Blockhive Basic Review
|Start ICO||14 May 2018|
|End ICO||30 Jun 2018|
Ticker symbol: HIVE
Project Type: Platform, business services, investment
Extended company description: blockhive is an ecosystem based on blockchain technology, in which participants can develop their businesses through partnerships and joint projects.
Company: blockhive OÜ
Public ILP Start: 26.01.2018
Public ILP End: 09.02.2018
Token Sale Duration (weeks): 2
Token type: ERC20
Total number of tokens issued: 1,000,000,000
Tokens available (Pre-Sale + Public ICO): 300,000,000
Investment goals: project development
Price of 1 HIVE: 0.045 EUR
Accepted payments: ETH
Bounty: not announced
Token role: Functional
Team (number of people): 8 (+ about 20 including those working remotely).
Advisors and partners (number of people): 5
Twitter: Posts: 204, Subscribers: 500
Telegram: Subscribers: 247
Medium: Posts: 12
LinkedIn: Subscribers: 17
Facebook: Subscribers: 857
blockhive is an ecosystem based on blockchain technology in which participants can develop businesses through partnerships and joint projects.
The main idea of blockhive is to build an ecosystem in which it collaborates on projects WITH PARTNERS. It plans to use the funding it raises to develop those joint projects. A new structure developed jointly with Agrello called "Initial loan purchase" ("ILP") will be used to issue loans.
By signing a credit agreement with blockhive through an ILP, participants receive Hive tokens, which in turn confer access to a loan agreement. After entering into a loan agreement via smart contact, creditors are entitled to an interest payment on the loan — 20% of blockhive’s annual operating profit.
blockhive will provide the following services:
- Help businesses raise funds using the ILP structure
- A wallet, enabling the management of assets, making payments and transfers
- Later it is planned to introduce an airdrop function enabling users to find restaurants, cafes and shops, offering discounts and to accumulate loyalty points or tokens that enable acquiring hash-power from mining enterprises and other benefits.
Teddi Rull (Linkedin) — Co-founder of the Agrello Foundation, executive director at Valtech OÜ, lawyer at Sirel & Partners.
Addi Rull (Linkedin) — Co-founder of the Agrello Foundation.
Hando Rand (Linkedin) — CEO and co-founder of the Agrello Foundation, formerly a scientist at Tallinn University of Technology, legal consultant at M/V Õigusbüroo, consultant for PRH Consulting.
Margus Poola (Linkedin) — Co-founder of the Agrello Foundation, lawyer at the law firm Lextal, co-founder of Oblicity. Formerly a lecturer at Tallinn University of Technology.
Junichi Arimura (n/a) — Former president and chief executive officer of Nikko Cordial Corp.
Agrello — A startup based in Estonia which builds legally binding smart contracts.
Fintech Global Inc — Investment bank listed on Tokyo Stock Exchange. Fintech and blockhive are working together on the concept and potential investment goals of e-Best.
Fujinet — A software developer in Ho Chi Minh City
Icefire — A developer of information technologies, such as payment systems for banks and other companies.
IMAY — A company specializing in the development of artificial intelligence.
Oblicity — A law firm specializing in legal matters related to ICOs.
PAKRI Science & Industrial Park — A scientific/industrial city called PAKRI in Estonia, specializing in Mining using renewable energy sources.
City of Paldiski — constant support from the mayor of Paldiski.
e-Residency Estonia — A digital ID service offered by the government of Estonia.
Attracted investments: n/a
The project is based on an experienced team and a developed platform for the incubation of projects that benefit from blockchain technology.
Strengths of the project:
- The existence of inhouse projects and partnership agreements.
- Creditors receive interest payments on loans on an annual basis.
Weaknesses of the project:
- The main function of the token is to confer the ability to receive or grant loans; full repayment of loans is planned by December 25, 2028 [https://s3.eu-central-1.amazonaws.com/blockhive-publications/document/blockhive_whitepaper.pdf] (however, tokenholders can trade using loan agreements by selling tokens).
