We enter this analysis with a concept not to be swayed, that document verification is a real and expanding industry, so the business model of providing cryptographically secure document verification is sound in principal. The company is already in business, after all, so failing to fund during the ICO will not mean there will not be later opportunities if the investor’s mood changes. They have provided a competing service to Factom for years, and now they are developing a project in concert with Microsoft and others that will decentralize the process and increase its efficiency. The primary motivation for the push to decentralization is that the cost of anchoring data to the blockchain has increased by 100 fold. As such, individual businesses which try to offer this service will probably run into a pool of clients that is too small to sustain the business model.
Rising transaction fees have made it too expensive for individual developers and most businesses to anchor data. Based on current market prices, anchoring one transaction every ten minutes to the Bitcoin and Ethereum blockchains costs $181,332 per year. These costs are projected to continue to rise.
Essentially, what we are talking about with Tierion is a decentralized, cryptographically enhanced notary public. At its heart, this is the intent of the blockchain – an immutable, uncensorable ledger which cannot be altered by single participants without agreement from all (and in many cases, this too is impossible). Such an application is useful well beyond the simple movement of money – in fact, its use cases beyond money may outweigh its uses within money in terms of both demand and economic activity generated.
Factom and others have pioneered in the field of utilizing blockchains for document verification and certification. Tierion aims to be a multifaceted firm, with their verification product, called Chainpoint, being the first use case for the TNT token. The token will be used to incentivize the hashes and proofs provided, as well as to acquire these services. The network will be a mix of large scale centralized companies such as Microsoft, who have already signed on, and independent operators. There are a few types of network participant, Microsoft falling into the first category:
- Core Service members have access to large resources. Chainpoint.org itself will operate three such data centers, and Microsoft is also offering one, at the outset. This ensures reliability.
- Nodes are everyday people who run the software. “Each node that joins the network improves scalability and reliability.”
- Clients, for example, any business, are the people utilizing the hashing service. Their usage of the network will determine the value of the token, so outreach to them and their uptake of the technology is crucial to a rising valuation.
Technologically, what Tierion does is develop an independent record which corresponds to established, secure blockchains, both Ethereum and Bitcoin being utilized in the first version. They call this independent record the Calendar, and the added value of it is that a user does not need any access to Bitcoin, Ethereum, or even the global internet. They can verify any record using Chainpoint itself. This convenience and level of separation between clients and complicated cryptographic technologies is important for adoption.
A global calendar makes it possible for anyone to audit Core and independently verify the validity and integrity of the chain. Each block is signed with a provider specific public key, and the chain is periodically anchored to Bitcoin and Ethereum.
Running the node software could be a redemption for those who missed out on cryptocurrency mining. Anyone will be able to contribute hashes, network throughput, and verification services by running the software, and as such they will earn TNT tokens in reward. Here are some important last bits about how Tierion works, before we get into analyzing the potential of the token as an investment vehicle.
Nodes may charge for generating and verifying proofs. Node operators can also build services and charge at a price that’s independent of the value of TNT. A fixed supply of TNT will be created during a token sale using the ERC20 standard. […] The token sale and our partner commitments guarantee that for the first year, users will be able to send limited amount of data to Core at zero cost.
The Tierion team bears noting because it is a successful team to date. They have survived some very, very bad times for Bitcoin and three years later are still in business. Now they’ve recognized an impending bottleneck that could put them out of business, but instead of that they seek to pivot and build a better future for their industry as a whole.
The top brass at Tierion are veterans of the silicon age, and this may explain how they developed the connections with Microsoft. At the helm is Wayne Vaughn. As president of Fuscient, one of the few firms to not just survive the popping of the dot com bubble but to thrive, he identified that the yield of web design services was dropping, and so pivoted the company into a marketing services firm with the launch of SmartNet. Vaughn has spent most of the past two decades quietly leading Fuscient with moderate success. Vaughn is CEO, so it’s no surprise that over the past couple of years he has seen the writing on the wall (the cost of administrating blockchain data services by oneself is getting to be untenable), thus the launch of the Chainpoint platform. Him having successfully pivoted a company during changing tides gives us confidence he will steer Tierion well in addition.
