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ICO Analysis: Restart Energy

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Not long ago, we were all wondering when existing businesses will start adopting blockchain. After all, scalability of blockchain technology is a function of adoption by existing companies.

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Kik was one of the most high profile traditional businesses to raise funds via the ICO route when they successfully raised close to a $100 million in September.

The reason we are discussing this topic is that Restart Energy is also an existent revenue generating company. Most of us have not heard about Restart Energy, so let’s have a look at it first.

Restart Energy is a Romanian electricity and gas supply company with expected sales of $20 million in 2017. They have a customer base of 30,000 users and offer up to 100% renewable energy supply. Some of its innovate business practices, like the franchise based model, have resulted in Restart becoming the fastest growing energy supplier in the EU.

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As we have discussed in some of our previous articles (Power Ledger, Grid+, SunContract), blockchain technology has the potential to completely disrupt the existing energy markets.

In the traditional model of energy distribution, there are multiple intermediaries between the electricity generators and the end users. Intermediaries like the utilities charge a large markup over their cost of goods sold. Typically only about 50% of the cost of retail electricity is used to pay for the electrical energy itself. The other half is tied up in administrative burden, marketing, and risk management associated with bad debts.

When a prosumer (consumer + producer) produces more energy with solar than needed, he has to sell some back to the grid at a meager price as legacy energy providers have no incentives to offer such services because their supply and revenue from consumers would be reduced.

From the company:

“Restart Energy is building a global energy supply platform using blockchain protocol to democratize a sector burdened by bureaucracy and transaction costs, freeing up capital, saving consumers money, helping local small producers earn more and allowing real peer to peer direct energy trading using existing infrastructure.”

Red Platform

At the center of Restart Energy’s offering is the RED platform, which connects energy producers and traders with retail customers in a decentralized manner. By building the platform on blockchain, several layers of costs associated with bureaucracy and transaction are removed.

The removal of intermediaries and automation of manual tasks will enable producers to sell electricity at a 30% higher rate than their wholesale counterparts, while consumers will pay 30% lower rates.

All parties on the platform will be able to trade energy with each other on a P2P marketplace, which provides equal pricing for all generators removing monopolies.

Red Franchise

The business model is scalable as it allows anyone to become a seller/utility by becoming a franchise of Restart Energy. By holding greater than 10,000 tokens, any user can open a franchise that will perform the activities of the traditional utilities at a fraction of costs. Even existing utilities can benefit from being a Red Franchise as they would be able to significantly reduce operating costs using the blockchain solutions offered by Restart Energy.

Restart Energy will also introduce smart meters and watt prediction software, which will better forecast the future supply-demand and pricing metrics offering better value to the sellers. A mobile application will be created for payments and statistics.

Token

Restart Energy will issue the ERC20 RED MegaWatt token during the ICO. The RED MegaWatt tokens act as virtual batteries for energy access; they store access of up to 2 MWh/token of energy. In the token distribution, each RED will come equipped with 0.11 kWh of active energy. Renewable energy producers and suppliers will donate between 1% and 5% from each energy transaction on the platform to the Restart Energy community via transparent energy fund from where it will be evenly distributed to the RED MegaWatt token holders based on the number of tokens owned. Tokens can be used to pay energy invoices issued by the company or sell the energy to other participants on the RED platform.

In addition to being virtual energy batteries, the RED MegaWatt tokens serve other functions like giving access to the platform, providing access to the RED franchises and distributing incomes from the sale of energy contracts.

Restart Energy has an internal token called the KW token. Each 1 kW token will be equivalent to 1 KWh of energy and it will be purchased by the users of the RED platform with crypto and fiat currencies to be consumed or sold on the RED platform.

The pre-ICO begins on January 15, 2018. The total supply of tokens would be roughly 1.199 billion RED MegaWatt tokens with each valued at $0.1 with a hard cap of $50 million.

Fifty percent of the coins will be sold in the crowd sale; 30% will be held in reserves and 20% allocated to the team.

Twenty percent of the funds raised will be used to consolidate the existing business operations in Romania, while the remaining funds will be used for the development of the platform and expansion in other geographies. For more details on the bonus structure, please refer section 11.2 of the Whitepaper.

Team

Restart Energy is 82% owned by Armand Group, a successful renewable project developer in Romania with more than 500 MW of solar and other renewable sources developed through its subsidiary Armand Consulting. So, the vision has always been inclined towards working with renewables. CEO Armand Doru Domuta is quoted in the Whitepaper as:

“Restart Energy is my legacy to the world, it’s my dream of creating a transparent energy ecosystem that allows and encourages free and direct energy transfers between people that have the possibility to choose renewable energy without limitations from sources they can trust.”

