ShipChain ICO Review
There’s not much public information regarding ShipChain, because they’re in the pre-sale stage and they don’t have a website up yet, but I did some research, read through the whitepaper, and talked to an investor involved in the pre-sale.
The idea is good, if not ambitious. The SHP token will be used to pay for freight shipments and tracking. It grants access to ShipChain’s decentralized brokerage system that connects shippers and carriers, allowing shippers to have control of their supply chain without going through a broker. Their plan is to use geographic waypoints, RFID tagging, barcodes, and cargo trailer sensors to track and trace shipments, so shippers will know exactly which carrier and driver are carrying their freight. Smart contracts will be used when cargo is picked up and payments held in escrow until release conditions are met using the ethereum blockchain.
If they can pull it off it could be a huge success.
The team looks good. The real star is their Chief Marketing Officer Brian D. Evans, who’s been ranked by Forbes as one of the top influencers in the world and has over 371k followers on Twitter. So while there is little hype right now, Brian will likely be able to attract a large amount of attention to ShipChain.
Having him on the team is a huge positive, and his influence will be needed in my opinion. If they are planning to have their public crowdsale in December, they are going to have to scramble to get the social presence necessary to make it a successful ICO.
In terms of the financials they are planning to raise 20 million pre-ico (already fully subscribed from my understanding), and an additional 60 million for the main sale, for a total of 80 million USD. It’s an extremely ambitious project so I understand the need for capital but this is a higher number than I like to see for the ICO’s I invest in. Many of the recent successful ICO’s have been raising less, ie ChainLink at 32 million. 80 million is not a red flag by any means, especially considering the scope of the project, but it’s not ideal. That will automatically put it in the Top 100 coins on launch. In terms of competition, the only somewhat comparable token I know of is Ambrosus in the food/medicine supply chain sector, and they are trying to raise over $100 million USD, but I’m not sure they’re going to get it.
The crowdsale for ShipChain does not look whale-proof, they are allowing individual investors to invest up to $1 million USD each in the main sale, $5 million in the pre-sale. So the tokens could end up being concentrated in the hands of the few. They are doing KYC which is essential, it’s becoming almost impossible to get listed on main exchanges without it. Hopefully they will whitelist and cap how much each participant can get on the first day of the public crowdsale.
The pre-ico bonus of 20% is okay, but higher than ideal. The smaller the bonus the less likely the pre-ico holders will dump as soon as it hits an exchange.
Overall, it looks like an interesting project and will likely do well for pre-ICO buyers. At the same time, it’s not a screaming “must buy” for me. That could change as more details and hype around the project are rolled out