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ICO Analysis : Vault 12

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Everybody knows that a huge sum of cryptocurrencies are lost when owners lose access to their private keys. Vault 12 project tries to solve one of the most important problems every crypto investor faces every day: securing their assets.

Vault 12 was designed as an application that will simplify the protection of cryptographic tokens as easily as opening an application on our smartphone or computer, choosing people from our friends and relatives that we want as our audit circle, and then providing a mechanism to protect these digital assets until we decide to use them.

The purpose of Vault 12 is to provide crypto users with tools to actually store and protect their crypto assets without any unjustified risks, thereby giving users full control and ownership of their crypto assets in a private and stand-alone manner.

Shamir’s Secret Sharing Algorithm provides tools for circumventing documents, files, and images through a decentralized Vault 12 storage network. This cryptographic algorithm literally divides (or breaks down) your documents (let’s say, the image of your seminal words) into several parts as if dividing a piece of A4 paper into 4 squares and then distributing them to different authorized devices or people you have chosen.

To recover a document or key, a given number of devices must call a certain number of these fragments to access your document or private key stored in the Vault 12 decentralized storage network.

This protocol helps determine the role of each device in the grid, where certain operations are possible only on certain devices belonging to the trustees of your choice.

Having different levels in your social network, this allows you to significantly increase the number of fragments to ensure that redundancy is achieved successfully.

As an example:

The owner/master device selects its custodians (Trust Levels), as described above, whose phones are now becoming distributed storage nodes. Then, the owner opens a repository of distributed data stores on these nodes, and the application on the master device splits the private keys into encrypted fragments, which are then distributed to the custodians, in particular, the custodians for permanent storage. After the transfer of fragments, the application checks them and periodically monitors the state of the storage.

If the owner wants to unlock the vault, in this case, a social check comes into effect, the application starts to collect the threshold amount of pieces, which allows the master device to begin the process of recovering private crypto asset data, allowing the Master device to use the specified data.

It is also important to note that if the Master is lost or compromised accidentally, the owner is protected, since the device itself does not store crypto assets, so there is nothing more valuable than recovering from the Master.

 

Token

A total supply of 1 billion VGT tokens are provided. Forty percent all issued tokens will be sold. An additional 10% will be allocated to the pool of community rewards and will be awarded, at the discretion of Vault 12, for individuals and organizations for outstanding high-quality open source contributions to the Vault Cryptostorage platform and code base.

Fifty percent will remain locked in the inventory of the company within one year after the date of the end of the initial sale. After the initial annual lockout period, Vault 12 will never sell more than 10% of the remaining number of blocked tokens during the calendar year.

Vault 12 created Vault Guardian Token (VGT) to enable all services and applications deployed on the Vault Cryptostorage platform. VGT is designed to be used for the following purposes:

  1. Owners can encourage their Custodians by offering various payments or direct periodic payments, or a reasonable contract from the service of a professional custodian. For example, let’s say that Peter has 6 random guardians who will be paid 10 tokens a month for their services. Peter will transfer 600 tokens to his application for storage, and the custodians will be paid 10 tokens per month for this full year. At the end of the year, Peter would need to buy more tokens to keep his guardians in the provision of services.
  2. Operators can set higher tokens fees for a higher level of service, for example, higher overall throughput or greater reliability. To join this service, Peter would need to transfer 100 VGT tokens to his platform storage application to purchase these services

Team

Vault 12 has an all star team and advisors.

Co-founder and CEO Max Skibinsky is a serial entrepreneur, angel investor and startup mentor. Most recently, Max was an investment partner with Andreessen Horowitz, where he focused on enterprise security and bitcoin and deals with Tanium, TradeBlock and Digital Ocean. In addition to co-founding Vault 12, Max leads the R&D team.

Co-founder and COO Blake Commagere is a serial entrepreneur, angel investor and an advisor to several companies in the San Francisco Bay Area. He has started seven companies and sold five of them. He regularly gives talks on subjects including Growth Hacking, Fundraising and Psychology Management.

