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Cognida Rating Review

Risky

Investment Rating

Expiry date : Expired 16 Nov 2018

Rating report

Based on the analysis performed, we have assigned Cognida Network a “Risky” rating.

The project has the following strengths:

  • A significant and fast-growing market (blockchain industry).

  • Cognida Network is a “blockchain agnostic”, so its platform is compatible with any blockchain.

  • Technology integrations with WanChain, Rivertz and Factom.

  • Cognida platform is not a rigid system, it is adaptive to the environment’s requirements.

However, there are also a number of risks still associated with this ICO project:

ICO details, which cannot be verified at the date of analysis

The lack of information regarding the ICO is particularly unclear regarding how the proceeds will be used, what the bonuses are for pre-ICO rounds, and whether there is any lock-up period for the bonuses. Besides, the KYC/whitelist details are not specified yet. According to the representative from the team, the information should be clarified soon. However, as the ICO will launch in less than a month’s time, the lack of the aforementioned details can significantly increase the level of risk for potential investors.

Absence of an MVP

As of now, there is no MVP available, however, according to the team’s representative, the working prototype is being developed on a private GitHub repository which will be opened to the public prior to the July 2018 launch of the network.

Project’s public GitHub is not active enough

At the time of writing (July 2018), there is no official GitHub profile of the project found. Given that the team is planning to launch the network on July 20, 2018, and the impossible degree to which the development of the project can be assessed, the level of risk for potential investors increases. According to the team’s representative, the project GitHub profile is private and should be released soon.

Team composition risks

The management team comes from Windmill Enterprise and seems to have relevant management experience, however, the team lacks experience in the blockchain industry. Moreover, there are no links to LinkedIn in the whitepaper, nor on the website; and not all members of the project team stated on their LinkedIn profiles their affiliation with the project. None of the advisors below discloses his/her advisory role to Cognida Network on their LinkedIn profile. Also, there are no press releases confirming partnerships with Factom.

Incomprehensive roadmap

The project roadmap, presented on the project website, does not contain any information about marketing and business development activities. In addition, there are no details regarding the project partnership plans.

Incomprehensive whitepaper

The Cognida Network has comprehensive and detailed whitepaper and technical papers when it comes to technical features of the project. However, we believe the following information is missing:

  • Absence of market and direct competitor analysis.

  • There is no proceeds allocation scheme.

  • It is unclear how funds will be used in case the hardcap is not reached.

  • There is no forecasted marketing and business development activities, as well as details of partnership plans.

Unclear project economics

The team does not disclose the detailed forecast use of proceeds from the ICO, and fees for the services of the Network are unclear.

Poor marketing activity

Token generation event scheduled for September 2018, however as of the date of our analysis official telegram channel has less than 10 thousand followers what indicates low interest and awareness of the community. We also note that the team has claimed that they have successfully launched private trials in the end of July 2018, however, we were not able to find proofs. We also note that official Medium channel was updated long ago.

Based on our analysis, while taking into consideration all the risks associated with the Cognida Network project, as of August 5, 2018, we have assigned Cognida Network a “Risky” rating. Once the major issues are resolved by the team (i.e. ICO details are specified, release of MVP, etc.), the project rating will need to be reassessed as the risks linked to it may change.

Project & ICO information

Cognida is a blockchain agnostic data integrity and management platform created by Windmill enterprise. It is an open-sourced project, where the platform allows distributed data to interact with different blockchains in a highly secured way whilst maintaining data integrity.

Website

 

Whitepaper

 

Technical paper

 

Medium

 

Telegram

 

Telegram (announcements)

 

Twitter

 

Reddit

 

Facebook

 

LinkedIn

 

Blog

 

Windmill Enterprise, Inc is a Delaware corporation co-founded by Michael Hathaway of Information Xchange, Inc, and Bing Byington of CareConnex.

Since our analysis, there has been no official GitHub profile found. According to the team’s representative, the project GitHub is private, but might become available before the public sale, however, the exact dates are unclear.

