RedFOX Labs: IEO Review
With the ICO craze of 2017 leaving a bad taste in the mouths of most (including my own), I have been quite skeptical of the advent and rise of the Initial Exchange Offering (IEO). I thought to myself: Aren’t they just the same thing? Well, as it turns out, no.
I decided to look into one, specifically the RedFOX Labs IEO (https://redfoxlabs.io), to see if I could spot the difference. What I found surprised me.
Here are a few quick notes about the IEO model and how it differs from the ICO model:
- Exchanges require heavy vetting
- Exchanges charge substantial fees to host an IEO
- Token Supply is typically limited
What this means is that it is less likely that an IEO is being run by scammers as it requires significant upfront costs, the identity of the issuer is known and verified, and importantly, the limited token supply means that the onus is on the issuer to essentially prove they can build out a proof of concept/product for the locked tokens to hold future value.
There is actual accountability and reputations at stake (both that of the issuer and the exchange), so this is a long way from a random person on the internet thinking up a cool name and selling snake oil from their parent’s basement.
Alright, with that understanding, let’s explore what I learnt about RedFOX Labs.
First up, who are they?
- RedFOX Labs are Blockchain Venture Builders (BVB) co-founded by Ben Fairbanks (GM of Komodo), Glen Pearce and Wade Lueders.
What is a Blockchain Venture Builder?
- A BVB is a company that identify and build successful unicorn company models (think Instagram, Uber, etc.) in emerging markets where the demand is present but hasn’t been met .
Ok, but where is the “Blockchain” in there?
- RedFOX plan to utilize blockchain technology to disrupt legacy models that would traditionally interact with the companies they build (such as for transactions without the need for a bank account or credit card).
Where are they located?
- The company’s office is located in Ho Chi Minh city, Vietnam (South-East Asia). They have been there for the last 6 months and have signed a 6 year lease on a 5-story building because they are committed to being in the region.
Why should I care?
- Vietnam is the right place at the right time as it has the fastest growing GDP, a population adopting technology at a rapid rate (104 million aged 25–34), and their internet economy is expected to grow from $72B in 2018 to $240B by 2025.
- They have C-Level (think CTO/COO level) experience with major companies such as Virgin Mobile, ChinaHR, Grab.
- The group have 2 decades experience running companies in the region including multi-nationals Viva and Cell-C.
- They follow a proprietary process to make an objective decisions about what companies to build.
The Internet Economy?
- RedFOX Labs is focused on the 4 fastest-growing sectors of the Internet Economy:
— E-Commerce: $23B (2018) -> $100B (2025)
— Online Media: $30B (2018)
— Online Travel: $11B (2018)
— Ride Hailing: $2B (2018) -> $8B (2025)
— Total estimated value of $240B by 2025
Ok, so knowing a little bit about who they are, where they operate and why they positioned themselves there, let’s take a how they plan to achieve the goals.
How do they choose successful unicorn companies?
- RedFOX follow a proprietary process that uses a 9-point funnel to make an objective decision about whether a company/idea is viable. This process includes:
— Assessing product-market fit: analysis of competition, market size, growth potential, etc.
— Ensuring the product is not first to market (reduces risk for investors).
— Proving the product can take share from market.
— Ability to scale to revenue targets within 4 years.
— Requirement that blockchain provides an advantage.
What is their model for building these companies? They use a 200 day model that consists of three distinct phases:
- Day 0–100: Select a CEO and team, then build a working product to go live by day 100.
- Day 100–200: Expert advisers and partners assist the team to stabilize the product, RedFOX completes a full handover of the company by day 200.
- Day 200+: RedFOX remains on the board providing guidance, assistance, and advice to grow and accelerate the business.
RedFOX Labs also retains an 80% equity in the companies they build (subject to dilution), so they are invested in the company’s continued success. They also already have 3 projects in mind, but are awaiting the results of the token sale to select the most appropriate one to move forward with first.
If you’ve made it this far, you’re probably interested in the actual token and IEO sale, so here is some information about the token itself.
RedFOX is a platform and their offered token has 3 key use cases:
- Facilitate/record transactions for RedFOX companies (end user to be unaware of blockchain interaction)
- Provide ability to buy into future RedFOX projects
- Pay for RedFOX consulting services at a discounted rate.
The first use case is the most compelling because the token demand should increase as the RedFOX ecosystem expands. Mass adoption is also more likely where the complexity of blockchain is somewhat obfuscated and the end user doesn’t know they’re interacting with one.
I heard something about an airdrop?
- You did! 28% of the tokens will be distributed to RedFOX token holders over a 2 year period.
So, are there risks?
- Of course. There is always the risk of failure, however their process increases their chance of success and they are also the first BVB in the region, which allows them to establish themselves as the first and foremost.
Now, unfortunately, I was late to my research and am publishing this review after the private round and first round public sale has been completed. However, they are holding a second round public sale.
Public sale Time: 14:00 April, 17 to 14:00 April. 19 2019 (UTC)
Public sale Supply: 35,000,000 RFOX
Public sale Price: 1 RFOX = 0.05 USDT
Personally, I will be attempting to invest the RedFOX IEO as a result of my research (not all of which could fit in a single post). I believe they have a genuine use case and look well-positioned to take hold of the market with their model.
I highly recommend that you do your own research and decide for yourself if you should invest in RedFOX (or any IEO) as I do not pretend to be a financial adviser, seer, or trading prodigy.
Finally, I’d like to point you to the embedded YouTube video below. This was released by the RedFOX Labs team and is presented by Ben Fairbank. The video helped shape this article and gives a great overview of their offering.
If you liked this review, please give me a clap or leave me a comment so that I know whether people are interested in my reviews and thoughts.