The CEO and founder is an excellent entrepreneur. Restart Energy has grown rapidly in Romania due to some brilliant maneuvers like the creation of the first franchise based energy supply model in the EU, or the only renewables option for users. There are 15 core members of the team, with solid industry experience as most of them have been working for Restart Energy. There are six advisors with a couple of them having extensive experience in energy-related domains.

Verdict

Having solid industry experience thanks to Restart Energy’s operations in Romania is a big plus, especially in this particular industry. Restart Energy has already achieved 75% development of the software components and process automation that will comprise the RED Platform.

How does Restart Energy compare with existing solutions?

WePower, Power Ledger and SunContract are some of the existing solutions bringing innovation in the energy market via blockchain. While all the platforms offer P2P energy trading and blockchain and smart contract-based solutions, Restart Energy has some crucial distinctions.

Most important difference is that Restart Energy is a Licenced EU energy provider with a strong customer base and revenues. Restart Energy is not just creating a P2P energy marketplace but is also focused on improving the existing utility infrastructure by allowing anyone to open cost-effective utilities. Restart Energy has agreements in place with energy producers for donating energy to RED MegaWatt Token holders

However, Power Ledger allows third-party applications on its platform, which Restart Energy does not. This third party integration feature has been the selling point of Power Ledger, which has resulted in the token appreciation.

That being said, Restart Energy’s industry experience gives it a clear competitive advantage against all of the existing solutions.

Risks

  • Expansion in other geographies depends on regulatory approvals. It is also a function of whether geographies like China and India create deregulated energy markets as the business is viable only in deregulated energy markets. Even in the US, only 2 states have deregulated energy markets. -1
  • The whitepaper lists George Popescu as the chairman of the board of advisors. The management team cannot ignore the irregularities issues against him as it results in loss of credibility. -2

Growth Potential

  • The team has set aggressive growth targets with expansion in 22 countries as early as 2019. +3
  • The tokens not only have transactional value but also holding values regarding regular energy payouts and franchise benefits. +3
  • Although they do not have a working product yet, the existing entity in Romania with $20 million in sales gives the project a solid credibility. +4

Disposition

We deduct another 1 point due to the lack of external application integration functionality which gives Power Ledger unlimited potential. We arrive at a score of +6 for Restart Energy.

The scoring in the decentralized energy industry could go as follows,

Power Ledger > Restart Energy > Grid+ > WePower > SunContract.

Going ahead, Restart Energy might get the top rank owing to its core competence in the energy markets.

Investment Details

The presale begins on January 15. You can purchase the tokens here.

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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4.5 stars on average, based on 16 rated postsAakash Kawale is a financial analyst based out of Mumbai, India. He is the lead analyst at a Singapore based organization and has extensive experience of analyzing US and Indian equities. Aakash is a strong advocate of the Blockchain technology and has been analyzing cryptocurrencies since 2015.




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ICO Analysis: Mandala

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MDX cryptocurrency exchange

With the increasing popularity of cryptocurrencies comes a growing demand for exchanges where the various cryptocurrencies can be traded. And although cryptocurrency exchanges have seen huge growth during the past couple of years, it’s still not showing any signs of slowing down.

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We now have a large selection of both traditional centralized and newer decentralized crypto exchanges to choose from. Some of these exchanges accept trading between national (“fiat”) currencies and cryptocurrencies, while most only allow for trading between cryptocurrencies.

Mandala is a planned cryptocurrency and blockchain asset exchange that distinguishes itself from other established exchanges by being focused primarily on simplicity and user-friendliness for people who are new to trading and investing.

According to the company, people who are new to investing makes up the majority of current and future cryptocurrency investors. Mandala is therefore aiming to be the gateway for these people into the cryptocurrency universe, in a similar way to the purpose Coinbase has served over the past few years.

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The Mandala team argues that as more and more big companies announce that they are exploring blockchain initiatives, the public will become more comfortable with the technology and more and more people will want to invest in cryptocurrencies. This will in turn lead to an exponentially growing flow of money into the crypto space, which translates into more business for crypto exchanges of all types.

MDX user interface

The most obvious problem when it comes to the Mandala ICO is the lack of any minimum viable product (MVP) or prototype. According to the roadmap on the website, the beta release of the exchange is scheduled for the third quarter of 2018, which is well after the start of the public token sale, which is set to begin on June 1.

