Hedge Token Basic Review

About the Project

Name: Hedge Token

Ticker symbol: HDG

Project type: Hedge platform for crypto instruments

Company: Hedgetoken

Website

White paper

 

ICO details

Starts: September 15, 2017

Sale length: 4 weeks

Token type: ERC20

Total tokens: 50,000,000 HDG

Available in Token Sale: 60%

Fundraising goal: 15,000,000 USD

Price: 0.002 ETH

Accepted: ETH

Bonuses: Early Bird, max bonus is 15%

 

Team

Team size: 10 members + 1 advisor

GitHub

 

Social media

Slack: 186 followers

Twitter: 20 tweets, 259 followers

Medium: 7 posts, 6 following

Reddit: 8 readers

Facebook: 356 likes, 361 followers

Telegram: no information available

HEDGETOKEN is a incorporated in Switzerland fintech startup offering a new crypto platform that will allow market participants to hedge the risks of their investment portfolios, using index funds and derivatives. To implement this idea, the project will solve a number of important tasks:

  1. Crypto Indices - there will be a ready-made lineup of commercial crypto-indices. All of them will be compiled taking into account the best practices of financial engineering within the current rules. Among the announced indices of interest are a Bitcoin Price Index, a Cryptocurrency 30 Index, and a Crypto Assets Index. By the way Cryptocurrency 30 Index is already available on the project website.
  2. Index tools - so that indices become suitable for investment, Crypto Traded Indices (CTI) are analogues of classic ETFs. Over time, there will be derivatives that will allow you to open short positions on these indices.
  3. Crypto Instruments platform - all products of the HEDGETOKEN project will function only within their own trading platform. In addition to access to indexes and CTI, market research, assessment reports and other analytics also will be available.

The HDG token will act as the platform’s currency, with which users pay for access to indexes, CTIs and trade exchanges.

The project's economy will be built on receiving commissions from the sale of access to platform products.

The HEDGETOKEN project is one of the many fintech startups that have announced a crowdsale recently. Although the direction of development of the financial infrastructure of the crypto-currency market is certainly promising, the HEDGETOKEN project is unlikely to be able to settle its solutions with it.

The project itself is still very raw, and its development appears uneven. The founders offer solutions to a number of global problems that have not been solved so far: these are crypto-currency indices, crypto traded indices (ETF analogs), a new trading platform, and derivatives. Those who are knowledgeable in these matters would probably conclude that any one of these items needs its own individual project, however HEDGETOKEN managers want to implement all of them together  in 9 months.


In addition, it will not be possible simply to borrow and use the experience of the classical financial markets and apply to crypto-currency. In each separate service, specific nuances are required. For example, classic ETFs once were able to win the market with the cheapest commission costs. How to implement this on crypto sites is still in question.

Positive aspects of the project include the following:

  • The early stage of development of financial products in the crypto-currency market
  • The financial background of the project team

The disadvantages of the project are:

  • An early stage of the project’s development
  • Weak marketing plans
  • The team's lack of experience in blockchain-based projects

The Hedgetoken project primarily enables clients to hedge their risks, but to do so at the expense of a range of indices for crypto assets and derivatives for these indices. In addition, clients will be able to invest in indices in all specialist structures - CTI funds. It turns out that it is worthwhile researching the competition among suppliers of indexes and crypto-funds.

As we know, the capitalization of crypto markets is still incommensurable with that of markets for classical instruments. Many investors would like to obtain crypto assets, but do this through classic tools. At the moment, there are already a number of such funds and the list is constantly expanding. Here are just a few: Bitcoin Investment Trust, Ethereum Classic Investment Trust, Bitcoin Tracker One, and the Crypto Social Asset Fund.

We must admit that in the case of indices, the cryptocurrency market has not matured yet. This is largely due to the high concentration of market capitalization of Bitcoin and Ethereum. At the same time a number of indexes already exist in the market such as CRIX - Crypto IndeX1 and the brand new CAMCrypto302.