 

PRIVATE SALE

ICO (PUBLIC SALE)

Start date

June 20, 2018

TBA (before September 28, 2018)

End date

July 15, 2018

TBA

Stage cap

-

-

Ticker

COG

Token

ERC20

Token supply (for sale/total)

297,000,000 COG / 550,000,000 COG

Soft cap

Not specified

Hard cap

USD 20,000,000

Estimated capitalization1

USD 37,000,000

Token price

USD 0.067

 

Bonus

TBA

TBA

Lock-up

TBA

TBA

Minimum investment

-

-

Maximum investment

-

-

Currencies accepted

ETH, BTC, USD

 

Restricted list

USA (except accredited investors)

KYC procedures

TBA

Country of legislation

Texas, USA

1 Value of 100% of the tokens at ICO price.

According to the whitepaper, the project tokens will be distributed as follows:

The total token supply is fixed at 550 million COG, 54% of which will be allocated for sale, 16% for foundation, 12% and 8% for team and advisors with a vesting period equaling 1/3rd every 120 days, respectively; 5% is allocated for the future as a contingency reserve and the remaining 5% will be left for future developers/contributors.

Any tokens unsold during the public sale event will be reserved for release at a later date. The conditions of release and period are still unclear.

The lack of information regarding the ICO is particularly unclear how the proceeds will be used, what the bonuses are for the pre-ICO round, and whether there is any lock-up period for the bonuses. Besides, the KYC/whitelist details are not yet specified. According to the team’s representative, the information should be clarified soon. However, as the ICO will launch in less than a month time, the lack of aforementioned details can significantly increase the level of risk for potential investors.

Also, there is no MVP available. However, according to the team representative, the working prototype is being developed on a private GitHub repository which will be opened to the public prior to the July 2018 launch of the Network.

Description of services & their applicability

The Cognida Network is an enterprise network as a service, designed to help enterprises manage multiple blockchain networks while still maintaining ownership and control of their data.

As it is said in the whitepaper, the Cognida Open Source Foundation will be a US-based non-profit organization. Its role will include oversight of ongoing community development of the Cognida Platform, as well as administration of the Cognida Network.

The Cognida project aims to address the main problems faced by enterprises when trying to adopt blockchain technology for data management, such as lack of experience for development of blockchain based solutions, and the difference in core values between existing enterprise infrastructure security, and the blockchain inherent ethos.

The Cognida project introduces the following key technologies:

Cognida Agent Core

The Cognida Agent Core is a flexible compute architecture that can run on servers, PCs, tablets, and other devices. It offers a flexible programming environment that is script-based and template driven.

Cognida Service Interface

The Cognida Agent Core establishes the heart of the Cognida Service Interface. It utilizes its translation capabilities to connect to a public or private network API, and transforms API operations to a target device or service. The Service Interface has the following functions:

  • Security Offload.

  • Legacy Authentication Services.

  • Remote Administration.

  • Digital Asset API.

Subscription Services

A core service offered within the Cognida Platform is blockchain-secured shared data, and a messaging subscription service. It incorporates the Cognida Service Interface, which offloads authorization, authentication, and security operations, and connects to document databases and messaging services on a common API.

Securing Enterprise Assets

Cognida’s open source library offers tools for enterprises to administer public/private keys within their organization to secure devices and user accounts on devices. The Cognida Service Interface can be deployed on existing applications and services that utilize distributed Blockchain ledgers to offload key-based authentication and authorization functions, as well as performing any encryption/decryption and blockchain-based data integrity operations.

Cognida Service Network

This reverses the conventional “terms of services” contracts which vendors require customers to sign. This approach enables enterprise administrators to enforce their service policies with Cognida Service Network Vendors, including managing access to subscription data and enterprise assets, and enforcing data persistence/deletion policies. This allows the Cognida Platform to provide solutions that comply with various regulatory policies, such as the General Data Protection Regulation (GDPR), which comes into effect in the EU on the 25th of May, 2018, and also the HIPAA Act used in today’s US healthcare system.

Flexible Device Authentication

While the Cognida Agent provides public/private key generation for the device, there is not a singular solution that fits every single need, so it is adaptive to the environment’s requirements. The Cognida platform provides a flexible integration solution for authentication as methodology varies widely across enterprise organizations.

