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.

CargoX – Replacing traditional shipping Bills of Lading with smart contracts on the blockchain.

cargox $CXO

 

CargoX is a firm seeking to disrupt the global shipping process, by replacing the traditional Bill of Lading (B/L) with a smart-contract on the Ethereum blockchain. This will replace the old paper format with a product that is cheaper, faster, transparent and comes with the immutability of a blockchain. By doing this, CargoX could save customers millions of dollars worth of courier fees, and reduce the 400,000 trees used every year in printing traditional B/L and other essential documents. This method would also provide a high level of security, traceability and a more efficient process to archive past transactions – all key issues in the logistics industry.

The global shipping industry is a colossal beast, handling over 80% of the worlds trade. If CargoX can succesfully disrupt this market and obtain a strong customer base, there is no reason they cannot be hugely successful.

At any given moment there are approximately 20 million containers travelling across the oceans, bringing goods from producers to local markets. The total annual global volume is 200 million TEU (Twenty-foot Equivalent Unit = 20’ container). There are over 50,000 merchant ships trading internationally, transporting every kind of cargo. In 2015, for the first time in history, world seaborne trade volumes surpassed 10 billion tons. The world fleet is registered in over 150 nations, and manned by over a million seafarers of virtually every nationality.

What is a Bill of Lading?

A B/L is a mandatory document that is a requirement for any container that is shipped across the ocean. It is used to claim the container at a destination port, and is therefore equivalent to the value of the shipped goods. If lost or stolen, replacement documentation can be issued, but on average takes over 20 days to be re-issued. If the goods are time-sensitive, this could cause financial loss, breach of contract. cause issues further up a supply chain and damage customer relationships.

CargoX.io have identified three key areas that are particularly applicable to global shipping logistics, that could be improved by utilizing blockchain technology.

1 – Speed
A Bill of Lading  must be exchanged between exporters and importers to acknowledge receipt of cargo for a shipment. These paper documents have an average travel time of over a week and could swap between a number of courier services, especially on longer journeys.

2 – Lost Documentation
The longer the journey, the more chance the B/L can be lost or stolen. Replacement documents are not easily obtained as previously mentioned, they are representative of the value the cargo, these can take over twenty days to be reissued.

3 – Cost
Transporting the issued B/L can cost between $100-$180 USD, this can vary depending on exporter charges, couriers used, and distance travelled.

CargoX believes by utilizing blockchain technology they can reduce cost to $10 USD, or the equivalent $CXO token value with a discount. The change of ownership, previously completed by exchange of B/L would be reduced to the transaction time on the dapp (about 20 seconds). Archiving would be free for token holders, and cargo information such as location and temperature data could be incorporated into this. As it’s on the blockchain, there’s no original ‘sending cost’ from firms (usually in the region of $100 USD), and no ability to lose the documentation, it’s its stored on the immutable blockchain. The $10 fee is mostly to cover the cost of transactions on the Ethereum blockchain.

cargox $CXO cargoxio

Competition

We know from recent ICOs that firms such as SophiaTX, Modum, OriginTrail and others are looking to utilise blockchain technology within supply chains, and each has a slightly different approach or niche, and at a glance, CargoX looks like another one of these firms. But the whitepaper is extremely clear, they are are a digitised solution to costly B/Ls, not a full solution to supply chain tracking. There is a significant competitor in the shape of IBM, who have partnered with shipping behemoth Maersk to create:

A global trade platform using blockchain technology aimed at improving the cost of transportation, lack of visibility and inefficiencies with paper-based processes

The trailing section of the article’s subtitle is the main concern here. While many potential users of CargoX might not be interested in a global trade platform, if IBM have a section of that platform for dealing with paperless transactions, it could be a serious competitor if available separately.

Since the collaboration started in June 2016, multiple parties have piloted the platform including DuPont, Dow Chemical, Tetra Pak, Port Houston, Rotterdam Port Community System Portbase, the Customs Administration of the Netherlands, U.S. Customs and Border Protection.

