I thought this was an interesting review to take a look at, as it is not a common "ICO" as such. Might we see more companies take to this ILP fundraising over ICO? Only time will tell.
As far as I am aware this review is factual and completely unbiased. However please do your own research and formulate your own opinion. Be careful when investing your own money. Thanks for stopping by!
Pros 1
Introduction 1
Problem 1
Solution 1
Partners 2
Product 2
Crowdsale 3
Why Blockchain 4
Cons 5
Competitors 5
Team 5
Conclusion 6
Pros
Introduction
Blockhive is an incubator platform for projects that can benefit from implementing blockchain.
Problem
Blockhive aims to tackle social inequality with its blockchain-based products and services that benefit everyone, not just the wealthy.
Blockhive wants to work with regulators, to address concerns of fraud and money laundering, so has decided to:
● Base in Estonia due to its blockchain adoption and regulatory reform
● Use Estonia’s official e-government ID for its KYC process
● Develop a regulated funding alternative to ICOs called ILP (Initial Loan Procurement)
Solution
Like a beehive, Blockhive is a collaborative platform where participants and partners benefit from working together to grow the ecosystem.
Projects can use Blockhive’s platform services, products and partners to get developed.
No fees are charged. Instead, revenue is shared with Blockhive and partners.
Blockhive’s platform will generate revenue from its diverse projects, thus minimizing risk.
20% of Blockhive’s profits are then distributed to creditors annually.
Blockhive ecosystem currently consists of:
● In-house projects: Blockhive’s core projects
● Joint projects: projects developed with partners
● Consulting and Incubation
Partners
Blockhive has already formed partnerships; Some are:
● Agrello - smart-contract-based legal binding solution; both developed ILP
● Icefire - payment systems and information solutions for banks and others
● Fujinet - research and dApps creation
● Paybe - traditional banking with crypto banking integration solutions
Blockhive is actively looking for more collaborations to expand the platform.
Product
Blockhive already has its core digital smart wallet Eesty available to the public.
This wallet allows users to manage their digital assets and gives access to many other functionalities within the Blockhive’s platform.
Crowdsale
Blockhive is seeking funds through it’s ILP (Initial Loan Procurement) instead of ICO.
ILP allows creditors to earn interest (20% of Blockhive’s profits) on the funds loaned.
The loans last 10 years and automatically get extended for another 10 years until repaid.
Blockhive’s public ILP has two rounds for a total of 30% Hive tokens, each hard capped to 150 million Hive tokens at €0.045 each (~$0.052 each).
The 1st concluded in February 9, 2018, and the 2nd is currently open until June 30, 2018.
The total Hive token supply is 1 billion; Total hard cap of €45 million (~$52 million).
Blockhive investment potential relies mainly on the company ability to generate profits from its ecosystem revenue streams.
Creditors will likely be motivated to trade Hive tokens by speculating on the company's profits interest returns as the token doesn’t hold other utilities.
Blockhive will retain 50% of the total supply for a 2nd ILP if it needs funds in the future.
Residents of USA and Japan cannot participate in the ILP.
Why Blockchain
Blockhive has developed ILP (Initial Loan Procurement) regulated fundraising solution as an ICO alternative.
ILP allows creditors to loan funds to a project, receiving an equivalent amount of FLAT tokens in exchange (called Hive tokens in Blockhive’s case).
FLAT tokens, or Future Loan Access Tokens, has two functions:
- allows creditors to trade contracts with each other
- allows creditors to enter a loan agreement with the project
Creditors that hold FLAT tokens need to go through KYC and sign a loan agreement to be able to loan funds to a project and earn interest from the loan.
Creditors are not called investors because the funds are lent, not given like on an ICO, so interest on the loan is paid to creditors until the loan is repaid.
The FLAT token represents only the right to a loan agreement as the actual loan and interest payments are transacted separately in ETH.
ILP main advantages to an ICO:
● Debt is not subjected to tax
● Projects don’t need to create useless tokens to get funds
● Loans are globally acceptable by individuals
● Can earn interest from profitable projects
Cons
Competitors
Many other existing blockchain projects have already solid partnerships and are growing in adoption.
Blockhive’s will need to have a very sturdy and relevant ecosystem that can attract innovative projects and solid collaborations to thrive in the blockchain competitive market.
Team
The team currently consists of 8 members and 7 advisors.
Blockhive claims that the founders have 4 years of experience developing blockchain-based systems for more than 50 companies.
The team looks steady in paper but most profiles are missing and some are vague.
Conclusion
Presentation: 5/5
- Well structured whitepaper; Very informative website; Social media active
Project: 4/5
- Regulatory approach; Fair ILP alternative to risky ICO; Product available
- Strong competition
Team: 3.5/5
- Experienced team with blockchain background
- Missing / vague online profiles
Rating: 4/5
Blockhive’s strategic location in Estonia, working with regulators, innovate ILP fundraising solution, diverse revenue streams, and experienced team are very solid aspects for Blockhive’s ecosystem be able to attract projects and partners, and resist regulatory censorship that currently threatens many blockchain projects.
Only time now can tell if Blockhive’s ecosystem will have what it takes to succeed in the already competitive blockchain market.