Potential usage cases of the Cognida Network:

In this usage case, the information is shared across multiple organizations and applications, users and devices, medical labs and clinics, and cloud services. Clinical trials host information subscriptions that are accessible on a permission basis to multiple subscribers. Blockchain technology is used in order to manage permissions, ensure data integrity, and track access in an immutable blockchain record.

In the Restaurant Chain usage case, the Cognida Platform is used to integrate information from multiple systems into permission-based subscriptions that can be shared among franchise owners, managers, and vendors. Blockchain technology is used as a common, decentralized system for authenticating identities, managing permissions for shared data, and ensuring data integrity regardless of who is hosting the data and where.

Given the tremendous number of blockchains launched by different projects, the Cognida Network decided not to launch another blockchain, but instead focused on the problem closing in: how to manage all the existing and new blockchains in an efficient way, and make counterparties interact using multiple blockchains without giving up control and transparency. First of all, it aims to address the security between blockchains and establish a blockchain-secured service layer that runs on top of the Internet, ensuring trusted service relationships, and putting the enterprise in control of who has access to which data.

The Cognida Network has a comprehensive and detailed whitepaper and technical paper when it comes to technical features of the project. However, we believe the following information is missing:

  • Absence of market and direct competitor analysis.

  • There is no proceeds allocation scheme.

  • It is unclear how funds will be used in case the hardcap is not reached.

  • There are no forecasted marketing and business development activities, as well as details of partnership plans.

Roadmap

The project team has provided the following roadmap:

According to the team’s representative, the vesting period for the project team is 1/3rd every 120 days, which covers all milestones on the roadmap.

At the time of writing (July 2018), there is no official GitHub profile of the project found. Given that the team is planning to launch the network on July 20, 2018 (as of July 24th there is no announcement on the network launch found), it is impossible to assess the degree of the project development. Nevertheless, it increases the risk level for potential investors. According to the team’s representative, the project GitHub profile is private and should be released soon.

The project roadmap, presented on the project website, does not contain any information about marketing and business development activities, and there are no details regarding the project partnership plans.

Market outlook

Market analysis

According to Stratistics MRC, the Global Enterprise Data Management Market accounted for USD 68.6 billion in 2016, and is expected to reach USD 142.67 billion by 2023, growing at a CAGR of 12% from 2016 to 2023. Growing demands for risk management, rising regulatory compliance and regulations, improved adoption rate of massive parallel processing architectures and columnar databases, and enhanced streamline business operations are some key factors triggering the market size. However, data address validation issues and the presence of data silos are some factors limiting the market growth. Moreover, exploitation of the data maturity model will remain as a significant opportunity for the market growth over the forecast period.

Considering the decentralized and adaptive nature of the Cognida Network platform, it has undoubtedly an advantage over centralized data management solutions which ultimately default to single points of failure.

For the purposes of analysing of the macro-level factors affecting the Cognida Network project, a modified PESTEL framework will be used. The PESTEL framework analyses Political, Economic, Social, Technological, Environmental, and Legal factors. As far as blockchain projects are concerned, Environmental and Social factors are usually not applicable, or have a relatively small impact.

  • Political –  infrastructure projects like the Cognida Network usually do not bear political risks.

  • Economic – market niche of infrastructure platforms is significant and projects concerned usually demonstrate a good performance in terms of economics.

  • Technological factors – given the immaturity of the blockchain market as a whole, development of infrastructure platforms is a good idea as the market needs such solutions at its development stage.

  • Legal – infrastructure platform projects like Cognida Network usually do not bear legal risks.

Competitive landscape

We will use Porter’s Five Forces framework to perform an initial competition assessment for Cognida Network project.

Threat of new entrants - High

The overall threat of new entrants is high as new infrastructure projects in the blockchain come out often and the market has not filled yet. The competition is rising gradually, and whoever captures the platform, possesses a greater chance of becoming the future blockchain giant.

Threat of substitutes - Medium

Threat of substitutes is at medium as new infrastructure platforms are released often, however, transitioning from one to another is not an easy process.

Bargaining power of customers - Low

The bargaining power of customers is relatively low as there is not much decentralized data management providers as of now, and Cognida Network has its advantages over the centralized competitors.

Bargaining power of suppliers - Low

Since there is only labor (developers) and industry partners (and maybe node holders) on the supply side for the Cognida Network project, the bargaining power of suppliers can be assessed as being relatively low.