A broader group of global corporations have already expressed interest in the capabilities and are exploring ways to use the new platform, including General Motors and Procter and Gamble to streamline the complex supply chains they operate and Agility Logistics to provide improved customer services including customs clearance brokerage.

Some huge firms are listed there, alongside the busiest container port in Europe, Rotterdam. While it is concerning that a tech titan such as IBM are well into the pilot stages, where CargoX only really has a whitepaper – there is one upside. It’s a clear confirmation that potential customers of CargoX believe in the benefits that blockchain can bring to the logistics industry, not only the firms who ship, but the institutions such as U.S. Customs, the Dutch customs authorities, and the ports of Houston and Rotterdam. It’s important to note that 45HC’s (the partner company of CargoX) target market is small to medium sized businesses, to enable them to ship goods from China into Europe – not huge multinational firms such as Dow Chemical.

Token Economics & Utility

cargox cargoxio $CXO

The initial token distribution is as the above image. 40% to contributors in the ICO, 25% are locked in the smart contract for 12 months for future development. 15% of tokens will be given amongst the team and founders – these are locked for 12 months with quarterly releases. 10% is reserved for ambassadors and advisers to the firm, with 2% for the bug bounty. 8% is reserved for future partnerships and to incentivise early adoption. The whitepaper states the first 100 logistics companies that partner with CargoX will recieve a portion of tokens, which I would assume is the 8%

The CargoX ICO had a soft cap of $1,500,000 USD, with a hard cap of $7,000,000 USD, with 1 ETH equal to 10,000 $CXO. 40% of total supply was devoted to the ICO. Following the end of the ICO, total supply was listed as 215,119,016 CXO, and at time of publish, the marketcap sits at $38.7 million USD.

An encouraging sign is the token utility is a key part of the whitepaper, something not always seen in ICOs, where often the utility is somewhat of a concern for token holders.

We will issue the CXO token that will be used as a core part of our digitalised business model; it will have multiple intrinsic utilities, such as: system access, payment for usage fees, gas for running Smart B/L contracts, usage incentives, bounty and reward mechanism, access and payment for advanced features (e.g. document archives, logistic and shipping services provided by partners on our platform, personalisation)

 

The Team & Partner Company

The founder and CEO of CargoX is Stefan Kukman, who is also the CEO of partner company 45HC.com, a container booking platform. He has 10 years of experience, previously working for Kuehne-Nagel – one of the leading leading global freight forwarding companies.

The blockchain developer is Janez Kranjc, who has a Ph.D in computer science, and has much experience authoring and auditing smart contracts on the Ethereum blockchain. Peter Merc heads up legal, and is also the lead coordinator of the Blockchain Think Tank, supported by the Ministry of Public Affairs of Slovenia.

The partner company 45HC.com is a container booking platform, that successfully pitched for the ABC Accelerator program then shortly received their first Angel investment. The firm later found a second angel investor, won the PODIM’s Pitch Challenge, became Websi champions, and won the EBAN Winter University competition. It prides itself as being the ‘skyscanner for cargo transport’, and is a transparent, user-friendly platform that provides instant shipping rates for customers from port to warehouse without any hidden fees. The progress of the partner company is an encouraging sign, as while CargoX has no working product of yet, they do:

  • Have a wealth of experience in creating a business
  • Previously developed tech products
  • Obtained private investment before, not leaping straight into ICO as no alternative
  • Direct industry experience and contacts they can carry forward

All very encouraging signs that CargoX can deliver a product to a standard they have set out to do, and create a customer base.

Next Steps

The CargoX B/L exchange protocol is on the roadmap as being released in Q1 2018, and in this same quarter a beta sea-freight shipment will also take place. Q2 2018 will see the release of the Smart B/L exchange dApp, and one of the top 10 carriers in sea logistics have been signed for the test trial. The Smart B/L will be issued for a long distance shipment, from Asia to Europe. Q2-4 will see the adoption of first non-vessel operating common carriers, and import/export firms. Future features will be added in 2019, such as accommodating insurance agreements, and other data such as temperature readings.

