Non-profit sector is not much attractive for investors and investments are mostly considered as philanthropic No beta is provided leaving project’s future uncertain
The product’s prospects are hardly evaluated as the first beta is projected to be provided after the ICO.
Monetization model is not determined and any returns from investments are not promised Economic model of keeping token price stable is still under development and the project still has not chosen this policy.
No financial indicators estimation is provided as well as the monetization model 35% of funds will be sent to business development that mostly includes costs for new collaborations with charities, crowdfunding platforms and international expansion. In comparison, that amount is particularly equal to technical development (40%) and requires more details Minimum contribution size is 1000 CHF, that is a significant entry barrier for investors Aidcoin states plans for listing on top exchanges in January, but the company is still in negotiations
The business model of the parent company and the Aidcoin’s one are not related, but the majority of team are engaged in two activities simultaneously increasing the risk of losing focus of team to the Aidcoin project The project suffers the lack of experienced blockchain specialists in team, and they are projected to be hired after the ICO.
The non-profit sector is facing tough times. Its growth is capped by the collapse of trust: 30-50% of people in developed countries have no or have little trust in charitable organizations anticipating the misuse of donations, according to Essential Research and UK Government statistics. Such discredit is likely to be valid with endless relevant scandals that only keep these mistrust evolving. Aidcoin demonstrates the deep understanding of these issues and their product is likely to shift the industry positively. Along with that charities are rapidly digitalizing: online donations are growing 10.6% a year and such momentum is projected to remain as high (Lloyds Bank, Accenture, N|P Source). Being non-commercial the industry is not conspicuous for tough competition and high consolidation, but platform products connecting donors and charities exist and are not brand-new. In addition alike products are offered by other ICO project such as Giftcoin or CharitySpace, although solutions appear to differ. On a separate note Aidcoin project has a clear go-to-market strategy and demonstrates the understanding of its future steps.
Understanding the industry Aidcoin offers a product overcoming industry problems. Project’s infrastructure is projected to be as transparent as possible: a donor is able to trace donations thanks to smart contract system. In addition it is possible to track donations even after conversion to fiat currencies thank so partnership with TrueLayer (it must be noted that option is available only with European organizations). AID is a coin for internal platform usage so both the wide range of fiat currencies and ETH with BTC are accepted. Also the function is available to edit smart contracts if needed for project realization. By the way in spite of the elaborated idea, the development has not still completed. The first beta of the core technology AidChain is to be delivered in the Q1 2018 – after the ICO. This problem leaves the projects quite unclear.
The parent company CharityStars is conducting this ICO. Its model includes mostly conducting auctions and the company has been financed by venture funds in 2013. The synergy with Aidcoin is not significant: the only relevant opportunity is 500 current charities contacts that may become the first charity involved in the new project. Social network audience of CharityStars is not quite active that may be a signal of ineffective marketing in this channel. One of the key problems is a possible token price volatility. Aidcoin indicates a few options of overcoming this problem but the company seems to have no clear decision on the option to choose. For one of them Aidcoin has reserved a special token pool of 10%. Roadmap is indicated till 2019.
Pre-ICO ended with 8333 ETH raised (5.8M USD with 700 ETH/USD rate) that is a good result for soft-cap of 4000 ETH (2.8M USD) stated. Hard-cap is set on 38 333 ETH (26.8M USD) including pre-sale stage. Aidcoin discloses the allocation of funds that is relevant to the roadmap milestones: 40% of funds is projected to be sent to the platform development and hiring more blockchain specialists. Economic model is not developed completely and leaves a few options – the most effective one seems to be not chosen. This choice is more complicated as Aidcoin also is trying to overcome possible high token price volatility. No financial indicators projections are not indicated.
The model of the parent company is related to charity: 85% of revenue has been sending to charity. The operation mostly included conducting auctions so it is not quite clear how such experience will contribute to the success of Aidcoin. CEO has experience in dealing with charities but building a blockchain platform is the first alike experience. The team includes 25 professionals (mostly from CharityStars) and no blockchain specialists. The team appears to be well structured and harmonic, but needs additional blockchain support that will be engaged after the ICO