10% Partnerships
  • 5% Marketing

Use of funds>

  • 30% Marketing
  • 50% Future Development
  • 20% Partnerships

Team

Dr. Raji Wahidy – Founder and CEO. Spent 9 years in different leadership roles at telecommunications giant, Vodafone Enterprise. He spent 4.5 years manager at Ericsson Canada. Founded and successfully exited Amalana in 2012. Registered UN and UNICEF volunteer, and has received 16 global enterprise achievement awards.

Amal Azzeh – Co-Founder and CFO. 40+ years of experience in finance. She co-founded My Recruiting Team in 2016, a platform better known for its first-to-market Recruitment Helpdesk Support Services. No other work history is available on LinkedIn.

Jean Speville – Chief Mind Technologist. Four years as Senior Service Engineer at ASUS. Founded Vessla Development in 2015. Vessla recently created a completely cordless IoT screen with built-in WiFi. It consumes 99% less energy than LCD & LED screens. He’s a member of The Verizon Innovation Program in San Francisco, an Alumni of the Microsoft Accelerator Bootcamp Program, and a member of Sting Accelerate (Swedish #1 incubator for tech startups

They also list three consultants, including Pankaj Jain, who has worked for Nokia, AerNow, and Tivo inc

There are ten advisors. Instead of listing them all, we’ve highlighted some of the companies they have previously held high positions at: MEDNAX, HHS, SAMHSA, Microsoft, Kaiser Permanente, AIG, J.P. Morgan-Chase, MixERP, Ammeris

Verdict

“Virtual Rehab’s evidence-based solution leverages the advancements in virtual reality, artificial intelligence, and blockchain technologies for pain management, prevention of substance use disorders, and rehabilitation of repeat offenders.” And that’s just the tip of the iceberg. They will be getting into formal education as well as vocational training videos. Auto Mechanic, plumbing, how to properly putt a golfball… the possibilities are endless. On a recent Building The Future podcast, CEO Dr Raji talked about how he has had conversations with the Canadian Space Agency, who have been thinking of using VR for astronauts.

Risks

  • The ability to fully provide privacy, security and scaling is not there yet on the Ethereum blockchain. -2
  • The $20 million hardcap is rather high. This could cause a selloff early when this hits exchanges if demand isn’t there yet. -1
  • They are giving out $150,000 worth of VTR tokens during their ico bounty marketing campaign.  Their telegram has 18,500 members, 15,000 of them are either human or bot, there only for the bounty, not for the love. -1
  • The roadmap makes bold, unrealistic, claims, such as VTH will be listed on a top 10 exchange in Q1, and another top 10 exchange in Q2, and yet another top 10 exchange Q3. -2

Growth Potential

  • The team has connections to the UN, UNICEF, and 3 big accelerator/incubator programs. +2
  • First mover advantage (Addiction and Corrections). +1
  • Existing partnerships with Causalius, Chains International, Command Sourcing, Innovative Prison Systems, NETE, and Netswitch Technology Management. +2
  • Virtual Rehab will charge users for hardware, software licenses, programming required, and any support required. According to CEO, the total bill is still about 15% of the cost institutions pay now. +2
  • Unlimited expansion opportunities. PTSD, anxiety, autism, formal education, vocational training…+2
  • Dr Wahidy (Founder/CEO) just got awarded “Expert” status by the United Nations Global SCP program. This will open a ton of doors around the world. +4

  • Not much competition yet.+1

Disposition

Definitely keep this one on your radar, huge potential. 7/10

Investment Details

All unsold tokens will be burned. Tokens allocated to Virtual Rehab Team vest for 12 months.

The minimum contribution is $1,000 during presale and $100 during the main sale.

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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4.1 stars on average, based on 23 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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ICO Analysis: Ultrain

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Ultrain Technology Limited is a cloud computing and smart contract platform with a programmable tech-infrastructure and multiple add-on features. Ultrain will function as an infrastructure for scalable decentralized applications (dApps), as well as provide trusted computational services to multiple sectors, such as retail, shared economy, logistics, financial services, healthcare, and media/entertainment.

The company will use a new random trusted consensus framework allowing the network to use only 1% of computing power to mint new coins, freeing up the remaining 99% to be used by applications. Ultrain will provide computing power for network management, AI, user-friendly smart contracts, high-performance trust computation, and blockchain IoT services.

This business ecosystem is comprised of multiple business organizations separated into three sectors:

  • The Technology Sector: infrastructure services integrated based on public blockchain, AI, and IoT.
  • The Horizontal Services Sector: organizations that provide decentralized business services, including decentralized insurance, decentralized banks, decentralized loan services, etc.
  • The Vertical Application Sector: decentralized application services that can be implemented in numerous industries such as finance, retail, scientific research and development, manufacturing, logistics, entertainment, pharmaceutical biochemistry, food, real estate, education, agriculture, etc.

