Karma Basic Review
|Start ICO||23 Nov 2017|
|End ICO||23 Dec 2017|
Ticker symbol: KRM 
Project type: Fintech
Extended company description: An ecosystem for worldwide P2P-lending. Any assets, liens or interest rates. Accumulation of reputation, creation of a web of trust. 
Company: Goodeast Consulting Ltd - fund management during the ICO period; Cyprus-based fund (registering; will be ready by November 20) - project development and management after the ICO.
Public ICO launch: 27.11.2017
Public ICO end date: 10.12.2017 
Crowdsale duration (weeks): 1,9
Token type: Graphene
Token supply: 3 000 000 000
Tokens available for purchase (Pre-Sale + Public ICO): 1 770 000 000
The purpose of attracting investments:
- 45% - development and marketing of the product before it achieves self-sufficiency.
- 20% - fund for investing in the first projects. A significant part of the funds raised in ITO should become a fund for investment in the first projects within a framework of Karma. It is planned to make several successful examples: investment in a project, project implementation and returning money to investors with a profit. This will increase the faith in the working capacity of the project.
- 10% - insurance fund.
- 18% - marketing bonuses based on the results of the tokensale.
- 2% - legal support.
- 5% goes to the founders, with a one-year freeze and equal monthly payments.
1 KRM price: 0.01 USD
Accepted payments: BTC, ETH, USD
Bounty: Not announced.
Token role: Functional
Team (number of people): 20
Advisors and partners (number of people): 7
Twitter: Postings: 31, Subscribers: 123
Telegram: Subscribers: 890
Medium: Postings: 9, Subscribers: 26
Facebook: Subscribers: 145
Youtube: Posting: 12, Subscribers: 1131
KakaoTalk: Subscribers: 400
Youtube: Postings: 10, Subscribers: 49
A global decentralized blockchain platform, where people and companies can directly lend to each other. 
Karma will provide the following services: 
- peer-to-peer lending
- security loans
- unsecured loans for small and medium-sized businesses
- the ability to accumulate points and earn a reputation
- credit investigation of borrowers
- the possibility of issuing a forward contract
- OpenLedger - Partner in the field of marketing. Promoter of Karma project, which is responsible for PR and marketing.
- BitShares - Technical partner. Karma blockchain is based on BitShares technologies.
- Graphene - Technical partner. Karma blockchain is based on Graphene technologies.
- Micromoney - Scoring partner.
- Ronny Boesing (LinkedIn) - Partner. Co-owner and founder of OpenLedger ApS (2 years), co-owner and SEO at GetGame (1 year), CEO at CCEDK ApS (about 4 years), CEO at Coinsbank LP (1 year).
- Tomoaki Sato (LinkedIn) - Founder, blockchain engineer at StarbaseCo (1 year), founder of Smart Contract Japan (1 year), CEO and founder of islamap.inc (2 years).
- Stephane Konan (LinkedIn) - coordinator of the project Agence Nationale des Infrastructures Numériques et des Fréquences (ANINF) (2 years), Commissioner at COGES (2 years), CEO at BODIEL (3,5 years).
- Dan Svinarchuk (Facebook) - IT specialist at Moscow stock exchange.
- Alakanani Itireleng (LinkedIn) - Director of Satoshicentre pty ltd (2 years), pioneer in BITCOIN (4 years).
- Rustem Zubairov (LinkedIn) - Consulting partner. Head of Deloitte group in the Caspian region (about 2 years), manager at Deloitte (3 years).
- Alex Chinyaev (LinkedIn) - Business partner. Deputy head of the department at GL Finance Group (about 3 years), deputy chief at Multifamily Office (less than a year), manager at Citi (5 years.)
- Philip Agyei Asare (LinkedIn) - partner in Ghana. CEO at BTCGhana (2 years), founder of Dream Bitcoin Foundation (3.5 years), CEO at Pak Universal Service (7 years.)
- Dima Schnellereich (Facebook) - Blockchain advisor. Executive director for business development at Schnellreich sp, PR-director of "Demersus" Diverscent Center, former marketing manager at HEINEKEN Russia;
- Thierno Madiou Bah (Facebook) - Partner, Sierra Leone. Chief Technical Officer and co-founder of Bitcoin Network-SLBNet, CEO at OnlinePromo;
- Tarlan Kornilov (LinkedIn) - Lawyer-partner. Managing Director at Elite Consulting (3.5 years), Consul General at FPI Group (4.5 years);
- Evgeny Boev (Facebook) - Partner for GR. Deputy Chairman of the Subcommittee on Energy of RSPP Committee on International Cooperation, Managing Director at ATEK-Energo LLC;
- Onotole Vassermane (GitHub). The world first decentralized technical director. Onotole is said to be not one person, but a cluster of blockchain programmers. With the Blckchnd team, he is developing the Graphene ecosystem: Bitshares (exchange), Peerplays (betting) and Golos (social media).
