Smart Containers ICO – Temperature controlled containers & IoT sensors on the blockchain.

smart cotainers skycell

The upcoming Smart Containers is a fantastic use-case for blockchain technology by combining IoT sensors and passive temperature-controlled containers with the blockchain to provide a immutable record of cargo temperature as it’s being transported.  Smart Containers Group AG. is actually a holding company for two firms, SkyCell and FoodGuardians.

SkyCell has used cutting-edge technology to develop containers that use IoT sensors connected to their data cloud, that utilises blockchain technology to remotely monitor each container to ensure the product temperature is consistent during transport. SkyCell transports some of the most expensive and temperature-sensitive goods in the pharmaceutical industry, this monitoring is absolutely essential as it enables companies to comply with legislation from the EU regarding the delivery of medicinal products.

The FoodGuardians business has a similar offering – reusable containers and boxes to transport sensitive food products across regions or the globe. Their patented cooling technology is a big selling point (The holding company holds over a hundred patents at time of publish), with the vision of having secure food safety through track and trace on the blockchain. The firm also touts cost efficiency, and a reduced carbon footprint as the storage units are reusable.

This article will mostly focus on the SkyCell aspect of the business, and the initial token offering for the SMARC and LOGI tokens, rather than the the FoodGuardians business.

Links with Modum

For those who have read the two previous articles written on Modum.io, may be seeing some similarities creep in through the SkyCell business, with IoT sensors monitoring pharmaceutical products. They both even have offices in the same building at Technoparkstrasse! The initial token offering FAQ clears up the confusion around this quite clearly though:

Modum rents/sells devices for track and trace to customers, whereas Smart Containers rents/sells containers, not the data. Of course the containers have sensors that record data for quality control, but Smart Containers does not sell these data sets. In the end Modum and Smart Containers will address to the same clients – Smart Containers provides the container and Modum will put a sensor in it.

SkyCell – Not just a whitepaper

One of the most exciting aspects around the initial token offering is that SkyCell is a fully operational business already making use of blockchain technology, with revenues and partners in place.

There are a variety of different sized containers, all plug and dry ice free. They’re easy to handle, and made from recyclable materials. The patented-in house developed cooling technology stores five times more energy than traditional methods to keep the container at a consistent temperature. After use, they are ‘recharged’ in a cooling chamber without any need for manual intervention, increasing productivity of the business and reducing cost.

sky cell containers

An example container used by SkyCell.

SkyCell customers order a container, which SkyCell deliver to usually the production facility. The customer then ships it via one of over 30 airline partners, SkyCell will then collect at the destination airport, or other preferred location. Currently SkyCell has two key partnerships with airfreight firms, Cargolux and Emirates SkyCargo. This enables SkyCell to currently serve over 150 destination airports.

The Cargolux media release found here shows why this partnership in particular is a huge win for SkyCell.

Cargolux is the world’s first GDP-certified airline, as well as the world’s first ‘Lean & Green’ carrier and operates from one of Europe’s most modern pharma and healthcare shipment centers, operated by its partner LuxairCargo at Luxembourg’s Findel Airport. Its expert staff is highly trained and motivated with a thorough knowledge and experience in their field. Its fleet of modern 747 freighters ensures the safe, fast and efficient transport of high-value, temperature-sensitive shipments across a global network. Adding SkyCell’s patented containers to its portfolio gives Cargolux an additional effective tool that benefits its customers’ specialized requirements.

Partnering with Europe’s leading cargo firm that has experience with pharma shipping is a huge step for SkyCell and demonstrates absolute faith in the product and service. The Emirates SkyCargo business is also key to making the product available for a wide-range of potential customers, as they are the second largest cargo airline worldwide by freight-tonne kilometres flown. In total, over 30 airlines currently fly SkyCell containers, according to the FAQ.

We know the Switzerland is a major hub for the European pharmaceutical industry, Basil alone has HQs for Novartis, Hoffmann-La Roche, Basilea Pharmaceutica, Straumann and Actelion. Securing contracts with these key firms, or their product distributors in the industry is essential to growing the business. From the Smartcontainers whitepaper, we know they already have Novartis as a client, along with some big names such as Roche, Takeda, Kedrion, Grifols and Alagan. We’ve already stated Modum are based in the same office as them, nearby is also Zug, home to Crypto Valley which has KPMG as a strategic partner.

For its palletised division, there is significant competition in the market. However, in just a 5 short years SkyCell have grown to #4 in this market, and their product is:

tested as technologically superior to Envirotainer (5x more runtime, up to 35% lighter) which translates into safer pharma distribution and cost savings.