Links:

https://www.statista.com/statistics/274490/global-value-of-share-holdings-since-2000/

https://www.statista.com/statistics/224579/worldwide-etf-assets-under-management- since-1997/

The market for crypto assets is still very young, and characterized by explosive growth rates of capitalization. At the same time, the state of its financial products and derivatives is still weak and underdeveloped. There are many objective reasons for this, such as local inefficiencies, access problems for large clients, and regulatory risks. However it is to be expected that ETFs will only grow.

According to a study by statista.com at the end of 2016, global AUM ETFs were more than 3.4 tr USD, and the capitalization of the entire stock market was estimated at more than 71 tr USD. It turns out that the share of ETFs could be estimated as 4.7% of the total market. Most likely over time, the same ratio will evolve for the cryptocurrency market.

As with many projects at the idea stage, nothing is revealed about HEDGETOKEN from a technical point of view. In addition to the usual ERC20 standard, there is nothing to report.

The HedgeToken project has only its white paper posted on the project site. The document is well-designed and accessible, containing all required sections.

Market research should be noted. The founders try to position all aspects of their business; perhaps they succeed, which distinguishes them from many other projects. Unfortunately, the white paper does not contain any comparisons with competitors.

There is no economic model of the project, only a breakdown of possible trajectories of development depending on funds raised. This dependence is linear from the most minimal functional model to the full plan outlined in the roadmap.

Starts: September 15, 2017

Sale length: 4 weeks

Token type: ERC20

Total tokens: 50,000,000 HDG

Available in Token Sale: 60%

Min Fundraising goal: 1,500,000 USD

Price: 0.002 ETH

Accepted: ETH

Bonuses: 15% max discount

The founders have opted for a simple month-long ICO without a prior sale. A bonus system will operate for the first 10 days after the start; on the first day, the discount will be at a maximum of 15%, and after that will decrease; at day 10 it will be 3%.

The minimum amount required for these calculations is US$1.5 million; the maximum is US$15 million.

HDG tokens will be distributed as follows:

  • 60% - token sale
  • 20% - teem
  • 7% - advisors
  • 5% - initial investors
  • 5% - future partners
  • 3% - contributors

Many aspects of this distribution are hard to understand. For example, if the project has one EA advisor, why should he receive 7% of all tokens? Who are the initial investors and contributors? There are no answers to these questions in the project documentation.

The funds invested in the ICO will be distributed as follows:

  • 35% - Technical development
  • 15% - Product management
  • 10% - General and administrative
  • 10% - User interface
  • 10% - Platform marketing
  • 8% - Legal & Licensing
  • 5% - CTI Operations
  • 5% - Research and development
  • 2% - Data vendor partnerships

It should be noted that the project is at the idea stage. At the same time, the team is planning to implement it in just 9 months. Thus given that the ICO will be held in September, the full functionality is intended to be launched as soon as June 2018.

On the website and in the white paper a detailed roadmap of the project is available, with the following main milestones worth noting:

September 2017 - crypto indexes to be launched

February 2018 - development of Crypto Traded Indices (CTI) and their trading in demo mode

June 2018 - full-fledged CTI trade and derivatives development

It remains a question of when derivatives will be launched, because nothing is said about this in the roadmap.

The project team consists of 10 people and one advisor. Generally, team members have a financial background, with many having worked in financial and audit companies extensively and in different positions. Most of the founders have been educated in, and are working in Slovenia.

Leader and project manager is Savo Lovsin. According to his profile on LinkedIn, Savo holds an MBA from ESADE Business School and has worked in consulting for Deloitte and the L3 Consulting Group.

According to available information, the team does not appear to have any experience of running or participating in other projects.

HEDGETOKEN project has launched an active marketing program.

On the website, links to the official pages of the project on Facebook, Twitter, Reddit, and the group on Slack can be found. The founders are active in the coverage of project features on all official pages.

In addition to activity on social networks, the project was covered in numerous blockchain publications such as cryptocoinsnews.com, newsbtc.com, coinspeaker.com and others.

 

 

The information contained in the document is for informational purposes only. The views expressed in this document are solely personal stance of the ICOrating Team, based on data from open access and information that developers provided to the team through Skype, email or other means of communication.

Our goal is to increase the transparency and reliability of the young ICO market and to minimize the risk of fraud.

We appreciate feedback with constructive comments, suggestions and ideas on how to make the analysis more comprehensive and informative.