Industry rivalry - Medium

As of July 2018, Cognida Network has some direct competitors in the blockchain market and some indirect competitors; please refer to the summary table below:

Industry rivalry

 

Cognida Network

DFinity

Gresham

Information Builders

Oracle Cloud

Project type

Infrastructure

Infrastructure

Infrastructure

Infrastructure

Infrastructure

Ticker

COG

DFN

N/A

N/A

N/A

Key functions / features

Cognida Agent Core, Service Interface, Subscription Services, Service Network, etc.

Unlimited capacity, interoperable, self-governing

Regulatory Compliance, Risk Control, Financial Control, Data Management

BI and Analytics Platform, Data Management Platform, Accelerators

SaaS, PaaS, IaaS, DaaS

Consensus

PoW

PoS

N/A

N/A

N/A

Key users

Developers, users, enterprises

Developers, enterprises

Developers, users, enterprises

Developers, users, enterprises

Developers, users, enterprises

Development stage

Beta testing

Copper stage

Released

Released

Released

ICO status

Private sale ongoing

Private sale ongoing

N/A

N/A

N/A

Funds raised during the ICO/Hard cap

No data/ USD 20 million

USD 4 million/ N/A

N/A

N/A

N/A

ICO valuation1

USD 37 million

USD 1.9 billion

N/A

N/A

N/A

Market capitalization

N/A (Not listed yet)

N/A (Not listed yet)

N/A

N/A

N/A

Product launch

Q3/Q4 2018

N/A

N/A

N/A

N/A

1 100% of tokens at ICO price

As of July 2018, the market for the Cognida Network is not very competitive. Specifically, one of the decentralized competitors is Dfinity which claims to be the third generation of blockchain technology with more advanced smart contracts and the ability to access unlimited computational processing and storage through an intelligent decentralized cloud. However, they have incredibly complicated documents, blogs and interviews which make this technology difficult to understand and inaccessible to most.  

The other main competitors presented in the table above are centralized. While Gresham is adopting the latest and greatest cutting edge technologies, it still faces some challenges when it comes to a unified global culture and communications since it operates all across the world. An Information Builders provides a comprehensive suite of business intelligence tools, analytics solutions, data management instruments, and accelerators, but only for large enterprises and medium businesses. While mentioning Oracle Cloud, it increases computing performances, and, as a result, reduces excessive IT costs. Besides, it has a user-friendly environment, but it takes some time in order to fully integrate across a large company. Also, it should be noted that Oracle Cloud could potentially become a direct competitor as it possesses enough resources to extend its functionalities using blockchain technologies.

Considering that the market for enterprise data management using a blockchain is not very crowded at the moment, and advantages of the Cognida Network project, such as connections to WanChain and Rivetz, flexible and adaptive enterprise solutions, which allow to integrate Cognida into their existing applications instead of customizing to integrate blockchain capabilities, the Cognida Network has a good chance of success. However, large enterprises can be quite slow in adopting new technologies, and the Cognida Network team may face some challenges in creating demand for their platform.

Team

The Cognida Network project is represented by the following team members:

Michael Hathaway

Position

Co-Founder, CEO

Total experience

31+ years

Relevant experience

Yes

Relevant education

Yes

Professional achievements

Founder and CEO at Information Xchange, Inc

6 patents

LinkedIn

Yes

Connections

500+

Endorsements / Recommendations

Yes

 

Bing Byington

Position

Co-Founder, Executive Chairman

Total experience

-

Relevant experience

-

Relevant education

-

Professional achievements

-

LinkedIn

No

Connections

-

Endorsements / Recommendations

-








 

Wayne Lawler

Position

Founding Partner, Advisor

Total experience

27+ years

Relevant experience

Yes

Relevant education

Yes

Professional achievements

Program Director at HP Enterprise

LinkedIn

Yes

Connections

243

Endorsements / Recommendations

Yes

 

Frank Fernandez

Position

Partner, Advisor

Total experience

23+ years

Relevant experience

Yes

Relevant education

Yes

Professional achievements

Founder and Managing director at Gateway Private Capital, Inc

LinkedIn

Yes

Connections

500+

Endorsements / Recommendations

Yes

 