Investments attracted: 500,000 USD during the pre-ICO, August 2017.
Tokenholders (>100,000 tokens) will be able to see new applications for investment and loans several days early, as well as receive discounts (up to 50%) on transactions within the platform. The top 15 tokenholders will have the right to vote on the council of delegates. Currently, the only way to buy tokens is via white list entry (until November, 26); details can be found on the project website.
At the heart of the Karma project are experienced specialists and advisors.
Strengths of the project:
- A strong team of advisors and partners.
- The team provides weekly reports on the work done.
- A token based on Graphene, which will allow high-speed transaction processing.
- A high-growth market for lending has been selected.
Weaknesses of the project:
- The technical team is outsourced, which could lead to difficulties in developing the platform.
Market and industry
- According to a TechNavio report, the global P2P lending market will grow with CAGR by 53.06% in the period 2016-2020. One of the key growth trends of the market will be in small business lending.
- According to Statista, it is expected that market volume will reach $1 trillion by 2050. The market volume was about $64 billion in 2016.
- According to McKinsey & Company and the World Bank, there are 130 million small and medium-sized enterprises in the developed markets, and 100 million enterprises are in developing markets. , , , 
According to the white paper: 
- According to Morgan Stanley, P2P lending market will grow to almost $300 billion a year in 2020.
- The volume for the P2P lending market was less than 1% in total for 2015 in the US, while the growth in volumes was colossal: 123% year on year.
- Two of the most notable players in the P2P lending market are Kiva and Lending club.
- According to statistics from the World Bank, there are 365-445 million small and medium enterprises in developing countries.
- Up to 70% of SME do not have access to lending from banks, especially in developing markets. According to the World Bank, the shortage for borrowed capital in small and medium business is about $2.1 - 2.6 trillion.
Comment: There is a market analysis presented in the white paper. It can be seen that the market is growing at a tremendous pace, but the number of platforms providing peer-to-peer lending services is also growing rapidly.
The white paper presents several competitors: 
- Polibius - a cryptographic blockchain bank.
- Everex - a platform that enables payments in cryptocurrency and exchange microfinance services.
- Suretly - a crowdvouching platform allowing users to earn commission by providing paid services for security loans.
- WeTrust – a platform for the provision of financial services.
In addition, there are the following competitors:
Resume: In general, all platforms are very close in the field of provided services. The main differences between Karma and its competitors are its ability to play different roles (guarantor, borrower, investor, collector, etc.), interest-free loans, the use of cryptoassets as a collateral or credit, the possibility of fiat lending, cross-border lending, public storage of deal history and scoring.
Engineering features of the platform
The platform is built on blockchain. Graphene technology is at the heart of this blockchain (based on dPoS consensus.) The structure will be supplemented by fields, as well as smart contracts (DApps) in the form of C++ plug-ins. 
To connect to the blockchain node, a web application will be used that is connected via HTTP REST API.
Karma will provide an open API for data registries, as well as for external scoring companies.
Payment systems (bitPesa, M-Pesa, etc.), e-commerce marketplaces (Yandex.Market, Amazon, Etsy, AliExpress, etc.), and systems that record user activity in working with mobile phones (Micromoney) will be used for scoring.
Karma provides worldwide peer-to-peer scoring and lending services using any assets or collateral (cryptoassets, real estate, goods, fiat.) In addition, it offers the opportunity to set interest rates and accumulate a reputation. The alpha version is expected in November 2017. 
Comment: An interesting feature is the opportunity to play different roles (collector, borrower, seller, investor, etc.), and also use different asset types (loans or collateral in cryptocurrency, real estate or goods).
In the future, with the development of technology and data capacity, it is planned to implement the following: 
- November 2017 - release of the alpha version (unsecured transactions with fiat currencies; loans secured by cryptocurrency (crypto-pawnshop), pledge BTC/ETH, the issuing of loans in USD), preparation of 100% legitimate platform.
- 1st/2nd quarter 2018 - release of a developed version (with the addition of payment of commissions, cross-border transactions, hedging of currency risks, increase in number of social roles, identification and provision of liquidity.)
- 3-4 quarter 2018 - release of the full version (transactions with "tokenized" offline assets will be added (real estate, gold and other resources); the creation of new social roles, financing for the supply of goods and services, and a platform for mutual settlements.
Comment: A step-by-step strategy for introducing additional functions is presented. However, since the development of the platform is outsourced to an external contractor, there may be corresponding risks.
There is 1 open repository dedicated to Karma – a blockchain P2P-interchange protocol.