Chief Design Officer Brandon is a creative director and product designer with experience consulting for Fortune 500 companies and startups. He has experience with cyber security, enterprise trading and personal banking. Brandon was the co-founder of Alchemy50, a Brooklyn-based product design firm. A50 was acquired in 2017 and their clients included United Healthcare, Dataminr and Betterment. He has also designed security products for Comcast, trading platforms at Reuters, and advised on autonomous banking initiatives at Citi.

Chief Crypto Officer Wasim Ahmed is a serial entrepreneur and an advisor in the fields of AI, blockchain, cryptocurrency, e-commerce and encryption solutions. At Vault 12, he heads up marketing and business development. Previously was a founding member of the Voltage Security team, a spin-off from Stanford University, that launched Identity-Based Encryption (IBE). Format-Preserving Encryption (FPE), and pioneered the use of sophisticated data encryption to protect sensitive data and payment information.

Vault 12 has a very strong set of advisors like Jarrod Dicker from Po.et, Sathvik Krishnamurthy from Voltage Security, Vinny Lingham from Civic and Roman Storm from POA network.

Big names in the VC world like Kenetic, #Hashed, FBG and Winklevoss Capital Management also have a stake in the company.

Verdict

If we will take into account circulation at listing including lockups, we will see a potential valuation of $40 million. Token distribution is pretty centralized due to offering to accredited investors., so short-term potential may raise some concerns. But the long-term picture seems positive and encouraging.

Risks

  • Competition in the sector is rather fierce if you consider wallets like ledger nano and others. -1
  • It is hard to predict whether the pricing of higher level services will be available to the community at large, which could limit overall demand -1
  • The community can be skeptical about uploading their seed words or documents on the internet -1
  • Projects accept funds only from accredited investors due to legal concerns, which can result in a weak community from existing crypto enthusiasts. -1
  • Hard cap of 40 million is pretty high at the current market for an application. -2

Growth Potential 

  • The private key depositary is only the beginning. The project will add other types of supported files for storing in the future. +1
  • The project can be first of its kind so it will have the advantage to seize market share +2
  • It could be a potentially preferred platform for wealthy individuals and institutions if they will enter crypto asset market +1
  • Team and advisors are well built and have a wealthy experience in traditional and crypto markets +3
  • Strong VC support including Winklevoss brothers. +2
  • MVP is available, the platform will be launched in October. +2
  • Road map is pretty short, which can result in a fast adoption and commercialization +1

Disposition

Overall, the disposition looks promising. The project has a strong team, product and road map with good long-term prospects, but there are several concerns which results in a still strong rating of 6 of 10.

Investment Details

  • Type: Utility
  • Symbol: VGT
  • Platform: Ethereum
  • Crowdsale: August/September
  • Minimum Investment: TBA
  • Price: 0.1 USD/VGT (10%/30%)
  • Hard Cap: Around 40m
  • Payments Accepted: ETH, USD
  • Restrictions Barred from Participating: Only accredited investors are allowed

General details :

Website : https://vault12.com/team/

Twitter : https://twitter.com/_vault12_

Github : https://github.com/vault12/

Telegram : https://t.me/vault12

WP : http://bit.ly/vault12-whitepaper

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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4.9 stars on average, based on 9 rated postsVladislav Semjonov has a legal and financial background. He has been involved in crypto space since early 2017 in both ICO advising positions in several ICO consultancy firms, and as an ICO analyst for VC. He began contributing for Hacked.com in April 2017.




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ICO Analysis: Hedera Hashgraph

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Hedera Hashgraph is another project in the blockchain space aiming to take blockchain to the next level: fast and ready to take on widespread usage by the mainstream as well as enterprises.

Currently, distributed ledger technology faces a number of challenges:

  1. Scalability
  2. Security
  3. Governance
  4. Stability
  5. Regulatory Compliance

Hedera Hashgraph’s team believes that only when these challenges are addressed and surmounted will mainstream markets trust blockchain enough to adopt it en masse.