It is also still unclear if Mandala will be a crypto-only exchange or if fiat currencies will also be accepted. The company writes on its website that they “hope” to be able to accept fiat currencies for trading “as the laws and compliance regulations allow.” In other words, we don’t know if fiat will eventually be accepted for trading on the Mandala exchange. However, given the strict regulatory requirements of most jurisdictions, and the fact that Mandala as of yet is not regulated by anybody, we have to assume that fiat trading will not be available in the foreseeable future.

In addition to the exchange itself, the team also plans to add a backtesting tool to let users easily test the reliability of technical trading indicators like the MACD or Moving Averages. It should be mentioned that this is something that is very difficult to create as an accurate and reliable tool. It is something for example TradingView has worked on for years, and even their solution is far from easy to use for beginners. With that said, IF the company manages to pull this off successfully, it would be a huge plus for the platform as a whole.

Token

The Cayman Islands-based company Mandala Holdings, LLC is issuing a utility token called MDX on the Ethereum blockchain.

The MDX token is intended to be used to pay for trading fees and commissions, and also as a currency to pay for purchases on the built-in marketplace that the team is planning to set up within the Mandala platform.

Similar to many other exchanges, users who pay their trading fees with the MDX token will receive significant discounts.

Approximately two thirds of the tokens will be available for sale, while the remaining tokens will be distributed as follows:

  • Team – 20%
  • Company reserve – 10%
  • Advisors, influencers and bounty – 5%

MDX token distribution

The current pre-ICO price of the MDX token is $0.07 + 25% bonus. During the first stage of the public token sale, the price will be $0.06 before it rises to $0.07.

Team

The first thing I always do when research an ICO team is to check the LinkedIn profiles of the key team members. This is a really simple way to check their level of commitment to the company launching the ICO, and very often I find the same result: Most of the team members haven’t even listed the company on their LinkedIn.

In the case of Mandala, the two co-founders have both listed the company as their employer. The Chief Marketing Officer, on the other hand, has no mention of Mandala on his personal profile.

The Chief Technical Officer, Zach Daniels, lists Mandala as one of six current employers on LinkedIn, which makes us seriously question his level of commitment to the company.

The CEO and co-founder of Mandala is Nate Flanders. Nate has a diverse background as founder of a blockchain-based online casino and a phone repair company in Florida. According to his LinkedIn profile, Nate is still working as Vice President of Operations at the online casino while he is setting up Mandala.

The other co-founder and CSO of Mandala is Chicago man Anant Handa. Just like the CEO, Anant also has a background in the phone repair business, and he remains CEO of ReVamp Electronics. In addition, Anant also remains an advisor to BitWatch.io, an app that helps crypto traders manage their trading activities and portfolios.

All in all, the two co-founders both have entrepreneurial experience and first-hand experience with blockchain technology, which is undoubtedly a positive for Mandala.

Verdict

The main problem when it comes to the Mandala ICO is clearly the lack of any prototype or MVP to demonstrate that the team is capable of building the platform they describe in the white paper. It should be clear for everyone that investing in an ICO that has nothing more than a website and a white paper is a very risky venture.

Regulations also pose a question mark when it comes to this ICO. It is unclear if the platform will be able to accept fiat currencies at this point, and we frankly don’t know if they will be able to obtain any regulatory approvals at all.

What we do know is that the company says they are “thoroughly researching and studying all applicable laws and will be be properly registered with the appropriate governing bodies, including the SEC and the CFTC[…]”

Unfortunately, the white paper that the team has prepared also appears somewhat generic and lacks details on how the platform will work.

Growth Potential

  • With the increasing popularity of cryptocurrencies comes an increase in demand for exchanges. Simplistic exchanges that are targeting new traders and investors certainly have a place in this space. +3
  • If the team can build user-friendly and reliable tools for backtesting of technical indicators and trading signals, that would be a big plus and could provide a boost for the platform as a whole. +4
  • The two co-founders have previous experience with blockchain projects, and the overall team appears competent, although we do have questions regarding the level of commitment from certain team members. +3

Risks

  • Generic-looking white paper with very few technical details on how the platform will work. A lot of general commentary about cryptocurrencies and blockchain, as well as visions and ideas for the coming Mandala exchange. -2
  • No minimum viable product (MVP). According to the roadmap, the beta release of the platform is scheduled for Q3 2018, with the full platform expected by the end of the year. Investing in ICOs with no MVP should always be considered high-risk. -4
  • The press releases published by the company, as well as the white paper, talks a lot about all the regulatory approvals that the team is planning to get, but lacks any details on what they have already acquired. -2 

Disposition

In summary, we believe that the idea of a simplistic exchange for new crypto traders is good, and we do think there will be a growing demand for this type of exchanges. The success of Coinbase clearly shows that this is something that can work very well if carried out in the right way.

