BMJ Score: 3.4
Market
Transparency
Team
Token
Adoption
Quick Summary
96 crypto investors read thisCommentary
According to the World Economic Forum, blockchain’s ability to revolutionize modern supply chain has the potential to help generate an additional $1 trillion in global trade. EndChain plans to leverage blockchain to disrupt the logistics industry through decentralization, open protocols, and utilities through a platform that connects producers, transportation companies, and consumers to create a seamless exchange of goods. The logistics market is very competitive because it is saturated with blockchain platforms attempting to fix the problems associated with supply chain. EndChain claims to differentiate from the masses because it focuses not on luxury goods, but rather, the medium- to low-end products that are also a part of the global trade market. While this does differentiate EndChain from the plethora of luxury goods-oriented ICOs, established platforms such as VeChain also play in the low-end retail space. Does EndChain differentiate enough from these players? EndChain does differentiate with an innovative QR and barcode combination that is easier to integrate and more cost-effective than the pricey NFC chips its competitor platforms use. However, while the project does have a patent pending for its EndChain QR code, EndChain’s MVP is not scheduled for release until Q4 of 2019. One area where EndChain is strong is its team. EndChain has a global team with experience in many fields including IT, blockchain, legal, business development, and supply chain. The project also has several advisors and some impressive partners including Amazon. Ultimately, we like EndChain’s concept of applying an efficient QR code along with blockchain to reduce complexity for the supply chain of moderately priced goods, but we are concerned with how behind its timeline is in comparison to its key competitors.
Investment Information:
- How to invest: To participate, simply register for the token sale at the following link.
- Discount: 50% bonus throughout the presale
- Eligibility: 1 ENCN = $0.16 USD (discount included in price)
- Token Price: 1 ENCN = $0.16 USD (discount included in price)
- Jurisdiction: Hong Kong
Market: 3
- Problem addressed/solved: EndChain wants to solve the lack of transparency and outdated tracking methods that currently exist in the logistics market. Tracking is not always transparent within a corporation, let alone among different legal entities. Land transportation providers, carriers, governments, customs brokers, and freight forwarders all rely on outdated ways of keeping track of their goods. This leads to miscommunications and lack of real-time information to make informed decisions.
- Target customers/customer/ segments/verticals: EndChain provides a complete logistics package that benefits all parties of the supply chain. While most utility tokens focus on high-end goods, EndChain focuses on the low to middle market, an area that has been ignored for quite some time.
- Value creation: EndChain breaks down its value in three categories: value for supply chain participants, buyers, and investors. Supply chain participants will experience secure transactions and fast settlements, real-time visibility in the supply chain, low costs, and route optimization. Buyers will have a simpler buying process, lower prices, enhanced trust, and complete ownership history.
- Competition: It’s pretty obvious that EndChain will find a variety of competition in this space, as hundreds of projects want to use blockchain to reinvent the supply chain. EndChain hopes to use its niche market of mid- to lower-end goods to its advantage and tailor the platform toward those supply chain participants. A full competitive analysis can be found on page 39 of the whitepaper.
- Market size/potential: At this point in time, the supply chain/operations side of blockchain is a saturated market. Many startups have recognized the immediate impact that blockchain could have on the supply chain and have taken steps to solve those existing problems. EndChain believes that the existing blockchain solutions are fit for only the luxury goods market as they’re very expensive to implement. Therefore, the project will focus on lower end goods.
- Regulatory risks: The project must ensure proper security of customer information and must adhere to the GDPR protocol.
Transparency: 3
- Investor value: As the network is more widely adopted by supply chain participants over time, the value rises. Additionally, EndChain takes 2-4% of each month’s accrued transaction fees and actually burns those tokens to decrease the overall supply and drive value. As the value of EndChain coins rise, less outstanding supply is destroyed as fewer coins are required for each smart contract. Investors in the ENCN token could expect their tokens to achieve higher value due to this deflationary, self-regulating coin economy.
- Disclosures: EndChain hits the nail on the head with its disclosures. There is a clearly outlined whitepaper that’s filled to the brim with details on the ICO and scope of the project. Although the project does not have a live MVP, it has a patent pending (ID: 16104317) for the process the technology will follow. Acquiring that patent will be a huge step in the right direction.
- Token distribution: 55% ICO, 22% future development, 10% team, 5% leadership, 5% advisors, and 3% bounty & referrals.
- Use of proceeds: 60% development, 25% marketing & sales, 5% G&A, 5% legal, and 5% security & compliance.
- Caps: Soft cap: $4 million USD; Hard cap: $15 million USD
Team: 4
- Track record: EndChain has a strong 15-person team with an additional nine advisors. The first thing that’s evident after reviewing the team is that they’re talented, but young. The CEO, Aaron Perkowitz, currently works in the logistics arm of HNA Group, a Fortune 500 company. His experience in that position includes researching innovations, connecting with industry leaders, and identifying acquisition targets. The CTO, Pierre Angot, has a degree in Applied Mathematics and will lead the blockchain effort on behalf of EndChain. He’ll be assisted by five more engineers on the team as EndChain has made a significant effort to acquire engineering talent.
- Integrity: The EndChain team does not have the experience and entrepreneurial background that we’re used to from these types of projects. Although the group may be extremely talented, it’s difficult to replace real-world experience with anything else. Having said that, EndChain has a strong advisory group that will now doubt help lead them in the right direction.
- Aaron Perkowitz, CEO (LinkedIn)
- Pierre Angot, CTO (LinkedIn)
- Felix Engelhardt, Business Development (LinkedIn)
Team Members
Token Mechanics: 3.5
- MVP: EndChain does not have a functioning MVP. According to the roadmap, the team plans to develop the beta version in Q1 of 2019 and roll it out to partners as early as Q4 of 2019. The full version of the app is not expected to launch until late 2020.
- Token use case: The ENCN token will function as a utility token that’s really on the platform to better assert responsibility, so both parties will put a predetermined amount of ENCN coins into the transaction and receive those coins once the transaction is completed. All other actions on the platform will require ENCN tokens.
- Value-added: The number-one priority for EndChain is to increase efficiency/speed and decrease mistakes that paper transactions may cause. The implementation of the ENCN token is a huge part of that because it allows the platform participants to create smart contracts and ensure mutual payment once an action or transaction is completed.
- Decentralization: EndChain’s aim is to disrupt the logistics industry through decentralization, open protocols, and utilities.
- Token Supply: Max token supply of 135,576,931 ENCN.
User Adoption: 3
- Technical difficulty/investment expertise needed: EndChain will look to revolutionize the supply chain process via blockchain technology (lots of chains involved here). EndChain’s aim is to disrupt the logistics industry through decentralization, open protocols, and utilities. EndChain does an excellent job breaking down its project on the site and explaining it in plain English.
- Halo effect: Most of the news articles that have been published about EndChain revolve around the partnerships it has acquired. The most significant partner is Ming Kee Factory, a manufacturer and distributor of consumer electronics. This helps EndChain not only reach its ultimate goals, but it also provides the project with a level of legitimacy that other pre-ICOs hope to grasp.
- Buzz: EndChain has seen some legitimate traction since the inception of its project. It’s been featured on credible news outlets such as Business Insider, Yahoo Finance, Market Watch, and Bitcoin News. There are an additional 27,000 combined followers on its Twitter and Facebook accounts, with each post receiving decent (but not great) engagement. Thus far, Endchain has put a good foot forward in its marketing efforts.