Lead developer and co-founder Jason Bukowski had a long career at Fuscient, from 2001 to 2015. Prior to that he had a brief stint as an everyday web developer. During his career he developed one of the first live analytics engines for websites, something very useful for the SmartNet system.
Also on staff is Glenn Rempe, who has experience leading development teams for a host of notable brands – Accenture, eBay, Symantic, EA, and HP.
TNT Token Distribution
A fixed rate of 1 billion TNT will be created on July 27th, with a target of $25 million. Only 360 million of the tokens are being publicly sold, with another 35% being distributed strategically by Tierion themselves. A total 300 million TNT will be kept by Tierion if you include the 1% they are paying themselves for offering the token sale. We have seen worse distributions than this, and we must lend this established business some trust in its ability to accurately distribute the “incentivization” tokens in a way that will truly incentivize it. For the first year, anyone will be able to use the service for free, so this has to be paid for somehow.
Just because Microsoft is touching it does not mean it will succeed. There are too many failed ideas out of Redmond to deny this fact. However, Microsoft’s involvement does make us feel better about this one than others. Yet, on a grand scale, Microsoft could be considered a bit of a newbie in terms of cryptocurrency, and so some things could potentially be totally off their radar. Nevertheless, we have to say we’re excited about this one.
The decentralized and open nature of Tierion makes it a killer to all competing applications if successful. The only future for companies like Factom would be to participate in this network or create an alternative and hope that it succeeded. So our standard risk of not enough first mover advantage or not properly leveraging such is not as prevalent here. Still, there are other risks.
One successful alteration of the Tierion calendar system could be a deathblow. Since there are potentially millions of participants and mistakes are made, this could happen. It seems unlikely, but it could happen. It is a risk that we will deduct .1 points for.
The necessity of the core providers is a departure from traditional decentralization and could be risky. While Microsoft probably is, most firms are not eternal. The network could experience serious variance in its availability and capacity if moderate sized firms enter and pull out of the core service sector often enough. We deduct .25 points for this possibility.
In terms of the token itself, one thing that comes up is the ability of node operators to forego the usage of the token when receiving payments. This could create a situation where several node operators are making significant gains using the software, but the only usage of the token is when they occasionally pay to have their calendar verified and other things they must do with the large core service providers. Forcing the usage of the token is a way to force its value to rise with its demand, but allowing for alternative payments at the least regulated level of participation is potentially dangerous. It’s unclear how this will actually play out in practice, or if it would even be profitable for operators to act in this manner, but it’s entirely imaginable. As such, here we find our biggest point cut: 2. Leaving risk zone, we have a negative carry of 2.35 points. Let’s see what we can find positive about the token, regardless if we believe the software will probably revolutionize several sectors of business.
- Microsoft putting its name on this project means that abandonment is unlikely, and incentives all around to make the thing work are higher due to the desire to have ongoing relationships with Redmond. +1
- With the right marketing, the ability to cheaply hash documents on a public and secure blockchain will find use cases we can’t even imagine right now. Everything from immigration to speculative scientific notions will find uses in this ability. This thing could potentially be massive. TNT tokens will rise in value as the popularity of the service rises. +5
- Microsoft’s involvement means that others will follow or try to compete. A “Google Notary” is imaginable, and the potential that such services could rely on the Tierion network is a big plus, but a mitigated one – companies like Google could go the other way, pick an alternative network, or build one of their own. +1
8 – 2.35 = 5.65, or about a 57% chance that if you buy in at the ICO level you will profit. Tokens often take a sharp dive after the ICO phase, so as always, there’s a chance your real profitable move with TNT is either to participate as an earning node or to wait for dips in the market rate.
