Dentacoin Basic Review
|Start ICO||30 Sep 2017|
|End ICO||31 Oct 2017|
Ticker symbol: DCN
Project type: An Ethereum-based Token for the Global Dental Industry
Company: Dentacoin Foundation, Maastricht, the Netherlands
Soft cap: No information available.
Hard cap: $25 mln.
Token: follows ERC20 standard
Bonus structure: Pre-sale discount
Referral system: No information
Open source: No information available
Team size: 20, plus 6 advisors
Developer team active: Yes
Wiki: No information
Slack +370 registered
Twitter +502 followers
YouTube: 29 followers
Dentacoin is a dental marketplace built on an Ethereum-based blockchain platform. Its aim is to improve dental services using customer comment and reviews, incentivized with cryptocurrency remunerations. Feedback is of course a vital tool for businesses, helping to improve and customize services.
The Dentacoin Foundation company is developing the platform both for patients, to improve dental services and decrease prices all over the world, and for dentists, offering an ability to exchange market research and patient feedback.
The concept is of interest to market participants. There are no current analogues on the market - the market sector is not currently competitive. Blockchain-based technological solutions are highly relevant to the healthcare services market. Examining current market trends and growth rate we can forecast a successful launch and further development of Dentacoin. The idea would be successful if comments are true and accurate. It is important to prevent fake comments; we believe it is easy to fabricate any comment and pass it as it customer’s one. In addition a marketing schedule is needed for DCN token distribution, and a clear financial model - which is not yet developed.
- timely idea for the prospective market; absence of competitors;
- the staff are experienced specialists in the field of dentistry;
- tokens are sold once a year.
- the ICO process is not described in full; an inaccurate financial model;
- there are no specialists on the staff with proven experience in the field of blockchain-based project implementation;
- after the ICO many tokens will stay in the fund, which provides additional risk.
Blockchain solutions are at the beginning of development in the healthcare market. Nevertheless, they are much discussed in mass media1. The pioneers among blockchain-based projects in the field of healthcare services are:
They present themselves as databases of patient health information, but not platforms for customer feedback and comments on medical services including dentistry. As a result, the Dentacoin founders consider their product to be the first blockchain-based platform in the industry. They do not have any competitors at the moment.
The dentistry market is the highest growth market sector1, and the most profitable one, in the healthcare services market. Dental services are one of the most expensive services. According to the Technavio company’s research, the average rate of growth of the dental services market will be 13.8% per year up to 2020. According to official data from tax declarations as at 2016, total turnover is $600 billion. So the official market alone will be worth over $1 trillion by 2020.
The Dentacoin project says that their tokens can be used for settlement with suppliers of dental equipment and devices. The global Dental Supplies market will reach $19.4 billion by 2017, according to a new report by Global Industry Analysts, Inc2. Expendable materials and implants are the highest costing item.
The size of the end user market should assist the project’s successful development as well. As at mid-2017, there are 1.8 million dentists worldwide. One dentist can treat about 3500 patients. So, there are 6 300 000 000 potential customers worldwide.
The following services will be offered:
- Trusted Review platform – an application for reviews of the quality of dental treatments providing trusted comments. Specifically, every dentist sends a request for review before every medical treatment. Every customer can write comments on dentistry; for his reviews he receives Dentacoin tokens, and access to other customers’ reviews. Using the feedback, dentists can improve their services.
- The Aftercare mobile application – provides regular notifications and memo texts helping people to acquire good oral hygiene habits.
- Learning And Teaching Website. This includes a curriculum, and a series of questions. Customers receive tokens for correct answers.
- Dental Insurance – undertaking of rights, obligations, responsibilities, terms and conditions by dentists and customers. Dentacoin Insurance is a smart contract, concluded after agreement of both parties.
- Healthcare Service Data Base.
DCN is the token remuneration for both patients and doctors. Customers can pay for dentists’ services or purchase dental products with the tokens.
The whitepaper describes two services: Automated transaction charge processing, and a buy and sell service. The buy and sell service is for quick purchase of DCN from the fund or quick sale of DCN to the fund. All transactions are recorded in the account ledger; the contract status shows cash flow. Using smart contracts, clients are able to withdraw DCN from their account to any Ethereum account.
Dentacoin smart contracts are blockchain-based protocols which verify, agree and conclude contracts between the parties. All smart contracts are unified into one Super Smart Contract where all the data on patients’ rights is kept. This is necessary, for example, in the case of a dentist’s death.
The whitepaper provides all necessary information on development strategy, ICO, and technological solutions. But there is a lack of information on marketing and promotion. There are also mistakes in the financial model and roadmap valuation model calculations.
There are plans to issue 8 000 000 000 000 (Eight trillion) tokens. The tokens are distributed within the company platform until 2042.
Sales: July 01, 2017 – crowd pre-sale Start: 8:00 a.m. GMT
Price: 1 ETH = 8 000 000 DCN (0.003521 USD cent/DCN or 284 DCN/USD cent)
Hard Cap: 80 000 000 000 DCN (1% from the total volume)
- establishment of a developer team for testing of the Trusted Review Platform;
- software development and launch of the Trusted Review Platform (testnet);
- software development and launch of the Aftercare mobile application, and learning and teaching Website.