Envirotainer is currently the market leader, but as we can see there is significant scope for SkyCell to compete. With the injection of funds the initial token offering will raise, it could be the catalyst needed to increase market share.

Future Products – SkyCell One

skycell one crt

In the future, SkyCell is looking to bring a business-to-consumer solution to market, that was developed and tested with one of the top 20 pharma companies in the world. The direct to patient market is estimated to increase to a 2.5 billion USD market in the future, with no other competition yet aside from styrofoam containers that are disposed of after one use. The SkyCell ONE can also be co-branded by a partner, such as a pharmacy chain that could rent it out for home delivery, business trips or even holidays.

The product is temperature stable for up to 72 hours, can be recharged passively in a fridge, or temp-controlled warehouse or truck. Currently it’s best in class for size and weight, but that’s probably down to there being no competition! Trials have been undergoing since June 2017 with an orphan drug product, and go live is expected in Q2 2018.

Initial Token Offering – Two Tokens?
$SMARC

In total, the Smart Containers Group AG. (holding company for FoodGuardians and SkyCell) is seeking to raise 40 million USD. This would be across two coins.

36 million USD would be raised through the issuance of the SMARC token, and the funds used to scale the SkyCell & FG business.  This is a profit-sharing token (much in the vein of the $MOD token), with 20% of future dividends and any exit profits from subdivisions paid out in ETH proportionally to tokens in circulation.

Total Supply – 150 million SMARC
Tokens Available in ICO: 120 million SMARC
Hard Cap – 36 million USD.
Token Price – 0.432 USD per SMARC
Presale – March on invitation, 25% discount.
Public Sale – End of March, staggered discount to first come first served. 1/3 – 15%, 2/3 – 10%, 3/3 – 5%.

Use of funding split as below:

smartcontainers

 

$LOGI

While operating in the shipping industry, the Smart Containers Group have identified several opportunities to improve efficiency by creating a fully integrated logistics ecosystems, based on the blockchain. The idea is various documents, such as invoices, bills of lading for containers, customs documentation, licences, datasheets could be stored on the blockchain for all parties to use without the need for a human coordinator to tackle email chains and manually generate documents.

logi token

This would be enabled with a mix of technologies to meet requirements. Some documents would need to be public and would be available on a blockchain such as Ethereum. Other more sensitive items would have to be on a permissive blockchain such as Hyperledger’s Fabric technology. When shipping a SkyCell container, the Smart Containers Group has identified atleast 12 documents used between parties, leading to 200 total communications and document actions, much of which manually processed by a coordinator. This on the blockchain can heavily reduce overheads and thus increase profit for those using the ecosystem.

We have seen several recent ICOs looking to build on the same inefficiencies in this market such as CargoX (focusing mostly on Bills of Lading) and SophiaTX (SAP-blockchain hybrid solution). Clearly if someone can master this area, which several SAP based projects have failed to do effectively there would be widespread uptake. We also know IBM is operating in the same field with Maersk with Hyperledger Fabric, so time will tell if they can compete with this existing competition.

The LOGI coin is used to fuel the payment of smart contract transactions and its initial offering breaks down as such:
Total Supply – 100 million LOGI
Tokens Available in ICO: 20 million LOGI
Hard Cap – 4 million USD.
Token Price – 0.285 USD per SMARC
Presale – March on invitation, 25% discount.
Public Sale – End of March, staggered discount to first come first served. 1/3 – 15%, 2/3 – 10%, 3/3 – 5%.

Use of funding split below:

logi coin

The Smart Containers ICO will be aided by Lykke, who also served as partners for the Modum.io ICO back in September. I would highly recommend reading the ICO FAQ linked here, as it answers some great industry specific questions traditional ICO contributors may not consider.

The SmartContainers overview paper can be found in PDF format here, and the full format whitepaper here. The Telegram chat group is linked here and you can follow them on Twitter @SMARC_ICO. In the past month the team has also unveiled their website at https://smartcontainers.ch/. The BitcoinTalk announcement thread is located here.

The Presale is slated to being mid-March, with the public offering beginning at the end of March.

Any thoughts? Follow me on twitter!

If you liked this, you may like this article: Modum – Real blockchain utility, in a sea of vaporware. Part 1 – From the whitepaper to mass production.