Unfortunately, we cannot recommend investing in an ICO without an MVP, without knowing if the platform will accept fiat, without any regulatory approvals, and with a very general white paper without technical details.

Overall, we arrive at a score of 2 out of 10 for the Mandala ICO.

Investment details

  • Token Type: Utility
  • Platform: Ethereum ERC20
  • Symbol: MDX
  • Pre-ICO: Ongoing until May 31, 2018
  • Public ICO: Starting June 1, 2018
  • Token Supply: 400 million
  • Tokens Available for Sale: 260 million (65%)
  • Soft cap: $3 million
  • Hard cap: $18 million
  • Price: Pre-sale: $0.07 + 25% bonus, crowd sale: $0.06-$0.07
  • Minimum investment: 0.10 ETH/0.01 BTC/0.5 LTC
  • Payments Accepted: ETH, BTC, LTC
  • Jurisdictions Barred from Participating: USA

More information:

Website: https://mandalaex.com/

White paper: https://mandalaex.com/wp-content/uploads/mandala-whitepaper.pdf

Telegram: https://t.me/mandalaex

Featured image from Pixabay.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term trading. The author has no investment in Mandala at the time of writing.

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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4.3 stars on average, based on 32 rated postsFredrik Vold is an entrepreneur, financial writer, and technical analysis enthusiast. He has been working and traveling in Asia for several years, and is currently based out of Beijing, China. He closely follows stocks, forex and cryptocurrencies, and is always looking for the next great alternative investment opportunity.




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ICO Analysis: Verasity (VRA)

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Verasity is a video-sharing platform that caters to content creators and rewards viewers with VERA tokens just for watching content, sharing videos, watching ads and for referrals. Over the past few years, brands have shifted their advertising model to allow influencers to share products with their audience. This gives products a much more personal touch and translates to better conversions.

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Verasity will provide a way for viewers to help support their favorite channels by the use of VeraSparks. VeraSparks is a smart contract that allows viewers to buy and own a portion of a channel, and be rewarded with profits especially in future growth.

How is Verasity different than the competition in this field? Verasity is the only platform combining the following: Decentralized Proprietary Blockchain, Proof of View (PoV) – patent pending, Watch and Earn, Centralized Video Distribution, VeraSparks and the Spark Marketplace, and multiple ways for creators and users to earn VERA tokens. Just one of Veracity’s features, Proof of View (PoV), will help solve the problem of fake reviews that affect creators and advertisers.

Token

The VERA token is an ERC-20 token used as a payment method between brands and creators directly ensuring that brand placements are verified through Verasity’s Proof of View technology. Not only do brands now have direct access to content creators, but advertisers have the opportunity to reward viewers. Views are recorded on the blockchain so that validating viewer interaction is easily auditable. Proof of View is Verasity’s Patent Pending (*US and international patent pending, application number 62627285) system that provides more accurate audience metrics than traditional methods.

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Team

The list of team members and advisers on their website is quite extensive compared to the majority of ICOs. The team and advisers are showing commitment to the project with team tokens locked for 18 months and advisor tokens locked for 9 months. A few team members include: 

David Orman – CEO & Co-Founder

  • Founding Partner – Hatch-House
  • Founder – Namro Ventures Ltd
  • Advisor – Carabiner Partners
  • Formerly VP of Joost

David Rowe – Co-Founder

  • CEO – Black Green Capital
  • Founder – Hydro66
  • Founder – Easynet Group
  • Former Managing Board Member – Sky

Chris Gale – Co-Founder

  • Founder & CEO – Odyssey Mobile
  • Founder – TouchTab
  • Former CEO – Level Up Media Ltd
  • Crypto Investor & Blockchain Advisor

Adam Simmons – Co-Founder

  • Former VP Marketing – Level Up Media Ltd
  • Owner – Madals TV

Advisers include: 

Dr. Christian Jaag – Advisor

  • Founder – Cryptoeconomics
  • Managing Partner – Swiss Economics
  • Lecturer – Universities of St. Galen and Zurich