With regards to the aforementioned challenges, Hedera Hashgraph aims to address them in the following ways:

  1. Performance – Hedera is built on the hashgraph distributed consensus algorithm (“hashgraph” also is used to refer to Hedera’s blockchain), invented by Hedera’s CTO and Chief Scientist Dr. Leemon Baird, who worked as a Professor of Computer Science at the US Air Force Academy and has multiple patents and publications in peer-reviewed journals. According to the Hedera Hashgraph whitepaper, the platform can handle hundreds of thousands of transactions per second in just one shard (let alone the entire network). Confirmations also happen in seconds and not minutes, hours, or days.
  2. Security – Hedera Hashgraph is secure through asynchronous Byzantine Fault Tolerance (aBFT). While other platforms are susceptible to Distributed Denial of Service (DDoS) attacks, the hashgraph platform isn’t. Moreover, aBFT provides both fair access and fair ordering for transactions on the platform. Appendix 3 of the whitepaper gives a full definition of the hashgraph algorithm and its fairness properties as well as proofs of aBFT.
  3. Governance – Hedera’s governance consists of Council Governance (management of council concerns) and Consensus Model (determining transaction consensus order).
    • Council Governance is done by an elected Governing Board that deals with council membership policy, network token regulation, and platform codebase changes. The Governing Board will consist of up to 39 leading organizations in their respective fields, bringing expertise previously lacking in past blockchain platforms.
    • Consensus Model deals with how nodes reach consensus on the platform’s order of transactions. In the Consensus Model, nodes cast one vote for each Hedera token that they own and since many nodes are expected to join the network and be compensated for maintaining the hashgraph ledger, it’s expected that Consensus Model voting privileges will be distributed amongst thousands of nodes.
  4. Stability – Hedera Hashgraph’s stability will be ensured with both technical and legal controls.
    • Technical – Hedera Hashgraph has Swirlds technology, which has the effect of protecting users of the platform from unofficial forks of the platform as well as ensuring that only software clients running the latest version are able to modify the hashgraph.
    • Legal – The Hedera Hashgraph codebase will not be open-source but be available for public review so that anyone can read the source code, recompile it, and verify its legitimacy. No licenses will be required to use the platform, write software that uses the platform, or build smart contracts on the platform. Thus, Hedera will provide a transparent codebase open to innovation so that the market can use it for its own purposes.
  5. Regulatory Compliance – Hedera has an opt-in escrow identity mechanism that gives users the choice to attach verified identities to their otherwise anonymous cryptocurrency accounts. Therefore, on the one hand, anonymous users can maintain their anonymity, and on the other, users that need to be verified for official purposes can do so without having to worry about regulatory backlash.

Token

By replacing proof-of-work consensus mechanisms with virtual voting (nodes cast one vote for each Hedera token that they own), high throughput, low fees, and micropayments are all made possible.

DApp developers on the network will use Hedera tokens to pay for network services like processing transactions, executing smart contracts, and storing files.

As mentioned earlier in the analysis, anyone running a node will earn Hedera tokens for doing so. The amount they earn is proportional to the amount of Hedera tokens they stake in one or more accounts for which they have the private keys. (This stake is also used to weight their votes in the Consensus Model). However, users are still able to spend their stake at any time – though of course spending some of the stake means receiving less rewards for running a node.

Users who don’t want to run a node (e.g. not wanting to invest in computing resources and/or the maintenance of them) can “proxy stake” Hedera to someone else’s node. This means that the user with no node gives a node “credit” for their stake and splits ledger maintenance awards with the node that they credit with their stake. (The ratio of the split is negotiated between the two parties). Proxy stake funds are in control of the proxy staker, who can spend the stake at any time, turn off the stake, or even redirect the proxy stake to another node.

