ICO Analysis: CBDoken
Today I am going to analyse CBDoken. This review has been asked to do by Christoph Richter, CEO of CBDoken. This is not a paid review!
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Idea
Before going into the Idea, let me tell you that CBD is a cannabis compound.
Some describe it as a supplement, while others as drugs.
On further research, it was found that some countries don’t allow CBD, while others allow the CBD oil.
Now coming back to the idea, they are offering their Tokens for CBD(Premium Full Spectrum Extract PHEC55) according to what their website specifies. For each token, they provide 1 gram of CBD which they say is redeemable through their website.
Need for Blockchain
The need for the blockchain in this system according to them is to cut the middle man and distribution chain and selling directly to the consumer.
But if they wanted to sell directly to the consumer without a distribution chain, they could have just opened up a website where this was being offered.
There was no need of Blockchain in this case according to me as if the motive was to sell it directly, 1000s of people sell products through a simple website of eCommerce.
Utility or Security
The token looks more like an Asset-Backed token. But without an Audit of the same, that can’t be verified.
They say that they have a partnership with PharmaHemp, whose website states:
Though they say they provide supreme quality of CBD since 2011, their logo says it was established in 1965.
For those who want to dig in more about PharmaHemp you can follow this link: http://www.sloexport.si/en/company-card?ms=2343428
I have also sent a message to the PharmaHemp team to verify the claim from CBDoken, will update this section once I get a reply from their side.
MVP
There is no MVP at the moment, and there seems to be no mention of the same in the RoadMap as well. They have provided the below image on their website though:
I wonder if they plan to do this manually. Or else they need to update their details in RoadMap with the above development details.
Team & their experiences
The above shows the complete organisation of CBDoken. Let ’s take the research on some of the Team Members.
Alexander Lacina, the Co-Founder and Chairman of the CBDoken is also serving as the CEO according to his Linkedin.
While according to the website, the CEO is Christoph Richter, who is also a founding partner.
On checking his Linkedin Profile, I found out that:
He has just listed himself as the Co-Founder and nothing else. Maybe a change in the internal management decision is still not reflected publicly?
Also, coming back to Alexander Lacina, he has some experience in Management and Sales, while didn’t see any relevant experience in the Medical or more specifically in the CBD field neither in the Blockchain one.
Now if we consider the experience listed by the CEO as per the website, i.e. Christoph Richter, he seems to have the expertise required for being a CEO, but I think he needs an assistant as well to manage his SM.
Now if we check the team as a whole, you will see that out of the 9, 7 of them are of Executive Level Jobs. Which leads me to believe that it seems they were trying to fill up the crucial positions among the people available.
Advisors
When it came to Advisors, they have gone the road less taken and went for experts related to their field rather than just people who bring face value.
But are they of much use or not, time will tell that.
Funds Target, timeline & phases
There are three phases of Sale. They are giving each sale about a month’s time to sell out. And have only a slight amount of difference in the price.
They are trying to raise about 12.6Million, and as they believe they call it as a voucher, it doesn’t need to be approved by SEC as well. And being brave, they are not only allowing Crypto Payment to buy this Token but also are granting to buy it using Paypal.
Funds Usage, Token Distribution & Valuation
There is not much detail given about how the funds are used, etc. Except that, it is written that for each token, the investor or the token owner would be able to redeem 1gm of CBD.
What kind of deal they have with the PharmaHemp or any other supplier is not transparent for now.
There is also not much detail specified about the Total Token Supply, the Token Smart Contract, etc. So, giving an assumption on the valuation is not ethical I believe.
Social Media Activity & Engagement
Unlike many projects, it seems they haven’t bought any traffic (yet!). Most of the social media contains around 150–250 people, which I believe is mostly through the bounty campaign.
So organic, but useless as most of them are bounty hunters and won’t give the company a natural PR which they may require in the future.
Smart Contract
There were not many details about the same on their website.
Verdict
Well, I would like to avoid investing in this project. Why? I am not an expert in the asset they are backing, i.e. CBD. Also, some countries are not considering it legal. We already have a problem with the legal status of Crypto in some country, no need to add chaos to that I believe.
Secondly, there are many unanswered questions like the audit of the asset, the total token supply and the smart contract details, etc.
Third, why a company like this would require a token in the first place? The team says it is so that the people decide the market price. But that will always be determined by the people, unless it’s an Apple product, lol.
If the team wanted to lower the price, then the best they can do is to use the partnership they have to get the retail price down directly through an eCommerce website to sell their product directly to the end customer rather than through a distribution chain, with a profit for their operation. There doesn’t seem to have use of blockchain or token for that matter.
Please let me know if you want to see more parameters to be added to my analysis or want to give me some tips or want to correct me on my findings or even want to share some secret regarding the companies I would be writing in time.
The above was just an analysis for those who want to spend less time finding about the project. But please don’t consider this as investment advice.
The above article was not paid for. And the respective company didn’t know about the same.
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