Consensus features of Ultrain:

  • Completely decentralized architecture
  • Ultra-large-scale network cluster
  • Multi-terminal support
  • High-performance computing
  • Decentralization design

Token

UGAS is the utility token that will be used within the Ultrain economic system. UGAS will be required to pay for the use of the computing power and third-party service components on Ultrain. Also, all participating nodes are required to mortgage UGAS. UTokens on Ultrain, similar to ERC20 tokens on Ethereum, will be issued by each dApps running on the network. dApps will choose their own consensus mechanisms and token metrics.

The project has already raised $20 million during a seed round, during which 10% of the token supply was sold. Five percent of token supply is allocated for private/public sale scheduled for Q4 2018. The overall breakdown is as follows:

  • 50% Mining
  • 15% Core Team
  • 10% Foundation/Ecology
  • 10% Private Sale (Already completed)
  • 10% Consultant & Community Building
  • 5% Future Private/Public Sale

Team

The Ultrain team is impressive, bringing extensive experience from powerhouse companies such as Alibaba, Google, IBM, and Ant Financial. Their experience includes IT, finance, blockchain, business, management, computer programming, & software development.

Team members include:

Rui Guo – Ultrain Co-founder & CEO. Former Technical Director for Alibaba Group. Former Senior Architect for IBM

Husen Wang – Ultrain Chief Cryptologist. Former Blockchain Cryptography Expert for Ant Financial. Former Project Collaborator for Luxembourg Institute of Science and Technology (LIST)

Yufeng Shen – Ultrain Chief Architect. Former Senior Technical Expert for Alibaba Group. Former Senior Software Engineer for Google

Advisors include:

Dr. Keyu Jin – Tenured Professor at the London School of Economics. Board Member for the Richemont Group. Harvard University PhD

Luyu Yang – Co-founder of musical.ly. Former Product Management Director for eBaoTech Corporation. Co-Founder of Snowbird Consulting

Verdict

Using a completely decentralized public network with lower operating costs, higher operating efficiency, and innovations in cryptography, Ultrain aims to surpass traditional public blockchain platforms in performance and scalability with up to 20,000 tps. With a stellar team and strong financial backing, Ultrain could become a major player by 2019.

Risks

  • Even with an all-star team, competing with the likes of Ethereum, EOS, and NEO is no small task. -1
  • Token metrics are a major aspect which ico investors consider. Based on current information available, the total market cap valuation is $200 million which is rather high in the current market. -1
  • The hype factor for Ultrain, which carries weight in the current crypto market, isn’t considered high. However, it is currently growing and gaining momentum. -1

Growth Opportunity

  • Ultrain will release important R&D milestones and be the keynote speaker at SF Blockchain week in October to kick-start the developer community building for Ultrain. There are several products to be released: (1) Public testnet launching, (2) Permitted mainnet launching, (3) Zero knowledge proof demo, and (4) Multiple DApps demo on chain. +3
  • Unitopia lab, a Blockchain research lab of the well-known Chinese video game developer Electronic Soul, announced a strategic partnership with Ultrain. Together, they will aim to establish a presence in this new market and make Blockchain video games a household product. +3
  • DApps will be able to use their own consensus mechanism or choose PoW, PoS, DPoS, POA, and RPOS. +2
  • Ultrain has an extensive list of investing partners including Draper Dragon, FBG Capitol, KuCoin, and Bixon. +2

Disposition

While Ultrain hasn’t gotten as much attention as some hyped up ico’s, this could work out in favor of investors who see an opportunity of an excellent project that’s been flying under the radar. The team and advisors are solid, they have a partnership with Unitopia lab, and they have the backing of numerous VC firms. All things considered, Ultrain receives a 7 out of 10 rating.