As mentioned, fees are low, but they do exist. There are node fees, service fees, and transaction fees:

  • Node fees – a platform user can use platform services (e.g. transferring crypto from one account to another) by contacting a node, which submits the user’s transactions. The platform user pays a fee, negotiated between the user and the node, to the node for its service.
  • Service fees – users that use platform services (e.g. storing a file in the hashgraph) without going through a node pay a service fee.
  • Transaction fees – transactions handled by the network incur a fee to cover the associated costs of nodes exchanging data about the transactions, temporarily storing them in memory, and calculating consensus on the events containing them.

Token distribution is “expected” (taken from the Hedera Hashgraph crowdsale FAQ – “What is the token distribution?” section) to be as follows.

  • 65% Hedera Council Treasury
  • 17% management and employees
  • 13% SAFT purchasers and developers
  • 5% Swirlds

Hedera has already raised $100m in funding from institutional and high net worth investors and is currently conducting an accredited investor crowdsale ($20m target).

Accredited investor verification (whitelisting) will stop when $20m in funding is reached or August 15th, whichever comes first.

Token price and token release schedule for both first round and accredited investor round are the same:

  • Option A: $0.12 per token. 20% of tokens issued six months after network launch, with the rest vested in 10% installments over 8 months.
  • Option B: $0.096 per token. 20% of tokens issued six months after network launch, with the rest vested in 20% installments over the subsequent 4 years.

The majority of founder tokens are vested in 4 to 6 years.

If all funding goals are met, the project will start with a $360m market capitalization (based on expected circulating supply on day of token release).

Total token supply is fifty billion.

The offering is a Simple Agreement for Future Tokens (SAFT) in accordance with SEC regulations and there will be no ICO.

Minimum contribution is $1,000, and maximum contribution per person is $250,000. However, investors who want to invest >$250,000 can email saft@hashgraph.com (?), according to the Hedera Hashgraph crowdsale FAQ, which is confusing.

All raised funds will be used to grow the platform (engineering, sales, marketing, developer advocacy, community development, legal, etc).

Team

Co-Founder, CTO, and Chief Scientist Leemon Baird – Baird invented the hashgraph consensus algorithm, has worked as a Professor of Computer Science at the US Air Force Academy, has a PhD in Computer Science from Carnegie Mellon University, and has many patents and publications in peer-reviewed journals and conferences in the fields of computer security, mathematics, and machine learning.

Co-Founder and CEO Mance Harmon – Harmon also has an Air Force background as former Course Director for Cybersecurity. He was also Program Manager of a large-scale software program for the US Department of Defense’s Missile Defense Agency and senior executive for product security of an unnamed $1.7b revenue organization.

President Tom Trowbridge – Trowbridge is President of the Hedera Hashgraph Council and has a strong finance background, having started and ran the New York Office of UK-based Odey Asset Management. He also has held positions at Goldman Sachs, Lombard Odier, Atticus Capital, Bear, Stearns & Co., and telecom and media private equity firm Alta Communications, where he was responsible for 10 deals.

Verdict

Below is a breakdown of the risks and growth potential of Hedera Hashgraph.

Risks

  • Very bold claims but no working product (-1)
  • High hard cap and initial valuation but other projects that have done well have had the same (though uncommon) (-0.5)
  • Similar to EOS – bold claims, no working product, lots of hype – except the EOS team probably had a more relevant background (CTO Dan Larimer was behind popular and proven projects like Bitshares and Steemit) (-0.5)

Growth Potential

  • A lot of hype (e.g. large Meetup community) (+4)
  • Some DApps have already committed to the platform, and many developers are interested in the platform (e.g. their developer – not general public – Discord channel has nearly 5,000 members as of writing) (+4)

Disposition

  • Hedera Hashgraph promises to pack quite the punch similar to projects like EOS. The hype is definitely there, but can the team deliver?
  • Hedera Hashgraph receives a 6/10.