At the time of writing, 02.08.17, the pre-sale is closed; 16 177 500 000 tokens are distributed. This comprises 20-22% of the hard cap volume.
October 01, 2017 – first stage of sale
Price: 0,011723 USD cent /DCN or 85,3 DCN/USD cent Hard Cap: 240 000 000 000 DCN (3% from the total volume)
- Recruitment of specialists in the field of insurance, dentistry, and insurance model software developers;
- Trusted Review Platform Main launch;
- Global campaign on partners invitation.
October 01, 2018, second stage of sale information not disclosed.
- Coding and tuning of the blockchain insurance and health databases;
- Market Research Platform development;
- The next stage of the global campaign to recruit partners and multipliers.
All funds raised during the ICO are used for development of The Dentacoin Project.
Preliminary distribution scheme:
- main development – 40%;
- operating expenses - 25%;
- marketing and sales - 25%;
- legality and compliance - 10% (expenses arising from confidential information protection and registration with professional bodies)
A portion of DCN is reserved in subsequent years for future development.
Depending on future circumstances, it may not be issued at all.
The founders have determined 4 levels of development:
- Knowledge – a period of information gathering. The main idea is to create a global database of received comments. Within this period the Tested Launch Trusted Review platform will be developed and tested.
- Expansion – within this period they intend to promote the platform, establish a community, adopt DCN currency, launch the Trusted Review Platform, and develop additional instruments including the mobile application and Learning And Teaching Website.
- Determination – creation, development and implementation of the insurance system.
- Eternity – closer cooperation with large scale international retailers, wholesalers, and suppliers for direct interconnection.
The Roadmap is available on the website and in the Whitepaper.
According to the Whitepaper, the project aims to occupy 1% of market share during the first period of its development. The next step is to occupy 20% of the market. But they do not provide detailed data towards this next period. Here is the extract from the whitepaper:
«The calculation of the future value is based on the number of Dentacoin wallets created. In the first 3 stages of its development, Dentacoin Foundation aims at achieving a market share of 1%. In the global dental industry, this 1% market share means 600 million patients and 200 000 dentists, using the Dentacoin value-creating tools. Within 1% market share and with a conservative rate of USD 60 per patient and USD 600 per dentist, a company value of approximately USD 4 billion is generated. USD 4 billion per 1% market share».
We notice mistakes in these calculations. 600 million patients mean 10% of the whole dental market. So, $4 billion value is not right. If the market value is $600 billion the company’s value is 0.6%.
We question the information given that in 2017 the company bought Dentaprime International Plc Hospital in London for $90 million. Payment was carried out with DCN tokens. We did not find any evidence to verify this.
To increase the price in the long run, the Dentacoin Foundation Company will redeem DCN tokens once a year. It will use funds from its 50% indirect profit received within the last financial year. This profit includes interest earnings on assets, profit from hospitals bought by The Dentacoin Foundation Company, and any other receivables from investments. Price estimation for the process of repurchase of tokens is not described.
The staff consists of 20 team members and 6 advisors. 11 of them are Doctors of Science.
Prof. Dr. Dimitar Dimitrakiev. Company founder. He is a University lecturer. He has been working in financial markets for 27 years. Prof. Dimitrakiev deals with science and technology and is a member of the IEEE Computational Intelligence Society, EADM, and Automation And Computer Science Society.
Philipp Grenzebach. Co-founder, business developer and M & A. A researcher in the field of law, economics and business management. Studied at Stellenbosch University.
Jeremias Grenzebach. Co-founder, main developer. Grenzebach has been working in the field of peer-to-peer technological solutions development for 8 years.
Among the founders there are no specialists in the field of medicine. Other team members have specialist knowledge of dentistry and implantation. There are no specialists with proven experience in development of blockchain-based technological solutions.
Marketing budget is 25% of total raised funds. So the marketing budget after the first ICO is about $7 mln. Marketing expenses include partnership relationships development and direct customer marketing. On the staff there are specialists in this area.
Bounty hunters currently promote the project. The bounty campaign budget is 4,8 billion. Total Bounty Pool is as follows:
- 20% Social Media Campaign
- 20% Signature Campaign
- 20% Blog Campaign
- 15% Translation and Moderation
- 5% Slack Campaign
- 10% Other Bounties
The Project is popular on the Bitcointalk forum and in the following social networks: Facebook (5427 followers), Twitter (502 followers), and discussions on Medium (42 followers).
According to information given on the official blog in March 2017, The Swiss Dentaprime Hospital is the first hospital piloting the use of DCN tokens as a means of payment and remuneration for customer feedback (comments, reviews, and testimonials). This research has taken place over 3 months. The managers of the hospital report well on this kind of model. In July, 2017 another clinic in London adopted DCN tokens for its everyday work flow.
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.