Quoting the end of this author’s original analysis of PowerLedger:
Hacked reached out to the team at Power Ledger, and they said they should have more details within “the coming weeks” regarding their ICO.
Now some weeks have passed, and the PowerLedger Token Generation Event is taking place in a mere three days. Yesterday, the team released a statement on the subject. Initially they had intended to have no price-fixing in their ICO, but they claim that “public demand” requires them to compromise. As such, they deliver this explanation:
Despite previously announcing there would be no fixed pricing for our POWR tokens in the upcoming sale, we’ve listened to public demand for a fixed token price and will now open a limited public pre-sale tranche with a fixed price per token. […] Power Ledger is very pleased to announce that when we open the sale on 27 August at 2 P.M Western Australia time (06:00 UTC time), we will allocate 100 million POWR tokens on a first come first served basis, at US 8.8 cents per token (USD $0.088).
Additionally, a maximum contribution per transaction is being implemented, but it doesn’t sound promising as regards actually implementing a limit on purchases. Nevertheless, the notion that some 100 million tokens will sell out in $25,000 blocks (284,090.91 POWR tokens per tx) too quickly for people to be unhappy seems over-zealous on first glance, but not when we consider the waves that PowerLedger is likely to make with their tech.
A new whitepaper was released which discusses the token in more specifics. It looks like they are issuing a total 1 trillion POWR tokens. Remember, POWR tokens are the base generator of SPARKZ, which are to be transacted in the actual Power Ledger. Quoting our analysis, for reference:
[…] where traditional power companies already have the footing and often the legal control of the grid, the model allows them to play the part of generating the Sparkz tokens, if they choose, and then selling them. People buy and sell Sparkz within the platform, as these tokens are generated by the actual token of the platform that you will speculate on – the POWR token. “Prosumers” are paid in Sparkz. Under this model, the Sparkz may then also be redeemed with the gateway or “Application Host” which issued them.
The amount of tokens available for sale will be like this: 100 million sold at 8.8 cents for a take of around $8.8 million; 250 million at “market rates,” meaning a simple equation of total amount contributed divided by number of contributors (all of whom will obviously be calculating on a rate of 8.8 cents and up), and 400 million outstanding/held back/given to bounty campaigners (1.5 million total dedicated to this).
A reader asked us: does this mean they’re saying they’re worth $88 million?
The answer is, judging by the way they justify setting a price at all, not exactly. But then again, their claim of “popular demand” claims no reference. In any case, $88 million would be off the mark since a full 348,500,000 tokens aren’t available for sale. Thus, if we’re going to calculate size of the whole pie, let’s go with a formula more like 350m * .088, or closer to $30 million.
Now let’s walk back a minute. Is that even a fraction of what their idea, successfully implemented, is worth? While it’s impossible to predict the future, the author would say no, that is not even a fraction of the potential. However, due to the weakhandedness of waiting until they were almost at bat to decide if they would swing or stand on the curveballs, the author downgrades Power Ledger by .15 on the off-chance that the fixed-price confusion will slow contributions which will increase the value of contributions made by readers. This gives them a new rating of 6.35, still among the best this analyst has reviewed.