Strong competition on market from blockchain startups and major corporations dealing with database storage and management
Product is related to growing technologies, but still is not developed enough: funds raised are generally projected to be sent to R&D
Complicated double-token system may turn an obstacle for attraction larger client Token distribution date is set one month from the end of ICO, however no escrow is used: it means higher risk of considering this ICO as a debt investment by SEC Token demand seems to be high with hard-cap already raised by 60%: there is the risk of fast ICO and the low availability of token
Tokens for crowdsale are 33% of the token supply: such rate is low and contributes to token concentration No current and projected financial indicators are provided Soft-cap is not indicated and hard-cap of 19,5M USD is considered to be a goal High 30% bonus for pre-sale investors increasing the risk of the rapid sell off when starting trading on exchanges
In spite of the strong technical team, little information is provided about non-technical specialists in marketing or legal issues, for example
Bluzelle’s product appears to be in demand in several markets that both is good and extends a competitors list. Markets are generally Database-as-a-Service and Cloud database storage tremendously growing with CAGR 67% in 2019 and reaching 14B USD in market capitalization to this date (Markets and Markets). Such growth is related to the trend of the rapid transferring in-house databases to the cloud: it is seen from the activity of mobile apps, IoT services and other application storing significantly massive amounts of information about users (social networks and financial application, for example). Bluzelle outlines its competitors: Filecoin, Storj (blockchain projects with particularly similar products) and Oracle (as a company from Data Storage&Management market with revenue of 40M USD). In addition major competitors are Boxdrive, Sia, Tresorit, AWS. Bluzelle understands its potential and position and explains its market entry strategy: the prior clients are to be decentralized applications (dApps), then the project plans to distribute its product among small and medium enterprises. According to Bluzelle competition by the way appears to be poor allowing a few companies to stay afloat. Marketing strategy is also well described with the main entry markets such as North America and Asia that appear to be more fast-growing (TMR Research). The technology itself allows growing globally so the company is hardly to face up to any significant obstacles in further development globally.
Bluzelle asserts itself as similar to Oracle with blockchain implemented. Roadmap provided ends in the end of 2019: this milestone is the moment of growing into a highly-secure large-scale ecosystem. Similar ICO projects such as Filecoin and Storj (it must be noted that Filecoin is still the most successful ICO ever with 250M USD raised) were usually successful that counts in favor of upcoming Bluzelle’s ICO. By the way Bluzelle deals with databases but not files in comparison to projects stated before. Databases are more flexible and structured that positively contributes to convenient management and operation. The code of the project is available on github. Technically the project is well described and the team is active in communication with potential investors in social networks. Generally the product is competitive and commercially viable and is able to compete with alternatives, including ICO ones such as Wolk. The technology itself is popular and main-stream nowadays what is considered to be a driver for all market players. By the way the current version of Bluzelle is still not developed finally so a great share of funds collected are to be sent to further development: as this fact must be considered as the risk this stage is common for new technologies.
BLZ token connects the ecosystem with the market. Inside the system BNT token is to circulate. The reason of double-token infrastructure is faster and cheaper transactions needed for as express tracking as possible in comparison to BLZ using ERC-20. Conversion rate between two tokens is 1:1 with 0.1% held. Token implementation in the system is a valid decision so the ICO conducting is considered to be a reasonable idea. ICO is also supported by current partners and some of them are quite major.
Hard-cap is set at the level of 19.5M USD that is much more lower than the level of competitors using ICO. Crowd sale share of token supply is 33% that is low meaning high concentration in one’s hands with significant impact on token price. It must be noted that more the a third of tokens are reserved so the token distribution appears to be more reasonable and valid but still not significantly. More than half (55%) of funds raised is to be sent to R&D and 20% to marketing – such distribution demonstrates prior aims in mid-term. Revenue is projected to come from commission withdrawn when BLZ-BNT conversion, so the platform growth is beneficial for a company and may be considered as a KPI. By the way the company does not provide any financial estimation projected.
Bluzelle is a startup with experience in working with major companies including KPMG and Deloitte. In addition an advisory in corporate strategy and tax policy is PricewaterhouseCoopers. CEO is widely experienced in venture investments and has participated in founding several startups. CTO has vast technical experience with a wide range of launched projects including blockchain ones. Also the team includes strong technical specialists and developers. According to published information only one person is responsible for product and marketing although with not significant experience in these fields. On the other hand contracts signed previously are a signal of well-developed processes here.