ICO Analysis: HiHealth
Today we are going to review Hi:Health a medical project in the Blockchain Space. This time I have also added another parameter, called “Flags”, hope you guys would like it.
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Idea
Hi:Health specifies it’s basic idea as:
Hi:Health is global medical ecosystem based on artificial language for complex personalized diagnostics of the human organism in real time.
Really a noble thing to be thought. Helping someone without hurting others is indeed a good thing. But now let’s stress the part, “without hurting others”. Let’s see if they may be hurting their Investors.
Need for Blockchain
According to their whitepaper, it says:
In order to verify users, to provide medical secrecy, secure storage of data, transfer of information between the doctor and the patient, and for testing the authenticity of diagnostic gadgets, will be used Blockchain — Ethereum and decentralized file-sharing service Ethereum swarm.
And to that part, I can’t disagree. The blockchain is a good system to be used for the requirements mentioned above. But the real question is, whether they have selected the right blockchain, Ethereum.
I am not against Ethereum, but I am against using the wrong blockchain for a project. Most project these days are using Ethereum because of its popularity, number of developers (solidity) and it’s market cap.
But when you consider a project and it’s need for blockchain, you should choose something which is apt for what you require. And sometimes building a custom blockchain (by either forking or so) is the right way for your custom needs.
Utility or Security
I have always said that the matter that whether a token is utility or security is subjective rather than objective most of the times.
And for this project, this token comes under security, as most of the time it is being used only as a mode of payment in the Hi:Health system.
While at the same time, they may be using the token for user verification, etc.
But just for the “maybe”, I can’t ignore the “most of the time”. Thus I would still call this a security rather than a utility.
MVP
Except for the below two images, they don’t have an MVP of their own.
Though they say they have a partnership with this project, it can be considered a bit futile as they also have their crowdfunding in Indiegogo and Kickstarter and Apple Store, they only have a single review as of writing this analysis.
And I won’t consider a neatly made image as an MVP at all. According to their timeline, they should be releasing their v1.0 of the app by August 2018, which we would see how it will be in time if they release it.
Team & their experiences
If you check at the team, you might have seen a few familiar faces.
They are:
- Konstantine P
- Eugene Koval
- Michael Zhalevish
- Pavel Yeschenko
- Vladislav Vasilchyk
How? It’s VinChain!
Five among the 12 team members are members of a previous ICO. You can check the same through their website or ICOBench
Should that matter? It should not; one should be allowed to work in multiple places if he can. Then why am I concerned?
You may get the answer to that in the token price of VinChain at ICO and right now.
Now let’s start the confusion game, according to the website, Konstantine P is the CFO and Co-Founder of the site.
While according to ICOBench, CEO, as well as the CFO, is Aleksandr Potkin.
Whereas Konstantin “R”erzhukou (instead of Perzhukou) is having a position of ‘Konstantin Rerzhukou’ at Hi:Health. Rather a weird position to have if you ask me tbh.
And the funny part?
Konstantin R/Perzhukou has not even updated his Linkedin profile to reflect his new position in the company yet.
Advisors
Coming to Advisors, the first one listed is Timafei Lipski. It comes out that his actual name is Timofei Lipsky. And whether he is linked to this project by his will or not is still to be determined (waiting for an official answer from the RocketBody Team).
Now coming to the next two Advisors, Dr Michael and Dr Ben, looking at their experience in Linkedin, except the fact that they are the CEO and COO of AiMedis, the rest experience sounds like a 5-year-old had helped them to update those. I don’t want to make fun of someone if they don’t know how to do something. But considering their background and expertise, updating a LinkedIn experience should not be an uphill battle.
They are having their presale as well with AiMedis, so not sure how much time they can spend on Hi:Health as well as what their role would be as an Advisor for Hi:Health.