The CargoX.io website can be found here. Their twitter account is @cargoxio, and you can chat with the Telegram group here. At time of publish, $CXO is only available on one decentralized exchange, IDEX.

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. I would also recommend reading the FAQ on their site, as it answers some fantastic industry-specific questions around shipping that traditional crypto investors may have not considered.

Any thoughts? Follow me on twitter!

As CargoX is just out of ICO, you may have to add it as a custom token in Metamask or MyEtherWallet, details are below.

Contract Address: 0xb6ee9668771a79be7967ee29a63d4184f8097143
Decimal Places: 18
Symbol: CXO

If you liked this, you may like this article: Blockchain and Logistics: Its most promising use case?

Modum – Real blockchain utility, in a sea of vaporware. Part 2 – Concerns regarding the token utility and possible classification as a security.

After looking at what appears to be a solid business plan, it’s only fair to balance that out with any concerns and competition the project has, and will face.

One of the common criticisms of ICOs is the tokens investors are receiving in return for their funds. When the Raiden team announced an ICO with a token, there was some outrage at the idea of raising funds for a protocol that would allow further low cost, scalable token transfers. In the run up to the announcement of the ICO, it was assumed by the vast majority this would just be a next step for Ethereum, akin to the Byzantium hard-fork. Now to be fair, the Raiden team posted a fairly solid response over at their Medium, however it did put recent ICOs under a lens by the community for the utility of their tokens. Modum was no exception to that scrutiny.

Token Utility Concerns

Modum is no exception to this spike in scrutiny, and the main concern raised is:

The modum token is not a utility token, and as such is not utilised by the company in its product. Where is the value?

Completely true, the modum token is a vehicle containing profit-sharing and voting rights. The white-paper states – “The board of modum.io decides and declares the amount of dividends when there is a profit. A payment equivalent to this amount is converted to Ether and sent to the modum smart contract. The modum smart contract evaluates the current holdings and distributes the profits to the token holders in Ether. The voting and profit share smart contract is open source.” So, while the open source nature of the contract might make some of us feel better, what does the rest of that sentence tell us?

Startups outside of crypto typically take years to post profits. On top of that, the board of modum.io decides how much profit is distributed. In theory, even once modum posts a profit the board could just decline to payout any dividends. However, this is true of pretty much any publicly-listed company, and they still pay out dividends yearly. The key difference here is that owning shares of a publicly traded company is different from just a profit sharing token, as token-holders don’t own a share of the company. However we can see in the whitepaper in the next three years a third of the token supply (tokens locked here) will be distributed to the shareholders (some of those being on the board of directors). Thus, there is a clear incentive here for all parties to profit share.

The value of the mod token, like most publicly traded companies who payout a dividend is then directly linked to how successful (and profitable) the company is. Simple as that! Although there is no actual share of ownership, the voting right element does provide a component of control over some key steps listed on page 13 & 14 of the whitepaper, including further releasing of tokens locked by the smart contract on milestone 2, 3 and 4, with the last step hopefully completed in Q1 2020.

Previous profit-sharing tokens such as iconomi ($ICN) have actually moved away from a profit-sharing model, and instead opted for a token-burn. Iconomi’s main concerns were around the dividend ensuring regulators would take the token as a security and lead to heavier regulatory concerns. Also with the sheer quantity of token holders with poor data management, how to resolve the issue with ‘dead’ accounts receiving the dividend to no benefit, and the loss of others was a concern. The buyback was an easy fix to that issue. The full article is worth a read and will be interesting to see if modum’s model changes in the next few years.

Tokens as a Security

There has been a fair amount of discussion on tokens as securities as inevitably regulation starts to come into play. A couple of pieces worth reading are linked on their images, but to summaries, while nothing is formal YET, all tokens, not just profit-sharing ones like modum could be classified as securities. During the ICO modum confirmed they have been in discussion with FINMA (the Swiss regulatory body for financial market legislation, including tax law), and the below guidance was issued. ICOs are not yet covered by legislation.