On July 27th the token sale will open at https://tokensale.tierion.com/. It is recommended that you verify any address you send to before sending. In Ethereum, the smart contract should be recognizable at Etherscan.io by name – otherwise it is poorly written in the first place. There have been serious security issues as of recent with ICOs, in particular CoinDash.io losing something like $7 million to website hijackers. This being the case, the author recommends extreme caution when actually making your investment. It’s important to be quick to get in on it, but it’s also important to not repress any questions that may arise, and not send any money until they are answered by the firm directly.
ICO Analysis: Worldcore
From the perspective of ICOs, Worldcore stands apart for the fact that it is already known as a successful payment solution. Established in 2014, the Czech-based company offers an online transfer service that specializes in bank wires, prepaid withdrawal cards, instant credit card payments and free money transfers.
The company only recently announced plans to create a peer-to-peer lending platform hosted over the blockchain. While some may say Worldcore is being opportunistic, it boasts a client base of more than 25,000 people across the globe. In 2017, it has already cleared $100 million in transaction volume.
As a regulated payment solution with an EU license to operate in the Czech Republic, Worldcore has had great success in its first few years. It has an established track record, a decent business model and aspirations of global expansion. It also picked the right time to enter crypto.
But that doesn’t mean Worldcore doesn’t have limitations. As we’ll discuss in the following sections, the company’s lofty valuation is more than just a pat on the back for the good work it has done in recent years.
If that isn’t enough, we invite anyone to visit the company’s site (or is it, this one?) and try to make sense exactly what it is that Worldcore offers. The author isn’t proud to admit he had to visit several third-party websites just to figure out that the company is an online transfer service. You might be thinking, bad copywriters? Maybe. But what if we told you Worldcore is also planning to launch a 24/7 TV service? From the scant details we were able to obtain from the whitepaper, WorldcoreTV will be launched if and when the company raises $25 million. On that note, the whitepaper is a 73-page poster that doesn’t offer much to the tech-savvy investor.
Worldcore launched its WRC token Oct. 14 on the Ethereum blockchain. One WRC is valued at $0.10 USD, with a total market cap of $100 million USD. A total of 1 billion tokens will be circulated during the ICO. Investors can participate in the raise using fiat currencies like the euro and U.S. dollar, as well as cryptocurrencies.
Worldcore’s motivation for the crowdraise is to leverage the blockchain in pursuit of bigger business. The company isn’t just dabbing its foot in the ledger technology, but actually converting its business operation to enable greater blockchain capability.
In its whitepaper, the company emphasizes the following target audience for its services:
- Big companies
- Online shops and retailers
- Online marketplaces
- Common people
- All kinds of small business
With a list like that, it’s clear Worldcore is thinking very big. The company’s global reach is demonstrated by the fact that it has translated its website into more than ten languages.
Anyone who wants to send money overseas, facilitate business-to-business transactions and utilize unique security enhancements like voice recognition is Worldcore’s target market.
The company has an aggressive roadmap that begins by obtaining membership of the major credit cards, SWIFT and SEPA networks by Q1 2018. With $10 million in funding, it plans to open “5 fully-packed offices in 5 more EU countries” by Q1 2019. If it reaches $25 million in funding, it will launch its WorldcoreTV service, “the world’s first 24/7 hybrid of TV channel and digital media focused on Fintech & BlockChain industries with online and international 24/7 broadcasting through Satellite and IPTV.”
At $50 million raised, the company plans to transform into a Swiss bank. It believes it can do this by mid-2019.
WRC tokens are essentially a stake in the newly developed blockchain-focused company. In other words, think of your WRC tokens as stocks. There doesn’t seem to be any direct use of the tokens within the company’s network, except to reap profits from Worldcore’s business growth. Worldcore is offering 30% profit to its investors.
If “slow money” isn’t your style, you can trade the WRC token on the digital currency exchange. This option will be available to token holders immediately. The company says it will provide a full list of exchanges where WRC is accepted at the end of the ICO.
In terms of personnel, there’s quite a bit of clout behind the Worldcore executive. Founder and CEO Alex Nasonov was listed in the Financial Times annual ranking of New Europe 100 changemakers in Central and Eastern Europe. The company also has a solid list of general partners that includes Bitpay.