Investment Details

  • Type: Native – Utility
  • Symbol: Unspecified
  • Platform: Native
  • Crowdsale: Ongoing
  • Minimum Investment: $1,000
  • Price: $0.096 or $0.12
  • Hard Cap: $120m (institutional round and accredited investor round combined)
  • Payments Accepted: BTC and USD (via wire transfer) – can’t mix BTC/USD to pay for one SAFT (but can purchase two SAFTs separately using BTC for one and USD for the other)
  • Restricted from Participating: The SAFT is being offered to accredited investors in 63 countries. (Anyone from a country NOT on the following list is restricted from participating). The countries are: Andorra, Argentina, Australia, Austria, Belgium, Bermuda, Brazil, Virgin Islands (British), Bulgaria, Canada, Cayman Islands, Croatia, Cyprus, Czech Republic, Denmark, El Salvador, Estonia, Finland, France, Germany, Gibraltar, Greece, Guatemala, Honduras, Hong Kong, Iceland, India, Republic of Ireland, Isle of Man, Israel, Italy, Jamaica, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Mexico, Moldova, Netherlands, New Zealand, Nicaragua, Nigeria, Norway, Panama, Poland, Portugal, Puerto Rico, Romania, Saudi Arabia, Singapore, Slovakia, Slovenia, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, United Arab Emirates, United Kingdom, United States.

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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ICO Analysis: Emotiq

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Who will become the most scalable blockchain ready for mainstream adoption?

Emotiq is yet another contender in the “next-generation blockchain” space that claims powerful scalability and privacy while making smart contracts easier and more accessible.

In their own words, they want to be the Apple of blockchain vs. other blockchains, which are more like Android and Windows (don’t shoot the messenger). Emotiq is developing a blockchain interface so friendly and natural that even kids will be able to use it! Quite the claim when you consider that most adults can’t currently use blockchain!

Emotiq’s smart contracts are written in Ring, a plain English programming language that’s as easy as reading the news. Not only does Emotiq offer an easy way to read and write smart contracts, but it will also support most Ethereum smart contracts (written in Solidity).

Emotiq is aiming at processing 1 million transactions per second, using zero-knowledge proofs for transaction privacy, and scaling through sharding. Secure cryptographic purging of spent transactions will ensure that Emotiq’s blockchain stays small and manageable.

Emotiq, like other similar projects, will allow for ICOs and DApps. Also, it will feature a decentralized exchange.

In essence, Emotiq wants to be the next Ethereum or Stellar but scalable, private, and accessible.

Token

There will be 1 billion total Emotiq (EMTQ), which will be distributed as follows.

  • 51.3% token sale
  • 16.7% development
  • 10% marketing and ecosystem
  • 10% reserve
  • 10% team
  • 2% advisors and backers

EMTQ is deflationary (max token supply decreases over time). A fixed percentage of yearly transaction fees will be burned. This will be done to increase the value of EMTQ and also to help prevent attacks on the EMTQ network.

In terms of its usage, Emotiq’s FAQ page says that EMTQ will be used the same way that ETH is used for Ethereum. In other words, we can expect EMTQ to be used to pay for resource consumption (sending payments, paying for services, creating child tokens/launching ICOs, etc.) on the Emotiq network.

There will be no public sale but Emotiq is currently in its third round of private sale (4 rounds total). If you are interested in participating in the private sale, contact sales@emotiq.ch with information about you / your fund, allocation you are interested in, and how you can help Emotiq grow.

Here are the details of private sale rounds and seed round thus far:

  • Seed – 150m EMTQ (15% of max supply), $2m cap, 100% lockup – linear release beginning 3 months after mainnet launch (12.5% per month)
  • Private round 1 – 140m EMTQ (14% of max supply), $9.8m cap, 50% released and 50% lockup – locked up tokens are released linearly starting 1 month after mainnet launch (20% each month)
  • Private round 2 – 60m EMTQ (6% of max supply), $6m cap, 70% released and 30% lockup – locked up tokens are released linearly starting 1 month after mainnet launch (33.3% per month)
  • Private round 3 (ongoing) – 139m EMTQ (13.9% of max supply), $18m cap, 75% released and 25% lockup – locked up tokens are released linearly starting 1 month after mainnet launch (33.3% per month)
  • Private round 4 – 23.5m EMTQ (2.35% of max supply), $3.2m cap, no lockup

Private sale inquirers who are deemed qualified will receive further details about past rounds, such as price.

