ICO Review: What Can We Expect From Medicalchain?
This is a series of Initial Coin Offerings (ICO) reviews, prepared for Cryptonews.com readers exclusively.
Disclaimer: We are not compensated in any way nor obligated by any other means by the company or any parties involved to perform this research or publish this report. This research is not intended to serve as investment advice. Any party relying on this document to make an investment should take full responsibility for their own decision. We are not liable for any losses incurred. The opinions expressed in this document are based on publicly available information at the time of research. We do not independently verify all the information provided. All opinions expressed are independent and objective.
Selection criteria: We select projects that have a rating of >3 from icobench.com, an ICO rating platform.
Assessment methodology: We assess the projects using public available information accessible at the time of assessment. Main sources of information are the white paper, the company website, social media channels such as Telegram groups, etc.
– Medicalchain is decentralized platform that enables exchange and usage of medical data.
– Medicalchain is built on the permissioned based Hyperledger Fabric and Ethereum which allows various level of assess to users. As a result of this dual structure, patients have control over their health records while doctors can assess the necessary information.
– MedToken being an app token using as an access to the platform’s services. Registered doctors will be rewarded with tokens to remotely review medical information and provide advice or a second opinion on a case.
– Clear use case of blockchain technology.
– The team has significant experience in medical industry, understands the industry pain points and have execution capabilities. The team has started working on this project since 2016 and thus has built strong network and raised awareness for their project in the medical industry.
– The project has attracted a lot of attention and has as of today 37,000 members in the Telegram group.
– Diluted market cap is quite high (diluted market cap at ICO is USD 68.6m). While hard cap is only 24m, this represents 35% of total tokens supply.
– Medical workforce is not quite technology savvy. Blockchain application is still in its infancy. It might take quite a while to take it mainstream.
– Roadmap is only available for two years 2018 and 2019 and there is no financial information available. It was not mentioned how the funds are going to be used, and how company generates value.
Short- term: Positive
The project has a developed an MVP (minimum viable product), established strong partnerships with the industry, attracted attention from the media. The team has demonstrated to be experienced and capable.
In the medium run, if the project roadmap is carried out as planned, the outlook is positive
We are doubtful of the mass adoption of the blockchain technology in the traditional medical industry where the workforce is not that tech savvy.
Summary and checklist
|Platform||Dual structure (Ethereum/Hyperledger Fabric)|
|Hard cap||USD 24m|
|Token price||USD 0.25 per token|
|% of tokens for pre-sale and crowd sales||35% (170,000,000)|
|Maximum market cap at ICO on a fully diluted basis||USD 68,6m|
|Presales||Yes, sold out|
|Pre ICO or white list||Whitelist|
|ICO period||1 Feb 2018-21 Feb|
|Token distribution date||n.a.|
|Exchanges listing||In discussion|
|Vesting schedules||For founders and team: among 34% (24 months: 12% of tokens subject to 48 months vesting period;|
|ICO Smart Contract published||No|
|Blockchain add value to business model?||Yes|
|Business model clearly define and logical?||Yes|
|Roadmap feasible for execution?||Yes|
|Financials available and justifiable?||No|
|Proposed solution add value to industry||Yes|
|Is the timing proper for such a solution?||Neutral|
|Is the proposed solution competitive?||Yes|
|Does company has pre-existing influence over market?||Yes|
|Team have experience and capability?||Yes|
|Advisory board add value?||Yes|
|Media attention and hype||Yes|
Registrations for the Medicalchain ICO will close strictly at 23:59 UTC on the 30th of January. However, the ICO is already oversubscribed: it is likely that many will not be able to buy any tokens until they are listed on the exchanges.
Glossary and abbreviations
Soft cap: minimum amount a crowdsale will receive. Funds will be returned to tokens buyers if the soft cap is not met.
Hard cap: maximum amount a crowdsale will receive
Maximum market cap at crowdsales on a fully diluted basis: calculated using the following formula:
=hard cap*100%/ of tokens in crowdsales
Total tokens supply: 500,000,000
Tokens for sales in crowdsales: 170,000,000
% tokens for crowdsales: 35%
Hard cap: 24m
Maximum market cap at crowdsales on a fully diluted basis: = 24m*100%/35%=68,6m
KYC: Know your customer policy
AML: Anti-money laundering policy
MVP: Minimum Viable Product
Github: Git’s cloud-based publishing tool and hosting platform used by programmers, developers, and designers to store projects and keep track of changes to their files
Vesting schedules: Timing tokens are locked