FOLEUM Basic Review

Project Name: Foleum

Token Symbol: FOL

Project type: Green Blockchain Mining/Mining Equipment Sales

Website
Whitepaper

Company: Foleum, Inc.

Extended company description: The Foleum project offers green cryptocurrency mining, utilizing geothermal, wind, solar and fuel cell technologies to power its data centers. According to the team, since Foleum can generate the majority of its own power, the operational costs of the project will be greatly reduced, making it more profitable than other traditionally-powered mining operations while also helping to reduce blockchain’s carbon footprint on the planet.

ICO details

FOL Crystals (tokens) will be offered in 6 different stages, each with a different number of tokens, price point and investor restrictions.

Minimum Purchase Amounts: Pre-Sale, $30,000.00, Early Adopter Stage 1 Sale, $25,000.00, Early Adopter Stage 2 Sale, $20,000.00, and Early Adopter Stage 3 Sale, $12,000.00. Lot 1 and Lot 2 will have $100 minimum purchase.

Token type: ERC20 Security Token

Token emission: 300,000,000

Tokens available for sale (Pre-Sale + Public ICO / IPO): 240,000,000

The unsold crystals will be burned following completion of the ICO/ IPO.

Investment goal: 82,900,000[MS1]

FOL price: The price of the token will vary at each stage of the sale.

Accepted currencies: BTC, ETH, US dollar

Bounty: not announced

Token role: functional (Mining and Manufacturing Profit Sharing)

Use of Funds

The proceeds from the ICO (Initial Crystal Offering) will be allocated to purchasing the hardware, extending the data center and installing the green energy hybrid array. Proceeds from the ICO will also be used to pay marketing, legal, and advisory fees. 

Team

Team (number of people):9

Advisors and partners (number of people): 6

GitHub: N/A

Project description

The Foleum project offers green cryptocurrency mining utilizing geothermal, wind, solar and fuel cell technologies in order to power its data centers.

 

The Foleum project will be manufacturing and selling GPU beginner mining rigs, as well as its full-size servers and “build your own” mining kits to the blockchain mining community. Green energy (solar and wind) will be used for mining.

 

Holders of FOL tokens will receive up to 60% of the profit from mining on the platform, paid daily in ETH, BTC, ZEC, etc. The remaining 40% of the profit will be reinvested in Foleum to expand the capacity of the data center and upgrade existing equipment.

 

Foleum will also run nodes and masternodes from its datacenter for other blockchains like Nexus and Dash, which will add an additional revenue source to the project. In addition to running masternodes, they will also dedicate hardware to speculation mining. Foleum plans to add the profits from running nodes/masternodes and speculation mining to the Foleum reserve fund.

 

The project will also offer the following services to FOL holders:

  • Training courses on blockchain.
  • Exclusive discounts on hardware.
  • The opportunity to vote and take part in the management of the project.
  • The opportunity to choose charitable organizations and allocate part of the funds to them.

 

 

 

Advisors:

Stephen Hyduchak

  • CEO at Bridge Protocol and ProjectICO.
  • Previously: Vendor Analyst at PRA Health Sciences, Demand Planner at Advance Auto Parts, Financial Analyst at Northwestern Mutual.

Amit Singh

  • Corporate Partner at Stradling Yocca Carlson & Rauth, Board Member at CONNECT and March of Dimes.
  • Previously: Venture Capital & M&A Attorney at Benchmark Law Group PC.

Wilson Espinoza

  • Currently conducting research regarding soil characterization, variation of particle breakage and strength parameters of sand at large strains at Purdue University.
  • Previously: Project Supervisor for the Pontifical Catholic University of Ecuador.

Aaron Wu, Esq

  • Attorney at Law Office of Aaron W Wu, Co-Founder of Starfish Network.
  • Previously: Administrative Assistant at Treasure Island Development Authority.

Raghuram Bala

  • CEO and Director of NetObjex.
  • Previously: Director of Engineering at Yahoo, Director at Infospace.

He also teaches a course on the Implications of Artificial Intelligence on Business Strategy at MIT Sloan School of Business/Computer Science.

 

Partners:

WindStream Technologies

A company that produces green energy generators.

Netobjex

A company engaged in the development of smart contracts, blockchain platforms, IoT, etc.

Hypercube

An advertising agency.

According to the team soon more partners will be presented.