OriginTrail – A purpose-built, blockchain agnostic protocol for supply chains.

origintrail

 

If you’ve read my previous post on Blockchain & Logistics, you’ll have guessed i’m a huge fan of the potential blockchain has in supply chain. The recent ICO for OriginTrail.io is a fantastic example of a use case that isn’t just a hollow whitepaper. The product itself has actually been in development since 2013, starting with an alpha version for organic beef products, that then lead to a beta in 2014 for dairy products with integration for Microsoft Navision. In a 2015 a beta version of OriginTrail for poultry and veg products was tested that featured integration into SAP and other 3rd party enterprise software. This early melding with often-used enterprise software, really demonstrates to me a company that has a real product with real end-users in sight – and that this is not just a quick ICO to raise capital and then start working on a product. This is a serious product with serious goals. OriginTrail is also open-source, and actively seeks industrial and technical feedback to grow stronger. OriginTrail is currently in pilot programs (in a centralized state) in Europe and China, according to the whitepaper.

The Product

The OriginTrail protocol was designed specifically to eliminate the main barriers that prevent the effective exchange & validity of data in supply chains. Concerns over the few increasingly fragmented and costly current solutions being another prime motivator for the development of the product. So what do customers actually get out of the product? Essentially, all stakeholders in the supply chain will be able to share all their sensitive data in a secure manner. In the below image we can see part of the issue OriginTrail looks to solve, by combining all of these individual data silos its one comprehensive format. that can be accessed by all stakeholders to ensure traceability, accountability and audit/legal compliance.

origintrail

This might not sound impressive off the bat, but lets take a look at the Horsemeat Scandal that hit Eurpoe back in 2013. Essentially food advertised as containing beef were found to contain horse meat instead, with as much as 100% of the meat content not what was advertised in numerous cases. Some of the undeclared meat was also pork, which obviously raises a whole host of religious and cultural issues with the Muslim and Jewish communities, that view pork is a prohibited food. Major breakdowns in traceability of the food chain were discovered following authorities investigations, and OriginTrail is one of the solutions being brought to market to combat this. With rising trends in organically grown food, allergy-ingredient clear foods (i.e nuts), vegan and gluten free foods, it’s now imperative that suppliers have clear tractability and thus accountability across the supply chain for their products. VeChain, one of the competitors OriginTrail will face, have been working with the Liaoning Academy of Agricultural Sciences to:

Eliminate the trust crisis regarding green agriculture authorization among consumers.

Compatibility with Enterprise Software

OriginTrail from their beta onward have sought to integrate their product with existing enterprise software (notably SAP and Microsoft Navision), and this is clearly set out in the vision section of the whitepaper – “OriginTrail assures compatibility with existing ERP systems, making implementation process quick and efficient.”. Ensuring this compatibility with customers systems will encourage quick adoption in order to meet existing legislation requirements, to increase communication and efficiency between steps in the supply chain, while reducing costs with the protocols scalability ability. Other areas the protocol will add value could be product recalls, chain of custody accountability, freshness for perishable lines, customs compliance and inventory management. SophiaTX is another blockchain startup seeking to utilize existing enterprise software within supply chains. Clearly there is an opportunity here for big business.

Pre-ICO Recognition

In a real statement of belief in the product, OriginTrail back in November was awarded the “Food Safety Innovation Spark Award”, by Walmart’s Food Safety Collaboration Center in China. The firm was one 12 companies selected to join the first generation of the Walmost Food Innovation Program, and the only project steeped in blockchain. We know Walmart is investing heavily in blockchain to improve its efficiency and transparency in supply chain,

At Walmart, Mr. Yiannas is more optimistic. His company has already completed two pilots with IBM — moving pork from Chinese farms to Chinese stores, and produce from Latin America to the United States — and he is confident a finished version can be put together within a few years. “I think this is our one best hope for getting it right,” he said.

If OriginTrail can convince Walmart they have a promising product, after already completely pilots with tech behemoths such as IBM, (who have been exploring projects in blockchain since early 2014), then it’s an incredibly promising sign for the company at such an early stage.

Token Utilisation & Economics

The $TRAC token enables the OriginTrail ecosystem to function by incentivizing data exchange. The system is a number of nodes, and supply is met by the demand of users of the protocol, such as supply chain data producers and consumers, that seek to share their data. The token is a way to reward supply chain data producers and consumers on one side, with the node holders on the other. It’s the incentive for the nodes to function on the network to pay for their outgoing such as computing power and electricity.

OriginTrail is blockchain agnostic, so whichever blockchain tech they utilize, some other costs may incurr, such as GAS if run on the NEO blockchain, or however many units of gwei required for Ethereum. Currently, the $TRAC token is an ERC20 token on the Ethereum blockchain, in the future this could be converted to the ERC223 token spec if approved as standard.

