TerraMiner Basic Review
|Start ICO||20 Jan 2018|
|End ICO||31 Jan 2018|
Ticker symbol: TRM
Project type: Mining farm
Extended company description: Mining farm for the production of alternative cryptocurrency (Altcoin) using the Scrypt algorithm
Company: Stigl (place of registration: Bulgaria)
Public ICO start: 01.10.2017
Public ICO completion: 31.10.2017
Token sale duration (Weeks): 4.3
Token type: ERC-20
Total emission: 3,024,000
Tokens available (Pre-Sale + Public ICO): 3,024,000
Investment goal: Funds received from the sale of TerraMiner tokens will be used to purchase the farm components for cryptocurrency mining and construction of the farm itself
1 TRM price:
PRE-ICO token price: 1 TRM = $2.80
ICO token price: 1 TRM = $5.00
POST-ICO token price: 1 TRM = $8.40
Accepted payment: BTC, ЕТН
Bounty Program: Starts September 16, 2017; runs until 3 days after the end of the ICO
Token role: Speculative
Team (Number of people): 6
Advisors and partners (number of people): N/A
Twitter: Postings: 67, Subscribers: 245
Telegram: Subscribers: 153
Medium: Postings: 0, Subscribers: 1
Facebook: Subscribers: 107
Youtube: Postings: 4, Subscribers: 13
Terraminer is conducting crowdfunding for the construction of a mining farm. Mining will be implemented on the NiceHash service using the Scrypt algorithm and does not require selection of a specific currency. Payments will be made in bitcoin. On Telegram, a project representative speaks of the constant change in the currency based on the yield.
The construction of the farm is expected to take place in China due to its low electricity costs and the proximity of farm manufacturers.
- Innosilicon - equipment supplier. Manufacturer of miners.
- JWIPC – equipment adjustment.
- EtherDelta - decentralized Ethereum exchange.
Attracted investments: - More than 200 investors were attracted at the PRE-ICO stage.
After studying the Terraminer project, we came to the conclusion that the project has an underhanded model of ownership and monetization. Based on current information provided by the company. There is a risk with proof of concept and with the development strategy.
These risks are described in detail in the relevant sections. If the project can confirm its concept of work, an investor would be able to enter the project at ICO and POST-ICO stage with substantially less risk.
According to a project representative on Telegram, the founders currently own a mining farm in the territory of the Russian Federation. This fact, in our opinion, further encourages distrust of the project since it would be cheaper here for the team to attract direct investments rather than go to an ICO.
Pros of the project:
- the team promises a quick payback and dividend payment 3 months after the start of operations
- equipment and components are produced near the farm’s location
- location in China: cheap labor and exclusion of customs and transport costs in comparison with Europe;
- the company's employees have experience in launching similar projects.
Cons of the project:
- the physical distance of the farm from potential investors;
- all benefits from the location of the mine are offset by bonuses for investors, which makes investment attraction via an ICO ineffective.
Market and industry
According to Juniper Research, by the end of 2017 the volume of cryptocurrency transactions may exceed $1 trillion. This is 15 times more than last year. (https://www.itwire.com/development/79769-cryptocurrency-transactions-to-%E2%80%9Cbreak-$1-trillion-barrier-this-year%E2%80%9D.html).
In August 2017, the altcoin market set an all-time high after slowing and falling prices at the end of the previous month. The total capitalization of altcoin reached $94 billion. In July 2017, despite uncertainty regarding Bitcoin, in a few days the total capitalization of Altcoin market fell to $45 billion. However, after news of SegWit, it not only began to recover but increased due to the strengthening of Bitcoin. The altcoin total market capitalization increased by $9 billion [https://cointelegraph.com/news/altcoins-market-monthly-overview]
In the wake of the appearance of new currencies, Terraminer suggests investing in altcoin mining (alternative cryptocurrency) with yields up to 35% per month. However, the project does not disclose which altcoin will be being mined.