Market and industry
Since the main purpose of the project is to communicate between lenders and borrowers, we consider it prudent to analyze the P2P lending market. According to Statista, the world market for P2P lending amounted to $64 billion in 2015. Based on the CAGR given by Statista (56%) and TechNavio (53%), we expect that at the beginning of 2018, the potential market for the project will be over $152 billion. (by 2025, the market is expected to grow to 1 tln dollars [Statista]).
There is no market analysis in the white paper.
Comments: As can be seen from the brief analysis, the P2P lending market is growing at a high rate, hence the project has a strong chance of occupying its niche in this market.
The project’s market is experiencing dynamic growth. Following the market, the number of platforms providing peer-to-peer lending services is also increasing. We will discuss competitors in the next section.
Lendoit — A platform engaged in P2P lending.
Loanbit — A loan-investment, multicurrency and multifunctional online platform based on blockchain technology.
SALT — A platform dedicated to P2P lending.
Summary: blockhive’s main difference from its competitors is a specialization in granting credit to projects only.
Engineering features of the platform
The platform will be built on the basis of blockchain technology using smart contracts.
The platform will operate as follows:
- In order to participate in the ILP, creditors will register and sign an agreement with blockhive.
- Hive tokens are provided to creditors after a loan agreement is signed. Tokens enable creditors to trade their loan agreement with others. Once a new buyer for hive tokens has signed a loan agreement with blockhive, the contract between blockhive and the initial participants is terminated.
- After a year, 20% of a project's profit will be distributed solely between creditors.
In addition, partners can use products and services offered by other companies in the ecosystem.
Comments: The platform is ready for use. According to the project website, there are already inhouse projects on the platform. [https://blockhive.ee/about]
- May 2012: Creation of Spreadi (a software development company).
- Oct. 2013: Start of blockchain development.
- Feb. 2015: Development of Spreadi complete.
- April 2017: blockhive created.
- In the future, with the development of the technology and the amount of data it is planned to implement the following:
- Jan 2018: blockhive develops initial loan procurement; launch of Eesty.
- Feb 2018: Receipt of initial investments from e-Best.
Comments: The team has presented a step by step strategy for product development. According to the plan, development of the platform should be almost complete. However, the roadmap contains redundant information on the creation of Spreadi, which is not participating in the crowdsale. It is also not clear why the development of the blockchain started in 2013, and the platform is not released until early 2018. However, a team representative stated that Spreadi have been developing blockchain for large companies since 2013; last year the company rebranded as blockhive and started developing exclusively in-house projects.
There is no open repository. When asked when the code would be available, the project team answered that the code might be open source in the future.
We have analyzed blockhive's website and documentation for sufficiency and consistency for making an investment decision.
Information about the project is contained in the white paper in both English and Japanese. The project is described in sufficient detail in the white paper. The main emphasis is placed on the interaction with partners and on projects being created.
The website also provides information on the project, the staging of the public ICO, the ecosystem, partners, advisors and the team. The site is available in English. An additional feature of the site is a detailed description of all components of the ecosystem.
Summary: The documentation provides insight into the project. The procedure for lending is described in sufficient detail.
Tokens to be issued for sale, % 30
Public ICO Start: 26th January 2018
Token type: ERC20
Accepted payments: ETH
1 HIVE price: 0.045 EUR
Crowdsale duration: 2 weeks, until 9th February 2018
HIVE tokens are used to negotiate and transfer loan agreements (IPL); the ILP entitles creditors to 20% of the operating profit created by blockhive as interest on the loan.
Token limit: 1,000,000,000
Advantages for token holders: A limited number of tokens will be issued, the holding of which permits signing loans with blockhive. Creditors can receive interest payments from a loan (from 20% of the operating profit). The tokens can be sold which provides liquidity and flexibility for the loans taken out.