There are a total of 500 mil $TRAC tokens in the total supply, with 50% available for the token sale. The ICO price was set at 1 TRAC = $0.1 USD, and the hardcap was hit after only two days. 2% was kept for bounty programs, 5% for the team and advisers (being released over two years in stages). 5% was set for a liquidity pool, 18% for founders and PreICO contributors, and 20% for future development.

Future Roadmap

The future looks bright, with pilots and live cases with the test network coming up in a few short months. Feb 2018 will see a Hong Kong office open to generate partnerships with the Asian market, and a European wine pilot project finishing up (Vechain recently completed a pilot like this with a Chinese importer to counter fake wine.) In Q2 will see the launch of the OriginTrail test network, and an open call for use cases voted on by token holders – a little like the voting right Modum holders have. The decentralized network will open on Q3 2018, along with a protocol update to meet additional IoT standards. The US office for OriginTrail will also open in this quarter.

Full list of planned developments can be found on their roadmap.

The OriginTrail.io website can be found here. Their twitter account is @origin_trail, and you can chat with the Telegram group here. At time of publish, $TRAC is only availible on two decentralized exchanges, EtherDelta (not recommended since they were bought out) & IDEX (higher fees, but seems to work well).

As always, this post is not financial advice, please do your own research. The whitepaper can be found here and is well worth the read.

Any thoughts? Follow me on twitter!

As $TRAC is such a new currency, if you’re looking to add it to MyEtherWallet or MetaMask:

Contract Address: 0xaa7a9ca87d3694b5755f213b5d04094b8d0f0a6f
Symbol: TRAC
Decimal Places: 18

Coinlion – A potential onramp for users new to crypto trading. An exchange platform with portfolio management and strategy sharing features.

Blockchain and its associated technologies have opened up a new deregulated financial market across the globe. Millionaires have been made, billions raised in ICOs and now everyone wants a piece of the action. Getting started in crypto is without a doubt difficult, it’s a new frontier of technology that doesn’t typically mesh well with traditional financial institutions. 5 years ago getting a hold of some BTC to pay a hosting provider or to support a shady torrent site would take hours of signing up across a dozen different payment processors to find a company that would sell you it direct. It was that or trading on forums with EVE ISK or a World of Warcraft timecard.

These days it’s a little easier, but still difficult in comparison to other digital goods. You have Coinbase or Cex.IO where you can instantly purchase with a credit or debit card after waiting for your Know-Your-Customer documentation to be verified, or rely on long established bank transfer systems such as SEPA which can take several working days. Then once you’ve got your crypto, it’s then figuring out what the hell to do with it to make money. Using exchanges for the first time can be intimidating to those who aren’t used to share-trading or forex. This is where CoinLion hopes to make an impact.

The Product

The firm hopes to create a user-friendly exchange that combines education, research, and tools for newcomers to the market. The platform will consist of three key systems:

  • An exchange that delivers a best in class trading experience.
  • A portfolio manager that allows simple creation and control.
  • Portfolio sharing and strategy discussion.

If Coinlion can position itself as a home of newcomers to crypto trading, it has a fantastic opportunity to grasp a large chunk of incoming retail investor money. Coinbase is probably the best-known onramp into crypto, but with its premium pricing and high fees, there’s certainly room for a competitor. Especially a platform that could has the support of a community incentivized by the $LION token to help newcomers trade profitably.

The token itself will be used on the platform for a variety of functions, such as: tracking and duplicating other users portfolios, paying for trading fees (ala $BNB, $KCS), creating and managing multiple portfolios, accessing research and data within the CoinLion Library, advertising own user content or portfolios on the market. Coinlion has stated their ambitions to host other tokens ICOs on the CL platform, and $LION could be used to contribute at a discounted rate. Users of the platform can earn $LION by allowing others to track your portfolios, sharing strategy, research, analytics, and allowing advertising on your public profile.

Audience, Exchange and Competition

CoinLion has a clear target market in mind from what I can gather from interviews with the CEO and the whitepaper. Retail investors, who are new to trading  and keen to make good returns on their funds. In the past year with previously Bitcoin and now Ripple and Ethereum hitting mainstream the press on a daily basis has seen a huge influx of customers to exchanges, with several (even Binance) having to temporarily close to new users while their infrastructure is upgraded or patched. A few years ago, the Forex market underwent the same influx as crypto is now seeing now, retail investors, unfamiliar with trading who fell for the marketing of making a quick buck with individuals reselling “signals” with apparently guaranteed success. In the whitepaper, section 6.4, CoinLion states:

CoinLion believes that users should be able to easily interpret the risks within their portfolios. The platform tools allow users to better understand the risks they are exposing themselves to within their holdings.

