ICO Analysis: YouToken
Following crowdfunding platforms’ successes such as Kickstarter and Indiegogo, many blockchain projects have been spawned. Although YouToken can be called just another blockchain crowdfunding platform, this would be an oversimplification: YouToken is a platform allowing people to invest in human intelligence.
YouToken is built upon the idea that human intelligence is a financial asset and just as an ICO raises funds for a project, the same applies to human intelligence itself. By making user identification procedures easier and faster, the platform allows users to focus solely on what they come for, which is investing in projects or raising funds. Yet it is not clear what is meant by “human intelligence” in the white-paper. Presumably, it is a token bundle of the creator’s projects existing on the YouToken platform. But if so you would not be investing in the person itself, but rather his or her products on YouToken.
As there are many ways to collect funds, YouToken has four different types of smart contracts:
- Donation/Sponsorship: The usual crowdfunding model that we encounter at Kickstarter and Indiegogo
- Debt: The project lead borrows funds to be repaid later with some interest.
- Revenue share: Obtained revenue is shared between investors.
- Equity: Sufficient information is not present in the white-paper.
YouToken creates tokens for every accepted project and distributes these tokens among the project owner (10%), investors (%89) and YouToken General Bucket (%1). What differs YouToken from alike is this General Bucket and the revenue share model. Basically, every month the platform distributes 30% of its revenue among its users, so we can say that YouToken generates some passive income for YTN owners.
It should be also noted that the platform will support project owners from the very beginning. In addition to making it easier for project owners to start crowdfunding, YouToken community advisors and professional business accelerators will be there to support them.
The initial total supply of YTN is 1 billion tokens with the following token distribution:
- 35% crowdsale
- 25% company
- 15% team
- 10% board of advisors
- 10% community advisors
- 15% community growth
Any ICO investor should be aware of that between February 1st and March 1st YTN tokens were sold for $0.01, one-tenth of the presale price and one-fifteenth of the public sale price. 10% of total YTN tokens (100 million out of 1 billion tokens) were sold at this price, and investors who have bought tokens at this price will have the opportunity to have a fifteen-fold return if YTN is priced at ICO price. Combined with no information on lockups and/or vesting, this is very bad.
Also, pre-sale investors have the chance to buy YTN tokens approximately 33% cheaper than ICO contributors.
The team is planning to use the token sale proceeds as follows.
- 30% platform
- 30% community, sales, and marketing
- 20% reserve
- 10% hybrid legal structure
- 10% organization cost
CEO & co-founder Ilya Volkov: Volkov is a seasoned finance expert who has worked for several Forex companies and is the current managing director at Forex Club LLC.
CDO Maria Wolters: Wolters was the head of FinTech and Blockchain Practice at Silicon Valley Innovation Center.
Bill O’Connor: O’Connor has been working at Autodesk, a computer software company located in California, since 2002.
Mukul Agarwal: Agarwal is a former senior system engineer at AMD.
Linda Avendaño-Franco: Avendaño-Franco has worked as a software engineer at Google and Electronic Arts and as a senior UI engineer at Netflix.
Below is a breakdown of the risks and growth potential of YouToken.
- Token metrics do not favor ICO contributors as the earliest contributors have paid $0.01 per token and pre-sale investors pay 33% less than ICO participants. (-2.5)
- Unless the project owner works exclusively on blockchain products, it is hard to see why he or she would run his or her crowdfunding campaign at YouToken. If the campaign had run on a traditional crowdfunding platform such as Kickstarter, he would have a wider audience and a higher chance of obtaining the required funds. (-1.5)
- YouToken is planning to support project owners at every possible stage with automated tools, advisors and business accelerators. Any project backed by these accelerators should not have any problem to raise funds. (+2)
- Four different kinds of smart contracts should meet every project owner’s needs. (+1.5)
- 15% of tokens are allocated to community growth. If these funds are used efficiently, the project should have sufficient interest. (+1.5)
YouToken is more than a crowdfunding platform as it allows investors to invest in “human intelligence”. Although it is not super clear what is meant by human intelligence, presumably it is a token bundle of a person’s projects in the platform. Although YouToken is backed by a team highly experienced in finance and projects released on it will be supported by advisors and business accelerators, launching the crowdfunding on a more traditional platform seems financially more suitable for him or her than on YouToken since such platforms have a wider audience and provides a higher chance of obtaining the required funds. YouToken receives a 1.5/10.
- Type: ERC20 – Utility
- Symbol: YTN
- Platform: Ethereum
- Crowdsale: September 17th
- Minimum Investment: Unspecified
- Price: $0.15
- Hard Cap: $50,000,000
- Payments Accepted: ETH
- Restricted from Participating: China, Korea, and the United States
Featured image courtesy of Shutterstock.