Against this backdrop, the author has little doubt that Worldcore is home to a solid team. However, very little information is provided about them, their credentials or the advisers they’ve selected.
Based on the whitepaper, Worldcore is home to at least three developers, 20-plus support and development staff and a core team of managers. The company also consults with advisers, but does not name them.
The team operates in accordance with EU law, so there’s little to be concerned about from the perspective of legitimacy, regulation and business ethics.
Worldcore is a highly ambitious company with a proven track record in its niche market. But as an outsider, understanding the company’s service offerings and assigning it a valuation has proven difficult. We feel that the strategy behind the capital raise veers away from the company’s core service offering. As an outsider, the roadmap for growth seems a little far fetched (as a reminder, Worldcore says it can become a full-fledged Swiss bank in less than two years).
- At $100 million USD, Worldcore is significantly overvalued. Although the company doesn’t state its revenues, the price tag is too high for what it currently offers. Of course, this hard cap is based on potential, but the author isn’t too excited about WorldcoreTV. -5
- The roadmap for growth makes very little sense. Capital raise via ICO makes even less sense from the information we gathered from the whitepaper and the website. -3
- Although the development team has been involved in blockchain since 2016, there’s no mention of blockchain or cryptocurrency expertise or experience. The team has done a good job offering an online payment service, but what exactly does this mean from the perspective of blockchain? By the looks of it, Worldcore is taking a deep dive into this technology. Can we really be sure it’s going about it the right way? -3
- Competition looms large for any blockchain-based payment service. This will work against Worldcore, which, again, has very little experience. -3
- Worldcore is scaling up its core services quickly, and the company expects to clear $150 million in transaction volume this year. +4
- The company’s CEO has established a good track record that has not gone unrecognized. +1
Based on the above, we assign the Worldcore ICO a rating of 1 out of 10. The holes in the business plan are simply too glaring to even consider funding a project of this nature. We certainly don’t take anything away from the company’s growth, but the project idea does not compute.
Hacked.com members have a high propensity for spotting shoddy whitepapers. The Worldcore write-up is one of the weakest seen. Once again, we invite our members to give it a read and share if they have any unique or differing perspectives.
For more information about the Worldcore token raise, visit the main website.
- Project Type: Crowdsale
- Opening Date: Oct. 14, 2017
- End Date; Nov. 14, 2017
- Platform: Ethereum (ETH)
- Total Supply: 1 billion tokens
- Token Price: $0.10 USD (all unsold tokens will be burned upon the ICO’s closure)
Featured image courtesy of Shutterstock.
ICO Analysis: Genesis Vision
Genesis Vision is creating a platform for a private trust management market based on blockchain and smart contracts which will serve as an ecosystem for traders, investors and brokers.
Gensis is proposing a system which will enable investors to passively invest in BOTH cryptocurrencies and traditional assets. Trust management in this reference is a system where investors transfer their funds to wealth management companies/fiduciaries/experts who manage and invest these funds in assets which match the investor’s risk profile. The total amount of funds under management globally were at $70 trillion in 2016, and are expected to reach $100 trilllion in 2020.
Having personally worked in this industry for a few years, the author has seen some of its grey areas very closely. Wealth management companies measure their success by the amount of funds they are managing, which incentivizes them to attract as much capital as they can. While investors select fund managers based on their past performance, these numbers can be easily overstated by creating personalized statistics for performance measurement and working in tandem with brokers. Even the fee structure is kept opaque in many instances, with many types of “hidden” fees being charged to the customers. Many fund managers receive bonuses which are 15-20 times of their base salaries, which incentivizes them to keep the fee structure high and opaque. While investors have kept investing money with wealth managers, numbers show that only 17% of them have managed to beat their respective benchmarks in the past 10 years.