Crypto is in its infancy and the less dodgy marketing (for example, Youtubers who will remain nameless that shamelessly plugged BitConnect, then deleted their videos) the market fosters, the better it will be taken seriously by traditional institutions. If CoinLion can market itself properly in a respectful manner, and there’s no reason to believe they won’t so far based on the slick ICO marketing, then becoming the new on-ramp onto crypto isn’t unrealistic. That’s not to say they don’t face some huge challenges based on their aims stated on their roadmap. I believe these challenges are:

  • Kickstarting initial volume on the CL exchange
  • Dethroning Coinbase
  • Attracting experiences traders to the CL trading element (is the $LION token enough on its own?)
  • Maintaining enough trading pairs to be competitive and attracting FOMO traders with the latest ICOs tokens
  • Beating other exchanges with processing of KYC data and withdrawal/deposits

Binance and KuCoin are both fairly new exchanges. Binance within 6 months has shot up to #3 based on overall exchange volume, and a big part of it, and KuCoins success is down to its quick additions of trading pairs for hot new altcoins, and its trading contests that awards lavish prizes. These so far have included an BMW i8, a Lamborghini Huracan RWD Coupe and a Masertai 3.0T Levante Classic. Not a bad idea for attracting larger traders right? It can come across a little tacky however and makes it look a little like a casino website. These traders though, will they really be attracted to start trading on the CoinLion platform for some $LION though? Is the CoinLion platform features enough to power the value of the token? It’s going to be tough to keep the value of $LION high enough to be seen as a good deal for experienced traders to move onto the platform, and to warrant creating content for.

The whitepaper states the desire to support a wide variety of cryptocurrencies, fiat and digital assets. CL will maintain markets in BTC, ETH and $LION. New pairs will have a simple and efficient access to the platform but will undergo strict due diligence, keeping liquidity and volumes across these pairs could be difficult. The best way previously for exchanges to establish volume was by have first-mover advantage on new pairs, and keeping this process of addition streamlined could be key in CoinLion getting its foot in the door. Another angle of attack is the proposition of underwriting future ICOs:

CoinLion will offer an ICO underwriting service which will list new coins to the platform. LION holders will have access to purchase these ICOs at a discounted rate. CoinLion will use a rigorous due diligence process when evaluating adding a new coin to the platform.

All that being said, Coinbase and it’s exchange service GDAX only offers a total of 11 trading pairs, across four cryptocurrencies and three fiat. Starting small and building up once the portfolio manager and exchange has had proven volume experience would seem to be the smart move. Every major exchange with any kind of volume has experienced downtime during major price fluctuations, and if CoinLion exposed the same kind of outages at peak periods to first-time retail investors could leave a bad taste in their mouths. Finding the right balance between trading pairs and volume with uptime is key to building the reputation CoinLion will need to succeed.

Portfolio Manager

So, the portfolio manager and exchange is not actually a working product yet, but a UI demo is here to view. It’s pretty nice, and the portfolio-sharing feature has the possibility to be huge. Some of the features touted in the whitepaper are:

  • Portfolios can be created using quantity, amount or percentage parameters.
  • Trade multiple positions with a single click.
  • Create and manage multiple portfolios (ideal for those who have a holding stack and trading stack).
  • Research and analytics available from community contributors
  • A built in digital assets screener.

Crypto has been crying out for a good portfolio manager and Blockfolio and Cointracking have done a fantastic job in filling that need with easy-to-use apps. The lament of Blockfolio users at peak price-moving events as nothing updates for an hour is something i’ve experienced all too often. However, can CoinLion be that next level in portfolio management as it combines analysis and exchange features all on the same platform. If they can, users will flock to it for easy of use. Keeping the platform consistently working over spiking periods of trading will be key to retaining users, just like with the exchange. 65% of the ICO funding is earmarked for platform development, which seems great. But considering they are hoping to launch in July, and the sale ends in February I just hope CL are not being too ambitious with its project, and doesn’t end up throwing money at it to hit deadlines with a poor product.

Team

Having a Solid Team is a bit of a running joke now when it comes to ICO marketing, but lets see if the experience listed by the firm can atleast match their whitepaper ambitions.

