2018 Q4 Hot ICO Rating Report

3 Oct, 2018 15:26
source: Singularity Financial Research 奇點財經 www.sfgroup.hk

According to ICOData.io, since July 2018, the ICO market has cooled down considerably, and ICO financing has hit record lows. Total ICO financing in September 2018 was only US$112 million.

Although the primary market is not strong, Singularity Financial Research believes that teams that still launch ICO projects in this market downturn possess strong self-confidence. We have taken into account a large pool of research data from different ICO tracking websites and have performed project analysis on recent pre-sales and ongoing pipelines. Our research has revealed some interesting ICOs with good potential and relatively low valuations. The  ICO rating research report below is for reference only and does not constitute investment advice.

 

Rating System 评级体系

The Singularity Financial Research evaluates the ICO projects in four areas:

A. Market Analysis: Investigate whether the project solves the market pain point; whether it is competitive with similar projects, and whether it is necessary to use blockchain technology.

B. Team Analysis: Investigate whether the team information is complete and credible, and whether the team members and advisors have relevant industry background and capabilities.

C. Technical Analysis: Investigate whether the project possesses technological innovation, overcomes technical implementation difficulties and creates development progress.

D. Earning Model and Valuation Analysis: Investigate whether the project has a clear earning model, whether it can fulfill effective demand for tokens, and whether the current valuation is reasonable.

In the above four categories, an excellence rating is scored at 4-5 points, average rating at 2-3 points, and a poor rating is scored at 1 point or lower.

Project Rating 项目评级

Utilizing our screening and rating system, we narrowed down our list of global deal pipeline to 8 projects. We adopted a comprehensive and objective mindset to analyze these projects and gave out a score for each category. We also took into consideration the projects’ popularity and community responses to reach a decision for our final candidates.

1. Qiibbe 14/20

Websitehttps://static.qiibee.com/qiibee-White-Paper.pdf

Project SummaryQiibee is revolutionizing the loyalty industry with the latest technological innovations. By bringing loyalty programs to the blockchain, Qiibee helps brands and retailers reduce inefficiencies while offering customers real-life value in exchange for their points.

Project Analysis 

a. Market Analysis: 4/5

In the current market landscape, brand loyalty relies heavily on the implementation of  points system, but the current points system offers poor liquidity, low returns, and low participation. After transferring the point system  to the blockchain, merchants can increase market returns, expand sales, and users can collect points by using the system across different regions and brands, thereby increasing the overall brand value.

b. Team Analysis: 3/5

The team comprises  19 fairly young members, with strong education background. Although the team lacks industry influence and technical abilities, the project has already received contributions from many institutions, which will also help with customer acquisition.

c. Technical Analysis: 3/5

From technical perspective, the project is easy to realize, but the code on GitHub is not active and has not been updated regularly. The project team claims there will be two private source code locations to be released soon.

d. Earning Model and Valuation Analysis: 4/5

The token demand of the project is mainly from brand purchase. Brand partners issue their own points after purchasing certain QBX tokens. While brand points are pegged to QBX, QBX exchange rate is floating. The project has secured partnerships with famous German cocktail restaurant, Sausalitos, and Swiss coffee producer, Lattesso. Two brand partners have subscribed to a large number of QBX tokens, and QBX will partner with 8 other brand owners in the future. With the increase in partnerships, the demand for QBX will increase accordingly.

2. SuperNode Community (SNC) 17/20

Websitehttps://snct.io/

Project SummarySuperNode Community (SNC) is a decentralized venture capital ecosystem. It is powered by a congress of 21 SuperNodes to bring blockchain unicorns to life. SNC’s vision is to democratize venture capital by building a decentralized, collaborative, and efficient ecosystem for the startup community. The project aims to be the first stop and gateway for every blockchain startup to access funding.

 Project Analysis 

a. Market Analysis4/5

The problems with traditional fund management are lack of transparency, high cost and poor liquidity. The use of blockchain technology to build a decentralized ecosystem can increase the transparency of management processes, reduce costs, provide abundant liquidity, and lower the threshold for participation. In this way, the project teams, retail  participants, and institutions are truly bound into a community of shared interests. Retail participants can access and contribute to high-quality projects at institutional discounts. Meanwhile, project founders can access incubation funding and obtain a variety of services provided by the community. Institutional fund managers can also make decisions more effectively through crowd-wisdom from the joint decision-making of the 21 SuperNodes.

b. Team Analysis: 4/5

The team comprises an all-star team of fintech and consulting elites. The project’s Founder is a graduate of the Harvard MBA program and has 19 years of professional investment experience gained from global investment platforms. The other team members are also from top institutions such as Goldman Sachs, CLSA, HSBC, Microsoft, Google, Accenture, and Deloitte. The team has an excellent blockchain incubation track record, good risk control, and has made substantial progress in  technological development. The team also has a strong influence in the industry. However, partnership information and institutional investor information have not been disclosed as yet.

