MyBit Basic Review

About project

  • Name​: MyBit;
  • Ticker symbol: MyB;
  • Project type: decentralized asset management platform built on the Ethereum blockchain;
  • Company​: Swiss MyBit Foundation, a non-profit organization registered in Switzerland;
  • Website​: https://mybit.io/
  • Whitepaper​: https://mybit.io/docs/MyBit_Whitepaper_v0.13.pdf

ICO details

Starts: July 17th at 12:00 GMT

End: August 16th ( in 30 days)

Pre-sale is already finished, the amount of pre-sale tokens is not yet announced.

Accepted: BTC, ETH, ETC, REP, XMR, Dash

Price: 1 ETH = 100 MyB

Crowdsale pool: 5,000,000 MyB

Fundraising cap(hard cap) for pre-sale and ICO: 26,875 ETH

Minimum requirement (soft cap): 4,000 ETH

If minimum amount is not reached, all funds will automatically be transferred back to sender.

Maximum market capat ICO: $10 million

Team’s tokens will be lock-up for 8 months.

Bonus structure:

  • 0 - 9375 ETH: 1 ETH = 133 MyB
  • 9375 - 17500 ETH: 1 ETH = 100 MyB - Full Price

Team

Team size: 15 people;

GitHub: https://github.com/MyBitDev;

Wiki: no information available.

Social media

Slack: 206 users registered;

Bitcointalk: 215 posts, read 19`926 times;

Telegram: 38 members, 310 messages;

Twitter: 95 tweets, 2`081 followers;

Medium: 7 posts, 7 followers;

Reddit: 2 karma, 148 days;

Facebook: 771 likes, 802 followers;

MyBit project which is currently being developed is intended to become a decentralized platform, where asset holders could register their assets and sell shares in them to investors. Hypothetically, the service will allow selling any share in any asset; however the project’s White Paper focuses on solar energy equipment, such as solar roof tiles or microgrids.

Originally the project was designed as a decentralized platform for asset management: acquiring possession rights, operations with assets, safety assurance with the help of the blockchain technology, etc. The ICO was scheduled for March 2017 but got postponed after the founders had decided to focus on renewable energy sources. The team managed to state the problem: new technologies require more and more energy, which is mostly produced of finite resources that will eventually dwindle. At the same time, renewable energy still costs more than the energy from chemical fuels. So the project didn’t change at the core, but the problem appeared that needed to be solved. This immediately gained traction – the founders speculate on the topic of ecological problems and the lack of resources.

A new service is planned to help to solve the mentioned problem by encouraging people to invest in solar energy field. A similar project SolarCoin was set up in the USA in 2014 and is now successfully operating.

MyBit offers to manage assets with the help of special smart contacts. The so-called “initiator” who registers an asset (equipment) on the platform, may not possess the asset but attract those willing to invest to make the purchase possible. If the initiator already has an asset, he can sell his share in it on the platform. Anyway, the asset possession right of the initiator is written down in blockchain. Investors (as well as the initiator) will regularly receive income from the asset: for example, after selling the energy generated by solar panels. The right to receive income will also be written down in blockchain.

Besides the asset owners’ and investors’ income after selling energy, all MyB tokens holders will regularly receive a commission of 1% of the overall energy turnover in the project. The commission will be distributed in a proportional way according to a share of a token holder.

The founders have uploaded several videos on their YouTube channel where they describe their vision of the project. Although these videos don’t cover the technical aspect of the project, the overall idea of it is clear.

Based on our research, we do not recommend to buy MyBit tokens neither in short-term nor in long-term period.

The team has a compelling idea of decentralized asset management in the rapidly growing market of renewable energy sources. However, they don’t have neither the expertise in this market, nor a comprehensive financial model. They also don’t have the project’s prototype, only its visual image. Considering strong competitors in the market who have it all, the risk of

failure is really high. Moreover, the fact that there are no rules of additional tokens emission in future also adds risk. The inaccuracy of the project information, unsuccessful attempt of ICO 4 months ago that led to a sudden modification of the project – all this identifies the team’s enormous rush to attract money. This rush itself is a drawback of the project.