Additional token issue: No
Max Goal: 13,500,000 EUR
Minimum Goal: n/a
Bonuses: blockhive is announcing a giveaway of ESTY tokens for early participants of our initial loan procurement. [https://blog.blockhive.ee/giveaway-of-esty-tokens-for-early-bird-of-blockhives-ilp-8cce9189eb47]
ESTY tokens are linked to blockhive’s eesty smart wallet and the hash power of Eesti Mining (crypto mine). ESTY tokens can be used to purchase the hash rate from Eesti Mining. Also, the tokens will be used as loyalty points for the usage of Eesty smart wallet.
ESTY tokens that will be equally distributed among ILP participants if the blockhive community in both English and Japanese channels grows beyond 500 members by the end of January 26th in Estonia:
- 500 members — — — — 100,000 ESTY Tokens
- 1,000 members — — — -400,000 ESTY tokens
- 2,000 members — — — -750,000 ESTY tokens
- 3,000 members — — — 1,500,000 ESTY tokens
Token and capital distribution
Tokens and capital are distributed according to the following scheme:
Summary: Tokens do not affect the distribution of shares in the company. The reward system is set up so that it is more advantageous to buy tokens earlier.
Roadmap of the project:
Summary: The project development plans do not include information on the marketing campaign or market promotion strategies. On this question, the team stated that it plans to use social media and the posting of videos to attract users.
The team consists of 8 people (plus approximately 20 additional personnel working remotely in different cities), as well as 5 advisors. Information on the core members of the team (LinkedIn) is as follows:
Kazuteru Arimura (Linkedin) — Co-founder and Financial Director. Founder and chief investment officer of E-Best Ventures, founder and CEO of Ascreed, Inc., formerly analyst for RBF Capital and senior associate at PwC.
Kathleen Chu (Linkedin) — Specialist in digital content, PR and marketing. Previously worked extensively for Bloomberg.
Hikaru Kusaka (Linkedin) — Co-founder and business leader. Co-founder and operating director of Spreadi.INC.
There are 5 other people in the team.
Summary: All employees indicated their affiliation with blockhive.
The team is mainly from Japan. The team also has the following specialists: A designer, UI/UX designer, a software specialist, a technical specialist and a business implementation specialist.
Information about the project is available on a variety of popular services such as Twitter, Telegram, Medium, Bitcointalk, Github, Linkedin and Facebook. The project has a bounty program open.
The project is active on social media; there are regular news updates on Twitter and Facebook.
Comments: The level of interest in the project is rather low for the time being. The marketing campaign is being developed mainly on Twitter and Facebook.
An analysis of the blockhive website’s traffic based on Similarweb.com data showed the following:
Traffic sources: [Similarweb]
Comments: direct: 33.04, referrals: 16.39, search: 37.87, social: 12.53, mail: 0.16
Search traffic: 37.87%, of which 100% is "organic" traffic
Referral Links: 16.39%
Analysis of the blockhive website traffic based on data from BE1.ru showed the following:
Traffic sources: [https://be1.ru/stat/blockhive.ee]
Top 5 countries by traffic: Japan — 39.38%, Thailand — 36.76%, Ukraine — 4.41%, Estonia — 4.09%, the Netherlands — 4.05%.
Referral Links: icoalert.com: 40.56%; foorum.hinnavaatlus.ee: 31.05%; blog.agrello.org: 19.65%; icobench.com: 8.74%.
Social activity: Twitter: 72.30%; Reddit: 17.12%; Facebook: 10.58%.
Analysis of blockhive website traffic based on analysis data showed the following:
Traffic sources: [https://a.pr-cy.ru/blockhive.ee]
Site evaluation: 0.76
Traffic: visitors: 6887, views: 27,540
Social activity: score: 182, source: VKontakte: 0, Facebook shares: 182, Google+: 0
Summary: In addition to campaigns on Twitter and Facebook the project is receiving additional exposure on native crypto media such as CoinGecko, ICO Alert, CryptoCompare, and ICObench prior to the launch of the public sale.
You can contact the developers through the following links:
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.