Now even if you don’t even glance at the two PDFs linked above, there is just one quote I believe you can take from it:

“Due to the close proximity in some areas of ICOs and token-generating events with transactions in conventional financial markets, the likelihood arises that the scope of application of at least one of the financial market laws may encompass certain types of ICO model. This is also the case for ICO activities which aim to circumvent those provisions. Owing to the wide variety in structure of ICO models, FINMA can only carry out a conclusive regulatory assessment in specific cases. Currently, FINMA is assessing a number of such cases. Where financial market legislation has been breached or circumvented, enforcement proceedings will be initiated.”

So, modum have been clear since the ICO, they have been in touch with FINMA, and may indeed be once of the cases they are assessing. Nothing is set in stone as of yet, but its fair to say legislation is coming, and not just from the Swiss government. Markets are being disrupted across the globe, and being up to date on the latest legislation from your home country, and ICOs  you are investing in is essential. When the dividend is paid, I wouldn’t be surprised to see a new wave of KYC requests for token-holders.

 

Token Economics

Image taken from whitepaper, page 13, figure 7.

 

Modum.io’s token split at ICO is seen in the above chart taken from the whitepaper. With the 30% of tokens held by modum being released at 4 different milestones across the next 2 years following a positive vote from token holders. Looking at the current etherscan breakdown of address holders, we can see a few points to touch on so far.

 

Modum so far is only listed on three well-used exchanges, Binance and KuCoin and EtherDelta. Binance’s hot and cold wallet, etherdelta, kucoin, and modum themselves hold around 35% of the total market cap, outside that only 3 wallets hold over 1% of  tokens. The vast majority of holders are small holders, hopefully pointing towards a market that is less likely to be manipulated. However with a a total supply of only 27.26 million tokens and with 94% of the volume only coming from Binance, we have seen huge sell/buy walls up. This token supply is also fixed.

Competition

There have been several recent ICOs looking to compete in the same market as $MOD, combining RFID sensors with blockchain tech.

Ambrosus $AMB

Ambrosus looks like the most direct competitor, focusing on food and medicinal shipments. There so far has been no showcase of any sensor equipment, but according to some of their updates they have a focus on data silos and management to speed up compliance and process analysis. In practical terms, they do seem a way behind modum with no evidence of pilots or partnerships going live, while modum has their fourth pilot going live with their proprietary technology, and 10,000 sensors hitting mass production in Q1.

From a token perspective, $AMB has a token supply of 361.5mil, with a market cap of 137.2mil USD.

You can buy Ambrosus $AMB at Binance and KuCoin.

Waltonchain $WTC

Waltonchain is another RFID-based solution, and recently Boxmining visted Waltonchain’s reserach center in Xiamen and had a look at their product demo. Like Modum and Ambrosus they are seeking to incorporating tracking of physical goods into the blockchain, and thus preventing counterfeiting etc.

WTC also has some different token mechanics, with the possiblity of becoming a masternode if holding 5K+ tokens.

You can buy Waltonchain $WTC at Binance and KuCoin.

WTC has a current market cap of 645mil USD, with a total supply of 70mil. This puts the valuation at $26USD per token, a massive sum. WTC has however just announced partnership with China Mobile IoT alliance, but the partnership has not been actually finialised, which caused a huge in the spike:

Modum is at time of publish is sitting at a market cap of 154mil USD, with a total supply of 27.26 mil tokens which can make it hugely attractive to potential investors with the small token supply. With partnerships to be announced in Q1, modum looks like a solid opportunity, even with a $10USD per token pricetag. While modum.io is focusing on pharma shipments to begin with, logistics integrity tracking is easily something that can be expanded or licenced out, and with relative first-mover advantage, modum is ready for big things this year.

You can buy modum.io $MOD at Binance and KuCoin.

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.