The CEO Joshua Dewitt is a former employee of Merrill Lynch’s wealth management team, and a legit miner judging from the rig he posted on BitcoinTalk. Justus Luthy the Chief Technical Oficer is the guy i’m really interested in though, with experience in designing and maintaining scalable applications for some big names such as Citigroup and HSBC. He has also previously maintained financial applications for managing over $1mil USD in daily transactions. This will of course be invaluable in developing a platform as complex as CoinLion is aiming for. The rest of the C-level team such as Zach Neugebauer, Nathan Pitz and Caleb J. Veldhouse also post impressive CVs with solid corporate experience, and a mix of blockchain background with Isaiah Croatt. The other members of the technical team also have some fantastic levels of experience when it comes to webdev and systems engineering. The creative director Kia Adams,who I imagine is responsible for the terrific logo must have already earned her salary judging by the whitepaper and identity the brand already has at an ICO level. The mere existence of a customer services lead in the form of Erin Zimmerman speaks volumes regarding the level of customer engagement the firm wants, building it into the platform as it develops. Most ICOs rarely mention customers, but CoinLoin with it’s 5% ICO funding allocation and service posts already filled, clearly has it as a priority.

My only concern is Mark Eaten and other such names being on the advisory team. Is someone a big Utah Jazz fan or something? I’m guessing he must have come into the CoinLion office and hosted a leadership event or something as it just seems to cheapen the ICO a little, along with Judge Alex. Don’t get me wrong, it might appeal to the typical retail investor market CL is aiming for, in fact I think the sponsorship recently of the two-time Bellator champion Michael Chandler was great as it was a clear plain sponsorship, but having just plain celebrities on your advisory page when you want people to take your high-tech crypto exchange seriously for me doesn’t work. I mean, it’s not as bad as Stoxx with Floyd Mayweather or LydianCoin with Paris Hilton, but still.

ICO & Token Economics

CoinLion’s base goal was to reach 15 million $LION tokens sold, with a token sale hard cap of 250 million $LION. If 15 million $LION did not sell, purchases would be refunded via the smart contract. The base exchange rate being 1 ETH to 2500 $LION with a pro rata distribution at the end of the token sale. However during the beginning of the token sale, it reached as high as 3000 $LION per ETH in the first week, and in the penultimate week of the sale it will again rise to 2625 $LION per ETH.. There is a hard cap of $18 million USD, and a fixed total supply of 500 mil LION tokens. The pro rata distribution of 24.75 million $LION will be distributed with the following formula at the completion of the sale.

$LION is an ERC20 standard token housed on the Ethereum blockchain, and the token allocation between CoinLion and purchasers set at 50-50, with any excess held burnt via smart contract at the end of the token sale. So with a fixed supply of 500 mil, and 250 mil available for the token sale, the total supply following the token sale could be much less if the token allocation is skewed heavily. The tokens reserved for the team can only be sold after a lockout period, 25% every 6 months for 2 years, funnily enough they can begin selling just before the launch of the platform according to the roadmap! That’s assuming the lockout began from the opening of the token sale however.

The allocation of the funds can serve as an indication just how seriously CoinLion respects the regulatory bodies and any regulation that could be coming over the horizon. The 5% dedicated to customer service looks like they are serious of their whitepaper declaration to processing KYC documentation in one business day and the 15% earmarked for security seems natural considering the amount of crypto and fiat they are looking to handle on the exchange.

Allocation of tokens is as follows:

 

You can find the LionCoin telegram group here, and can participate on the ICO on their homepage. They are also very active on BitcoinTalk (the CEO being an active miner!) and Twitter. Do not consider this financial advice, please read the whitepaper and do your own research before contributing any form of fiat or cryptocurrency.

SophiaTX – Blockchain for business. Blockchain integration with SAP and enterprise software.

If you’ve ever worked for a business larger than 50 people, chances are they utilize SAP. SAP offers some of the top enterprise software Germany has to offer, with over 335,000 customers in 180 countries and revenues in 2016 of 22 billion Euros.

SophiaTX styles itself as blockchain for business, and their objective is to create a business blockchain platform and marketplace. The platform itself will contain open source APIs to connect primarily with SAP and other enterprise software, used by most of the biggest multinational corps across the world. A pretty ambitious plan right? According to one of their press releases, 87% of global businesses use SAP, along with 98% of the top 100 highest valued brands in the world also utilizing it. If blockchain can get its fingers into this market, SophiaTX could be a key tool for businesses.

Two companies are behind $SPHTX. DECENT is a blockchain-based digital medium distribution platform, whose token $DCT currently has a marketcap of 105 million USD. The other team are from Venaco Group, a ‘best in class’ SAP advisory and implementation firm.

