Humancoin (pre-ICO) – platform bringing about the synergy of philanthropy industry, retail e-commerce and cryptocurrency markets
Humancoin is the cryptocurrency backed by the Proof of Charity mining protocol. It allows the project to scale thousands of times, and it is backed by retail e-commerce and charity industry which together have a combined value of $3,5 trillion. Blockchain technology on a single P2P convenient platform adds transparency and traceability. Association with philanthropy will make Humancoin a potential global loyalty programs aggregator. Humancoins will be easily convertible into any partners’ points, miles, bonuses. Quarterly buyback at 5x the Token Sale price after launch.
- Tackles the ‘lack of trust’ issue in philanthropy using blockchain;
- Empowers cross border seamless philanthropy;
- Allows pinpoint donations to ground level businesses/firms;
- Lower margin cut of only 5% in philanthropic donations, compared to ~30% of existing charitable foundations;
- Integrates blockchain technology with loyalty programs for more transparency;
- Innovative proof of charity “mining” concept;
- All tokens that go unsold will be burned;
- The Proof of Charity “mining” is unproven as of now;
- Unproven business model;
- 50% returned back to philanthropist via platform tokens may experience problems due to possible token price volatility;
- 0.01 per token with 6 billion supply is unreasonable price for ICO period;
- 26 million USD is unreasonably high Hardcap for charity-based project;
- 50% pre-sale bonus will create misbalance between early and later buyers;
- Nearly 10 months of post-ICO phase with no business starting on their platform;
- While MVP is present, it can’t be tested or used by users;
- Not enough mechanism to raise the value of the token;
- Wrong ICO timing;
- As this is a business model, there isn’t enough business literature to realistically estimate the success outcome of this business
- The future expansion of the project will be financed by the 5%-fee raised from the funds collected for charity projects, which is 4 times lower than the market average. While it might give some competitive advantage, it would be barely enough to sustain business model;
- Continuous bearish market can tank the project and leave investors with bags;
- If successful the business will itself carve out itself a completely new business niche, thus sky is the limit. With no present direct competitors till now, the upside potential has a higher chance of success.
- Project has potential to expand its partnership network;
The team appears very balanced with background from different business sectors – marketing, e-commerce, legal, developers, business development & advisory board. They don’t have “all-star” team, but Giles Gailer, humancoin CEO has strong background and management skills.
It’s a horrible time for investment. While project doesn’t have any product or customer base, other projects, that already have existing customer base, product and over 10 million USD in market capitalization are tanking below their ICO price. I love their vision and problem which they are solving; however I don’t see much of a business there. Weak, unreliable business model, bad ICO timing, 26 million Hard Cap leave me no choice but to say NO. Too many risks and uncertainties for me.