The Merkle, answering the question whether altcoin mining is viable, ranks answers based on investor goals [https://themerkle.com/is-altcoin-mining-worth-it/]:
- Low level of risk (profitability) - mine a selection of different currencies; in this case even with incorrect decisions, losses will be minimal. If the price of some coins decreases, there will be other crypto currencies to balance losses.
- High level of risk (profitability) - mine Altcoin when launching a new cryptocurrency; in this case the investor could either be landed with unnecessary coins, or obtain sky-high profits.
Comments: The altcoin market, in our opinion, does have prospects. However, Terraminer strategy is suspect, and the company enters its target market without a clear strategy.
Engineering features of the platform
According to the project, cryptocurrency will be extracted on the Scrypt algorithm. The farm will run on ASIC miners, which will use A4 + chips from INNOSILICON Technology LTD.
Alleged farm location: China, Shaoguan Criteria, farm locations (based on the WP):
- cheap electricity;
- use of the most productive chips and the latest developments and components;
- assembly of equipment from components of Chinese production in Chinese factories;
- use of advanced cooling technologies (which allows maximum overclocking and reduces power consumption);
- placement of equipment near the manufacturer.
Mining will be implemented on the company’s own POOL, which will realize the division of extracted cryptocurrency between the token holder and the founders in real time. Token holders will be able to observe the progress of mining.
A comparison of the speeds of different farm architectures is given below:
Comments: The project states that the mining machines will be in a liquid coolant (dry water; fluoroketones FC-5-1-12), which will "drive" the card to a higher rate of operation than with air cooling.
As the project develops, the following stages will be implemented:
- July-August 2017 internal financing - development of technical documentation of equipment. Signing a contract with Innosilicon for the purchase of microcircuits. Signing a contract with J & W for the manufacture, assembly and testing of mining equipment.
- September 2017 - Purchase of A4 + the first batch of INNOSILICON chips. Placement of an order for the manufacture of the first batch of equipment with a capacity of 504,000 Mh / s.
- October 2017 - Preparation of premises for the installation of mining equipment. Purchase of A4 + INNOSILICON chips for the second batch. Placement of an order for the manufacture of a second batch of equipment with a capacity of 2 320 000 Mh / s.
- November 2017 - Preparation of premises for the installation of mining equipment. Installation of the first batch of equipment with a capacity of 504,000 Mh / s. Start of mining (crypto extraction). Start of the mining POOL.
- December 2017 Launch of batch 2 - installation of the second batch of equipment with a capacity of 2 320 000 Mh / s. Exchange entry. Token sale is available.
- January 2018 Launch of batch 3 - installation of the third additional batch of equipment with a capacity of 200,000 Mh / s.
Comments: The project claims that it has completed the first stage of the roadmap, but there are only pages from the signed documents to evidence this. There are no press releases on cooperation with manufacturers. For remaining items, we cannot offer additional comment; details of the mining are not disclosed.
Resume: In general, the technology of mining can be understood by the fact that the founders are currently exploiting GPU farm. Therefore, there are doubts about the accuracy of their calculations for farm capacity.
We have analyzed the TerraMiner website and documentation for sufficiency and non-propriety for making an investment decision.
The documentation includes the white paper and the crowdsale terms and conditions, presented in English and Russian. The strategy of the project and the need to attract investment through ICO are completely unclear from the white paper. The roadmap only contains plans for building a farm.
The website also provides information about the project, token distribution, the public ICO, the team and partners in English and Russian. The website was registered in early September.
Resume: The project has prepared documentation aimed at direct investment in real business.
From the point of view of the blockchain industry, the documentation looks suspicious. The project has not published press releases, nor made any public statements before the crowdfunding. There were no interviews being given (numerous statements about possible SCAM forced Pavel Kuznetsov, the founder of the project, to appoint a meeting with investors in Moscow [http://event.terraminer.io/]). Team members do not have accounts on professional networks such as LinkedIn. The project does not have advisors from the blockchain industry.
Public ICO start: October 01, 2017
Max amount 0
Token emitted, % 99%
Token type: ERC-20
Accepted payment: BTC, ЕТН
1 TRM price:
PRE-ICO token price: 1 TRM = 2.8 $.