The ICO was opened on 7th of Dec 2017, and finished just 10 days later on 17th Dec 2017, a fairly short run when most firms ICOs run for months. They did manage to raise the equivalent of $7.3 million USD, priced at 1 SPHTX = 0.00062789 ETH. A quick video used to market the ICO is here, but doesn’t have much content to be honest, their blog is a much better read to see some actual use cases.

The Product

As broken down by the SophiaTX whitepaper, there’s three core elements to the business.

  1. A blockchain built for business.
  2. a development platform to integrate blockchain and SAP/enterprise apps.
  3. Marketplace for companies and communities to buy/sell apps or data.

The blockchain itself is  a hardfork from the Decent coin,as stated in an interview with CEO Jaroslave Kacina by Bitcoin Magazine. Interestingly, the testnet blockchain is using Delegated Proof of Stake, so avoids costly mining in terms of both transaction fees and electricity. While proof of stake may not be ideal for a distributed consensus protocol, for a business app such as the one SophiaTX is developing it could be ideal. Being centralised also means they can bring the product to market faster, and is easier to keep secure. Data security is a key selling point to large firms with data breaches being all too common in the last few years. If you plug a email you’ve used over the past 10 years into HaveIBeenPwned chances are your data will have been exposed by atleast one company.

This does raise some questions about the utility of an ERC20 token on the ethereum blockchain, when the actual product is a private blockchain, with companies even being able to licence their own private blockchain. Isn’t that just a database?

However, from what the whitepaper says, and responses from the team in their Telegram chat, once the mainnet is online (Q3 2018 according to page 12 of the whitepaper), the ERC20 tokens will be swapped for those on the SPHTX mainnet, and used to purchase assets on the marketplace, licencing for private blockchain, reward for devs when customers are using dapps, and to payout transaction fees and rewards for miners validating transactions.

Partners and Projects

SophiaTX has recently signed a joint letter of intent with a Riyadh-based logistics company that every year handles more than 2 million tons of cargo. The intent is to bring blockchain to the pharmaceutical industry by facilitating a track and trace product across manufacturing processes, quality assurance points, shipment, and receipt of the products.

Sounds a little like modum but encompassing the entire supply chain, not just the shipment to end users from the manufacturers.

According to the press release from SophiaTX: “Each of the current top twenty prescription drugs (amounting to 10% of the global market in 2016) is produced by a company using SAP software products within their sourcing, manufacturing, or supply chain processes. SophiaTX’s integration with the system will allow pharmaceutical companies to write their products directly into the blockchain, thereby addressing issues of counterfeiting; compliance; supply chain conditions; traceability and recalls.”

Modum, Ambrosus and Waltonchain have all cited counterfeiting, traceability, recalls, and compliance as a key area they are seeking to disrupt with their business model, so it’s no surprise SophiaTX are seeking to do the same. However by integrating SAP into their model, it could potentially be much easier for firms to integrate blockchain into their existing systems.

Even more exciting than this, is the demonstration of a proof of concept at a recent blockchain seminar in Zurich, where the team demonstrated sending a variety of documents between SAP systems. An invoice was created within SAP, then transferred via the SophiaTX testnet to another firm using another SAP system. Read more over on their blog.

Competition – SAP itself moving into blockchain tech.

What is a concern is SAP is moving into blockchain tech, which poses the question – Why would you need a third party when SAP is already developing in the field? Surely they wouldn’t want to miss out on the huge revenue this disruptive new tech could bring to enterprise across the country.

Back in November, SAP announced the addition of 27 new members to the its blockchain program, from across major industries – including pharmaceuticals and logistics. At the same conference they announced three key use cases they hope to standardize across digital supply chains, these include:

  • SAP asset intelligence – a registry of equipment OEMs can use to share asset information to improve uptime and service.
  • SAP distributed manufacturing – An app to connect manufacturing with supplier and technical cert companies.
  • SAP transportation management – International trade on the blockchain to reduce fraud and theft.

All seems a little scary for SophiaTX. However, SAP’s project Leonardo (Blockchain as a Service) on which these 3 use cases are being built on, has been described as ‘relatively expensive‘ for smaller firms, and less transparent as it is cloud based by Kacina. We also MUST remember, the founders of SophiaTX (Venaco Group) are a company that specializes in SAP advisory services and implementation of SAP. These guys can target custom blockchain solutions and its integration with SAP, not just a few standardized use cases. This here is where SophiaTX can make a real name for itself.