Matt Heiman – Advisor

  • Founder – Diagonal View
  • Founder – Mobix Trading
  • Founding Investor – Just Giving
  • Adviser – Channel 4, Visimo, The Cloud, Palringo

Jin Young Choi – Verasity Ambassador for Asia

  • CEO – Bitbank
  • CEO – Woorim Holdings
  • CEO – East Nine Company Ltd
  • CEO – Vision Group Company Ltd
  • Permanent CEO – D!conomy LAB
  • Executive Commissioner of World Franchise Council
  • Former Mayor of Namon City

Joel Kovshoff – Advisor

  • Founder and CEO – MyICOPool
  • Founder and CEO – Athena Trading Bot
  • Blockchain Advisor and Educator
  • A complete list of team members and advisors can be found at verasity.io.

Verdict

Verasity will use blockchain technology to finally have a transparent and reliable solution to the many problems facing the video sharing industry. Some of the key features of Verasity’s blockchain technologies are: Verasity High-Performance Blockchain, VERA Transactions, Proof of View (patent pending) and DPoS. All of the videos run off of VeraPlayer, which is a blockchain enabled video player that allows users to view content securely from many mobile and desktop devices without the need to install additional software. Verasity has partnered with Akamai, a leading global content distribution network. This enables Verasity to deliver over 8 PetaBytes of video data per month, allowing them to scale quickly. If Verasity continues to deliver on the benchmarks outlined on their roadmap, they could quickly become a major player in this highly competitive field.

Risks

  • Although Verasity is unique with their own blockchain and PoV, it still has competition such as Steem, Basic Attention Token, Props, and Flixxo. -1.25
  • The hard cap is on the high side at 6,245,750,000 VRA which equates to over $46M USD. -1.5

Growth Potential

  • Verasity has a large and experienced team along with top-notch advisers that are capable of building and scaling the company successfully. +4
  • Having multiple ways to earn for creators and viewers has the potential to grow at a fast pace while their partnership with Akamai will allow for scalability. Basic Attention Token may use Verasity as its default video player. +3.5
  • Hype and community are important to create exposure for ICOs. Verasity has over 41k telegram members, 10k Twitter followers, and 237k Facebook followers. +2.5

Disposition

Blockchain platforms are in high demand right now. Verasity is no exception. With internet traffic being worth $312 billion by 2021, online video is set to account for 82% of all traffic. Company giants such as Facebook and Google generated $191 billion in advertising revenue in 2017. Personal data has become the new commodity and Verasity aims to reward creators and content publishers. Verasity is 100% SICOP compliant (Sustainable ICOs Protocol) which defines rules and methodology to determine whether ICOs are secure, follow good practices and ethical rules. Verasity is one of the few ICOs that is completely compliant. In an ICO atmosphere riddled with scams, this gives Verasity a head start. Due to the enormous potential as a successful first mover and the fact that they have followed very strict rules to be ethically compliant, Verasity receives a rating of 7.25 out of 10.

Investment Details

  • Symbol: VRA
  • Price: 1 VRA = 0.0075 USD increases by 1% per 24 hours during sale
  • MVP/Prototype: Available
  • Platform: Ethereum
  • Payments Accepted: ETH, BTC
  • Total Token Supply: 12,491,500,000
  • Hard Cap: 6,245,750,000 VRA
  • Min Purchase: 10,000 VRA
  • Restricted Areas: USA (Accredited only), Cayman Islands, North Korea, Somalia, Yemen

Learn more about Verasity:
Website
Whitepaper
Token Sale Info

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: Cardium

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Venture capitalist Anthony Pompliano of Morgan Creek Blockchain Capital is looking to “tokenize the world,” and he recently said that eventually, all assets will be on the blockchain. He might get his wish sooner than he thinks, as evidenced by one of the latest blockchain startups planning an ICO.

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Russia-based Cardium basically brings FitBit to the blockchain with a proprietary device dubbed fitness tracker that’s similarly worn on the wrist and is the heart of the project. Cardium, which is designed to tackle the issue of obesity and the chronic diseases it leaves in its wake, like diabetes and cancer, tokenizes daily activity and incentives users with a digital currency as a reward.

It’s a massive ecosystem, one comprised not only of a native digital currency but also a partner gym-fueled mining pool that generates additional tokens that fuel the platform. The reason for gym-mining is to motivate members to participate in high-speed mining activity at participating gyms and while they’re there, exercising and socializing.

