Befund Basic Review
|Start ICO||16 May 2018|
|End ICO||15 Jun 2018|
Ticker symbol: BFDT
Project type: Blockchain service
Extended company description: The Befund platform provides a set of technological solutions for crypto investment funds.
Company: Befund Foundation Ltd.
Public ICO start date: 06.07.2018
Public ICO end date: 11.07.2018
Token Sale duration (weeks): n/a
Token type: ERC20
Total token supply: 2,000,000,000
Tokens to be sold (Pre-Sale + Public ICO): 500,000,000
Price: 1 ETH = 30,000 BFDT
Accepted currencies: ETH
Bounty: not announced
Token function: utility
Number of team members: 12
Number of partners and advisors: 15
The Befund platform provides a set of technological solutions for crypto investment funds.
The main services offered on the platform includes: the decentralized BFDChain network, SaaS solutions, a token sale mechanism and the Unlinkable Secret Handshake.
Befund also offers the following:
- ROI reports.
- Cryptocurrency reports.
- Smart contract generating software.
- Token issuance and sale.
- Don Clanton (LinkedIn) – Strategic Advisor. He is the COO of Duncan-Williams, Inc. and the President of Evolve Bank and Trust, Small Business Lending Division.
- Charles J. Beech – Strategic Advisor.
- William H. Watkins, Jr. (LinkedIn) Strategic Advisor. He is the Principal Architect and Owner of Watkins Building Group, LLC.
- Lucas Liu (LinkedIn) – Strategic Advisor. He is a Director of MetLife.
- Mark Wang (n/a).
- Kenny Pei (LinkedIn) – Portfolio Management Associate at Ellington Management Group. He previously worked as an Analyst at UBS Investment Bank.
- Dr.P.Duan – Technology Advisor.
- Zhu Huaiyang – Strategic Advisor.
- Shang Bige – Member of the Board of Directors at BTC 123.
- Li Fude– Founder of bitcoin86.
- Yi Aimin (LinkedIn) – Co-Founder of OFID PTE. LTD. Previously, Yi held the position of COO at PDX Technologies Inc, and at Tarena International Inc.
- DAOS capital – A digital asset investment fund.
- Genesis – An investment fund.
- Node Capital An investment fund.
- Youbi capital An investment fund.
- Flag.VC – A venture capital firm based in British Virgin Islands.
- Consensus capital An investment fund.
- ICO box – A consultant company that provides services for startups who are running ICO crowdsales.
- Lbank – A crypto asset exchange.
Attracted funds: n/a
At the root of this project lies a platform that assists investment funds in making decisions regarding crypto asset investments.
- Participation in a rapidly developing market.
- Experienced team and advisors.
- A large number of strategic partners.
- Absence of an MVP.
- Based on the available traffic data, the project is not very popular in the blockchain community.
Market and industry
According to data from blockchain.info, at the time of writing the daily transaction value of cryptocurrency was around $1,750 billion a day.
As of June 9th, 2018, the cryptocurrency cap was $344,766,512,192.
Juniper Research expects digital payments to surpass $5 billion by 2020.
According to the team’s analysis, blockchain and related systems and applications have shown an
explosive growth trend over the last two years. CoinDesk states that the amount of ETH in circulation
increased by more than 500% since the beginning of 2017. Litecoin, the fourth largest cryptocurrency in the world, reached a new maximum value in 2017, as its market value increased exponentially by
5800%. According to statistics from Elementus, ICO financing exceeded $5.3 billion, over the period of July to November 2017.
Comment: The market is growing at a fast pace, which makes it possible for the project to occupy a niche.
As part of our research, we have identified the following competitors:
Companies who provide analytical services:
- ICO Alert – A platform that provides analytics for upcoming ICOs, as well as reviews and recommendations.
- Smith + Crown. – A platform that provides quality analysis and research for upcoming ICOs.
- ICOindex – A platform that provides reviews of upcoming ICOs and charges cryptocurrency.
Companies who provide smart contract building services:
- Etherparty – A solution for the creation of smart contracts. It facilitates the building, management and performance of smart contracts on any blockchain.