There could be a possibility of speculative demand on tokens right after the ICO due to the interest for the problem of renewable energy sources. But the weak marketing policy of the project makes it unlikely.

Strengths:

  • Innovative idea of decentralized asset management.
  • Rapidly growing innovational industry with a compound annual growth rate of 30.3% in the last 10 years.
  • Experienced developers and blockchain industry professionals among the team members and the project’s consultants.

Weaknesses:

  • No beta-version of the project, just a visional image presented in the video.
  • Low activity of the ICO code’s development and audit in Github repository.
  • Lack of information in White Paper. White Paper is overloaded with excessive technical data, most of which doesn’t describe the project, only the blockchain technology in general.
  • No comprehensive financial model, no forecasted expenses on future product development.
  • No accurate rules of additional emission of tokens, which is crucial for long-term investors.
  • None of the team members specialize in solar energy, the field the project is going to operate in.
  • The project’s competitor is SolarCoin, which has experienced specialists in solar energy as well as experienced economists. Besides, SolarCoin already has a full-working platform, impressive material resources and support from the government. It has recently entered German market where MyBit is planning to start from.
  • There are a lot of discrepancies in the project’s information. For example, the project is planning to start its work in Europe, whereas the income calculation models are in USD. Besides, the possible return on investment in MyBit is compared to the dollar risk-free rate. The purposes of attracting money listed on the website and in White Paper mention different currencies as well. Moreover, there is a mismatch between the project’s budget of $3.8 mln and the planned amount of money (including hard cap) attracted in ETH, which is approximately $5 mln.
  • Previous unsuccessful attempt of ICO in March 2017 that led to a severe modification of the project. Thus, the team’s aim changed in just two months.
  • Weak marketing policy: little information about ICO in the media, no mentions about the bounty program on the website or in the White Paper.

There is severe competition for MyBit in European solar energy market. First of all, it is SolarCoin – the fund created in 2014 in Greenwich, CT by a team of experts in solar energy, economics and IT. This project already works and stimulates solar energy production for involved homeowners and companies with the help of the blockchain technology. It is an international network of users intended to control distribution of SolarCoins (SLR) – cryptocurrency based on the blockchain technology. The homeowners are rewarded with one SolarCoin per one MWh of produced energy (as proven by an electricity meter every half a year). The company keeps publically available record of each SolarCoin paid to the energy generators. The purpose is the same as the one of MyBit: to encourage people and companies to participate in the growth of solar energy production. SolarCoin entered the markets of Belgium and Germany in summer 2016, so MyBit will definitely face a strong competitor who has the same goals, but also a well-operating platform, experienced team and support from the government.

Other competitors are SolarCity and Google who have a joint fund that pays for the installation of solar panels on the houses and then charges their owners for the used energy. Along with Google’s Project Sunroof they form an appealing range for those who don’t feel like paying a lot to install the equipment, but don’t mind getting their own energy source for a reasonable price. SolarCity and Google may potentially become valuable partners for MyBit.

As MyBit considers itself a player in the market of renewable energy sources, it should be examined as a part of this market, primarily German one. The project is planning to begin with Germany, the leader of the global renewable energy market, which has been growing rapidly since the beginning of the 21st century. Obviously, the development of contemporary technologies along with blockchain industry and artificial intelligence requires more power and consumes more energy.

Nowadays most of the world energy is still produced from finite resources, mainly coal and natural gas. The obvious advantage of producing energy from burning fuels is that it is comparably cheap and easy which suits developing and third world countries. However, this energy will run out at some point as the resources will eventually dwindle. Besides, the prices on this kind of energy depend on the state of the fuel market and may fluctuate when something unpredictable happens, for example a flood destroys a coal mine or methane explodes.

