Honest ENDO ICO review

Kiku Reise
Aug 20, 2018 · 15 min read

Source publication date: June 26, 2018.

ICO Website | White Paper | BitcoinTalk | ICO Chat | Open Source | Prototype

Note: this is an English translation of the Russian article we wrote recently with an in-depth analysis of the ENDO ICO.

This review has been prepared by “Avocado Approves” community with the support of the Golden Borodutch Telegram channel. For the convenience of the readers the review structure is divided into five parts: product, advisors, team, legal part and conclusion. We request the project team to answer all the questions in bold in this review with a separate public document.

Worth noting that everything written below only represents the personal opinion of the author, which fully complies with the Fair Use laws and the First Amendment. It’s is in no way trading advice, and all the information was gathered from public sources.

Product

ENDO is a blockchain platform for data storage, exchange and verification. Apparently, they are just trying to make blockchain technology more accessible by creating development tools and API that would work with the following tools:

All the databases will be stored in a cloud blockchain storage that will be hosted by validators, therefore decentralizing the data storage. Validators community will be organized using the DPOS consensus algorithm.

Delegated Proof-of-Stake (DPoS) is a project token voting system to select validators who will receive the flow of transactions. Voting users receive a portion of the validator reward.

Validators are the guys like miners, also known as master-nodes or delegates who simply check, approve and put transactions into blockchain in exchange for tokens, therefore sustaining the blockchain.

ENDO protocol is being built on top of Graphene at the moment (a tool to create new blockchains). Team promises to add support for EOS and Hyperledger in the future to cover wider markets.

Platform will take fee for each token transaction. Users will be able to get paid in tokens for providing the access to their personal data to whoever wants to reach them.

Aside of the 4 services mentioned, ENDO plans on launching a data truth verification mechanism by the end of 2018, as well as Reviews and Base apps in 2019. But there is close to no information about these services in the White Paper.

We have waited for 4 weeks while ENDO was updating their draft White Paper and was publishing their technical papers, but we couldn’t wait anymore and decided to go on with our review. Let’s get to the product questions we have that ENDO team should answer to.

1, 4: Documents verification and multisignature

ENDO Documents MVP is available in the test network of the ENDO Platform. 50 companies are already integrated to ENDO Documents and create over 7000 documents a month.
— ENDO White Paper

2: KYC aggregator

3: Products verification

General product questions

Vitalik Buterin mentioned the drawbacks of the EOS DPoS consensus on Reddit. In short: semi-dececentralization, non-universality, low voters turnover, exchange votes centralization, lack of the validators fairness motivation, voting mechanism dependency and all the consequences of it in the form of speculative voting.

A bit about the Scoring mechanism that is poorly described in the White Paper.

ENDO claims that they cannot provide us with the crowd sale smart-contract because their sale is centralized and organized in multiple currencies with single wallets generated per investor.

The main focus of ENDO is that they are open source. But the project repository wasn’t updated for the last several months. And it has no value at all even though they call it an MVP. Currently it’s just a wrapper around the Graphene fork.

Possibly, the ENDO team got angry when they’ve read the review title because they don’t call their crowd sale an ICO, but just a token sale. We used Crypto Fox article that compares ICO’s to token sales.

According to the comparison, ENDO crowd sale is an ICO and not just a token sale byt two criterions: the sale is public and ENDO product is only based on the concepts and ideas, not a working product. Also ENDO is listed in the ICO ratings [1|2|3].

Advisors

At the moment of writing, ENDO didn’t publish their advisory board. They don’t distinguish between advisors and team members claiming that they don’t need pepople who sell their names. We picked two consultants from the team and reached out to them to verify their role in the project. Review will be updated upon receiving the answers.

Did we mention all the advisors?

Team

At the moment of writing, ENDO has 23 people on their team as published on their website. As usual, we’ll begin with the experience of the founder and CEO — Yan Palmachinskiy [ln|fb|tg].

Are there any proofs that Yan is an advisor at PFRF? What exactly does he advise PFRF on?

What does Take IT Easy company do? Can we see its website, portfolio and the link to the company registration?

How many active users do Yan’s products have?

What technology stack does ENDO use?

In the same video Yan promised that company would not be closed in a month. It was though. Why did Magnetar shut down?

Did Magnetar develop any blockchain services? If so, please provide links.

What does Giraffe company do?

Did we mention all the experience of Yan?

Yan is followed by the CMO — Vladislav Utushkin [ln|fb|tg].