- Agrello – A blockchain startup, developing business-ready smart contract solutions. Agrello builds an AI powered graphical interface for the creation and management of smart contracts, for users without legal or coding skills.
- Blockcat – A visual smart contract designer which allows anyone to create and deploy smart contracts to the Ethereum blockchain without the need to write or understand code. https://tokenmarket.net/blockchain/ethereum/assets/blockcat/.
Conclusion: The project’s key advantage is that the platform integrates both functionalities.
Platform technical parameters
The Befund platform includes the following components:
1) BFDChain: This solution is based on blockchain technology. Dapps, which are built on the BFDChain, will support KYC / AML protocols. BFDChain is designed in such a way as to allow the side chain to deal only with KYC/AML activities. The investment side chain will only be responsible for activities related to fund investments.
Information on the architecture of the BFDChain is available below:
The core (Kernel Layer) incorporates the following elements:
- The main chain.
- Side chains, which includes:
- The consortium index sidechain: It will allow for the integration of any side chain with any other mainstream blockchains, such as Bitcoin and Ethereum.
- The ecosystem index side chain: Each side chain on the BFDChain platform that accepts BFDTs will be considered to be a part of the Befund ecosystem and will become a part of the BFDChain index too.
- Built-in sidechains (key feature of the BFDChain): They are automatically embedded into the BFDChain and function as isolated sidechains. There are three types of built-in side chains:
a) Information Authentication - It carries out the unified management and authentication of information on all digital monetary funds on the BFDChain.
b) Subchains - If a fund wants to issue tokens, they can do so on their own customized side chain. If a fund wants to issue a large number of data sets, requiring increased complexity and storage, funds will be able to create subchains on their existing side chains.
c) Trade Certification - It allows users to deposit, withdraw and manage assets, execute KYC/AML processes and carry out transactions.
- Consensus algorithm: BFDChain will be using a virtual hybrid computer, as well as DPoS and PoW consensus algorithms (VM-DPoSW). Virtual Machines (VMs) are abstract entities that perform mining on BFDChain. VMs serve two purposes: 1) They mine to solve the hash computing for the Proof of Work (PoW). 2) They are the delegates that represent the shares of the shareholders’ stake of BFDT in the BFDChain ecosystem (DPoS).
- Network communications: A P2P network that is used on the platform.
- Authorization system: All BFDChain accounts are made up of a public-private key pair. The private key is provided only to the authorized user and stored by authorized user. This private key is used to sign off on all transactions initiated by the same user.
- Data storage: The blockchain data storage system of BFDChain consists of a relational database (SQLite) and a kV database.
- The component layer includes the following elements:
- Contract operation: The BFDChain side chain is able to create contracts based on varying business scenarios, performance and security requirements, and user contract development methods.
- Container isolation: User-defined smart contracts will be run in a relatively secure and isolated environment in the docker.
- Platform role management: BFDChain defines the functions of five types of roles, including contract template creator, contract trader, digital asset quoting, market maker, agent, etc.
- Token module: It is responsible for all token transactions.
- Asset transfer: It is for defining transactions logically in a smart contract, then executing it on the BFDChain.
- The service layer includes the following elements:
- Contract template system.
- Trading contracts: All contract terms should be clearly defined.
- Quotation platform: The quotation platform provides the quoted price of the underlying asset price for all contract templates in the ecosystem.
- Currency value lock: The BFDChain system locks in the price of cryptocurrency at the time of purchase.
- Early-warning service.
- The application layer: The application layer provides access to the BFDChain ecosystem for every user.
The platform components will perform the following functions
1) The BFDChain will allow decentralized financial applications (Dapps) to be built for various fund types (funds, banks, trusts, financial management, etc.). The types of Dapps available for funds participating on the BFDChain platform will include modules that will address functions such as: KYC/AML, ROI reporting, currency exchange, etc.
2) Token Sale Technology Solutions will calculate, issue and distribute tokens for bulk sale for cryptocurrency funds. BFDT/ETH/USDT/BTC can be used to participate in a security token sale on a platform determined by the issuing cryptocurrency fund.
3) SaaS – Software as a Service and Sidechain. Some examples of SaaS tools offered by the BFDChain include:
- KYC/AML module.