Attracted investments:

N/A (Self invested project)

 

Conclusion

The project is based on a mining farm that uses green energy to generate cryptocurrency. It provides a real opportunity to investors to become a part of a large and growing green mining operation which pays dividends daily to the users’ personal wallets.

Strengths of the project:

  • Team is vastly experienced in mining and infrastructure.
  • The project operates in a market that shows high growth rates.
  • Users can invest and profit from green mining without spending any money purchasing contracts or equipment.
  • Tokens will become more profitable over time since 40% of the profits will be spent on growth.
  • 20% of all the tokens will also be bought back and burned, further increasing the value of the tokens over time.
  • Shares of the operation are in the form of a securitized token and regulated by the SEC, creating accountability.

Weaknesses of the project:

  • The project development strategy and marketing campaign are not presented.

MVP is not available.

Despite the fact that the crypto market demonstrates some instability, we note that market capitalization is currently growing. Currently (May 28, 2018), the capitalization of cryptocurrency is $15.3 billion. Bitcoin plays the main role in this market.

[https://coinmarketcap.com/], [https://coin.dance/stats/marketcaphistorical]

According to analysis carried out by the project team, the average profitability of Bitcoin is about $15 per day with standard equipment (S9). However, the mining of cryptocurrencies requires high energy capacities, and thus incurs high costs as well. According to the project, the complementarity of solar and wind energy is able to provide a cheap and eco-friendly way of mining cryptocurrency all year round.

Comments: The crypto mining market shows good growth. The team has an idea of the target users of the project. In general, we think that the selected sector of cloud GPU mining still has growth prospects. However, it is worth noting the growing competition in this sector (see the Competitors section).

In the course of our research, we have identified the following competitors:

Terraminer

A mining farm (for altcoins) on the Scrypt algorithm.

$2 011 292 was raised during the ICO (10.2017).

Hydrominer

A crypto mining company which uses green energy.

$2,955,708 was raised (4% of the Hard cap) in the ICO (10.2017).

Sun mining

A company that enables altcoin mining using solar energy.

Moonlite

A company focused on the mining of the leading cryptocurrencies using green energy.

Envion

A crypto mining company which uses green energy.

Summary: In general, the concepts of Foleum and its competitors are quite similar to the concepts of Moonlite and Envion. However, the difference with Foleum is its focus and operating activity in the US, it pays dividends in different cryptocurrencies, uses Proof of Stake, and is under SEC regulation. Other competitors sell contracts on mining, while Moonlite, Envion and Foleum pay dividends.

Foleum develops and builds its own energy-saving servers for working in GPU. In this case, the data centers are designed in such way that they can place servers based on ASIC and GPU.

Technical description

The Foleum data center design includes cooling technologies using geothermal and high-efficiency cooling systems that are estimated to be capable of providing a 50% reduction in energy consumption compared to conventional systems. The project will also use wind turbines for additional savings. The data center projects include the ability to use some of the heat from the data centers to provide heating to buildings and greenhouses to help supply food to the local community.

Foleum is also planning to run nodes and masternodes from its data center for mining cryptocurrency for other blockchains, such as Nexus and Dash, in order to increase revenue. In addition to the launch of masternodes, specialized equipment for speculation mining will be created. It will work this way: 1% of the Foleum mining crystals (FOL) and 1% of the ICO will be allocated to the Project Mining reserve fund. The project will also allocate 1% of its hardware processing power to speculation mining. The profit earned from the hardware performing speculation mining and profit-sharing proceeds of the Project Mining reserve fund will be used to build a diverse portfolio of Proof Of Work and Proof Of Stake tokens. Considering the reserve fund will need time to establish itself, the profit sharing will commence on the following schedule: once the Project Mining reserve fund is operational and realizes profits, the FOL crystal holders will receive an annual distribution equal to the interest calculated per annum on the value of the Project Mining reserve fund, beginning at 0.5% per annum (on the basis of 365 days per year) and increasing by 0.5% per year until annual interest is equal to 6.0%.

Comments: The project is planning to use innovative systems for the production of equipment. However, a detailed technical description is not available.

 

Technical roadmap

In the future, with the development of technology and the amount of data the project team plan to implement the following:

  • Q2 2018 - preparation of land for construction.
  • Q3 2018 - creation of a data center, commencement of construction of solar and wind power plants.
  • Q4 2018 - start of production of mining equipment, start of equipment sales.
  • Q1 2019 - start of the green energy phase I.