When we tried to conduct a small and, unfortunately, unsuccessful interview with the ENDO team, Vladislav sent us a pretty unprofessional voice message following the question about the centralized crowd sale.

For people who don’t understand Russian: the message consists of several relatively rude expressions including explicit content

Do you think this is a professional behaviour?

According to the voice message, Vladislav also acts as a developer at ENDO?

Next, let’s get to the system architect — Nicolay Berezowsky [ln|fb|tg].

What projects did Nicolai develop?

Mikhail Plyaskin [ln|tg] — COO. Has only mentioned on his LinkedIn that he has been selling sport inventory since 2013. ENDO White Paper claims:

There is no more information of the Mikhail experience.

Where did Mikhail get COO experience?

Almost all the team members have been reviewed by now, except developers — we will leave them till the end of the section. Now to the rest of the team.

Experience of the following people cannot be found on the Internet.

Why does the person responsible for HR at the tech-oriented project ENDO has no relevant experience? If there is experience, please, provide proofs.

Unfortunately, developers are also like ghosts. ENDO has mentioned only 3 programmers whose experience isn’t verifiable and they are not known in the Novosibirsk developers community. However, White Paper claims that “they have over 10 years of experience in Backend, Frontend, Blockchain and BigData analytics experience”. Let’s see what we’ve got.

4 years — is this all the Vadim’s experience? Did Vadim work with blockchain before ENDO?

In one of the ENDO’s videos, Andrei Veselov mentioned that there are 14 Novosibirsk developers working on the ENDO platform.

Why did you show only 2 developers?

When exactly will you show the names and proofs of experience of all the developers?

Does ENDO have any experienced blockchain developers or at least a CTO?

Why did most of the ENDO team decided not to mention any experience on LinkedIn?

All of it raises the questions to the HR of the project that gathered people without experience; and to the marketing department that allowed the company to look like it hires ghosts and not real people.

As ENDO claims, their development team is already seasoned and experienced by working together on GoFocus and PiperCat at Magnetar. If so, this is a good sign. At least ENDO promised to correct the issues with developers experience by the end of the token sale.

Legal

ENDO is registered at Singapore by the business number 201815388E. Company is consulted by legal advisory of GMT Legal.

ENDO claims that their EToken is of utility type and promises to publish Legal Opinion from the official financial regulator of Singapore — MAS.

“Of course. We are waiting on research from the regulator. Even more, we are going to submit docs to SEC”

What documents are you going to submit to SEC? When and why?

How long should we wait for the regulator research results?

If regulator proclaims that EToken is a security, what will be the legal consequences for the founders and team in general?

Even though ENDO team claims that their token is of Utility type, marketing manager Vladislav Utushkin openly claims that the token is going to be listed on cryptocurrency exchanges right after token sale and sees no legal risks for investors and project in general.

“Strange question, we would like not to do this but everybody would want to sell in the first day as always))) they want “x”s, so yes, we will”

On the other hand, lawyer Kirill Khristenko and head of community management Boris Baranov claim that Vladislav meant listing on decentralized markets without any of the project participation.

“As I wrote before, the fact that token is going to be listed on the exchanges goes against ENDO concept but rejecting the fact that token is going to get to the markets is foolish”

ENDO doesn’t promise token listing in the White Paper

So will EToken be listed on the markets or not? Why don’t you give us a direct answer?

Conclusion

For the complete implementation of such a product one should get onto the global market, even though the world is pretty conservative. It will be great if ENDO doesn’t repeat the mistakes of Mark.Space which first developed worthless services instead of development tools it promised.

ENDO has a lot of uncertainty around it: ICO or token sale, MVP or prototype, will token be listed or not. We hope that the ENDO team will give full and public answers. As we were pointing out weak spots in the project, they promised to get better. We’ll see how it goes.

And here goes the comment by Nikita Kolmogorov:

This one is extremely simple. Large ambitions and wishes of founders, unrealistic, uncertain and worthless notions (radioactive tracers, yeah), lack of MVP, lack of experienced developers, lack of the team experience, existence of previous ICO that doesn’t follow it’s promises, bad attitude from the team — I believe it’s enough.

My personal opinion: don’t invest in ENDO — too many red flags were found. No VC’s would even consider answering an email with such a pitch — why should you?

Updated on June 28th, 2018:

Two ENDO ex-employees asked us to remove mentions of their names from the review.

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Honest ICO reviews — no BS, just facts

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