Other two common types are water energy and nuclear energy. Even though hydropower plants use a resource that can easily be replenished and produce cheap energy, they are too environmentally damaging. As for nuclear power stations, they are extremely expensive and cause troubles with waste disposal. Moreover, a nuclear accident can happen on a plant and lead to an ecological disaster.

A turn towards the renewable energy sources such as sun and wind was a perfectly legitimate step in this sense. In Germany, the target market of MyBit, solar farms and wind power stations gained popularity really quickly. At the beginning of the century the share of these sources was only 1% of total energy consumption, whereas in 2016 it exceeded 15%. Below is the graph that shows the growth of compared energy consumption value in Germany according to Thomson Reuters Datastream (excluding hydro energy).

According to Clean Energy Wire1 in 2016 the power of solar energy generated in Germany was 40.9 GW, which is approximately 6% of all the German sources’ energy. Moreover, in 2006 power of solar energy generated was only 2.9 GW, which means in the last 10 years it has grown by 14 times.

The growth is mainly caused by the fact that people lately tend to install solar roof tiles on their houses both in cities and in the countryside. MyBit plans to increase the tendency by simplifying the financing of the installation process and by offering an opportunity to make money from the energy distribution. A lot of ideas were imported from SolarCity – a project of Elon Musk and Google2, which is a fund created to invest in solar panels for homeowners. Those who have installed the panels pay the rent and share the energy surpluses.

Technical architecture of the project is illustrated in the following scheme from the project’s White Paper:

All application interactions occur using the REST protocol. The application interacts with smart contracts over RPC using an HTTP endpoint.

The data will be stored using the BigchainDB integrated technology, a decentralized blockchain database. The file system standard is the inter-planetary file system (IPFS). The Bitcoin Blockchain will be used as a ledger where transactional data is hashed and stored. To ensure smart contract operation, the Ethereum Blockchain will be used, as it is most suitable for this purpose.

The TestNet demo has been released in June:

Developers have uploaded a recording of the prototype’s work . In the video one can see that the prototype hasn’t been placed on the working server yet and has a limited amount of functions. In fact, the founders only gave a visual image of the future service.

It’s important to point out the low activity of the ICO code’s development and audit in Github repository:

The White Paper has been uploaded to the project’s website. The document is quite big and overloaded with excessive technical data, most of which doesn’t describe the project itself but the blockchain systems in general. It would be enough to include several links to the specialized resources and focus on the information about the project.

Another issue is the poor financial model. The document contains a very superficial description of future expenses without any decent classification. There is a risk of inaccurate financial planning and a probability of lack of funds in the future. A simple future earnings evaluation model is suggested, but the return in it is for some reason compared to US 10yr Treasury Note Rate. It would be sensible to include a risk assessment model into the project and calculate its risk premium to risk-free rate, or at least compare the figure to a share portfolio. The shares in the portfolio should be European, not American. The fact that all the calculations are performed in USD while MyBit is going to operate in Europe also seems bizarre.

MyBit Token: MyB

Starts: July 17th at 12:00 GMTx

End: August 16th ( in 30 days)

Pre-sale is already finished, the amount of pre-sale tokens is not yet announced.

Accepted: BTC, ETH, ETC, REP, XMR, Dash

Price: 1 ETH = 100 MyB

Crowdsale pool: 5,000,000 MyB

Fundraising cap (hard cap) for pre-sale and ICO: 26,875 ETH

Minimum requirement (soft cap): 4,000 ETH

If minimum amount is not reached, all funds will automatically be transferred back to sender.

Maximum market cap at ICO: $10 million

Team’s tokens will be lock-up for 8 month.

Bonus structure:

0 - 9375 ETH:1 ETH = 133 MyB

9375 - 17500 ETH: 1 ETH = 100 MyB - Full Price

Token Distribution:

  • 10% to Founders
  • 8% for Bounties and Advisors
  • 60% available during TokenSale
  • 22% for Bonuses, Rewards, and pre-sale discounts

MyBit token will be tradable on a minimum of 1 major exchange after crowdfunding.