Funds Target, timeline & phases
Their Pre-ICO is over already, and their ICO is till 10th September of 2018. Their soft cap is at 5400 ETH and the hard cap at 14000 ETH
As of writing this review, they have raised around 300+ ETH and a long way to go.
Soft Cap: 5400 ETH, if considering the ETH pegged at $500, that amount to around 2.7Million being asked with a website, few members and whitepaper.
While I have not seen any info on what the project would be doing if they have not met with their soft cap.
Like other projects, it’s hard cap is also as high as the sky, at around three times the soft cap.
Funds Usage, Token Distribution & Valuation
Of the total 100%, 8% would be dumped to the market (if listed) when the bounty hunters would be receiving their tokens if no vesting period is there. And another 7% + 15% is a risky one, considering that is owned by the advisors and team with no mentioning of any vesting period.
Now comes the early investors, who received their token at half the price of ICO, which also brings in a risk of the tokens being sold as soon as it gets listed.
Coming to the valuation part, they are selling their 60% of the token in ICO and 10% of the token in Pre-ICO. Considering they raised the hard cap of 14K ETH (~7 Million) it brings them at a valuation of 11.67 Million.
I would suggest that a company should have some assets, strong partnerships, MVP, a community if they are valued at 11.67 Million.
Social Media Activity & Engagement
The social media seems to have just the bounty hunters, and some paid members and bot users. Useless if we consider the value of the right organic users related to the medical field, crypto investors passionate about this project, etc.
Smart Contract
There were no details of the smart contract on the website or the whitepaper.
Flags
From this post onwards, I am bringing up a new section as well called the “Flags”. This section deals with things which sounds suspicious or contains details about errors, typos, etc.
- $100 billion per year
It was said in the whitepaper that, the economic cost associated with the complications caused by the wrong prescription of drugs is more than $100 billion per year.
According to my research, I haven’t found any competent proof for this claim. On similar analysis, we found that, according to Statista, the revenue in 2016 was around 1.1 Trillion. Of which approximately 9% of the market according to Hi:Health contributes to “complications due to wrong prescription”, looks like an inflated amount for me. Though this is just my derivation from the data.
2. Birth rate, crude (per 1,000 people)
According to their whitepaper, the “Birth rate, crude (per 1,000 people)“ is shown below:
You can see that the Sub Saharan Africa is termed as one with the highest. And the data was received from WorldBank.
I looked the same info at the WorldBank and checked the Sub Saharan Africa, and found out the below picture:
It doesn’t seem South Africa have that kind of score as per the score mentioned in Whitepaper. Lack of detail? Or lack of hard work to indicate any exemption when taking in general? You can decide.
3. Many partners but no proofs
It seems that they have few partners listed on their website, but it doesn’t show any evidence about the same. And if the partnership with Amazon is to use their hosting service, I think that is misleading the investors of a formal partnership which is a use of the respective companies service.
Similarly, there are no proofs (or links) in the partnership with RocketBody, aimedis, Nordea, etc.
4. Using data from different sources, but how to get that data?
It is said that they would be using data from a large number of patients, etc. But there is no mention of how they would be getting those data, neither any solid partnership right now to prove it.
Whether you want to believe in the promise of a future where they receive these data is up to you ultimately.
5. Further development
They say that for further development, they need to raise funds. But what have they developed till now? And how much did that cost them? And what was the source of that money?
6. Demand will increase! But how?
It is said that the demand will increase continuously, but why? And how?
And the only answer I found out was because they have a limited supply.
If you kick in some basic economics, you know that as if you have a limited supply and the item has some (intrinsic) value, then the demand increases with time.
But just because it has a limited supply, the demand won’t increase. It got to have some value, which at this moment, is not existential for HIH Token.
Not just that, the supply of the token is also a factor, which is at 1 Billion tokens. So the supply is more than the demand, which we can verify as we near to the end of ICO.
Verdict
Until and unless many questions and typos are answered and corrected I would strongly advise you to consider this analysis as well as do your due diligence before going to invest in this project.
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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