The following active blocks are represented in the open repository:
Comment: The structure of the smart contract can be seen in the repository.
We have analyzed the Karma website and documentation for sufficiency and consistency for making an investment decision.
The documentation includes the white paper, presentation and One Page. Documents are available in English, Russian and Korean; in the submitted documentation Karma project is described in sufficient detail, and the documents use clear and comprehensive language. The marketing strategy involves the creation of a community of people who share the idea and values of the project, as well as the provision of free products (formation and automation) for ecosystem participants.
The website also provides information about the project, the public ICO and the team. The website is available in English, Russian and Korean. There is an easily accessible link to the registration for the whitelist on the site. 
Resume: The documentation gives a comprehensive view of the project.
Public ICO launch: November 27, 2017
Tokens to be released, % 59%
Token type: Graphene
Accepted as payment: USD, BTC, ETH
1 KRM cost 0.01 USD
Crowdsale period: 1 week, until December 10, 2017
KRM – a utility token for the payment of commissions (scoring, transaction processing, insurance, etc.) by participants; conversion takes place automatically via API exchanges. Total volume of commissions ≈5% of the volume of transactions.
Token issue limit: 3 000 000 000
Advantages for token holders: holders of more than 100,000 tokens will receive:
- Access to the dark pool, the opportunity to see new applications for investment and loan requests a few days early.
- Up to 50% discount on transactions within the platform. The top 15 tokenholders will have the right to vote at the council of delegates.
Maximum planning amount of profit: 10 000 000 USD
Minimum planning amount of profit: 5 000 000 USD 
Tokens are sold in several stages:
Comment: The tokensale will occur on the basis of an offer. Legally, the token is a license to access the software, which can be sold, donated and inherited.
The tokensale will occur by appointment to the white list; registration is open until November 26. 
Decisions on new issues and key development points are made in an open vote involving the top 15 delegates on the network.
According to the project’s representatives, the tokens will be available for purchase on exchanges.
Tokens and capital distribution
Tokens and capital are distributed according to the following scheme:
Resume: Tokens do not affect the distribution of shares in the company. The incentive system is set up such way that it is more profitable to buy tokens earlier.
According to the roadmap, the following will take place: 
- 1st/2nd quarter of 2018 – creation of a network of ambassadors worldwide, connecting new scoring partners.
- Within the framework of the project, it is planned to organize regular hackathons enabling machine learning for neural networks based on collected Big Data.
- The token has fundamental factors driving its growth: an increase in demand with limited emissions.
- Growth in token demand is directly proportional to the growth in volume of transactions within the platform.
Resume: In our opinion, the project has provided a fairly detailed development plan. However, we believe that the process of attracting creditors and borrowers is not disclosed in sufficient detail. When asked about the availability of companies ready to test the alpha version, the team replied that there are already 3-5 volunteers.
The team consists of 20 people and 7 advisors. Information about the main team members based on LinkedIn is given below:
- George Goognin (LinkedIn) - Founder, Evangelist, Producer. Former partner of a consulting agency (http://komanda-a.pro). Experienced testing engineer (InFusio, Sitronics Telecom Solutions), designer (Luminator), has experience in project management (CEO of the project rusavtobus.ru); project manager and production director at ADV / web-engineering co).
- Artem Laptev (LinkedIn) - Founder, Director of Investments. Head of Family Office in GL Finance Group since 2010, holder of the international CFA degree. Previously headed the ALLT Family Office in Luxembourg. Has experience in asset management in the financial sector: Sberbank - Troika Dialog, BCS.
There are 18 people in the team.
Resume: Only 2 people are identified as members of the project on LinkedIn. The team mainly consists of partners and consultants in various fields (see the relevant section).
Project information is available on Twitter, Facebook, Telegram, Medium, YouTube and BitcoinTalk; a chat on Kakaotalk has been created. The team communicates with users on social media.
The project is active on social media. The team answers users’ questions on Telegram. Twitter and Medium update news. According to the format of published articles, we believe that they are written mainly to order by the project.
Comment: Interest in the project is not yet strong. The main marketing campaign is taking place on Twitter and Medium, as well as via community development, the organization of meet-ups in different countries and the growing the number of evangelists worldwide. 
Unfortunately, there are no website statistics on Similarweb. According to Alexa.com, website visitors amount to 6446 people; the number of views is 25,800 per month. The top countries by visitor numbers are Russia, Ukraine and Belarus.
Resume: According to our analysis of the marketing campaign, it can be concluded that interest in the project is not yet high. The team is conducting an advertising campaign on social media, maintains a blog on Medium, communicates with users on Telegram and uploads videos on YouTube.
The developers can be contacted using the links below:
2. White paper
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.