Investment Details

  • Type: Utility
  • Symbol: UGAS
  • Price: 1 UGAS = $0.20 USD
  • Total Supply: 1,000,000,000 UGAS
  • Private Sale: 10% of tokens (Completed)
  • Future Private/Public Sales: 5% (Q4 2018)

For more information regarding Ultrain:

Website: http://www.ultrain.io
Telegram: https://t.me/ultrainchain
Twitter: https://twitter.com/UltrainB
Facebook: https://www.facebook.com/Ultraincommunity/
Medium: https://medium.com/@ultrainchain

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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4.6 stars on average, based on 51 rated postsKent Hamilton - Co-Founder of CryptoDayTrader.io, where we are building Pro Crypto Tools




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ICO Analysis: Hedge

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When you buy your first cryptocurrency and start trading between pairs, usually you do in accordance with what you have heard from other people or your own research. Thinking that some project is truly good, you expect to make some gains. Yet it is always hard to have an estimation for “some gains”. Unexperienced traders usually get greedy, expecting more profit. This usually ends up with not taking profits and losing some of your investment. More experienced traders sometimes set prices to sell some or all of their tokens, taking profits and moving forward. This way of trading is basically predicting a price to sell cryptocurrencies: If you make a good prediction, then you sell at the peak. If not, either you are not able to sell as the price did not go up as much as you have predicted, or it keeps rising up which would be still a good trade.

Hedge is a platform allowing seasoned traders to sell their predictions. They create Blueprints with the predicted information in the form of a smart contract. They are required to stake HEDG tokens which can be seen as a measure of security, disincentivizing these investors’ spamming Blueprints. Platform users obtain these Blueprints in return for HEDG tokens.

A decentralized oracle then checks whether the prediction is true or false. If true, the predictor gets all staked coins. If not, the predictor loses his or her staked coins and the platform user gets his or her token back. Blueprint creators are ranked in terms of their success rates, streaks and so on. By checking creator’s rank, platform users can buy blueprints from more successful creators. Once you feel confident in your trading skills and predictions, you can create and sell Blueprints yourself on Hedge as well.

Yet a dispute over almost anything is possible. A platform user or a Blueprint creator can create a dispute about the result of his or her prediction. In this case, the disputer has to stake more coins and highly-ranked users decide whether the prediction is, in fact, true or false. If a person is false about his or her dispute, he loses these additionally staked coins as well. All this process, from the creation of a Blueprint to the dispute’s result, is conducted in a decentralized manner.

Token

HEDG tokens are used for the creation of Blueprints, buying these Blueprints and creating disputes. The staking mechanism, a quite common defense mechanism, ensures that spamming Blueprints is not financially viable for the attacker.

As tokens at any sale stage are sold $0.02, the ICO investor does not have much to worry regarding any huge bonus for private investors and so on. 90% of the hard-cap is already sold which is a good reason to think that the project has met interest to some acceptable degree and meeting the hard cap should not be hard.

The initial total supply of HEDG is 1 billion tokens with the following token distribution:

  1. 50% private and public tokens
  2. 10% seed round
  3. 20% team
  4. 12% partnerships and community
  5. 3% advisors
  6. 5% company

Team, partnership and community, and advisor tokens are locked for 36 months, 12 months and 12 months respectively. Once the lock-up period ends, tokens will be released in monthly installments.

There is no information on how the team is planning to use the token sale proceeds at the moment.

Team

CEO David Waslen: Prior to co-founding Chrysalis Capital Advisors Inc., Waslen was the director of finance at Handy, an application to book home services.

Allan Redman: Redman is a senior software developer at Siemens Canada. Before joining Siemens, he was a senior .Net developer at Schneider Electric.

Verdict

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

Risks

  • No advisors are listed as of September 15th. (-1)
  • In the absence of social media channels such as Reddit and Telegram, it is hard to gauge the community interest in the project. (-1)
  • A more complex prediction system instead of a true/false one could create more interest and diversity. (-1.5)

Growth Potential

  • The project has already met 90% of its hard cap in prior rounds and should not have trouble to hit the cap. (+2)
  • Prediction market cryptocurrency projects tend to do well in terms of return on investment. (+2)
  • Such a taking mechanism is a common, yet a good way to defend against spam attacks. (+1.5)
  • Low hard cap. (+1.5)

Disposition

Hedge is a very simple, yet elegant prediction market cryptocurrency project. It enables seasoned investors to sell their predictions and less experienced traders to buy them with HEDG tokens. Even the adoption of a small community is sufficient for the project to work, which is quite likely as it has already raised 90% of its hard cap, precisely $9,000,000. On the other hand, from the perspective of an ICO investor, it is hard to gauge any potential return on investment as the absence of social media channels makes it extremely hard to gauge the community interest in the project. Implemented staking mechanism defends the platform against spam attacks and gives platform users a reason to use tokens. Investors might think that a binary prediction system isn’t ideal vs. a more sophisticated one. Hedge receives a 3.5/10.

Investment Details

  • Type: ERC20 – Utility
  • Symbol: HEDG
  • Platform: Ethereum
  • Crowdsale: October 17th
  • Minimum Investment: Unspecified
  • Price: $0.02
  • Hard Cap: $10,000,000
  • Payments Accepted: Unspecified
  • Restricted from Participating: Unspecified

For More Information

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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