c. Technical Analysis: 4/5

The innovation of this project is a unique service model based on the DPoS consensus mechanism in which SNC Token holders can stake their tokens to vote for 21 SuperNodes who will represent them in conducting project due diligence and vettings. This incubation methodology leverages on crowd wisdom while tapping into the expertise of multiple domain experts rather than relying on the wisdom of a single expert. On top of that, SNC Token holders qualify for tiered membership and actively participate in the vetted projects through syndicated pools and the services marketplace. SNC will be initially implemented on the EOS blockchain and is a light-protocol DAO, making the SNC ecosystem agnostic to the underlying blockchain infrastructureThere are already proven solutions in this aspect, and the technical implementation is not difficult.

d. Earning Model and Valuation Analysis: 5/5

The design of the token economy is excellent. Lay participants, institutional fund managers, and blockchain project teams all have sufficient economic incentive to participate. A variety of use cases helps generate buying demand. In addition, the project ICO softcap is US$10 million, and its hardcap is US$50 million;  compared with  traditional venture capital fund, the valuation is not high, especially considering 85% of the funds raised will be used for project incubation, and the use is relatively reasonable.

3. Cloudbric 15/20

Websitehttps://www.cloudbric.io/

Project SummaryCloudbric’s universal security platform will be powered by an innovative artificial intelligence based deep learning module. This technology will enable users to contribute towards the advanced learning and cyber attack detection capabilities of the very technology that powers their online data protection. More specifically, by utilizing Cloudbric security solutions, users will have the opportunity to feed attack data back into the overall Cloudbric deep learning system for more accurate security intelligence. Users will also be compensated with complimentary CLB tokens for their deep learning advancement contributions through the Cloudbric Security Rewards Program.

Project Analysis

a. Market Analysis2/5

There is generally a lack of effective security programs in the market with frequent cyberattack incidents on the Internet. . However, this project white paper does not fully explain how the decentralized system (decentralized security platform, decentralized database) can and will transform the cyber security industry. At present, the combination of using blockchain and its token economy is only to motivate users to use its services, provide data, and in return, the project provides security services for the cryptocurrency market. The necessity of using blockchain technology is worth rethinking.

b. Team Analysis5/5

The team has a strong professional background and technical strength. As a joint venture of Penta Security Systems Inc. (PSI), Korea’s largest network and data security provider, Cloudbric is operating for two years with a track record of working in the security industry for over 20 years with several award-winning products and has provided their expertise in the Asia Pacific region for a long period of time. Seokwoo Lee, CEO of PSI., and Jae-Woo Lee, a member of the Lab Advisory Board, recently joined Cloudbric as a consultant.

c. Technical Analysis4/5

Through Cloudbric’s security platform, carrying out the incentive mechanism based on its token economy and its IPFS-based database should  not be very difficult to implement. The white paper outlines a very detailed development roadmap, giving confidence to execution follow through.

d. Earning Model and Valuation Analysis4/5

Tokens are used in two aspects. One is to obtain service through a certain amount of token lockup for ordinary users; the other is that institutional users can enjoy discounts when using tokens. The earning model is relatively clear. Cloudbric is considered a reversed ICO after operating for two years and its sales and users have grown considerably. Currently, there are about 10,000 users and over 50 established partnerships and alliances around the world. In addition, the overall ICO quota is only 10000 ETH. The valuation is quite reasonable.

4. Caspian 17/20

Websitehttps://caspian.tech/

Project SummaryCaspian is a complete asset management solution that covers the lifecycle of the trade. It includes a fully developed OEMS, PMS, and RMS. It provides a single interface into all major crypto exchanges, a complete suite of sophisticated trading algorithms, real-time and historical P&L and exposure tracking and professional customer service.

 Project Analysis

a. Market Analysis: 4/5

In recent years, the number of cryptocurrency funds has gradually increased, and the fund needs to manage liquidity through multiple trading platforms. It is necessary to integrate a service platform for all exchanges. At present, Caspian has established partnerships with almost all mainstream platforms such as Biance and Bitfinex, and accounts can be opened on all major platforms. However, the true test will be Caspian’s ability to attract enough funds to trade on the platform. There are already many competitors offering similar services in the market, and the competition is going to be fierce.

b. Team Analysis 团队分析: 5/5

The founding team is mainly from Tora and Kenetic Capital. Tora is a trading platform for stocks and derivatives. 17% of organizations in Japan use this platform and have opened connectivity to 150 exchanges. The average monthly transaction volume is large. Kenetic Capital offers a complete blockchain service solution and has served several well-known blockchain projects. The team has a strong background and industry influence.