ICO token price: 1 TRM = 5 $.
POST-ICO token price: 1 TRM = 8.4 $
Crowdsale duration: 4 weeks, until October 31, 2017
Token limitation: 3,024,000
Advantages for token holders: Holder has the full right to receive 50% of the tokens. This process is transparent because it works via an automated system. The payment of dividends will begin three months after token purchase.1 TRM gives appr ≈ $2 per month. The profit is paid daily.
Max goal: $14,691,200
Min goal: $1,411,200
The project is planning to allocate 10% of profits for the purchase of its own tokens on exchanges, which, according to the project, will increase their value.
The sale of tokens is imlemented in several stages:
- pre-ICO: from September 10 to September 30, 2017, 504,000 TRM for $2.8;
- ICO: from October 1 to October 31, 2017 2,320,000 TRM for $5;
- Post-ICO: from November 1 to November 15, 2017, 200,000 TRM for $8.4.
Comments: According to the project, the TMR token offers the opportunity to start earning on mining by investing from as little as 0.01 or $2.8. During the first 3 months, the token will grow by 300%. The return on investments also occurs within 3 months (the payback period may decrease due to the growth rate if funds are kept in cryptocurrency.) Furthermore – offers up to 35% of yield monthly. The project takes care of all the technical processes: the costs of installing the equipment, servicing, solving problems with warranty.
Program start date September 13, 2017 according to the data from Bitcointalk website.
%% distribution: The company allocates 1% TMR (30240 TMR) for the bounty program, which in turn is used for the following areas:
- Facebook - 10%
- Twitter - 20%
- BitcoinTalk signatures - 25%
- Translation - 10%
- Blogging (youtube or others) - 35%
Resume: The project has an extensive bounty program. All program conditions are detailed on the project website. Rewards will be paid within 10 days of the completion of the ICO.
Token and capital distribution
Tokens and capital are distributed according to the following scheme:
Token and capital distribution scheme 99% - for the sale; 1% - allocated to the bounty program.
Summary: The TMR token entitles a holder to a share of the daily profit from the project.
The team consists of about 6 people. Information about the main team members is as follows:
- Pavel Kuznetsov - founder and CEO
- Ruslan Sheremet - programmer-engineer, equipment developer.
- Igor Koida - chief programmer, software developer, pooling
Information on other project participants based on Linkedin:
Some information resources indicate the 4th member of the team, Evgeny Khashin (Smart-Contract Advisor) - Evgeny is responsible for smart contract development; a certified database specialist, although he is not mentioned on the project website. According to representatives, Eugene was a hired employee and he is no longer involved in the project.
On September 23, 2017 the team was increased to six people according to the website.
Summary: Information about the project team on Linkedin is missing. On the website, the team's experience is not sufficiently disclosed; links to social networks (facebook) are indicated only by the founder (since September 23, 2017, with the augmenting of the team, key employees have not provided links.) There is no activity in the profile: 2 post about education for 2013, one post for 2015 and a post with photo update September 10 2017 year. Based on data from the website and the absence of team member profiles on Linkedin or social networks, the impression of the data provided is an unreliable one, which will encourage distrust of the project.
Information about the project is available on popular outlets such as Twitter, Telegram and Youtube. The project has a bounty program.
Promotion on social networks is not enough for a project. The project team tries to answer questions on Telegram (a group of 68 people in the Russian group and 86 people in the English group), but too little attention is paid to documentation of questions. On other networks, such as Bitcointalk and Twitter, news is added irregularly. The format of articles about the project shows that they are written mostly to order.
Similarweb.com does not have data for Terraminer website.
According to WHOIS.NIC.IO: The site was created in September 5, 2017. There is no information about the owner of the domain.
Comments: The website has existed for less than a month; there are no statistics on traffic.
Resume: Based on the analysis of marketing activity, we can conclude that Terraminer has not yet begun full-fledged media activity. Work with the media and the community is poorly conducted. In our opinion, the project team does not take into account the features of raising funds through ICO, which ought to raise doubts with investors.
The developers may be contacted using the links below:
2. White Paper
5. About Bounty