The problem Cardium is looking to solve is real, as evidenced by predictions for excess weight and obesity to affect 20% of the global population by 2025. These issues are especially pervasive in but not limited to developing nations. Cardium believes that by incentivizing its members with a reward for physical activity, whether high-intensity or moderate, people will prioritize cardiovascular activity. Cardium is looking to ride the wave of the second generation of wearable devices, one that Cardium believes will work in tandem with the Internet of Things (IoT) technology for autonomous smart devices.

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Here are a few of the features of its device:

  • “Tracking the number of steps and calories and setting goals”
  • “Monitoring the effectiveness and quality of sleep”
  • “Heart rate measurement

For every calorie users burn, they receive Cardium tokens.

Token

Cardium (CAD) is an ERC-20 smart-contract fueled token on the Ethereum network. CAD tokens that are generated from mining can be directed toward the partner network, such as gym membership discounts and sports product promotions, for instance. Cardium estimates that by consuming 2,000 KCALs per day, users can earn 2.64 CAD tokens daily based on the number of calories burned. Cardium has placed a ceiling on the lifetime number of tokens at 475,372,000,000 based on expectations to reach 100 million people over a decade. Any unused tokens will be burned.

Source: Cardium White Paper

Team

Cardium’s management team is comprised of four co-founders.

Philipp Klimov is founder and CEO. He boasts experience at leading Russian cybersecurity firm Kaspersky and experience in DDoS prevention, which bolsters the security profile of Cardium.

Alexander Perminov, anothe co-founder, specializes in data analytics.

Co-Founder Roman Chistyakov brings two decades of experience at major Russian corporations to the table, including Accenture, Rosneft and others.

Sergey Chernikov, co-founder and CTO, specializes in “database design, performance and high-load systems.”

Verdict

Cardium makes it difficult to disagree with physical fitness on the blockchain, and the partner network adds another layer of engagement. Investors should bear in mind, however, that the fitness tracker device wasn’t even a twinkle in the eye of its developers a year ago. It was born at the height of the cryptocurrency fever in December 2017.

While that doesn’t undermine the deal, it does increase the risk. Cardium must promote their brand and people must be willing to use their ecosystem. Otherwise, the reward tokens lose their appeal. If their roadmap materializes, this project could be a winner.

Risks

  • Cardium is a new concept that began at year-end 2017. While the startup has a defined roadmap through year-end 2018, it’s unclear if their fitness tracker is in development yet (samples are being tested this month, according to the company’s roadmap). There’s no history of performance or guarantee the market has room for another fitness tracker. -2.5
  • This brings up another risk, which is the possibility that a company like FitBit, that has proven sales, or worse Google or Apple, which similarly boast wearable products, could decide to integrate blockchain technology and issue digital tokens, which would raise the competition stakes significantly. -2

Growth Opportunity

  • Demand for wearable devices is on the rise, as illustrated below. Meanwhile, and while this part is unfortunate, the number of people with an excessive body mass index (BMI) is also increasing. Cardium has figured out a way to capitalize on each of these trends while at the same time improving the health of the global population. +4

Source: Cardium White Paper

  • Even though Cardium hasn’t generated any sales yet, they have a defined path to do so. The company will generate revenue from sales of the fitness tracker, a device by which all physical activity is measured and sent back to a smartphone and later to Cardium. They expect in year one to “attract” 10 million people and generate EBITDA of USD 150 million. +3
  • Innovation. Cardium’s concept of tokenizing daily activities could be brilliant. Consider the former wildly popular US television competition, “The Biggest Loser”. For 17 seasons, overweight contestants were tasked with losing weight by the carrot and stick method including a USD 250,000 prize reserved for one lucky winner. +3.5
  • Cardium is being advised by Moscow-based Conner & Company for the ICO. This relationship provides greater transparency to potential ICO participants and is a plus. +1.5

Disposition

We arrive at a score of 7.5 out of 10 for the Cardium ICO.

Investment Details

  • Token Type: Utility
  • Platform: ERC20/Ethereum
  • Symbol: CAD
  • Public Crowdsale: June 1 to June 30, 2018
  • Number of Tokens to be Issued: 475,372,000,000
  • Price: One CAD = USD 0.25 (Participants who invest more than USD 250 will receive a free fitness tracker device.)
  • Payment Method: Ethereum
  • Jurisdiction Banned: The United States and South Korea

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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4.4 stars on average, based on 7 rated postsGerelyn has been covering ICOs and the cryptocurrency market since mid-2017. She's also reported on fintech more broadly in addition to asset management, having previously specialized in institutional investing. Full disclosure, she's invested in bitcoin.




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