A brief discussion about Solve.Care and its native CAN token
Ensuring healthcare CAN be better
Solve.Care is preparing for its ICO on 21 February and is presently conducting a pre-sale. I thought it might be helpful to share some thoughts about the prospects for the platform’s native CAN token, to stimulate further discussion.
These are my personal points of view and conclusions. I am not associated with Solve.Care in any way and I have not sought their approval. My information has been taken from publicly available documents and interviews.
Happy to have any feedback on errors or omissions or alternative points of view. Just for the record, this is not financial advice and I am not making any recommendations. Please do your own research.
Why did I invest?
In a nutshell:
- Team. CEO is very experienced in the market segment both from a provider and administrator perspective. Strong advisory group with meaningful connections in (US) government. Dedicated technical development team of 32+ individuals.
- Problem addressed by solution. The burden of administrative costs in healthcare is overwhelming systems throughout the world. This is a ‘hair on fire’ problem. It is an imperative for costs to be reduced and Solve.Care’s solution can do so with impressive results.
- Product. Solve.Care already has a functioning Minimum Viable Product and has a clear roadmap for additional product rollout.
- Validation. Solve.Care has just signed up its first major client in the US.
- Care.Marketplace. This has the potential to generate exponential gains in token price.
Care.Wallet and Care.Cards
Solve.Care’s mission is to make healthcare and benefit programs work better for everyone. That is, more efficiently and more effectively. At the very heart of this is the Care.Wallet, which facilitates transparent communications between stakeholders and manages the delivery of care; all via smart contracts for designated stakeholder ‘pairs’ (e.g. patient/doctor or patient/insurer) using proprietary PoS algorithms. Care.Wallet houses applications known as Care.Cards (see Care.Marketplace below for more on this).
How does Care.Wallet help individuals?
What this means for an individual, in simple terms, is that the Care.Wallet will, say, sit on their smart phone and enable them to fix up a doctor’s appointment, order a prescription from a pharmacy, make a payment, review their medical event history and potentially much more. Everything in one place and all without the need to make a phone call or to fill in lengthy forms and without dispute or delay. Very convenient and effective and puts the individual in a greater position of control over management of their care.
Care.Marketplace — an unlimited opportunity
For members of the Care.Community, Care.Cards offer the potential for enhanced interaction between stakeholder pairs, and also represent a revenue-generating opportunity. This is achieved via Care.Marketplace. The potential here appears to be unlimited and there could ultimately be thousands of utility applications added. For example, think about wellbeing advice for individuals in respect of their nutrition, diet and exercise, special discounts and incentive plans from insurance companies to promote better health/lifestyles, training courses and certification for healthcare professionals to improve care quality, market data analysis via surveys and rewards and so on.
So, what’s the potential for the CAN token?
The token itself is the fuel that fires the Solve.Care ecosystem. Token supply is limited to a maximum of 1 billion, although circulating supply will be reduced in the near term in respect of tokens vested on behalf of the team (180 million) and set aside for community reserve (200 million). The more demand there is for CAN the more the token price will appreciate in value. Let’s consider 3 types of buyer that will need to purchase CAN over time.
- Clients such as insurance companies, government agencies, employers.
- Subscribers/individuals.
- Marketplace participants.
Client purchases of CAN
Clients will need to purchase CAN to access and use the platform for validating transactions. The volume of these purchases will be dependent on the market price for CAN, as transaction fees will be fixed in fiat currency. Solve.Care estimates that a medium-sized client in the US, with around 250,000 customers, would pay platform fees of $2.5-$5 million per annum. That equates to 25–50 million tokens at the $0.10 issue price of CAN. Acquisition of 30–40 similarly-sized clients would exhaust the total token supply, so the CAN price will inevitably increase as more clients access the platform.
Solve.Care has just signed up its first significant client in the US. This is a network of 6,000 physicians, 282 facilities and 300,000 consumers. Care.Wallet services are already being delivered to this client and Solve.Care is generating revenues from them. This can be considered as an important test case for validating several key use cases, amongst which are ‘patient-provider’ and ‘provider performance measurement’. This client will need to purchase around 40 million CAN in a full year.
The rate at which further clients will be acquired by Solve.Care will be dictated by availability of funds, marketing activity and success in use case validation. However, I believe that new clients will be added rapidly post this first implementation and I understand that there are substantive discussions already in progress to that effect.
Subscriber purchases of CAN
Token purchases by subscribers will occur when an individual first applies for a non-sponsored Care.Wallet. Additional CAN purchases will be required to pay for any Care.Card applications downloaded from Care.Marketplace.
Care.Marketplace purchases of CAN
Care.Marketplace has been likened to the ‘Upwork’ for healthcare. Think of any application that could be of interest to individuals in managing their health and wellbeing, or to health care professionals, or to clients, and you have a potential new Care.Card. The application developer or owner will need to purchase CAN to make the application available to Care.Wallet holders. I’m sure Care.Marketplace is going to appeal to information providers, brands and solutions providers. Once Solve.Care’s customer/client acquisition numbers reach critical mass, this could well be the ‘go-to place’ to reach them with relevant messaging. This is very exciting.
Summary
- The very significant administrative cost savings that Solve.Care proposes will interest the majority of its institutional target market. It’s an easy sale.
- Once initial use cases have been validated, further clients are likely to be added quickly. Client demand to satisfy their platform participation token needs will promote CAN token price growth.
- Increasing token price, along with accelerating rate of client acquisition, will likely attract new investors to the token, further fuelling its price increase.
- Demand for CAN from Care.Marketplace application developers/promoters and consumers could be substantial, once Solve.Care has gained sufficient traction. Over time, this demand element may considerably add to the increase in the token’s value.
My personal view is that if Solve.Care can successfully resource itself to aggressively implement its strategy and become the ‘de facto currency for healthcare delivery on the Blockchain’, then there is every reason to believe its market capitalisation will grow rapidly over the medium term. If Care.Marketplace does take the direction I envisage, then I believe the CAN token will be an outstanding investment.
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