Genesis Value Proposition
Genesis Vision is a decentralized trust management platform built on blockchain technology and smart contracts. Blockchain technology provides indispensable advantages, such as openness, immutability, and censorship-resistance of all stored information, whereas smart contracts, which will be carrying out investment and profit distribution, make these processes completely transparent and open. Each manager in the Genesis Vision network has his own cryptocurrency. The size of the issue depends on successful trade statistics. The process of transferring funds to the manager is carried out by buying a manager’s cryptocurrency on the internal exchange.
There will be 3 core elements of the Genesis ecosystem: investment managers, investors and the brokers. Investors and the investment managers will interact with the platform using the mobile app or the web based application. Each manager will have his own Ethereum based token. Investors will contribute the funds that they want invested and will get the manager’’s tokens in return. A manager’s tokens gain their value from the performance of his portfolio and will trade on Genesis’s internal exchange. The manager shares the profits from the portfolio after fixed intervals, which are shared with his token holders. Smart contracts facilitate all the transactions. Every trade that a manager makes is stored in the decentralized IFPS which is visible to all and makes the system transparent.
The part of the ecosystem discussed above is enough for cryptocurrency based asset management, however when dealing with traditional assets, the brokers come into play. As of now and maybe for a foreseeable future, Genesis will only facilitate cryptocurrency and Forex based asset management. When an asset manager includes Forex in his portfolio, the investor’s funds will be routed through a broker who will buy the required fiat currency and supply it to the asset manager.
The proposed business model has benefits for all participants which includes investors, managers and the brokers. The investors benefit from the transparency while the investors and brokers get to access a larger demographic.
If you remove the Forex part of the project, the idea is similar to what Melonport and CoinDash are doing. All three of them facilitate any trader to create and manage crypto based portfolios. Genesis differentiates itself by including the traditional asset part as well as creating individual tokens for each asset manager.
Token and Crowdraise
Genesis Vision has its own token: GVT ( Genesis Vision Token). GVT is based on ERC20 Ethereum token standard.GVT will be used for all investment operations, profit distributions, and managers’ token trading on the internal Exchange.
Along with GVT, each manager will have his own token. The manager’s tokens will only trade on the internal exchanges where users can buy them in exchange of GVT.
The GVT are limited in number and as demand for the platform grows, so does the value of GVTs.
The ICO started on 15th October 2017 and is open till 15th November. 75% of the 44 million tokens are available for the ICO and 1 GVT is valued at 1 USD (hardcap $33 million). A 20% bonus is available for the next 2 days. 40% of the funds raised will be used for product development while 30% are dedicated to marketing. Genesis will be marketing the product heavily amongst users and brokers, hence the higher allocation. The team will keep 11% of the tokens.
The Genesis Vision team ranks highly on credibility. With transparency at the core of the Genesis Vision project, the team had their Initial Coin Offering certified by The Financial Commission successfully. The Financial Commission is “an independent self-regulatory organization and external dispute resolution body, primarily dedicated to Forex.”
Genesis is the first ICO to be certified by the Financial Commission. One of the 3 cofounders Alexey Kutsenko is the CEO of Tools For Brokers. Tools For Brokers (TFB)is a fintech company working exclusively with brokers and has around 300 brokers as clients. The close relations of TFB will facilitate broker participation in Genesis Vision. The other two cofounders Ruslan Kamenskiy and Dmitry Nazarov started working on the project in 2016 and won the HackRussia all-Russian hackathon in the nomination “Finance and Blockchain” with the Genesis Vision project. There are 10 members in the team and 13 prolific advisors, many of them being CEOs and founders of Russia based wealth management companies.
Credibility is always a top priority when looking at ICOs and Genesis has plenty of it.
Genesis builds up on the existing blockchain based asset management firms by enabling a window for traditional assets. Although the initial product focuses only on cryptocurrencies and Forex, many investors will find value in holding multiple fiat and cryptocurrencies together. The concept of each asset manager having his own currency seems really cool and will help attracting many potential traders/analysts. However, there is intense competition in blockchain based asset management space with companies like Melonport already working on betas with a thousand users. We hope Genesis does not lose a significant market when it rolls out its first version in 2019.
