ICO Analysis: ElementhBy Sam BourgiVerdictVery few ICOs have generated as much excitement and positive feedback as Elementh. Most people familiar with the project are extremely excited about its potential. Its Telegram community recently crossed 27,000 members.
Investors looking for a powerful business concept in ICO form have a lot to be enthusiastic about when it comes to Elementh. This isn’t just some company cashing in on the crypto craze; it has spent years developing its database and product and is now ready to flex its muscles.
Risks The Elementh team is rock solid, but we have to take away one point for the lack of blockchain expertise at the top or in the advisory group. We are only removing one point because the team is transferring its business model (where it is a domain expert) to the blockchain. In other words, Elementh is not just a crypto startup company beginning from scratch. -1
Elementh isn’t the only blockchain project focused on e-commerce. There are several competing projects that offer e-commerce platforms on a global scale or to targeted niche markets. The company has identified several of these potential competitors, including VeChain, INS and Connectius. Other e-commerce ICOs include Omnitude, Teky and BitBoost. The project faces competitive risks from outside the blockchain industry as well. For example, e-commerce giant Amazon is already investing in blockchain through its partner ecosystem. Suffice it to say, Amazon has a huge competitive advantage in this space. -3
Although the whitepaper has identified a roadmap, the content lacks financials and provides only a high level overview of the company’s income-generating activities. At present, we are looking at a fairly lengthy technology development life cycle through March 2019, when the master nodes will be implemented. -2
Growth Potential The e-commerce market has been thriving for more than two decades. While traditionally focused on business-to-consumer transactions, the business-to-business segment has grown significantly. Combined, B2B and B2C business is a $10 trillion market. Given that the vast majority of buyers perform some form of online research before purchase, Elementh can fill an important function by providing greater transparency and more efficiency in searching and comparing products. As the company states in the whitepaper, the entire e-commerce industry is potentially its target market. This means huge opportunities for growth. +4
Unlike other ICOs, this project has moved far beyond the concept phase and is now in product development and testing. Case in point: Elementh has already released its MVP, which includes a database with over 1 million goods. +5
Elementh is a great example of a project using blockchain to solve real-world problems. The backstory behind Miiix and how it led to the current project strengthens the value proposition even more. We should also point out that each co-founder had a hand in building Miiix, so there are strong synergies at the top, as well as a shared understanding of the challenges facing e-commerce. +2
The technology behind Elementh allows for a unified e-commerce platform that provides financial applications as well as consumer/buyer protections such as identifying counterfeit goods. The platform is literally being built to provide end-to-end e-commerce services; everything from decentralized market places to geo-location services and up to bank storing. +2
DispositionWhen it comes to e-commerce projects, Elementh is near the top of the list in terms of product development, use cases and team dynamics. That being said, it is entering into a highly competitive environment filled with established e-commerce businesses and burgeoning startups. Against this backdrop, we’ve assigned a final score of
7 out of 10.Proof: https://hacked.com/ico-analysis-elementh/