It is not clear why fundraising cap and milestones are in different currencies (ETH and USD).

It is planned that the attracted funds will be distributed as follows:

  • 10% Legal and Compliance
  • 50% Salaries, Expenses, Rewards
  • 15% Marketing
  • 5%  Crowdsale Expenses
  • 20% Reserves for Unexpected Expenses and/or Delayed Monetization

Our calculations show that according to the current ETH rate (ETH/USD = 180), the team will be able to attract 5 079 375 USD during the ICO. The total budget of the project is 3 800 000 USD according to its White Paper. It is not obvious how the rest $1.2 mln are going to be distributed.

According to Roadmap the project’s beta version release date is not sooner than January 2018.

According to White Paper, there are 5 stages of project development after the ICO:

1.   Asset Registration Functionality & Identity Mgmt. Integration

Development of Registry, legal, incurred promotional debt (from crowdfund), basic PR.

2.   Asset Management Tools

Development of asset management tools, basic PR.

3.  Asset Tokenization

Development of asset tokenization functionality, moderate PR.

4.   Decentralized Energy System Integrations

Optimizing platform for integration with existing decentralized energy providers, obtaining partnerships, intense marketing.

5.   Emerging Market Expansion

Ongoing operational expenses. If final milestone is reached, then funds will also be used for targeting emerging markets.

The team doesn’t announce the amount of money necessary for each stage. Here lie the additional risks. If the deadlines and expenses are planned inaccurately, the team will need additional funds to raise.

MyBit team includes 15 people. All of them are not anonymous and are active on a few social networks. The Company registered as non-profit Swiss MyBit Foundation in Switzerland with the plan to move to Germany.

The project was founded by Ian Worrall (LinkedIn). He has managed a company that builds custom software for small businesses up to large corporations. He has been in the Blockchain industry since early 2013 having started as a small mining operator. Other key people are:

  • Garrett McDonald, Blockchain Design & Marketing Strategy (LinkedIn)
  • Thomas Pollan, Business Development & Partnerships (LinkedIn)
  • Ching Pong Siu (Kenji), Chief Technology Officer (LinkedIn)

A team of advisors includes six people. The most significant are:

  • Peter Kleissner, Founder of AV Tracker Stoned Bootkit
  • Nick Ayton, Co-founder of The 21Million Project

Evidently the team didn’t work a lot on the project’s promotion; there is very little information about it in the news or on the Internet. Marketing of MyBit, similarly to other ICOs, is mainly based on the users activity in social networks and specialized forums. All the links to the social channels are published on MyBit website.

There is a discussion about MyBit in two topics of Bitcointalk: the first one was created for the ICO in March, the second one – for the new ICO. Besides, on their website the founders have published a link to the old forum, where the discussion has stopped quite a while ago. The project has a Telegram channel with only 38 members as of the date of this overview. The Telegram channel is connected to the project’s Slack page through a special bot, so the

activity on both platforms is shown together, and the thing is – it is quite low. The project has a Facebook page with likes from more than 700 people. MyBit’s news are published in Twitter where there is a high activity of both the founders and followers (about 2 000). Moreover, the project has a blog on Medium and a Reddit page. Finally, the team has a YouTube channel with 16 followers.

The project’s marketing, similarly to other recent ICOs, is based on bounty program. Surprisingly, it is not mentioned in the project’s White Paper, nor does the website contain a section dedicated to it. However, the share of MyB tokens meant as a reward for the project’s consultants and bounty members is 8%. Information about bounty program can only be found on Bitcointalk forum. The rewards are paid typically for retweets and reposts on social networks, messages on the forum, White Paper translation, pointing out bugs in repository and other help.

The developers team can be contacted via:

 

 

 

 

 

 

 

 

 

 

 

 

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.