- ROI reporting module.
- smart contract module.
- Dapp integration module.
4) The Unlinkable Secret Handshake is an encryption algorithm. On the BFDChain, payers and payees will register with various central authorities (CAs) and receive credentials. These credentials prove that their owner is a member of a group, i.e., eligible to make certain purchases. The central authorities collaborate with BFDChain so that credentials assigned to users are of use on both the main chain and on side chains. The Payer and payee employ the Unlinkable Secret Handshake protocol to make sure the payer is eligible for the transaction/purchase. If required, the payer can also verify the payee’s eligibility. If the authentication is successful, the payer and payee continue with their transaction with BFDT. Otherwise, either party can cancel the transaction.
The team is planning to further develop the technologies, collect the required data and subsequently implement the following solutions:
- June 2018: Release of Befund.io V1.0.
- August 2018: Development of the Befund Wallet.
- December 2018: Completion of the BFDChain development and closed beta release.
- June 2019: open source code will be made available on GitHub.
Comment: The team have provided a phased development strategy. The smart contract has not been made available yet.
We have analyzed the Befund site and documentation to determine whether they provide sufficient and consistent information for an investment decision to be made.
Information about the project can be found in the Whitepaper. The document is available in English. The Whitepaper provides a detailed description of the project. Specific attention is payed to the platform’ technical aspects.
Information about the following is available on the site: project, team, advisors, partners, and roadmap. The site is available in Chinese.
Conclusion: The documentation provides sufficient information for gaining an idea about the project. The technology processes and solutions have been described in sufficient detail.
Conclusion: The program has not been announced. There is an airdrop link, but no details are available. Since the team has not provided any statement, we can say that the campaign has already finished.
Token and funds allocation
Tokens and funds will be allocated as follows:
Conclusion: Tokens do not affect the allotment of company shares. The team plans to have a vesting period for their tokens and lock-up periods for the funds’ and other tokens.
Project development plan
Conclusion: According to the information available on the site, the team will be mainly focused on attracting partners and funds.
The team includes 12 members and 15 advisors. Information about key team members, based on their LinkedIn profiles, is presented below:
- Winston Zhang (LinkedIn) Chief Executive Officer of Befund. Winston is the Vice-President of FirstTech Corporation. He previously worked as a Senior Manager at i2 Technologies, Oracle, and IBM.
- Jack Hong (LinkedIn) Chief Technology Officer at Befund. He is a Senior Manager at 火星创业科技（北京）有限公司. Previously Jack was the CTO of Mars Venture Technology, R&D. He was also a Manager and Assistant Director at 同方鼎欣信息技术有限公司.
- CiCi Liu (LinkedIn) Marketing Manager at Befund. She is a Senior Sales Manager at Gartner. CiCi has previously worked as a Senior Sales Manager at GMC Software.
There are another 9 members on the team.
Conclusion: The team are mainly from China. The team includes the following specialists: Technology Advisor, COO, Director of Funds, Director of Overseas Operations, Business Director, R&D Blockchain Engineer, Director of Operations in China, Media Promotion Director, Chief Compliance Officer, Product Lead, Product Manager, Product Advisor.
Information on the project is available via major services such as Twitter and Telegram. The team have not announced a bounty program.
The team are running a social network marketing campaign. Their Twitter newsfeed is regularly updated.
The majority of articles have been written by various media outlets to raise awareness among potential investors about the upcoming ICO.
Comment: The audience are becoming more interested in the project. The marketing campaign is mainly developed via Twitter.
Below are the results of Befund traffic analysis based on data from Similarweb.com:
Comment: direct: 26.97%, referrals: 25.77% , search: 47.26%, social: 0%, mail: 0%
Search traffic: 47.26% (100% is organic)
Below are the results of Befund traffic analysis based on data from BE1.ru:
Comment: Most of the traffic comes from these three countries: China 64.83%, the USA 26.19%, Japan 8.97%
Referrals: qukuainews.cn 100%
Conclusion: Based on the data available, we can say that users are showing more and more interest in the project. The team are running a marketing campaign on Twitter, communicating with users om Telegram and publishing articles. In April the site was visited by 356 people.
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.