 Comments: The project presented a phased development strategy. The bulk of the work is on the construction of power plants and the production of equipment. It is worth noting that the sale of tokens will not be conducted via smart contracts, the project will be doing it a different way.

 

Documentation

We have analyzed the website and Foleum’s documentation for sufficiency and consistency for making an investment decision.

Information about the project is contained in the Whitepaper, Privacy Policy and Terms of Service. The documentation is presented in English. The Whitepaper presents a detailed description of the problems of crypto mining.

The website also provides information about the project, the team, partners, advisors, the ICO and FAQ. The website is presented in English.

Summary: The documentation provides a comprehensive view of the project. The project is described in sufficient detail.

Tokens issued for sale: 80%

Token type: ERC20 Security Token

Accepted currencies: BTC, ETH, US dollar

FOL price: The price of the token will vary at each stage of the sale.

Crowdsale duration: N/A

Foleum is financed by its community of FOL Crystal holders. In turn, Crystal holders are entitled to receive distributions of up to 60% of the project’s mining profits, and the remaining profits are reinvested in the project in order to maximize the project’s potential for future earnings.

 

Daily, each token (BTC, ETH, LTC, ZEC, etc.) that they mine, is divided amongst all of the Crystal holders that are staking FOL crystal in their wallet or that are registered on their website to receive the mining rewards. It starts at 10% of the profit and builds up to 50% over a six-month period. Once you stake your FOL Crystal continuously for a full year, or longer you will receive the 60%.

Just by holding the Foleum mining crystals your cryptocurrency portfolio of the coins they mine can grow daily.

Token limitation: 300,000,000

Advantages for token holders: tokens allow holders to receive dividends.

Dividends: Reserve fund dividends and up to 60% of the profit from mining are paid daily in ETH, BTC, ZEC, etc.

Additional token emission: No

Escrow: No

Hard cap: N/A

Soft cap: N/A

Bonus: not presented

Comments: All unsold tokens will be burned.

Bounty

Summary: The program is not announced.

Token and Funds Allocation

Tokens and capital are distributed according to the following scheme:

Summary: The incentive system is built in such way that it is more profitable to buy tokens in advance.

Roadmap

The Roadmap:

Summary: The project concluded several partnerships with green energy and GPU producers in late 2017 - early 2018. It can be assumed that the Foleum development strategy will be based on attracting more partners.

Team

 

The team consists of 9 people and 6 advisors. Information about the main team members based on LinkedIn is given below:

Rahdi Fakhoury
CEO & Founder of Foleum, The Bitcoin Miner on YouTube, Owner of Mr. Trim, Glass Artist at Dreams of Glass.

Karem Fakhoury
CBO at Foleum.
Previously: Independent Business Owner at New Symmetry Homes Inc., Construction Manager at Vesta Homes INC.

Nicholas Ward
CTO at Foleum, Military in the US Navy.

The team has 5 more people.

Summary: Not all team members indicated their affiliation with the project on their LinkedIn profiles. The team are all from the USA. The team also has the following specialists: financial director, chief architect (green energy specialist), chief engineer, blockchain developer and head of marketing department.

Marketing

Information about the project is available on various popular services such as Twitter, Telegram, Medium, Facebook, and YouTube. The project does not have a Bounty program at this time.

The team conducts an advertising campaign on social media. News updates about the project are posted regularly on Twitter and Facebook. The format of the articles about the project shows that they are written primarily by the team as a review.

Comments: Users are just starting to become interested in the project. The marketing campaign is developed mainly on Twitter and Facebook.

Social activity analysis of the Foleum website based on data from BE1.ru showed the following:

Traffic source

Comments: Traffic source: direct link - 100%; Country visitor – the USA (100%).

Summary: Based on the data available, it is possible to make the conclusion that the level of users’ interest is growing. The team conducts an advertising campaign on Twitter and Facebook, communicates with users through Telegram, maintains a blog on Medium and uploads videos on YouTube. Over the past month, the number of visits has increased by 100 people.

The developers may be contacted using the links below:

Website

Twitter

Telegram

Medium

LinkedIn

Facebook

BitcoinTalk

YouTube

 

 

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.