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Smart Contract, Private Blockchain, Infrastructure

Lition

Lition - scalable public-private blockchain with delegable data features, made for commercial products. Designed with Lition's live P2P trading use case, and co-innovated with SAP.

Rating: 3.0

Official contacts
Location: Liechtenstein
Web-resources:   Whitepaper Website
Social networks:
Details Description Risks Full analysis Team

Detailed review

Stage of product development
P2P energy trading + private release of Testnet
Roadmap
March, 2019
Launch of banking case Launch of security token for Real Estate Testnet 1.0 Public release ICO
June, 2019
Launch of STO use case outside Real Estate Launch of smart grid use cases Mainnet 1.0 Private release
September, 2019
Mainnet 1.0 release
December, 2019
Mainnet 1.5 update, including data deletability
December, 2020
Mainnet 2.0 Public release
Token description
ICO date
18.03.2019 - 26.03.2019
Token price
N/A
Platform
N/A
Hard cap
8000000
Soft cap
1000000
Capitalization of token pool
16000000
Blockchain
Lition, Ethereum
Token distribution date
N/A
Consensus method
PoS (Proof of Stake)
Escrow
N/A
ICO currencies
USD , ETH , BTC
Bounty camping
N/A
Markets
N/A
Token functions
Tokens have three main functionalities within the system 1) staking, 2) sidechain spawning 3) payment of gas costs. There are to use cases for these tokens - to pay for IP (Intellectual Property) in which Lition developing a solution in contract with a client - to buy tokens at the market and develop the solution on your own
Tokens distribution
For sale (50.0%)
Support ecosystem users / companies (lockup) (25.0%)
Team, creators, advisors, future employees (lockup) (11.0%)
PR & Community (lockup) (8.0%)
Motivate ecosystem developers (lockup) (6.0%)
Risks
MARKET

- High competition

- Some markets for use cases are tough for innovations

- Too many use cases are stated

PRODUCT

- Obstacles in scaling

- Conflicts with SAP on product’s future

- Problems with adopting public blockchain to specific cases

- Mix of public and private blockchain might be ineffective

BUSINESS MODEL

- Weak monetization model

- Loopholes for missing their Intellectual Property

FINANCES

-Unsuccessful investment to use cases

- Weak board of investors

- Potential conflicts of interests with the lead investor

TEAM

- Risk of the lack of expertise in other sectors, comparing to energy

- The team is highly affiliated with Advisum, lead investor

Full analysis
Market

Blockchain proved to be applicable in supply chain, data and other digital assets transactions, so most of the business systems companies started to provide such services and opened blockchain laboratories – SAP, IBM. Microsoft, Intel etc. Linux Foundation developed “HyperLedger” it was also supported by IBM, Intel and SAP. This market is only starting to wax and might have bright future. The biggest problem is a high competition as the largest players in the industry started to work out creating their own Blockchain solutions with huge budgets. Lition is also supported by SAP in addition one of their technology partners is Microsoft for startups. Project plans to work almost in all available industries – Healthcare, Pharmaceuticals, Automotive, Loan Finance, Education, Enterprise Data, Management, Media, Travel, Telecommunication, Warehousing /Logistics, Insurance Bond Finance. That increases potential market capacity for Lition to the highest levels but the lack of focus is dangerous for the project’s sustainability. In addition, projects with a strong focus on single industries still see it difficult to grow.

Product

The team is building a layer 2 solution that couples into a public chain as a backbone. This is currently Ethereum. However, for the future, they plan to develop the infrastructure to be agnostic so that it is going to work with multiple (decent) blockchains. The key question for this product is a technology part, according to their WP, Lition considers itself the best blockchain comparing to existing protocols. They see strong competitive advantages in the possibility of deleting data (which is a controversial issue, as one of the advantages for technology is data saving and transparency).

But being so perfect is complicated, especially when the best brains in the crypto industry still did not find the solutions like. These promises, for now, sound overestimated.

Also, in the energy sector, the project is based on the existing Blockchain-based Energy Exchange with customers and revenue.

So, their product is on the developing stage as it’s planning to update till 2020, but has some results yet and also is supported by well-known partners. Now Lition is concentrated on energy trading and STO tokens for real estate and financial industry in the future. In addition, they are working with SAP - it’s useful cooperation, but may provide future conflicts and interests differences. The biggest question can they design a technology, which might be adopted for all sectors they stated?

Business model

Lition splits their future revenue for 2 sources:

  1. Mining Rewards through Staking Lition tokens In the Lition eco-system, individuals and businesses use and pay with LITION Tokens for transactions, staking and to spawn private sidechains. These tokens will be sold in an initial coin offering (ICO) and listed at exchanges after the Token Generation Event (TGE). Lition will have ICO revenues of sold tokens, as well as continuous revenues through staking. Initially, only ~60% of the tokens are distributed, so ~40% remain at Lition. These ~40% are used for staking, and statistically lead to 40% of all transaction costs to be mined by Lition.
  2. Intellectual Property (IP) Lition is owning the licenses and trademarks on their developed public-private blockchain use cases - energy, which is commercially live and banking, with an MVP for syndicated loans with security tokens. While the code is open source, only non-commercial use is allowed. This intellectual property allows Lition to generate non-digital revenues through traditional IP revenue methods.

It means that they want to take profits from their tokens, which mostly depends on the number of transactions.

That is a usual model for projects, that have not determined the real value for their tokens, especially for investors.

Finances

Lition has already completed a seed stage and fundraised necessary amount of money. ADVISUM seems like a biggest investor as they have board members and related to some Lition’s team members. Also, their P2P Energy platform providing revenue at the moment. In March team plans to raise from $2 mln to $8 mln. They need a minimum amount of money for engineering – more than $1 mln. There are two ICO scenarios:

Soft cap – 52% to engineering and 19% for use case activation, business development

Hard cap – 43% use case activation, business development and 28 engineering

Team

Lition’s team is good and well-balanced (at least it looks like this) most of them have relevant experience in Europe, especially Germany. CEO and co-founder had career in energy which explains the success of its initial energy-trading project. But the experience in other industries is not so brilliant. COO is also have done well in energy projects and founded 5 startups. Also, 3 board members are from their investor Advisum (including CEO), which is related to conflict of interest risk. Full team is almost 22 members now they are looking only for SMM Intern, which means that all roles are staffed at the moment.

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