Token sale proceeds will be used to do things like expand the Emotiq ecosystem through educational programs, build a top-notch research team, explore different smart contract languages for their ability to accelerate mass adoption, and provide venture funding for Emotiq-based projects.

Team

Emotiq is led by CEO Joel Reymont, who has 25 years of experience in technology and management. For example, he was Director of Prime Brokerage Technology at Deutsche Bank and CTO of Aeternity, another popular blockchain project.

Ann Soederblom, VP of Marketing – Soederblom has worked as a project manager for multinational companies like Citigroup and Holcim (8th largest Swiss company by revenue) and also runs her own marketing agency.

Vladimir Lebedev, VP of Engineering – Lebedev has an impressive background, having served as CTO of the Russian stock exchange, executive at VEON (telecoms company with more than 200m subscribers), executive at Mail.Ru group (biggest Russian Internet media company), and executive at Sberbank (biggest Eastern European bank).

Verdict

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

Risks

  • Bold claims (1m transactions per second and so on) but no mainnet (launch “expected” end of Q4 2018) or even testnet yet (-0.5)
  • Some tokens released after mainnet launch – what if there are problems with launch? Has happened before (-0.5)
  • Lacking in hype thus far (-0.5)

Growth Potential

  • Decently experienced team (+4)
  • Based in “Crypto Valley” (Zug, Switzerland) – favorable regulatory environment and good ecosystem to be a part of (similar to how being a tech company in Silicon Valley means proximity to leading members of the tech community) (+3)

Disposition

Though Emotiq’s ambitions are bold and they have a strong team and favorable working environment (Crypto Valley), their ambitions are as of yet unsubstantiated and hype regarding the project is – to date – lackluster.

Emotiq receives a 5.5/10.

Investment Details

  • Type: Native – Utility
  • Symbol: EMTQ
  • Platform: Native
  • Crowdsale: Private sale ongoing
  • Minimum Investment: $100k
  • Price: Contact sales@emotiq.ch for more info
  • Hard Cap: $39m
  • Payments Accepted: ETH
  • Restricted from Participating: Iran, Sudan, Libya, Syria, North Korea and the rest of the countries on the US sanction list are restricted from participating. Accredited investors from the US are allowed to participate.

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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ICO Analysis: Industry Token

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The team behind Industry Token (INDST) wants to create a way for hospitality, service, and travel merchants to transact while eliminating typical industry downsides like fraud and transaction fees. Low volatility will be another feature of Industry Tokens as volatility is an issue that plagues current cryptocurrencies and tokens.

The inherent nature of blockchain technology will allow for lower chance of fraud than traditional payment methods as well as give consumers the ability to privatize transactions so that consumers can own their data unless they permit sharing of it with marketers and vendors.

Here is a more detailed list of some problems that merchants in the aforementioned industries face and how Industry Token aims to solve them (in bold):

  • Fears of accepting cryptocurrency due to market volatility
    • Guaranteed merchant accounts – transactions accepted by merchants will have a fiat currency value that is determined by the market rate of the tokens at time of transaction. This fiat currency value is maintained until merchants cash out to a fiat currency, protecting against volatility in token price (merchants can also opt for a market value account to take advantage of any potential gains in market rate of transacted tokens)
  • Bank interchange fees for debit and credit cards – anywhere from .8% to 5% or more
    • 1.5% transaction fee (+0.5% to offer rewards program to customers)
  • Chargebacks – companies with chargebacks are guilty until proven innocent and have to deal with chargeback fees, use of labor to research chargeback claims, or even taking a full loss for the amount of the fraudulent transaction
    • No risk of fraud or chargebacks
  • Payment Card Industry (PCI) compliance – fines up to $500,000 and potential loss of ability to take credit cards
    • No PCI compliance risk

Here are some consumer problems and solutions to them that Industry Token will offer.