Tora itself provides integrated solutions for securities and derivatives exchanges, and the technology is relatively mature. The team also has a rich blockchain background, and the technical implementation is not difficult.

d. Earning Model and Valuation Analysis 3/5

The project token CSP is a utility tokens. In addition to the platform discount, it can also be used for third-party applications. The top 15 holders of tokens can participate in platform governance. The ICO hard cap is USD$19.5 million. It is worth noting that the demand for tokens and token utility flow is not high, so valuations remain uncertain.

5. Stop Fake Food (SFF) 16/20

Websitehttps://www.stopfakefood.com/

Project SummaryStop Fake Food(SFF) is on a mission to solve the problems plaguing the food industry and to protect consumers from its negative effects. SFF takes on a completely new approach to tackle food crime and creates a solution that combines the newest scientific achievements and technical innovations in Raman spectroscopy, artificial intelligence and blockchain. By utilizing the SFF solution, users are able to non-invasively analyse questionable food products and quickly receive reliable results on their safety, authenticity, quality and composition. The entire process is significantly faster, has lower costs and is easier to implement compared to any of the current solutions in the market.

 Project Analysis

a. Market Analysis: 5/5

Food safety is a serious threat to human health. SFF uses a number of emerging technologies to ensure food safety: Scanning food status using Raman spectroscopy; big data analysis using AI/machine learning techniques; blockchain technology providing incentives to build a complete ecosystem and to record the results. There are no similar competitors in the current market yet. If the project can be successfully implemented, the prospects are limitless.

b. Team Analysis: 3/5

The founding team is comprehensive. The CEO has more than ten years of work experience in the food technology field. The rest of the team members also have commensurate industry background and influence. The research team on Raman spectroscopy and AI/machine learning technology is comprehensive, however the team does not feature any strong blockchain technology experts.

c. Technical Analysis: 4/5

The project uses combination of Raman spectroscopy, AI/machine learning, and blockchain technologies. The Raman spectroscopy has matured, but the application of Raman spectroscopy technology on food analysis is still in the early stages of development. The team has recruited a number of technical experts to carry out such a research. The maturity of the AI model requires extensive data accumulation over time. The analytical technique will become more accurate when big data can be enhanced.

d. Earning Model and Valuation Analysis: 4/5

The token utility for this project has two main purposes – one is for internal payment within the ecosystem, and the other is for participants who need to lock in a certain token rate. In addition, the income earned by the project participants will be partially allocated to the token holders. Considering that the project has the potential to become a unicorn in the industry, the profit model is very strong, making the token an attractive investment. However, the project has yet to announce its hard cap, making valuations difficult to be determined at this stage.

6. Varanida 13/20

Websitehttps://www.varanida.com/

Project SummaryVaranida is a decentralized and transparent advertising solution, designed to rid the Internet of poorly designed and intrusive advertising. Varanida benefits all three stakeholders: Advertisers who need promotion, but are willing to respect users’ privacy and experience, while avoiding fraud; publishers who want to monetize their content without hurting their audience and earn more from ads display; and users who want to control what advertising they are exposed to, and how their private data is used. Varanida acts as an enabler and a neutral party in the advertising and content marketplace, while taking less than 1% in commission.

Project Analysis

a. Market Analysis3/5

The project states that in 2017, the global digital advertising industry invested more than $228 billion, most of which was created by Internet users and the media, but the creators only received a small portion of the revenue.  Their information is also  collected and used by advertisers without their consent. Using a decentralized, transparent advertising system based on blockchain can help solve such a problem. However, the project faces competition from similar projects such as BAT and DATA. It will be good if Varanida can describe the project’s competitive edge when compared to similar projects in the market.

b. Team Analysis: 3/5

The founding team comes from Doz.com, an online marketing promotion platform. The team has experience in the advertising industry and has rich experience in blockchain. However, the team members do not have much working experience with major well-known, top players, which limits its industry influence in the market.

c. Technical Analysis: 3/5

Varanida gave a full set of solutions for the pain points of the advertising industry. The technical explanations in the white paper are also clear, but the technical implementation is difficult and spans over a long period.  In our opinion, the road map lacks a clear timeline. We anticipate uncertainty in the ability to execute and deliver.

d. Earning Model and Valuation Analysis: 4/5

The project lists detailed financial plans in the white paper. Expenses are also reasonable, in response to the current market’s poor conditions. The campaign management fee, application design and development can also provide steady income and have certain hematopoietic effect. The soft cap of US$10 million is also relatively reasonable.