Josh Jones

Position

Chief Marketing Officer

Total experience

18+ years

Relevant experience

Yes

Relevant education

Yes

Professional achievements

Co-Founder and President at Dine on Demand

LinkedIn

Yes

Connections

500+

Endorsements / Recommendations

Yes

 

Shari Joseph

Position

Chief Financial Officer

Total experience

28+ years

Relevant experience

Yes

Relevant education

Yes

Professional achievements

Partner at Bouldin Greek Partners

LinkedIn

Yes

Connections

500+

Endorsements / Recommendations

Yes

 

John Burruss

Position

Director of Customer Engagement

Total experience

39+ years

Relevant experience

Yes

Relevant education

No (Literature)

Professional achievements

Co-Proprietor at Holbrook Farm

7 publications

LinkedIn

Yes

Connections

359

Endorsements / Recommendations

Yes

 

Jon Saperia

Position

Enterprise Architect

Total experience

37+ years

Relevant experience

Yes

Relevant education

Yes

Professional achievements

Principal Consultant at JDS Consulting/ JDS Management software, Inc

1 publication

LinkedIn

Yes

Connections

236

Endorsements / Recommendations

Yes

 

Michael Anderson

Position

Software Architect

Total experience

-

Relevant experience

-

Relevant education

-

Professional achievements

-

LinkedIn

No

Connections

-

Endorsements / Recommendations

-

 

Rosemary Holly

Position

Enterprise Solutions Architect

Total experience

23+ years

Relevant experience

Yes

Relevant education

No (Radio, Television, Film)

Professional achievements

President, CTO at Luminara Consulting

1 publication

LinkedIn

Yes

Connections

478

Endorsements / Recommendations

Yes

 

Nick Etson

Position

Blockchain Security Architect

Total experience

16+ years

Relevant experience

Yes

Relevant education

Yes

Professional achievements

Software Developer at Telurix LLC

Software Developer at Swales Aerospace

LinkedIn

Yes

Connections

26

Endorsements / Recommendations

No

 

JP Maxwell

Position

Development team

Total experience

21+ years

Relevant experience

Yes

Relevant education

No (Communication and Media Studies)

Professional achievements

Owner at Tipit, LLC

LinkedIn

Yes

Connections

484

Endorsements / Recommendations

Yes

 

Manuel Razzari

Position

Development team

Total experience

16+ years

Relevant experience

Yes

Relevant education

No (Multimedia)

Professional achievements

Developer at Con Vista al Mar

1 publication

LinkedIn

Yes

Connections

402

Endorsements / Recommendations

Yes

 

Fernando Aramendi

Position

Development team

Total experience

9+ years

Relevant experience

Yes

Relevant education

Yes

Professional achievements

Managing Partner at Devartis

LinkedIn

Yes

Connections

500+

Endorsements / Recommendations

Yes

 

Pablo García

Position

Development team

Total experience

-

Relevant experience

-

Relevant education

-

Professional achievements

-

LinkedIn

No

Connections

-

Endorsements / Recommendations

-

The Cognida Network project has the following key advisors:

Dustin Byington

Position

Advisor

Total experience

10+ years

Relevant experience

Yes

Relevant education

Yes

Professional achievements

President at Wanchain

Crisis management analyst at Goldman Sachs

LinkedIn

Yes

Connections

500+

Endorsements / Recommendations

Yes

 

Steve Sprague

Position

Advisor

Total experience

19+ years

Relevant experience

Yes

Relevant education

Yes

Professional achievements

CEO, Founder at Rivetz

CEO at Rivetz Corp

LinkedIn

Yes

Connections

500+

Endorsements / Recommendations

Yes

 

Oliver Birch

Position

Advisor

Total experience

6+ years

Relevant experience

Yes

Relevant education

No (Politics and Economics)

Professional achievements

Vice President at Wanchain

Country Manager at MeDiNova Research

LinkedIn

Yes

Connections

500+

Endorsements / Recommendations

Yes

Wayne Lawler mentions on his LinkedIn profile that he is currently doing Global Sourcing Operations at Applied Materials. Although it is stated on the project website that Wayne Lawler is a founding partner and advisor at Windmill Enterprise, it is not confirmed on his LinkedIn profile.

