Chronobank — Profit Analysis
In this post, I would be discussing the expected profit from ICO of Chronobank. Chronobank would be giving a cryptocurrency TIME to the investors of ICO. And all TIME holders would receive dividends in form of fees.
For information regarding Chronobank’s working visit https://chronobank.io
Wages per hour for people using Chronobank is Considered to be $14 in Australia (for calculations of wages from Edway Group)
And wages per year for people using Chronobank is considered to be $20,000.
For each LH on average there would be 2 transaction-Sending of funds to employee and redeeming them. This means for each LH we get 0.3% from transaction fees.
And we would receive issuance fee of 3% in 2017, 2% in 2018, and 1% for following years.
For ROI part, I'm just considering returns from fees. However, you can also sell TIME to get ROI earlier.
Let's see the possible scenarios-
Scenario 1 - Worst Case Scenario
In this scenario, I assume that Chronobank isn't accepted by any company. Still Edway Group would implement this.
Edway Group boasts over 1,000,000 labour hours supplied by it per year.
So in Worst Case, we have 500,000 labour hours in 2017 (Since LHAU is launching in Q2), and 1,000,000 for following years.
Returns for 2017 = 500,000 * 14 * 3.3%= $247,500
Returns for 2018 = 1,000,000*14*2.3%= $355,000
Returns for 2019 (and onwards) =1,000,000*14*1.3% =$182,000
If ICO ends today, then you get ROI in about 15 years (which is not very bad).
Scenario 2 -Adoption at a Small level
In this scenario, other than Edway , we consider Only 1000 people get salary in LH in each of Australia, USA, UK and EU.
Returns excluding Returns from Edway,
Returns in 2017 = 1000*10,000*3.3% +1000*5,000*3.3%= $495,000
(LHAU launches in Q2, so half of yearly wages is paid through Chronobank )
Returns in 2018 = 3000*20,000*2.3%= $1380,000
Returns in 2019(and onwards) = 3000*20,000*1.3%= $780,000
Total Returns -
2017 = $726,000
2018 = $1,702,000
2019 = $962,000
If ICO ends today , ROI in less than 3 years.
Scenario 3 - Optimistic Scenario -Adoption at Good level And LaborX is launched
In this scenario we consider, that employees paid in LH increase from 3000 in 2019 to 10,000 in 2020. (More companies would be joining Chronobank as they see it successful)
ROI would be same as that in scenario 2.
Returns for 2017 , 2018 and 2019 are same
For 2020 and onwards = $ 2,782,000
I haven't considered fees from LaborX as it's very difficult to estimate it.
But still, it would sum up to at least $3 million per year.
Now, imagine if it turns out to be Scenario 3, you would receive dividends equal to your investment each year.
If we assume P/E Ratio 10 then the price of TIME becomes more than 10 times the current price.
Moreover, I think Scenario 3 too isn't much difficult. It can even reach more people.
We can conclude that it is most likely that we would get ROI within 3 years from fees only. And you can also sell TIME to get ROI in even lesser time.
Update: Chronobank ICO finished on 14th February with total investments around $6 million (according to current exchange rate) from 2975 participants.
Placing Chronobank on 19 th position in funding from Crowdsale.
Note- Be aware of the fake websites and people pretending to be team members of Chronobank. Only invest through Chronobank official website- https://chronobank.io
Disclaimer- This is my opinion. You can check my calculations, suggest changes, point out mistakes or do your own calculations before Investing.
And as a general rule, Never invest more than you can afford to lose.