7. Blockchain.io 14/20

Websitehttps://blockchain.io/

Project SummaryBlockchain.io (BCIO) is a project of Paymium.com, one of the oldest bitcoin exchanges in the world. It was founded in 2011 and has been hack-free since the beginning of its operations in 2013. Claiming to be ultra-secure and profitable, Paymium is registered with the French regulation authority ACPR and its accounting is certified by external auditors. Riding on its track record and experienced team, Paymium is launching a new crypto-exchange: Blockchain.io. This platform will be fully dedicated to crypto-trading while Paymium will remain the privileged hub for fiat currencies. Paymium customers (currently at 170,000+ accounts) will automatically have a blockchain.io account and will obtain incentives for their loyalty.

Project Analysis 

a. Market Analysis5/5

The project is a new brand launched by Paymium, one of the world’s first cryptocurrency exchanges. Paymium is registered under the name of the French Financial Prudential Regulation Authority (ACPR), which is fully-compliant with the GDPR European regulations. At present, France is positive about the cryptocurrency, and recently expressed its hope to make France the ICO capital. Blockchain.io also provides a full range of ICO services, and its geographical location will also bring huge advantages.

b. Team Analysis 4/5

The founding team comes from the old exchange, Paymium, with industry influence and technical strength.

c. Technical Analysis 3/5

The team has mature technology and operating expertise running exchange, but the white paper mainly elaborates on its security technology, with not much details about the specific implementation of the “decentralized” project. Today, when decentralized exchange technology is not yet mature, there is still much uncertainty about whether it can achieve breakthroughs.

d. Earning Model and Valuation Analysis 2/5

The project has a hard cap of 20 million euros, but according to CoinMarketCap data, the 24-hour Paymium volume is only 3.5BTC. If the new brand can’t quickly enter the first tier exchange, the valuation can be over inflated.

 8. Veridium 16/20

Websitehttps://www.veridium.io/

Project SummaryVeridium is a collaborative initiative to create a regenerative economy that sustains our planet’s natural resources and reduces carbon emissions. The project technology will turn industry-standard carbon offsets into freely tradeable tokenized assets, solving some of the biggest problems in the carbon credit market. In 2007, a carbon credit producer and environmental protection and restoration corporation InfiniteEARTH was founded. Today, it works with many well-known customers like Microsoft, SAP, and Intuit. This uniquely positions Veridium and its partners to automate the corporate carbon credit accounting and offsetting process across global supply chains, providing much needed transparency and fungibility to the carbon credit market. Through partnerships with Stellar and IBM, the project is reducing the world’s carbon footprint. Collaborative team members are also creating Veridium Exchange, the first tokenized exchange unleashing new liquidity and trading opportunities in carbon markets.

Project Analysis 

a. Market Analysis: 4/5

Natural resource assets are an emerging asset class, and according to statistics, carbon assets have reached as high as USD80 billion, but Carbon credits haven’t worked because they are illiquid, difficult to track, hard to calculate, and are not standardized. Veridium makes carbon credit usage viable with the world’s first blockchain-based exchange and protocol. It has positive significance for environmental protection.

b. Team Analysis5/5

The founding team is very comprehensive. The team members have sufficient industry background and experience. The highlight of the project is the strategic partnership between IBM and STELLAR, and cooperation with a number of well-known companies which is expected to have a positive impact on its business.

c. Technical Analysis5/5

Based on Stellar’s technology of issuing tokens and developing trading agreements, it is not difficult to implement at all. With the support of partners, it is expected that the team can successfully develop the products.

d. Earning Model and Valuation Analysis2/5

The project issues two types of tokens – stablecoin CARBON is issued based on carbon assets and VERDE is the token for its trading platform. VERDE is a utility token, which is mainly used to deduct transaction fees and will be traded on the trading platform. Its value will increase and decrease according to its trading volume. However, the hard cap of the project is US$25 million, with the valuations being quite high already.

Rating Summary

The results of this rating are summarized in the following table.

  1. Caspian and SuperNode Community (SNC) have the best overall quality, are rated A
  2. Veridium, SFF, Cloudbric, Qiibe and Blockchain.io are rated B

【Scale    A: 17-20     B: 14-16      C:11-13      No Rating Qualified for 1-10】

Project Name Market Analysis  

Team

Technical Analysis Earning Model / Valuation Total Rating
Caspian 4 5 5 3 17 A
SuperNode Community (SNC) 4 4 4 5 17 A
Stop Fake Food 5 3 4 4 16 B
Veridium 4 5 5 2 16 B
Cloudbric 2 5 4 4 15 B
Qiibee 4 3 3 4 14 B
Blockchain.io 5 4 3 2 14 B
Varanida 3 3 3 4 13 C