Frank Fernandez has mentioned on his LinkedIn profile that he is also a Founder and Managing Director at Geteway Private Capital Inc.

Although it is stated on the project website that Josh Jones is CMO and Shari Joseph is CFO of the Cognida project, on their LinkedIn profiles it is stated that they are only advisors to this project, and currently have duties at other companies.

Jon Saperia does not state on his Linkedin profile that he works at Windmill Enterprise, or that he is involved in the Cognida project, but states that he is currently working as an enterprise architect at Harvard University.

Rosemary Holly mentions on her LinkedIn profile that she is currently working as President/CTO at Luminara Consulting. Although it is stated on the project website that Rosemary Holly is an Enterprise Solutions Architect at Windmill Enterprise, it is not confirmed on her LinkedIn profile.

Nick Etson does not stated on his LinkedIn profile his affiliation to the Cognida project, he is currently working as a Software Developer at Telurix LLC.

JP Maxwell does not state on his Linkedin profile that he works at Windmill Enterprise, nor that he is involved in the Cognida project, but he is currently an Owner at Tipit, LLC, and the Chief Technology Officer at Volo Hospitality Systems Corp.

Manuel Razzari does not state on his Linkedin profile that he works at Windmill Enterprise, nor is he involved in the Cognida project, but he is currently working as a developer at Con Vista Al Mar, Buenos Aires Working Group Member at IxDA, and a professor at UTN Buenos Aires.

Fernando Aramendi does not state on his Linkedin profile that he works at Windmill Enterprise, nor is he involved in the Cognida project, but he is currently working as a managing partner at Devartis.

According to the Cognida whitepaper, the project has a growing list of technology and development partners such as:

  • Rivetz is a formal Windmill technology partner who takes advantage of security hardware being integrated into mobile processors. This provides a vault for private keys that cannot be accessed by applications. It brings an entirely new level of device authentication that secures data transactions and validates data at the source.

  • Factom, which offers cross-chain transaction services, supporting document security and authentication.

  • Wanchain, which operates a private, consensus-based Blockchain platform that addresses the needs of enterprises and financial institutions. Wanchain connects to multiple blockchain platforms to facilitate cross-chain token exchanges.

  • Information IX’s core technology and Tensor-Connect evolved out of decades of connecting devices and systems to the internet in demanding industrial environments.

  • CareConnex is an FDA Medical Device Data System (MDDS) with 10+ years of transferring, storing, converting, formatting, displaying, and integrating patient data from medical devices in hospital ICUs, EDs, General Surgical departments, and Homecare sectors.

However, there are no press releases confirming partnerships with Factom. Also, regarding the Wanchain, it is said that its President, Dustin Byington, who is a son of Bing Byington, has joined up with Windmill on the Cognida project.

None of the advisors discloses their advisory to Cognida Network on their LinkedIn profile.

The management team comes from Windmill Enterprise and seems to have relevant management experience, however, the team lacks experience in the blockchain sphere. Moreover, there are no links to LinkedIn in the whitepaper, nor on the website; and not all members of the project team stated on their LinkedIn profiles their affiliation with the project.

Token analytics

The total token supply is fixed at 550 000 000 COG, 54% of which is planned to be allocated for public sale and private pre-sale with a USD 20 million hardcap.  

The Cognida is an ERC20 utility token which facilitates the Settlement function between providers of services to create a unified token.

COG tokens are to be used as the native currency for Cognida platform to pay for services on the platform such as the fee for enabling enterprises to establish trusted service relationships with DAPP, SAAS, Cloud, and cryptocurrency services.

Foundation members will jointly oversee ongoing development of the Cognida platform. This will involve membership voting to issue proposals for new projects and the selection of developers/vendors. In this regard, COG tokens will be the method of compensation for ongoing development. Primary development enhancements include:

  • API libraries for new blockchains.

  • New security services.

  • Open source decentralized applications.

  • Administration tools.

Besides, the Foundation will provide oversight and administration of the Cognida Service Network, including recruitment of service vendors and oversight and enforcement of service network policies. Service network connection and transaction fees will provide the Foundation with funds for these ongoing services.