- The gateway to traditional assets will not be easy. Genesis will face many regulatory headwinds when it eventually expands in traditional assets beyond Forex. -2
- As mentioned above, Genesis faces intense competition in cryptocurrency asset management space. -3
- Although the concept of asset managers having their own currencies sounds interesting, it makes the project much more complicated. -0.25
- The first version of the product will be released in 2019, which seems a bit stretched. -1
- Although the share Forex asset management is lower than other forms of asset management, it still is humongous considering the total market size of $70 trillion. +4
- Credible management and the advisory team is a big positive. +3
- Genesis already has a solution for trust management market used by 80 financial companies. The working solution is based on a b2b model and is centralized. +3
- Genesis has good relations with around 400 brokers and 50+ wealth management companies. This will help them scale very quickly. +2
We arrive at a score of +5.75 out of 10 for Genesis Vision. There is no softcap and unsold tokens during the ICO will be burned which might result in potential upside in case the hardcap is not reached. Overall we have a positive view of Genesis.
The ICO is live. You can buy the tokens here.
ICO Analysis: Bloom
Credit scoring serves an integral function in the lending process. Yet, in 2015, U.S. Congress declared credit scoring to be a monopoly controlled by one organization: FICO. The data analytics company is responsible for scoring more than 90% of top U.S. lenders, leaving some 26 million Americans unable to obtain credit.
A similar monopoly exists globally. More than one-third (38%) of the world’s population does not have a bank account, and 3 billion people are unable to qualify for a credit card. Although creditors would love to serve this untapped market, traditional credit bureaus cannot score prospective borrowers unless they’ve already taken on debt.
Against this backdrop, Bloom has emerged as a global, decentralized credit protocol that addresses existing limitations in lending by applying blockchain technology to credit scoring and risk assessment.
Bloom is a protocol for assessing credit risk through federated attestation-based identity verification and the creation of a network of peer-to-peer and organizational creditworthiness vouching (“credit staking”). – Bloom Whitepaper (2017).
Through the Bloom protocol, lenders will be able to issue complaint loans on the blockchain at affordable rates. In doing so, the Bloom protocol seeks to address five overlapping issues:
- Cross-border credit scoring: Credit histories in one jurisdiction do not apply to other jurisdictions, forcing borrowers to re-establish their credit score when they relocate.
- Backward-looking credit assessment: Borrowers with no credit history are at a significant disadvantage when it comes to obtaining a loan or credit card.
- Lenders are limited in terms of global reach: Lenders are usually unable to serve borrowers in underdeveloped markets because they lack identity and scoring information to base their decisions.
- Risk of identity theft: When applying for a loan, borrowers must bear all their personal information, giving potential hackers more information to commit fraud.
- Lack of competition: The credit scoring industry is heavily concentrated, resulting in an uncompetitive market.
The Bloom protocol is based on three components. Together, the seek to overcome the five challenges posed above.
- BloomID: Identity attestation allows borrowers to obtain a global secure identity, making it easier for creditors to assess them.
- BloomIQ: A credit registry that tracks current and historical debt obligations tied to a borrower’s BloomID.
- Bloom Score: The credit score measuring consumers’ creditworthiness.
While certainly making a strong case for a decentralized credit scoring platform, Bloom doesn’t specifically address how the system will solve the five problems highlighted above. Instead, it seems to show that BloomID, BloomIQ and Bloom Score will address the problems by creating a globally portable credit profile that will: (1) apply across borders; (2) enable a backward-looking credit assessment regardless of jurisdiction; (3) safeguard consumer information through a secure system as well as globally-recognized identity attestation; and (4) create a global market place for creditors to access borrowers who have fallen outside the purview of traditional finance.
Although the author’s conjecture may be sound, the whitepaper does not provide specific details on how this system will work, let alone explain the regulatory challenges standing in the way of this vision. This is discussed in greater detail in the Verdict section.