Token Economics

Total supply currently lies at 350 million tokens, and the future total supply will sit at no more than 500 million tokens, with 70% of the tokens dedicated to development, operations, marketing, team will not be sold for 12 months after the initial SPHTX generation. Circulating supply sits at 202.5 million after adding the 30% of the team tokens, plus TGE tokens.

Currently marketcap is unavailable as ICO has only recently ended,  but ranked 1135 on coinmarketcap at time of publishing.

*Update*

Previously I didn’t list the marketcap as I couldn’t confirm if the 30% of the team tokens not required to be held for 12 months was to be included in the circulating supply. As of 20/01/18 it sits at $238 mil USD.

$SPHTX is only available on QRYPTOS, and Cobinhood, but hopes to be listed on Binance and KuCoin soon

Modum – Real blockchain utility, in a sea of vaporware. Part 1 – From the whitepaper to mass production.

So, what is modum? Luckily for me, there’s a little video here which is a great showcase for the tech and what it does. Briefly, Modum is a supply-chain monitor for the pharmaceutical sector that enables companies to comply with legislation from the EU regarding the delivery of medicinal products. Modum’s tech is a passive monitoring device that sits in with shipments to monitor the temperature. During the shipping the temperature is monitored, and when received by the customer, the data is reported back to the blockchain and is publically viewable to the distributor, and the customer. Currently some drug companies are shipping in temperature-controlled containers which are expensive, or use other data-logging devices like used in food distribution, which is unnecessary.

According to Modum’s whitepaper there are over 200 million shipments a year in the EU which would need to be monitored to comply with EU law, and if Modum can capture just a fraction of that market, it’s big money. Modum believes cost-per-shipment can be reduced up to 60%, that would be around 10 USD per shipment. They’ve stated the business has the potential to reduce the industry’s expenses here by up to 3 billion USD. Fairly impressive right. What’s even more exciting is since 2016 has already conducted several pilot programs with off-the-shelf tech, recorded over 10K datapoints and have close contracts with a $5+ billion revenue company. The whitepaper is clearly states the Modum system is being integrated with the leading last-mile logistics service provider in Switzerland, and three pilots completed. Announcements of partnerships with companies is now common in crypto, with developers working together, but this is a huge step in a company having blockchain tech adapted on such a large scale.

In the latest CEO update the first 200 prototype sensors have arrived, and mass-production of 10,000 has been set up. One of the issues brought up in the whitepaper from the first pilot was the need for quicker connectivity between the logger and mobile application, data transfer speed boosted, and a proper UI for data analysis created. This was addressed in the two further pilots, and the production of 10K sensors is an enormous investment by the company. Combined with the news of a contract signing, this is a strong message of confidence in the product from the customer and modum.

 

Modum’s prototype asset tracker was chosen by Canadian company Nordic Sensors as one of eight products for demonstration at the Consumer Technology Association, a huge technology conference held in LA. Variosystems was mentioned in a previous update as being involved in the production of the prototypes back in August. Modum on Dec 12. was announced as the latest member of the Trusted IoT alliance, the open source software consortium. So far the group consists of some huge names in technology, such as Bosch, Cisco, and UBS. Other recognizable names in crypto such as QTUM, vechain, IOTA and consensys are also members.

Alongside its announced partnerships, Modum’s physical location could also be an important factor to its future success. They are currently based in Zurich, near to Basel – European pharma hotspot. Novartis, Hoffmann-La Roche, Basilea Pharmaceutica, Straumann and Actelion have their HQs in Basel. Pascal Degen, the Head of Sterile Packaging at Novartis is also a member of the Modum team. Nearby is Zug, home to Crypto Valley which has KPMG as a strategic partner, and Crypto Valley Labs, where Blockchaingers, organizers of previous hackathons are based. From an academic perspective, partnerships with staff from University of Zurich and University of St. Gallen, such as Prof Burkhard Stiller (the communications chair at Zurich) and Prof Erik Hofmann (expert in strategic supply chain management and author of Supply Chain Finance and Blockchain Technology) all point towards a top-tier product based in reality.

What we can see here is a clear business model that concentrates on a specfic market, that also has potential for large and consistent revenue stream. The product is proven and has real backing across the pharma industry and academia. If you haven’t already I highly recommend you read the Modum Whitepaper.

Part 2 will contain token structure, performance in the market so far, concerns around its potential classification as a security and potential competitors in the cryptosphere and across the industry.

You can purchase Modum at Binance and KuCoin.

Part 2 is located here.