Token price factor analysis

FACTOR

DESCRIPTION

PRICE EFFECT

Development and release of new products according to the roadmap

The team plans to launch the network in July 2018, and then extend its functionality gradually until the end of 2018 which may increase the demand for the service and, consequently, lead the price upwards.

⬆⬆⬇

Demand for the platform

Given that the Cognida Network platform is an infrastructural platform, long-term demand for the platform may lead token prices upwards.

⬆⬇

Sale of tokens by the team, advisors and contributors

16% of tokens are reserved for foundation, 12% and 8% for team and advisors, respectively. The vesting period equals 1/3rd every 120 days, which might impact the price in the short-term.

Significant bonuses during private sale round

Since the date of analysis, the pre-ICO round is ongoing, however, there is no information regarding bonuses for pre-ICO, and any lock-up period for the bonuses makes it impossible to assess its impact on the token price. According to the team’s representative, the details should be clarified soon.

Not Assessed

Token inflation mechanism

Assuming that the company develops the platform as intended, market penetration is sufficient and the demand for the service exists and is growing. A limited token supply will result in a long-term deflation of the token price.

Volatility and immaturity of the cryptomarket

Although the token lacks speculative purposes, it is used as an internal payment mechanism within the platform, therefore high volatility in crypto markets may cause traders and speculative investors to trade Cognida Network tokens, which may result in price fluctuations or even speculative activities (pump and dump, etc.).

⬆⬇

Investment risk analysis

RISK

DESCRIPTION

LEVEL

ICO details which cannot be verified at date of analysis

The lack of information regarding the ICO is particularly unclear how the proceeds will be used, what the bonuses are for the pre-ICO round and whether there is any lock-up period for the bonuses. Besides, the KYC/whitelist details are not specified yet. According to the team’s representative, the information should be clarified soon. However, as the ICO will launch in less than a month, the lack of aforementioned details can significantly increase the level of risk for potential investors.

High

Absence of an MVP

As of now, there is no MVP available, however, according to the team’s representative, the working prototype is being developed on a private GitHub repository which will be opened to the public prior to the July 2018 launch of the network.

High

Project’s public GitHub is not active enough

At the time of writing (July 2018), there is no official GitHub profile of the project found. Given that the team is planning to launch the network on July 20, 2018, and how impossible it is to assess the degree of the project’s development, the level of risk for potential investors increases. According to the team’s representative, the project GitHub profile is private and should be released soon.

Medium

Team composition / competence

The management team comes from Windmill Enterprise and seems to have relevant management experience, however, the team lacks experience in the blockchain sphere. Moreover, there are no links to LinkedIn in the whitepaper, nor on the website; and not all members of the project team stated on their LinkedIn profiles their affiliation with the project. None of the advisors discloses their advisory to Cognida Network on their LinkedIn profile. Also, there are no press releases confirming partnerships with Factom.

Medium

Incomprehensive roadmap

The project roadmap, presented on the project website, does not contain any information about marketing and business development activities, and there are no details regarding the project partnership plans.

Medium

Incomprehensive whitepaper

The Cognida Network has comprehensive and detailed whitepaper and technical papers when it comes to technical features of the project. However, we believe the following information is missing:

  • Absence of market and direct competitor analysis

  • There is no proceed allocation scheme

  • It is unclear how funds will be used in case the hardcap is not reached

There is no forecasted marketing and business development activities, as well as details of partnership plans

Medium

Unclear project economy

The team does not disclose detailed forecast use of proceeds from the ICO, and fees for the services of the Network are unclear.

Medium

Poor marketing activity

Token generation event scheduled for September 2018, however as of the date of our analysis official telegram channel has less than 10 thousand followers what indicates low interest and awareness of the community. We also note that the team has claimed that they have successfully launched private trials in the end of July 2018, however, we were not able to find proofs. We also note that official Medium channel was updated long ago.

Medium



 

The information contained in the document is for informational purposes only. ICORating received monetary compensation from the entity rated in this report for completing the ratings report.  

However, the entity rated in this report did not have the opportunity to approve this rating report before the report was published, nor did the rated entity have the opportunity to edit or remove this report once it was published. The views expressed in this document are solely those of the ICORating Team, based on data obtained 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.