The company has laid out how this protocol will improve on the current system of credit evaluation:
The Bloom protocol improves the current credit ecosystem by creating a globally portable and inclusive credit profile, reducing the need for traditional banking infrastructure and opaque, proprietary credit scores. This means both traditional fiat lenders and digital asset lenders will be able to also securely serve the 3 billion people who currently cannot obtain a bank account or credit score.
The Bloom token (BLT) is powered by the Ethereum blockchain, and will serve both as a currency and governance mechanism on the network. In other words, BLT will allow organizations to evaluate user identity and credit worthiness. The companies using the Bloom network will pay for identity verification and risk assessment using BLT.
As such, the BLT token can be used in three ways:
- Scoring Proposals: The BLT token essentially serves as the governance mechanism for the network. Through token-based voting, bad actors are held to account.
- Security: BLT allows the Bloom network to implement fees for invitations. By imposing small costs on each transactions, attacks are not economically viable.
- Payment: The token serves as the primary currency on the Bloom network.
The Bloom team consists of four core members: Jesse Leimgruber, Ryan Faber, Alain Meier and John Backus. The founding team members have backgrounds in computer science, digital marketing and blockchain. John Backus’ resume strikes our attention given his role as research scientist at the Stanford Bitcoin Group.
In addition to the founding team, Bloom has three advisers on board, including Meg Nakumura, CEO of Shift Payments. Joseph Urgo has also been recruited from District0x, an Ethereum dApp. David Raphael of Infinity Media also brings with him experience in conversion rate optimism. Overall, the brains behind Bloom appear to be well qualified and highly focused.
Very few ICOs are as highly regarded as Bloom. This massive undertaking has the potential to become a highly lucrative enterprise. Bloom’s expansion into credit card services is also commendable. To speed up adoption, the company will launch the BloomCard, a blockchain credit card intended to serve as the model for all future credit providers.
On the flip side, significant challenges remain. Unless they are addressed, the company may struggle winning over institutional adoption. Providing a clearer implementation timetable is also needed to win over investors. The author believes that an updated whitepaper is warranted as Bloom moves forward with its raise.
- The credit scoring industry is mired in regulations that become even more complex when the moment we cross borders. Bloom has not outlined how it intends to navigate these issues. -3
- Although the team has outlined a roadmap for implementation, no dates are provided. How fast will they be able to scale? Is the existing team sufficient in reshaping the global credit scoring industry (i.e., overtaking FICO)? -2
- There’s probably a good reason why many people struggle to get credit. Is Bloom’s business model inherently risky? And will creditors be willing to take a gamble on borrowers with bad or no credit? -2
- Bloom is presented with an undeniably lucrative opportunity to link creditors with unbanked populations. More than one-third of the world’s population does not have a bank account and many more do not have access to credit. +4
- The credit industry has been under the microscope following Equifax’s massive data breach, which exposed the private information of 143 million users. The combination of BloomID and security for invitations makes Bloom a much more secure platform. +4
- Unlike other ICOs, Bloom’s multi-purpose token adds real value to the business. +2
- The Bloom platform is likely to benefit from positive publicity tied to its admirable business objective of expanding credit options to all. +2
Factoring all the above, we give Bloom a generous score of 5 out of 10. It should be noted that the ICO launch date has yet to be announced, which means our rating may be revised once details of the pre-sale surface.
Bloom is a highly ambitious project that, if realized, will benefit society in many ways. But there are glaring concerns related to regulation, credit risk and implementation that still need to be addressed. Combined, these factors could adversely impact institutional adoption.
The Bloom protocol will be developed in six major phases, culminating in the democratized autonomous credit infrastructure. The pace and timing of that roll out has yet to be determined, a clear sign that Bloom is still in its early concept stage.
Another review of Bloom is likely warranted once the company provides more explanation regarding its technical features, and how it plans to tackle the five problems discussed in its whitepaper.
No ICO pre-sale information has been provided yet. Users are encouraged to follow Bloom’s website or subscribe to their newsletter for the latest information.
Featured image courtesy of Shutterstock
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