  • Privacy and data security – consumer transaction data is sold so that consumers can be retargeted with ads for past purchases, and data can be stolen in the process
    • Consumers opt-in to share data (resulting in revenue share depending on how much data is shared) and no risk of stolen payment information
  • Tip fraud
    • Elimination of fraudulent tip adjustments
  • Currency exchange and foreign transaction fees
    • No currency exchange or foreign transaction fees
  • No simple way for rewards redemption
    • Tiered rewards system

The Industry Token team sees Industry Token as being potentially helpful for businesses and organizations, such as restaurants, bars, nightclubs, hotels, casinos, stadiums, festivals, tourism boards, and entertainment venues.

For more details, take a look at Industry Token’s whitepaper.

Token

The team aims to incentivize use of INDST by providing better rewards and redemption methods than those currently available thanks to the team’s relationships with hospitality and travel vendors.

The Industry Token consensus mechanism will be Proof of Stake, which will incentivize users of Industry Token to hold Industry tokens as well so that they can potentially earn block rewards.

Besides the above, other aspects of the INDST token economy haven’t been highlighted (other than paying for hospitality, service, and travel goods and services from participating merchants).

There will be 1 billion total INDST, with 450 million (45%) sold in the token sale. The rest of the token distribution is as follows.

  1. 20% team reserve
  2. 10% guaranteed merchant reserve
  3. 9.8% advisors reserve
  4. 5% rewards reserve
  5. 5% consumer reserve
  6. 5% credit program reserve
  7. 0.2% airdrop

Proceeds from the token sale will be used for technology development (40%), sales/marketing/community development (35%), legal (10%), and special projects (15%).

Team and advisor tokens have a 2-year vesting schedule.

The project is currently having a family and friends round; interested investors should email CEO Varun Villait at varun@industry.co.

Team

The team behind Industry Token runs Industry, a community for hospitality professionals in the United States to find jobs, network, and connect with one another.

The Industry team has relationships with relevant companies and organizations in the space like Cohn Restaurant Group, Caesars Entertainment, Hakkasan, tendergreens, Karl Strauss Brewing Company, True Food kitchen, FRC, Topgolf, The Cheesecake Factory, Apple, Centerplate, and more.

Advisors

Advisors include individuals both in the hospitality and cryptocurrency spaces:

Oliver Kremer – owner of Dos Toros, a popular NYC-based burrito chain

Adam Koral, managing partner of The h.wood Group, a Los Angeles-based lifestyle group (nightlife, private events, etc.) that did $35m in revenue in 2016

Justin Wu – head of growth at Coincircle, which helps established companies come up with crypto token offerings

Verdict

Below is a breakdown of the risks and growth potential of Industry Token.

Risks

  • Is this project really necessary? What’s to stop users from using other, more established cryptocurrencies, if cryptocurrency takes off in hospitality, service, and travel? (-1)
  • Very early (private round) but low hype thus far (-0.5)
  • High hard cap for what they are building (-0.5)
  • Example of how Industry Token would work (Section 7e) seems pretty complicated (-0.5)

Growth Potential

  • The team has relevant experience (+3)
  • Relevant advisors and industry relationships (+2)
  • Working with the SEC to make their offering regulatory-compliant (Section 13 of whitepaper) (+2)

Disposition

  • Industry Token is aiming to improve the various inefficiencies in some of the world’s most popular (but inefficient industries) and have a team and advisory board that seem capable. Plus, they are working to be an SEC-compliant offering, which may give US-based investors in particular some relief. However, lack of a real use case, high hard cap, and lack of hype (for now) make investing in this ICO questionable.
  • Industry Token receives a 5.5/10

Investment Details

  • Type: ERC20 – Security (eventually migration to native blockchain)
  • Symbol: INDST
  • Platform: Ethereum (then native)
  • Crowdsale: TBA
  • Minimum Investment: $100 USD
  • Price: 1 INDST = $0.15
  • Hard Cap: $41.6m
  • Payments Accepted: BTC, ETH, LTC, USD (credit card and wire)
  • Restricted from Participating: Unspecified

For More Information

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